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Costco's DEI Commitment: A Deep Dive into Company Culture

A former Costco executive has come to the defense of the company's diversity, equity, and inclusion (DEI) policies amidst criticism, arguing that these principles are ingrained in Costco's culture and predate the term "DEI" itself.

Roger Campbell, who served as Senior Vice President of Costco's International Division until 2015, shared his perspective with Fox News Digital, emphasizing that DEI has always been integral to Costco's business operations. He stated, "The term DEI didn’t even exist to us, it was the way we ran our business… it’s who we are."

Campbell, who dedicated 29 years to Costco, rising through the ranks from a trainee, believes the company's success is deeply rooted in its culture. He argues that DEI is not a separate initiative but rather a reflection of Costco's longstanding values.

Costco storefront in Kaohsiung, Taiwan

While acknowledging he doesn't speak for current Costco leadership, Campbell suggests the company's staunch defense of its DEI policies stems from the board's view that these attacks target the very essence of their business model.

Campbell highlighted Costco's employee-centric approach, stating, "Our whole idea was taking care of the employee. Our whole idea was a very simple thing — if you hire good people, pay them good wages and give them good benefits, then likely good things are going to happen."

Costco's commitment to DEI has recently faced scrutiny, including a shareholder proposal to analyze the risks associated with these policies, which the board rejected. Nineteen state attorneys general also urged Costco to abandon its DEI programs, citing President Trump's executive order banning DEI in the federal government. Numerous other companies have rolled back their DEI initiatives in response to public pressure.

However, Campbell insists that DEI is deeply embedded in Costco's DNA, differentiating it from companies that adopted DEI programs merely to follow trends. He said, "It was the rules at some point in time. Somebody said ‘okay everybody has to get into DEI’ and you saw all these companies get into it and then get out of it because they never had one to start with. Call it what you want to call it, but we had something that worked."

Costco promotions based on merit

Campbell explained that Costco aimed to reflect the demographics of its surrounding communities in its hiring practices, achieving this organically without quotas. He emphasized that promotions were merit-based, though he admitted to occasionally prioritizing diverse candidates when qualifications were equal.

Costco exterior

Although formal DEI initiatives were introduced around the time of Campbell's departure, he believes they merely formalized existing practices. He stated, "[The board is] associating DEI with the history of our company. If it's in our books or its in our program it’s just because it existed. We just never called it DEI, we just always thought of it as our culture."

Despite its pro-worker reputation and reported low turnover rate, Costco faces a potential strike by unionized employees in some stores. The company's board has also drawn attention for political donations, with Chairman Hamilton E. James contributing significantly to Democratic-aligned PACs. Campbell, who identifies as conservative, dismisses the notion of political influence on the business.

While Campbell maintains Costco's long-term commitment to diversity, reports indicate a lack of diversity at the top management level, a point he acknowledges, stating, "We need more diversity at the top levels."