South Carolina Attorney General Alan Wilson has joined forces with attorneys general from 18 other states, urging Costco to discontinue its diversity, equity, and inclusion (DEI) policies. The group claims these policies breach state and federal anti-discrimination laws. A letter addressed to Costco’s leadership demands the company retract these practices within 30 days, arguing that they conflict with Costco’s motto, “Do the right thing.”
Attorney General Wilson remarked, “Costco’s DEI policies may have a fancy name, but at their core, they’re about discrimination, not diversity.” He emphasized the importance of judging individuals by character and contributions rather than race.
The letter refers to a recent Supreme Court ruling in Students for Fair Admissions v. Harvard. This decision struck down race-based preferences and classifications, with Justice Clarence Thomas reiterating that such practices contradict principles ensuring equality under the law.
Other major corporations like Amazon, Ford, McDonald’s, Meta, and Walmart have either abandoned or reassessed their DEI strategies due to legal challenges and public scrutiny. However, Costco has maintained its stance by unanimously opposing a shareholder proposal to examine financial risks associated with these policies.
Wilson further commented on Costco’s position: “Costco’s refusal to step away from discriminatory practices not only risks lawsuits but also jeopardizes the trust of its customers, employees, and investors.” He referenced the Supreme Court’s clear directive against racial discrimination.
The letter also encourages Costco to address other significant concerns such as alleged slave labor in its supply chain instead of maintaining divisive policies. The attorneys general have requested a response from Costco within 30 days confirming whether it will repeal its DEI policies or explaining their persistence.
