Texas Attorney General Ken Paxton and 18 other Republican state officials are pushing wholesale retailer Costco to reverse its diversity, equity, and inclusion (DEI) policies. In a letter to the company’s president, the officials called on Costco to treat every person equally based on merit, rather than divisive and discriminatory practices. The letter referenced President Donald Trump’s executive order against DEI policies and requested Costco to repeal its policies within 30 days.
Costco shareholders recently voted against a proposal to evaluate the risks of maintaining the company’s DEI efforts, with the National Center for Public Policy Research warning of potential legal, reputational, and financial risks. The board of directors argued that the company’s commitment to respect and inclusion is necessary, emphasizing the importance of diversity initiatives in the workplace.
Despite Costco’s defense of its DEI programs, Paxton labeled them as unethical, unlawful, and un-American. He criticized the company for promoting divisive and discriminatory ideologies, calling for an end to their “woke policies” immediately. Paxton’s stance on DEI policies has sparked criticism from Washington Attorney General Nick Brown, a Democrat, who believes in allowing private companies to make decisions that benefit their workforce.
With 43 Costco outlets in Texas, the push against DEI policies could have significant implications for the company’s operations in the state. Costco has yet to respond to the calls for policy reversal, sparking debate over the role of diversity initiatives in the workplace and the government’s involvement in private sector decisions.
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