My Dumb State, South Carolina: South Carolina Attorney General Alan Wilson Sues Costco To Abandon DEI. What About BMW?

In 1994, BMW started manufacturing BMW in Greer, spanning Spartanburg County and Greenville County in South Carolina. Landing BMW was huge for South Carolina and is considered the crown jewel.

I find it ironic that South Carolina Attorney General Alan Wilson has not asked BMW to end their DEI, given that BMW Group has a diversity, equity and inclusion (DEI) policy.

Attorney General Alan Wilson joins 19 states in urging Costco to end unlawful DEI policies - South Carolina Attorney General

JAN 28, 2025

Attorney General Alan Wilson joins 19 states in urging Costco to end unlawful DEI policies

(COLUMBIA, S.C.) – South Carolina Attorney General Alan Wilson joined attorneys general from 18 other states in calling on Costco to end its unlawful diversity, equity, and inclusion (DEI) policies, which they assert violate state and federal anti-discrimination laws. The letter, sent to Costco’s leadership, demands the company repeal these divisive policies within 30 days, emphasizing that Costco’s practices stand in direct opposition to its stated motto, “Do the right thing.”

“Costco’s DEI policies may have a fancy name, but at their core, they’re about discrimination, not diversity,” said Attorney General Wilson. “America was built on the idea that individuals are judged by their character and contributions, not the color of their skin. Costco should focus on merit, not woke politics.”

The letter highlights the Supreme Court’s recent decision in Students for Fair Admissions v. Harvard, which struck down race-based preferences and classifications. Justice Clarence Thomas’s opinion in that case reaffirmed that such practices contradict the principles outlined in the Declaration of Independence and the Constitution, which guarantee that all individuals are created equal and must be treated equally under the law.

In recent months, many companies, including Amazon, Ford, McDonald’s, Meta, and Walmart, have abandoned or reevaluated their DEI policies in light of legal challenges and public pressure. Costco, however, has doubled down, with its board of directors unanimously opposing a shareholder proposal to study the financial risks associated with these policies.

“Costco’s refusal to step away from discriminatory practices not only risks lawsuits but also jeopardizes the trust of its customers, employees, and investors,” added Attorney General Wilson. “The Supreme Court has made it crystal clear: eliminating racial discrimination means eliminating all of it.”

The letter also urges Costco to redirect its focus to other pressing issues, including allegations of slave labor in its supply chain, rather than clinging to policies that sow division and violate the law. The attorneys general have requested a response from Costco within 30 days, either confirming the repeal of its DEI policies or providing an explanation for their continuation.

You can read the letter here.

Ron Vachris President and Chief Executive Officer Costco Wholesale Corporation 999 Lake Drive Issaquah, Washington 98027

Dear Mr. Vachris:

We, the undersigned Attorneys General of 19 States, urge Costco to end all unlawful discrimination imposed by the company through diversity, equity, and inclusion (“DEI” policies. 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. Costco should treat every person equally and based on their merit, rather than based on divisive and discriminatory DEI practices. That reflects President Trump’s executive order encouraging “the Private Sector to End Illegal DEI discrimination and Preferences.”

The Supreme Court has repeatedly warned against using race-based preferences and classifications. Most recently, Students for Fair Admissions v. Harvard explained that “Distinctions between citizens solely because of their ancestry are by their very nature odious to a free people whose institutions are founded upon the doctrine of equality.” That is because, as Shaw v. Reno noted, racial classifications “reinforce the belief, held by too many for too much of our history, that individuals should be judged by the color of their skin.” That reflects our Constitution, as Harvard recognized, that, “[r]acial discrimination [is] invidious in all contexts.”

Race-neutral practices, on the other hand, honor the founding ideals of this country. Pena-Rodriguez v. Colorado held that “It must become the heritage of our Nation to rise above racial classifications that are so inconsistent with our commitment to the equal dignity of all persons.” And as Justice Thomas wrote in Harvard, DEI is inconsistent with the “principles so clearly enunciated in the Declaration of Independence and the Constitution of the United States: that all men are created equal, are equal citizens, and must be treated equally before the law.” Costco should not have policies that discriminate in hiring based on race or gender. Immediately following the Supreme Court’s SFFA decision, State Attorneys General warned corporate America to stop unlawful DEI policies. Thankfully, many companies listened. Companies renouncing DEI include Amazon, Ford, John Deere, McDonald’s, Meta, and Walmart. As the Wall Street Journal explained, “[c]ompanies are wise to re-examine their policies even without the political pressure,” which is “steering companies back to their fundamental mission to focus on increasing shareholder value, rather than politics.” This is a refreshing change.

Inexplicably, Costco has doubled down on DEI. Last month, Costco’s board of directors unanimously recommended that shareholders vote against a proposal requiring Costco to study and report on financial risks associated with its DEI policies. While defending the company’s DEI policies to a customer, you reportedly proclaimed that you are “not prepared to change.” Unfortunately given board composition that is not surprising. One member of your board of directors, who previously served as CEO of the Bill & Melinda Gates Foundation, has called for companies to “maximize DEI efforts.” Costco’s position runs contrary to the Supreme Court’s recent decisions and raises concerns about Costco’s compliance with State and federal laws.

Following the Harvard decision, State Attorneys General have diligently worked to stop unlawful discriminatory practices. Some companies have been sued over DEI policies. Other companies are under investigation for issues relating to DEI. And beyond eliminating legal exposure, repealing its DEI policies would provide Costco with time to deal with other important issues, such as questions regarding the alleged connection between Costco products and slave labor in China.

Now, the federal government is also focusing on ensuring invidious race-based discrimination no longer finds a home in woke corporations. President Trump’s executive order recognized that “[i]llegal DEI and DEIA policies not only violate the text and spirit of our longstanding Federal civil-rights laws, they also undermine our national unity.”

The Supreme Court said it best: “Eliminating racial discrimination means eliminating all of it.” For the good of its employees, investors, and customers, Costco should “do the right thing” by following the law and repealing its DEI policies. Within 30 days, please either notify us that Costco has repealed its DEI policies or explain why Costco has failed to do so. We look forward to your response.

Sincerely,

Brenna Bird Attorney General of Iowa

Kris Kobach Attorney General of Kansas

Steve Marshall Attorney General of Alabama

Liz Murrill Attorney General of Louisiana

Tim Griffin Attorney General of Arkansas

Andrew T. Bailey Attorney General of Missouri

Austin Knudson Attorney General of Montana

Chris Carr Attorney General of Georgia

Mike Hilgers Attorney General of Nebraska

Raúl R. Labrador Attorney General of Idaho

Russell M. Coleman Attorney General of Kentucky

Drew Wrigley Attorney General of North Dakota

Dave Yost Attorney General of Ohio

Gentner Drummond Attorney General of Oklahoma

Alan Wilson Attorney General of South Carolina

Marty Jackley Attorney General of South Dakota

Jonathan Skrmetti Attorney General of Tennessee

Ken Paxton, Attorney General of Texas

Bridget Hill Attorney General of Wyoming

John Guard Acting Attorney General of Florida

Derek E. Brown Attorney General of Utah

Todd Rokita Attorney General of Indiana

Austin Knudson Attorney General of Montana

Costco DEI Policy

Inclusion

We seek to provide an environment that celebrates the differences of our workforce and creates career opportunities for all employees.

BMW

The power of diversity – BMW

23.05.2023

The power of diversity.

Diversity, equity and inclusion are an integral part of HR strategy in the BMW Group. Putting diversity into practice is becoming one of our key success factors and makes us attractive as an employer.

How you treat your fellow human beings makes a big difference. You can respect that others are different from the so-called “norm” and not give it another thought. But you can also consciously take note of how people are different and special, take an interest in them and include them. Be curious and learn how they think and act and what makes them tick. Understand their perspectives as enriching and learn from these.

To meet your fellow human beings without prejudice, to treat each other and work together with trust, openness and appreciation. The BMW Group has been living this attitude for a long time now, because, after all, diversity is what sets us apart. We are a global, diverse team at the BMW Group, with around 150,000 employees from more than 110 nations, who come together to contribute to the company’s success.

Diversity means strength

We promote diversity and an open, inclusive corporate culture within the BMW Group. To this end, we have firmly anchored a holistic framework for diversity, equal opportunities and inclusion in our human resources strategy. As a company, it is our duty to create the right environment for all employees to feel they belong and can develop – regardless of their background. Everyone should be employed on the strength of their individual talent and potential as much as possible, so that the team can unlock its greatest strength and motivation.

A diverse workforce means we are more competitive, more effective and more innovative. We better understand the expectations of our global stakeholders and can make smarter decisions as a result. Diversity enriches our culture, our everyday working life and thereby also increases our employees’ motivation. It strengthens our attractiveness as an employer, which contributes more and more to our success, especially in these times of demographic change and scarcity of skilled workers.

Five dimensions of diversity at the BMW Group

We are constantly evolving our five diversity dimensions – gender, age and experience, physical and mental abilities, sexual orientation and identity, and cultural background – for a human working environment that accommodates diverse perspectives and passions.

Equal opportunities are a reality at the BMW Group regardless of gender, and not just some empty promise. The number of women in leadership positions is growing steadily in our company: in 2023, 20.8 per cent of our managers were female, and we want to increase this further. We promote this goal through working models such as joint leadership. Fair salaries and equal pay are a natural part of our culture. BMW AG was the first German company to receive the Gold Standard for Equal Pay – this is a validation and a driving force for us.

To help us improve in the dimension of gender, we constantly review our measures and have them analysed regularly by external organisations. For 2023, BMW AG’s performance was evaluated by a further number-, data- and fact-based indicator: the Women’s Careers Index KFi. Our third place in the ranking confirms that we continue to improve and progress towards our goals for the advancement of women and diversity.

In the context of age and experience, we offer initiatives for all ages. As well as a wide range of offers for trainees and younger target groups, we have programmes that draw on the specific knowledge and many years of experience of our older employees: for example, we have set up the Senior Expert Programme, which passes on targeted expertise. We offer individually optimal working conditions by creating opportunities for ergonomic, flexible and mobile working.

Employees with special physical and mental abilities should be able to contribute and develop optimally with us. The inclusion agreement that we developed in 2022 with the General Works Council and the General Representative Council for Employees with Disabilities is an important milestone. In parallel, we have expanded our accessibility specifications in construction and IT to further strengthen equal opportunities and participation in working life. We get involved outside our company by committing resources to workshops for people with disabilities. We joined “The Valuable 500” global initiative back in 2021. This strives for sustainable improvements for people with disabilities.

No one should feel disadvantaged at our company because of their sexual orientation and identity. The BMW Group PRIDE employee network acts as a voice for the LGBTIQ+ community (Lesbian, Gay, Bisexual, Transgender, Intersex, Queer and other gender identities), where diversity, equality, trust, respect and inclusion are paramount. Together, we ensure a tolerant and open working environment where everyone is welcome – regardless of who they love or what identity they feel they belong to. Our PRIDE networks will be participating in Christopher Street Day at various locations.

With a global team in more than 140 countries, cultural exchange is essential for mutual understanding and teamwork. For example, we have started an exchange programme for apprentices so they can learn the value of intercultural cooperation right at the beginning of their professional lives. At the main plant in Munich alone, people of more than 110 nationalities work together. We feel this is an enrichment in every respect and see the promotion of intercultural competences as an ongoing task that we actively tackle every day.

Sometimes awareness needs a cause

Several times a year, we put a particular focus on the issue of diversity in our company: the UN Day of Cultural Diversity, which takes place on 21 May, and the German Diversity Day, launched by the Diversity Charter on 28 May, are just two examples. By signing the Charter – an initiative that promotes diversity in corporate culture in Germany – we officially accepted the responsibility to ensure a prejudice-free working environment back in 2011. Since 2011, we have also been involved with the United Nations Alliance of Civilizations (UNAOC) within the framework of the Intercultural Innovation Hub. Under the motto “connect, empower, elevate”, innovative projects that seek solutions to intercultural tensions and conflicts are rewarded with prizes.

How we live diversity in our everyday work

We find the topic of diversity so essential today that we offer diversity campaigns and events throughout the year that sensitise our employees and encourage them to exchange ideas with each other. What this shows is that diversity is relevant to us 365 days a year, and we attach equal importance to all dimensions of diversity, all of which we continuously promote.

With training courses, talks, and discussion forums, we raise awareness among employees and managers of the positive contribution that diversity makes in the company. The spectrum ranges from digital diversity escape rooms to workshops, for example, on subconscious thought patterns and prejudices, to culinary diversity in our company restaurants. We sensitise managers to make the best use of the diversity of their teams in the “Leading with Diversity” training course. We offer “Zero Tolerance” training courses for all managers to foster an attitude and culture that is open and free from exclusion. The training is available to all employees - as well as a general web-based training on diversity. Since the end of 2022, we have been offering a “Zero Tolerance” hotline, which provides an anonymous and professional counselling centre in cases of bullying, discrimination, and sexual harassment in the workplace. Because we want everyone to feel accepted in our company.

Our commitment to diversity goes hand in hand with a corporate culture with strong values: responsibility, appreciation, openness, transparency and trust – these apply to our dealings with each other, but also with partners, suppliers and other stakeholders. This is how we secure a successful future for the BMW Group and long-term prospects for all the people who work here.

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