RICHMOND, Va. — Virginia Attorney General Jason Miyares has joined a coalition of 18 other state attorneys general in urging Costco to end what they describe as “unlawful” Diversity, Equity, and Inclusion (DEI) policies. The attorneys general sent a letter to Costco’s president and CEO, Ron Vachris, calling on the company to end practices they argue discriminate against certain groups in favor of diversity initiatives.
The letter, dated recently, criticizes Costco for maintaining its DEI policies despite growing legal challenges and shifting stances among other major corporations. “Although Costco’s motto is ‘do the right thing,’ it appears that the company is doing the wrong thing—clinging to DEI policies that courts and businesses have rejected as illegal,” the letter reads.
The letter specifically references President Donald Trump’s executive order titled Ending Illegal Discrimination and Restoring Merit-based Opportunity, which sought to curtail government-sponsored diversity programs that it argued promoted discrimination rather than equal opportunity. The attorneys general claim that Costco’s DEI policies are a form of discrimination that favor certain groups, potentially violating federal and state laws that prohibit such actions.
In addition to Costco, the letter points to other major companies that have reportedly scaled back or adjusted their DEI initiatives, including Amazon, Ford, McDonald’s, Meta, and Walmart. The coalition argues that these companies have taken a more cautious approach after facing legal challenges and public scrutiny over their diversity programs.
Costco, however, has stood by its policies. The company’s board of directors recently voted unanimously to ask shareholders to reject a proposal that would have required an evaluation of any business risks associated with its DEI practices. In a statement, the board emphasized the company’s commitment to respect and inclusion, calling it an essential part of its corporate culture. “The report requested by this proposal would not provide meaningful additional information,” Costco’s board said.
Despite the board’s position, the attorneys general have demanded that Costco notify them within 30 days if it decides to repeal its DEI policies or provide a detailed explanation for maintaining them. The letter signals mounting pressure from conservative officials on companies to reconsider their diversity and inclusion programs, which have become increasingly controversial in recent years.
This development is part of a broader national conversation about DEI policies in the private sector. As companies like Costco continue to navigate these issues, they face a delicate balance between adhering to diversity commitments and avoiding potential legal challenges.
