"Costco is emerging as a high‑profile test case for whether big business can buck President Donald Trump's crackdown on corporate diversity-and still win with investors and shoppers alike. While rivals like Target and Walmart have moved to scale back diversity, equity, and inclusion (DEI) programs in response to political and legal pressure from Washington, Costco has largely held its course-and its business is thriving."
"Over the past year, Costco's board and new chief executive Ron Vachris have repeatedly and publicly reaffirmed the warehouse chain's DEI commitments, even as the Trump administration has turned such programs into a political target. The day after returning to the White House, Trump signed an executive order directing federal agencies to investigate DEI efforts at major public companies and large nonprofits, warning of potential legal action against firms whose programs are deemed discriminatory."
"Target, under pressure from conservative activists and the new administration, announced days after Trump's order it would wind down key pieces of its long‑standing DEI strategy, including its Racial Equity Action and Change (REACH) initiative, and would let earlier three‑year DEI goals expire. Walmart, the country's largest private employer, had begun rolling back its diversity policies months earlier, shifting language away from "DEI," revising supplier programs and reducing the visibility of internal equity efforts."
Costco has publicly reaffirmed DEI commitments under its board and new CEO Ron Vachris while competitors scaled back programs amid political and legal pressure. A presidential executive order prompted federal scrutiny of corporate DEI efforts and spurred many firms to retreat. Target announced it would wind down major DEI initiatives and let prior goals expire. Walmart began rolling back diversity policies, revising supplier programs, and reducing internal equity visibility. Other major brands similarly scaled back or rebranded diversity work. Conservative activists pushed anti‑DEI shareholder proposals demanding formal reviews of litigation risks tied to diversity policies.
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