Costco Defends DEI Policies Despite Backlash from Conservative Leaders

Costco remains firm in its commitment to diversity, equity, and inclusion (DEI) policies despite increasing pressure from Republican leaders and corporate America’s growing shift toward merit-based practices.

Critics argue the company is out of step with the times, but a former executive insists DEI has always been part of Costco’s DNA—long before the term became a political flashpoint.

Former Costco Exec: DEI Is “Just Who We Are”

Roger Campbell, who served as Senior Vice President of Costco’s International Division before retiring in 2015, insists the company’s DEI initiatives are nothing new.

“The term DEI didn’t even exist to us. It was just the way we ran our business,” Campbell, 82, told Fox News Digital. “It’s who we are.”

Campbell, who started at Costco in 1986 as a store manager trainee, spent nearly three decades climbing the ranks. He says the company’s leadership has always believed that taking care of employees—regardless of race or gender—was key to its success.

“Our whole idea was simple: hire good people, pay them well, and give them benefits. That’s how you build a business,” he explained.

Costco Faces GOP Pressure to Drop DEI Policies

While many major corporations—including McDonald’s, Boeing, and Facebook—have rolled back their DEI programs in response to public and political pressure, Costco has refused to budge. The company’s board recently rejected a shareholder proposal to assess the risks of its DEI policies, triggering a sharp response from conservative leaders.

In a letter to Costco CEO Ron Vachris, attorneys general from 19 Republican-led states demanded the company eliminate DEI programs to align with President Trump’s recent executive order banning DEI initiatives in federal agencies and government contractors.

“Costco needs to get with the program,” said Texas Attorney General Ken Paxton. “Americans want fairness, not race-based hiring quotas.”

Campbell: Promotions Were Always Based on Merit

Despite his defense of DEI, Campbell insists that Costco has never used racial or gender quotas in hiring or promotions.

“Diversity was a word we used, but we never said, ‘Oh, we need to create a program,’” he said. “Promotions were always based on merit.”

Campbell, however, acknowledged that in cases where two candidates were equally qualified, he sometimes considered race as a tiebreaker.

“If I had two people who could both do the job, there were times I thought, ‘Let’s give this diverse person a shot instead of holding them back,’” he admitted.

Costco Board Ties to Democratic Causes Raise Eyebrows

Some conservatives question whether Costco’s DEI stance is politically motivated. Chairman of the Board Hamilton E. James has donated hundreds of thousands of dollars to Democratic-aligned political action committees, with other board members following suit.

Despite these donations, Campbell, a self-identified conservative, rejects the idea that the board enforces a left-wing agenda.

“I never felt political ideology played a role in the way we did business,” he said.

Critics: Costco’s Leadership Lacks Diversity

Ironically, while Costco champions DEI, its highest ranks remain overwhelmingly White and male. According to a Wall Street Journal report, 72% of Costco’s top managers are men, and 81% are White.

Even Campbell concedes that diversity at the company’s executive level is lacking.

“We need more diversity at the top,” he said.

What’s Next for Costco?

As unionized employees in some Costco stores threaten to strike, the company faces mounting pressure on multiple fronts. Whether it will reconsider its DEI stance remains to be seen, but one thing is certain—Costco isn’t backing down without a fight.