Additional Coverage:
- Iowa AG vows to ‘look at all available options’ if Costco refuses to ditch DEI: ‘Follow our Constitution’ (foxnews.com)
Iowa Attorney General Brenna Bird is scrutinizing Costco’s diversity, equity, and inclusion (DEI) practices. She says she’s prepared to take action to ensure the company complies with state and federal laws.
Bird appeared on “Fox & Friends First” Wednesday, asserting that Costco must abandon DEI and adhere to civil rights laws, stating that race and gender identity-based hiring is illegal.
Nineteen state attorneys general, including Bird, have sent a letter to Costco urging the company to abandon its DEI programs. This follows a recent executive order from President Trump eliminating such programs from federal agencies and encouraging private companies to do the same.
Bird expressed concern over reports suggesting Costco ties executive bonuses to DEI metrics and that its leadership intends to continue race and gender-based hiring. She considers these “red flags.” The attorney general also pointed to the company’s board asking shareholders to reject a proposal examining the risks of its DEI policies.
Bird emphasized the need for Costco to demonstrate its legal compliance, citing other retailers that have modified their policies following Trump’s executive order. She stated her office is monitoring the situation and will consider all options if Costco doesn’t comply.
Costco Board Chair Hamilton E. James, however, maintains that the company’s commitment to inclusion doesn’t compromise merit or involve quotas or preferences. He stated that Costco hires and promotes the most qualified individuals.
Last month, Costco’s Board of Trustees urged shareholders to vote down a proposal challenging its DEI practices. In a letter to investors, the board defended its DEI efforts, stating they are rooted in inclusion and aimed at making employees feel valued. The board argues these efforts enhance the company’s ability to attract and retain employees, which is crucial to its success.