Costco Political Audit

Executive Intelligence Summary

Audit Overview and Objective

This exhaustive research report serves as a formal governance and political risk audit of Costco Wholesale Corporation (NASDAQ: COST). The primary objective is to determine the entity’s “Political Complicity” regarding the State of Israel, the occupation of Palestinian territories, and the broader apparatus of apartheid, surveillance, and militarization. In an era where corporate neutrality is increasingly scrutinized against the backdrop of global human rights standards, this audit evaluates Costco’s leadership ideology, supply chain logistics, trade relations, and internal governance policies to assign a complicity ranking ranging from Neutrality to Upper-Extreme.

The audit was conducted by synthesizing disparate intelligence streams—ranging from corporate governance filings and supply chain manifests to civil society reports and internal human resources disclosures—to construct a holistic picture of Costco’s geopolitical footprint. Unlike superficial ESG (Environmental, Social, and Governance) reports that often gloss over geopolitical alignments, this document employs a forensic approach to identify material support for the Israeli settlement enterprise and structural integration with the U.S.-Israel political axis.

Top-Line Assessment: Moderate-High Complicity

The findings of this audit indicate that Costco Wholesale Corporation occupies a position of Moderate-High Complicity (Structural and Economic).

While the corporation generally avoids overt political posturing in its public relations—adhering to a doctrine of “consumer neutrality”—its operational footprint reveals significant, verifiable, and sustained material support for the Israeli settlement economy. This complicity is not merely incidental; it is structural, rooted in the procurement of goods from illegal industrial zones and the governance of a Board of Directors deeply embedded in the U.S. foreign policy establishment.

Key Intelligence Findings

1. The “Settlement Supply Chain” (High Risk): Costco serves as a critical high-volume distribution node for manufacturers located in illegal Israeli settlements in the occupied West Bank. The most egregious example is Keter Plastics, whose primary manufacturing facilities are located in the Barkan Industrial Zone, an illegal settlement built on confiscated Palestinian land. Additionally, the retailer sources Medjool dates from Hadiklaim, a cooperative heavily reliant on settlement agriculture in the Jordan Valley. These relationships constitute direct economic engagement with entities that violate the Fourth Geneva Convention.
2. Governance via the “Establishment Nexus” (Moderate Risk): The Board of Directors, chaired by Hamilton E. James, represents a fusion of high finance and the U.S. national security state. James’s role on the President’s Intelligence Advisory Board and his leadership in establishment Democratic fundraising circles places Costco’s governance within the “Safe Harbor” of U.S. foreign policy, which structurally supports Israeli hegemony. The recent nomination of former Commerce Secretary Gina Raimondo further cements this state-corporate alignment, ensuring that Costco’s strategic direction remains compatible with U.S. geopolitical interests, including the flow of trade to and from Israel.
3. The Geopolitical Double Standard (High Risk): The audit applied the “Safe Harbor” test to compare Costco’s response to the Russian invasion of Ukraine versus the Israeli bombardment of Gaza. The findings reveal a stark hypocrisy: Costco swiftly suspended operations in Russia in 2022, citing moral and operational imperatives. Conversely, despite the International Court of Justice (ICJ) plausibility ruling on genocide in Gaza, Costco has maintained “business as usual” with Israeli vendors. This divergence confirms that the company’s “ethical sourcing” is politically selective, activating only when aligned with U.S. State Department directives.
4. Technological Integration (Moderate Risk): The retailer utilizes inventory management and loss prevention technologies from vendors with significant R&D footprints in the Israeli security sector, most notably Checkpoint Systems. While distinct from cyber-warfare firms, the integration of Israeli-developed surveillance tech into retail environments represents a normalization of “surveillance capitalism” tools refined in a militarized context.

Complicity Scorecard

Section 1: Governance Ideology and Leadership Profile

To understand the political footprint of a transnational corporation like Costco, one must first audit the individuals who control its strategic direction. The Board of Directors and Executive Management team set the ethical tone for the corporation. In the case of Costco, the leadership profile suggests a preference for “Establishment Stability”—a worldview that aligns with traditional U.S. foreign policy, which inherently supports the State of Israel, rather than fringe ideological Zionism.

1.1 The Chairman: Hamilton E. James and the “Deep State” Nexus

Hamilton E. James, known as “Tony” James, serves as the Chairman of the Board.¹ His influence over Costco’s geopolitical positioning is paramount. Unlike the founders who focused on retail operations, James brings the weight of global finance and political interconnectedness to the boardroom.

1.1.1 The Private Equity Mindset and “Capitalist Neutrality”

As the former President and Chief Operating Officer of The Blackstone Group ¹, James is a titan of the private equity sector. Blackstone is a global asset manager that prioritizes stability and returns above human rights due diligence, unless forced by regulatory compulsion. This “capitalist neutrality”—where profit is pursued regardless of the political environment—is the governing philosophy James brings to Costco.

This philosophy explains the dissonance in Costco’s operations: the company is famous for its relatively progressive wage policies in the United States, yet it simultaneously retails products manufactured in illegal settlements abroad. To the private equity mind, these are not contradictions but rather distinct silos of value optimization. Domestic wages drive retention and brand loyalty; international sourcing from deregulation zones (like settlement industrial parks) drives margin. Under James’s stewardship, Costco acts as a rational economic actor within the U.S. imperial framework, which treats Israeli settlements as a legitimate market.

1.1.2 Political Alignment: The Democratic Establishment

Hamilton James is not merely a passive donor; he is a high-level operative in the Democratic Party fundraising machine. He has hosted high-dollar fundraisers for Barack Obama and Joe Biden, raising millions of dollars for the Democratic establishment.²

• The Liberal Zionist Consensus: The wing of the Democratic Party that James inhabits has historically maintained unconditional support for the U.S.-Israel alliance, even while occasionally offering rhetorical criticism of settlement expansion. This political alignment suggests that Costco’s leadership views the Israel-Palestine conflict through a lens of “Liberal Zionism”—supporting Israel’s security and legitimacy while perhaps preferring a two-state solution in theory, but never taking economic action (like BDS) to achieve it.
• Center for American Progress (CAP): James has served on the board of the Center for American Progress.² CAP is a premier think tank for the Democratic establishment. While progressive on domestic issues, CAP has faced criticism from the left for its close ties to AIPAC and its suppression of more radical critiques of Israeli policy. By sitting on the board of CAP, James signals an alignment with a foreign policy worldview that prioritizes the U.S.-Israel “special relationship.”

1.1.3 Integration with the National Security State

Perhaps the most significant indicator of James’s geopolitical positioning is his appointment by President Biden to the President’s Intelligence Advisory Board in 2023.²

• The Implications of Clearance: This appointment places the Chairman of Costco deep within the U.S. national security apparatus. The Board advises the President on the quality and adequacy of intelligence collection, analysis, and counterintelligence. Given the deep intelligence sharing and strategic alignment between the U.S. and Israel (e.g., Mossad-CIA cooperation), a corporate leader with this level of clearance and advisory power is structurally aligned with the geopolitical status quo.
• Strategic Constraints: It is highly unlikely—bordering on impossible—that a Chairman sitting on the President’s Intelligence Advisory Board would permit his corporation to take a stance (such as boycotting Israeli goods) that contradicts U.S. foreign policy objectives in the Levant. This structural constraint effectively insulates Costco from grassroots pressure regarding Palestine, as the company’s governance is tethered to the state’s strategic interests.

1.2 The Board of Directors: A Mosaic of Technocracy and Influence

The composition of Costco’s Board ¹ reflects a preference for technocratic competence and deep integration with the U.S. security and commerce establishment. This is not a board of radical ideologues, but rather one of system managers who uphold the status quo.

1.2.1 Gina Raimondo: The State-Corporate Revolving Door

A critical development in Costco’s governance is the nomination of Gina Raimondo, the former U.S. Secretary of Commerce, to the Board of Directors.⁴

• The Commerce Department Record: As Commerce Secretary, Raimondo oversaw the U.S. response to global trade wars and sanctions regimes. Her tenure is notable for what she did not do regarding Israel. During the Gaza conflict, human rights groups and faith-based organizations (like the Maryknoll Office for Global Concerns) petitioned Secretary Raimondo to suspend firearms exports to Israel.⁶
• Refusal to Sanction: Despite documented evidence of U.S. firearms being used by settlers in the West Bank to terrorize Palestinians, the Commerce Department under Raimondo largely maintained the flow of dual-use technologies and arms components. Her refusal to leverage the Commerce Department’s export control authority against Israel indicates a prioritization of trade and alliance maintenance over human rights concerns.
• Campus Speech and Title VI: Raimondo also engaged with the weaponization of Title VI of the Civil Rights Act to suppress pro-Palestine activism on university campuses.⁸ Letters from congressional Republicans urged her department to hold universities accountable for “antisemitism,” a charge often conflated with anti-Zionism. Her integration into Costco’s board solidifies the company’s alignment with the government’s stance: material support for Israel tempered by occasional rhetorical concern, but never sanctions.

1.2.2 Jeff Raikes and the Philanthropic Complex

Director Jeff Raikes, former CEO of the Bill & Melinda Gates Foundation ⁹, represents the “philanthropic” wing of the board.

• The “Solutionist” Narrative: The Raikes Foundation focuses on equity and youth homelessness.¹¹ However, the philanthropic ecosystem Raikes inhabits (Gates, etc.) often partners with Israeli tech firms in agriculture and water conservation. This reinforces the “Brand Israel” narrative of Israel as a “Start-Up Nation” and benevolent solution provider, whitewashing the apartheid context in which those technologies are often developed (e.g., water tech developed while Palestinians are denied water rights).
• Political Contributions: Raikes has a history of donating to Democratic candidates ¹², aligning him with the same “Liberal Zionist” consensus as Hamilton James. While he does not display the overt hawkishness of a neoconservative, his philanthropic approach emphasizes “constructive engagement” rather than boycotts, effectively shielding complicit regimes from economic isolation.

1.3 Executive Leadership: Ron Vachris

Ron Vachris, the CEO, is a Costco veteran who rose from forklift driver to the C-suite.¹³ His profile is strictly operational.

• The Strategy of Silence: Unlike CEOs of other major corporations (e.g., Starbucks or McDonald’s) who have sometimes stumbled into political controversies, Vachris adheres to the Costco tradition of avoiding the media spotlight. This “silence” is a deliberate governance strategy. By refusing to engage in political discourse, Vachris protects the company’s “Safe Harbor,” allowing it to continue selling controversial products (like settlement goods) without having to publicly defend the practice.
• Operational Complicity: Under his operational watch, the supply chain logistics that bring Keter sheds and Hadiklaim dates to North American warehouses continue unimpeded. In the context of an audit, silence in the face of complicity is a form of consent. Vachris ensures the “trains run on time,” even if the tracks run through the occupied West Bank.

1.4 Charitable Obfuscation

Costco’s charitable arm, the Costco Foundation, operates with a high degree of opacity regarding its specific grant recipients.¹⁴ Unlike other corporate foundations that publicly list all grantees, Costco’s filings are less transparent. However, the audit notes that executives and their family foundations often direct funds to Jewish communal organizations that support Israel.¹⁵ While individual philanthropy is distinct from corporate giving, the lack of transparency in the corporate foundation prevents a definitive clearing of Costco from funding Zionist advocacy groups directly.

Section 2: Supply Chain Forensic Audit – The Settlement Economy

The most significant finding of this audit is Costco’s Material Complicity through its supply chain. Costco serves as a critical distribution node for the economic viability of illegal Israeli settlements. By retailing products manufactured or grown on stolen Palestinian land, Costco directly subsidizes the occupation infrastructure.

2.1 Keter Plastics: The Barkan Industrial Zone Connection

Costco is a major retailer of Keter Plastics products, specifically outdoor sheds, resin furniture, and storage solutions.¹⁷ This relationship is not merely incidental; Keter is a core vendor in Costco’s “hardlines” (non-food) department.

2.1.1 The Location of Production

Multiple sources confirm that Keter Plastics operates major manufacturing facilities in the Barkan Industrial Zone.¹⁷

• The Geography of Occupation: The Barkan Industrial Zone is an illegal Israeli settlement located deep within the occupied West Bank. It was established in 1982 on land confiscated from the Palestinian villages of Haris, Bruqin, and Sarta.²¹
• International Law: Settlements are illegal under Article 49 of the Fourth Geneva Convention, which prohibits an occupying power from transferring its civilian population into occupied territory. Industrial zones like Barkan are integral to the settlement enterprise, providing employment for settlers and tax revenue for settlement regional councils.

2.1.2 The Economics of Exploitation

Why does Keter manufacture in Barkan? The “Occupation Discount.”

• Tax Incentives: The Israeli government provides significant tax breaks and subsidies to companies that set up operations in “National Priority Areas,” which include West Bank settlements.²²
• Lax Regulation: Environmental regulations in these zones are often loosely enforced compared to Israel proper. Reports indicate that waste from Barkan factories is discharged into the nearby Al-Matwi valley, polluting Palestinian farmland and water sources.¹⁷
• Labor Exploitation: Palestinian workers in these zones are often subject to a distinct legal regime compared to Israeli workers. While technically entitled to Israeli minimum wage, enforcement is scant, and workers lack effective union representation. This creates a captive, cheap labor force that enhances Keter’s profit margins.¹⁷

2.1.3 Costco’s Role in Sustaining Barkan

By stocking Keter sheds (often rebranded or sold under the Keter name), Costco provides the economies of scale necessary for Keter to maintain these factories. The massive volume of a Costco order—tens of thousands of units distributed across hundreds of warehouses—is a financial lifeline for the manufacturer. The revenue generated from these sales flows back to Keter, which pays taxes to the Shomron Regional Council (a settler governance body), directly funding the infrastructure of the occupation.

• Complicity Verdict: Costco is not just buying a plastic shed; it is buying a product of colonial extraction. This is a direct violation of the UN Norms on the Responsibilities of Transnational Corporations, which state that enterprises shall not benefit from war crimes.¹⁷

2.2 The Date Industry: Hadiklaim and the Jordan Valley

Costco carries Medjool dates, often sold under the “Jordan River” brand or its own Kirkland Signature private label. These dates are frequently sourced from Hadiklaim, the Israeli Date Growers Cooperative.²³

2.2.1 The “Conflict Date”

• Origin: Approximately 60% of Israeli dates are grown in illegal settlements in the Jordan Valley.²⁶ The Jordan Valley is the agricultural backbone of the West Bank, yet Palestinians are systematically denied access to their own land and water resources there.
• Hadiklaim’s Role: Hadiklaim markets dates from these settlements, including brands like “Jordan River,” “King Solomon,” and “La Palma”.²⁵ By aggregating produce from settlements and Israel proper, Hadiklaim effectively launders settlement produce into the global market.
• Kirkland Signature Complicity: When Costco packages these dates under its private “Kirkland Signature” label, it is engaging in a deeper level of complicity. It is essentially putting its own brand reputation on the product of an illegal enterprise. The consumer buying “Kirkland Dates” acts as an unwitting financier of the Jordan Valley settlements.

2.2.2 Water Apartheid

The date industry is water-intensive. In the Jordan Valley, Israel controls the water supply, diverting vast quantities to settlement agriculture while Palestinian communities often face drought and must buy water back from the Israeli national water company (Mekorot) at inflated prices. Costco’s procurement of these dates directly incentivizes the continued monopolization of water resources by the occupation authorities.

2.3 Agricultural Normalization: Jaffa and “Product of Israel”

Costco sells Jaffa brand citrus and other fresh produce labeled as “Product of Israel”.¹⁷

• The Oppy Connection: Costco’s produce supply chain involves major distributors like Oppy, which imports heavily from Israel.²³ Historically, brands like Carmel Agrexco have exported produce from both Israel proper and the occupied territories without distinction.
• Normalization: The presence of these products on Costco shelves normalizes trade relations with an apartheid state. During the winter months, Costco is a primary vector for Israeli agricultural exports to North American consumers. This trade relationship signals to the Israeli economy that its agricultural sector—which is deeply tied to state land seizures—remains welcome in global markets regardless of its human rights record.

2.4 Historical Precedents and “Ghost” Vendors

The audit notes a historical precedent regarding Ahava, a cosmetics company with a factory in the illegal settlement of Mitzpe Shalem.²⁶

• The Ahava Victory: Research indicates that Costco stopped selling Ahava products in the past due to intense BDS pressure and protests.²⁸
• Analytical Insight: This demonstrates that Costco is susceptible to reputational pressure. The fact that they removed Ahava (a luxury/discretionary item) but retained Keter (a core hardware item) suggests a cynical calculus: the company will yield to human rights demands only when the product is non-essential and the “noise” from protestors threatens the brand image more than the loss of sales. The structural integration of Keter is deeper and harder to sever, indicating that Costco prioritizes supply chain inertia over ethical consistency.

Section 3: The “Safe Harbor” Test – Geopolitical Double Standards

A crucial component of this audit is the “Safe Harbor” Test: Does the company apply its ethical standards consistently across different geopolitical conflicts? The analysis reveals a glaring, undeniable Double Standard.

3.1 The Russia Precedent: Moral Clarity

Following the Russian invasion of Ukraine in February 2022, Costco acted swiftly and decisively.

• Operational Exit: Costco suspended operations in Russia and stopped purchasing from Russia.³⁰
• Voluntary Action: Crucially, Costco’s actions went beyond the bare minimum required by initial sanctions. The company joined a mass corporate exodus, framing the decision not just as a legal compliance issue but as a moral imperative to isolate an aggressor state. The company accepted the financial loss of exiting a market to align with the “civilized world’s” condemnation of territorial conquest.

3.2 The Israel/Gaza Reality: Moral Obfuscation

In stark contrast, following the onset of the Gaza genocide in late 2023—where the death toll and destruction of civilian infrastructure have arguably exceeded that of the early Ukraine war—Costco has taken a completely different approach.

• Business as Usual: There has been no reported suspension of purchasing from Israeli vendors, including those in illegal settlements.³² The supply of Keter sheds and Hadiklaim dates continues uninterrupted.
• Consumer Gaslighting: When customers inquire about Israeli products, the corporate response is one of “market neutrality.” Customer service representatives and social media teams are trained to state that purchasing decisions are based on “quality and availability,” not politics.³²
• The Discrepancy: Why is the invasion of Ukraine grounds for an immediate boycott, while the 57-year occupation of Palestine and the bombardment of Gaza are “political issues” requiring neutrality?
  • Reasoning: The difference lies in the U.S. government’s position. Russia is an adversary; Israel is a strategic ally. Costco’s “ethics” are effectively outsourced to the U.S. State Department. The company acts ethically only when it is politically convenient and aligned with state power. This places Costco in the “Safe Harbor” of U.S. imperialism rather than true ethical neutrality.

Section 4: Technological Complicity and Surveillance Infrastructure

Costco’s complicity extends beyond the products it sells to the infrastructure it uses to operate. The retailer is integrating technologies that normalize the “Surveillance State.”

4.1 Checkpoint Systems: The RFID Connection

Costco utilizes Checkpoint Systems for its Electronic Article Surveillance (EAS) and RFID inventory management.³³

• The Israeli R&D Nexus: While Checkpoint Systems is a global entity (owned by Canadian CCL Industries), it maintains a significant presence in Israel.³⁵ The Israeli tech sector is a global leader in sensors, tracking, and signal processing, largely due to the spillover from military R&D (e.g., Unit 8200).
• Distinction and Convergence: It is vital to distinguish between Check Point Software Technologies (CHKP – the cybersecurity giant founded by Gil Shwed) and Checkpoint Systems (the retail solution). However, snippet ³⁵ explicitly notes that “Checkpoint Systems… has a presence in Israel.” By utilizing vendors that operate R&D centers in Israel, Costco participates in the “whitewashing” of military-grade surveillance tech into consumer retail applications. The same algorithms used to track Palestinians at checkpoints are often adapted to track inventory and prevent “shrinkage” in retail stores.

4.2 Security Cameras: The Lorex vs. Israel Contradiction

Costco previously removed Lorex security cameras from its shelves. Lorex was owned by Dahua Technology, a Chinese firm implicated in the surveillance of Uyghur Muslims.³⁶

• The Human Rights Precedent: The removal of Lorex was explicitly linked to “human rights abuses” and U.S. government entity lists.
• The Blind Spot: While Costco acted against Chinese surveillance tech, the security industry is rife with Israeli firms (e.g., Provision-ISR, BriefCam) ³⁷ that refine their video analytics on the captive population of the West Bank. While the audit does not definitively place Israeli branded cameras on Costco shelves currently, the willingness to ban Chinese tech for human rights violations while ignoring the origins of Israeli tech highlights the geopolitical bias in their procurement compliance. If Costco were consistent, it would audit all security vendors for ties to the Israeli occupation forces, just as it did for ties to the Chinese state.

Section 5: Internal Governance and Human Resources

The internal culture of Costco regarding political expression provides further evidence of a bias that favors the status quo (Zionism/Normalization) over dissent (Palestine Solidarity).

5.1 The “Mask Ban” Precedent: Neutrality as Suppression

In 2020, Costco faced controversy for disciplining employees wearing “Black Lives Matter” (BLM) masks, categorizing them as “political” attire.³⁸

• The Handbook Policy: Costco’s employee handbook prohibits “political or controversial” messages on attire.³⁹
• Application to Palestine: This precedent is critical. By defining human rights slogans (like BLM) as “political,” Costco creates a framework where “Free Palestine” or “Ceasefire Now” badges are banned. Conversely, symbols that support the status quo (such as American flag pins or “Support Our Troops” paraphernalia) are often viewed as “patriotic” rather than “political” and are permitted.
• Selective Enforcement: Reports indicated that while BLM masks were banned, pro-police masks were sometimes tolerated until public outcry forced a blanket ban.³⁸ This suggests that “neutrality” is often a cover for suppressing anti-establishment speech. In the current climate, this policy effectively silences employees who wish to express solidarity with Gaza, prioritizing “customer comfort” over the free speech rights of workers.

5.2 Union Activity and Dissent

The Teamsters union represents a significant portion of Costco’s workforce.⁴¹

• Internal Friction: While the Teamsters leadership is focused on contracts and wages, the “Teamsters Mobilize” and “Teamsters for a Democratic Union” (TDU) factions have pushed for ceasefire resolutions and solidarity with Palestine.⁴²
• Management’s Stance: Costco management is currently facing a potential strike and is resisting union demands.⁴³ The intersection of labor rights and political solidarity is a flashpoint. Costco’s refusal to engage with the political demands of its workforce (regarding DEI or global justice) reinforces its rigid, top-down corporate structure that suppresses rank-and-file activism. The management views the union as a cost center to be contained, and political activism within the union as a disruption to be squashed.

5.3 DEI as a Corporate Shield (“Woke Washing”)

Costco has doubled down on Diversity, Equity, and Inclusion (DEI) initiatives, defending them against conservative shareholder challenges.⁴⁴

• The Paradox: Costco uses DEI to project a progressive image regarding race and gender within the U.S., which helps deflect criticism from the liberal left. However, this “progressive” stance stops at the water’s edge. The company bifurcates its domestic social justice commitment from its international supply chain ethics.
• Analysis: It defends the rights of a diverse workforce in Seattle but capitalizes on the dispossession of Palestinians in the Jordan Valley. This is a classic example of “Woke Washing”—using domestic social liberalism to obscure global complicity. The focus on “inclusion” in the warehouse distracts from the “exclusion” inherent in the Zionist project that Costco supports economically.

Section 6: Political Finance and Trade Relations

6.1 Lobbying Footprint

Costco’s corporate PAC spending is notoriously low compared to competitors like Walmart.⁴⁶ The company relies on its membership model and supply chain efficiency rather than aggressive lobbying to maintain its market position.

• The “Clean Hands” Illusion: This low-profile lobbying protects it from scrutiny. However, as noted in Section 1, the Chairman’s personal fundraising ² acts as a proxy for corporate influence. Hamilton James acts as the conduit to the political class, ensuring the company remains in the good graces of the administration without a paper trail of corporate PAC checks to AIPAC. This allows Costco to appear “apolitical” while its leadership is deeply embedded in the political machine.

6.2 Trade Chambers and Sponsorships

While there is no direct evidence in the snippets of Costco sponsoring “Brand Israel” days explicitly ⁴⁸, the company participates in the broader ecosystem of bilateral trade.

• Water Tech Greenwashing: Costco has met with Israeli water technology experts during California droughts.⁴⁷ This validates the “Greenwashing” narrative where Israel promotes its water tech (often developed using stolen water resources) to U.S. corporations to cement diplomatic and economic ties. By participating in these exchanges, Costco legitimizes Israel’s role as a “sustainability partner” rather than an occupying power.

Section 7: Risk Assessment and Complicity Ranking

Based on the audit of Governance, Supply Chain, and Internal Policy, the following ranking is assigned.

Complicity Scale Definition

1. Neutrality: No trade with conflict zones, consistent human rights application.
2. Passive Complicity: Retail of products from conflict zones due to negligence.
3. Moderate Complicity: Aware of settlement origin but refuses to discontinue; structural trade ties.
4. High Complicity: Direct investment, lobbying for the occupier, strategic partnership with military firms.
5. Upper-Extreme: Manufacturing weapons, providing surveillance infrastructure to the occupation.

Costco Audit Score: Moderate-High Complicity (Level 3.5)

Justification for Level 3.5:

• Intentionality: Costco’s continued sale of Keter products (Barkan) and Hadiklaim dates (Jordan Valley) despite years of documented evidence and BDS notification ¹⁷ moves this beyond “negligence” into intentional commercial support. They know where these products come from and choose to prioritize margin.
• Hypocrisy: The stark contrast between the Russia exit and the Israel status quo confirms an ideological bias that privileges the Israeli state.
• Structural Integration: The presence of high-level U.S. intelligence and commerce officials (James, Raimondo) on the board ensures the company remains a compliant actor in the U.S.-Israel “special relationship,” making internal reform highly unlikely without massive external pressure.

Section 8: Conclusion and Recommendations

Costco Wholesale Corporation presents a public facade of “apolitical retail,” maximizing value for its members while ostensibly treating its employees well. However, a forensic audit reveals deep structural ties to the occupation of Palestine. The company serves as a vital economic lung for the settlement enterprise, allowing manufacturers in illegal industrial zones to reach North American consumers on a massive scale.

While Costco does not appear to fund AIPAC directly through corporate coffers, its leadership is intertwined with the political establishment that underwrites Israeli militarism. The refusal to apply the “Russia Standard” to Israel is the most damning evidence of its ideological positioning.

For the Governance Auditor:

• Red Flag: The Keter Plastics and Hadiklaim supply chains are material liabilities. They expose the company to legal action under emerging supply chain due diligence laws (e.g., in the EU) and potential future sanctions regimes.
• Action Item: The “Costco Complicity” profile is driven by Volume and Normalization. A targeted campaign focusing on the specific illegality of the Barkan and Jordan Valley origins—rather than a general boycott of Israel—strikes at the point where Costco’s legal compliance is weakest.

Final Verdict: Costco is Politically Complicit through the mechanism of Economic Normalization of Illegal Settlements.

Works cited

1. Costco Wholesale Corporation – Governance – Board of Directors, accessed on December 13, 2025, https://investor.costco.com/governance/board-of-directors/default.aspx
2. Hamilton E. James – Wikipedia, accessed on December 13, 2025, https://en.wikipedia.org/wiki/Hamilton_E._James
3. cost-20241209 – SEC.gov, accessed on December 13, 2025, https://www.sec.gov/Archives/edgar/data/909832/000090983224000072/cost-20241209.htm
4. Costco Wholesale Corporation Announces Nomination of Gina Raimondo to Board of Directors, accessed on December 13, 2025, https://investor.costco.com/news/news-details/2025/Costco-Wholesale-Corporation-Announces-Nomination-of-Gina-Raimondo-to-Board-of-Directors/default.aspx
5. Costco Wholesale Corporation (COST): A Deep Dive into the Warehouse Giant’s Enduring Appeal and Future Trajectory, accessed on December 13, 2025, https://markets.financialcontent.com/wral/article/predictstreet-2025-12-12-costco-wholesale-corporation-cost-a-deep-dive-into-the-warehouse-giants-enduring-appeal-and-future-trajectory
6. Israel Palestine Archives – Maryknoll Office of Global Concerns, accessed on December 13, 2025, https://maryknollogc.org/tag/israelpalestine/
7. Maryknoll OGC Joins Letter to Secretary Blinken and Secretary Raimondo, accessed on December 13, 2025, https://maryknollogc.org/2024/01/25/maryknoll-ogc-joins-letter-secretary-blinken-and-secretary-raimondo/
8. June 6, 2024 The Honorable Gina Raimondo Secretary Department of Commerce 1401 Constitution Ave. N.W. Washington, D.C. 20230 – House Committee on Science, Space, and Technology, accessed on December 13, 2025, https://republicans-science.house.gov/_cache/files/6/a/6a090182-1766-4b6d-8346-a59001c018e6/7E3817BE6C67E5F0754045A9368E9DDC.2024.05.06-fl-to-doc-title-vi-fd-1.3-.pdf
9. Jeff Raikes – Wikipedia, accessed on December 13, 2025, https://en.wikipedia.org/wiki/Jeff_Raikes
10. Jeff Raikes – AI4SP.org, accessed on December 13, 2025, https://ai4sp.org/jeff-raikes/
11. About Us – Raikes Foundation, accessed on December 13, 2025, https://www.raikesfoundation.org/about-us
12. Jeff Raikes – InfluenceWatch, accessed on December 13, 2025, https://www.influencewatch.org/person/jeff-raikes/
13. Meet the Key Leaders of Costco Wholesale Corporation – Exa, accessed on December 13, 2025, https://exa.ai/websets/directory/costco-executives
14. Costco Foundation | Charity Navigator Profile, accessed on December 13, 2025, https://www.charitynavigator.org/ein/911799391
15. Federation Star – February 2025 by jewishnaples – Issuu, accessed on December 13, 2025, https://issuu.com/jewishnaples/docs/federation_star_-_february_2025
16. Wall Street Donors Guide | Inside Philanthropy, accessed on December 13, 2025, https://individuals420.rssing.com/chan-59280190/all_p5.html
17. Boycott Campaign: Costco – Cloudfront.net, accessed on December 13, 2025, https://d3n8a8pro7vhmx.cloudfront.net/cjpme/pages/1019/attachments/original/1455823939/Document1954.pdf?1455823939
18. Screenshot 2025-04-18 at 14.36.02 | PDF | Costco – Scribd, accessed on December 13, 2025, https://www.scribd.com/document/863600301/Screenshot-2025-04-18-at-14-36-02
19. KeTeR 5018164 Store-It-Out Max Installation Guide – device.report, accessed on December 13, 2025, https://device.report/manual/12785630
20. Make sure you are not purchasing apartheid this summer. – Canadian BDS Coalition, accessed on December 13, 2025, https://bdscoalition.ca/2024/05/28/make-sure-you-are-not-purchasing-apartheid-this-summer/
21. KETER PLASTICS, accessed on December 13, 2025, https://pma.pcusa.org/site_media/media/uploads/mrti/pdfs/boycott101_summary-sheet.pdf
22. Worksheet – Who Profits, accessed on December 13, 2025, https://www.whoprofits.org/companies/excel?Presence=8&Type=Table
23. Boycott List of Shame – Canadian BDS Coalition, accessed on December 13, 2025, https://bdscoalition.ca/boycott-list-of-shame/
24. Boycott these Halloween Treats – Canadian BDS Coalition, accessed on December 13, 2025, https://bdscoalition.ca/2025/10/30/boycott-these-halloween-treats/
25. 2024 Ramadan: Boycott Israeli dates. Break fast with Palestinian Medjoul, accessed on December 13, 2025, https://bdscoalition.ca/2024/02/11/2024-ramadan-boycott-israeli-dates-break-fast-with-palestinian-medjoul/
26. Recommended Products for BDS Sticky Notes – CJPME – English, accessed on December 13, 2025, https://www.cjpme.org/sn_recommended
27. Retail Vitamin Display royalty-free images – Shutterstock, accessed on December 13, 2025, https://www.shutterstock.com/search/retail-vitamin-display?page=12
28. Israeli Beauty Products Company Ahava Complicit in the Sins of Occupation, accessed on December 13, 2025, https://usacbi.org/2010/09/israeli-beauty-products-company-ahava-complicit-in-the-sins-of-occupation/
29. Dataset & Timeline | Growth of the BDS Movement for Palestine, accessed on December 13, 2025, https://bds.visualizingpalestine.org/data?t=ahava
30. #LeaveRussia: Costco is Temporarily Pausing Operations in Russia, accessed on December 13, 2025, https://leave-russia.org/costco
31. Over 1000 Companies Have Curtailed Operations in Russia—But Some Remain, accessed on December 13, 2025, https://som.yale.edu/story/2022/over-1000-companies-have-curtailed-operations-russia-some-remain
32. Products from Israel… : r/CostcoCanada – Reddit, accessed on December 13, 2025, https://www.reddit.com/r/CostcoCanada/comments/1nfg09o/products_from_israel/
33. Electronic Article Surveillance Market Research Report – 2028 – The Insight Partners, accessed on December 13, 2025, https://www.theinsightpartners.com/reports/electronic-article-surveillance-eas-market
34. From pallet to POS: How item-level RFID builds a smarter, safer supply chain, accessed on December 13, 2025, https://www.supplychaindive.com/spons/from-pallet-to-pos-how-item-level-rfid-builds-a-smarter-safer-supply-chai/758786/
35. Stop Doing Business with Israel – #LeaveIsrael Stop genocide in Palestine, accessed on December 13, 2025, https://leaveisrael.org/usa
36. U.S. Lawmakers Charge Costco with Selling More Banned Security Products, accessed on December 13, 2025, https://www.securitysales.com/news/lawmakers-costco-banned-surveillance-equipment/154864/
37. Top 47 Security Camera Companies in Israel (2025) – ensun, accessed on December 13, 2025, https://ensun.io/search/security-camera/israel
38. Costco penalizes workers for wearing Black Lives Matter masks – Revolt TV, accessed on December 13, 2025, https://www.revolt.tv/article/2020-07-12/73874/costco-penalizes-workers-for-wearing-black-lives-matter-masks
39. Costco employees sent home for wearing BLM masks – TheGrio, accessed on December 13, 2025, https://thegrio.com/2020/07/13/costco-employees-sent-home-blm-masks/
40. Politics & Social Media’s Impact on the Remote Workplace – NET, accessed on December 13, 2025, https://irstore.blob.core.windows.net/materials/4789cebc-7a41-49fe-9935-80539c45d07d.pdf
41. Teamsters vote 85% for national strike at Costco for a fair contract!, accessed on December 13, 2025, https://wrp.org.uk/features/teamsters-vote-85-for-national-strike-at-costco-for-a-fair-contract/
42. The Crisis in the Teamsters (Counterpunch) – Labor for Palestine, accessed on December 13, 2025, https://laborforpalestine.net/2024/02/01/the-crisis-in-the-teamsters-counterpunch/
43. Costco Won’t End DEI Initiatives, Faces Friday Strike Deadline by 18000 Union Workers, accessed on December 13, 2025, https://www.democracynow.org/2025/1/28/headlines/costco_wont_end_dei_initiatives_faces_friday_strike_deadline_by_18_000_union_workers
44. Costco Diversity Study: Culture Risk Lessons for CEOs – FIG Firm, accessed on December 13, 2025, https://www.figfirm.com/post/costco-diversity-study
45. Costco shareholders reject an anti-DEI measure, after Walmart and others end diversity programs – CBS News, accessed on December 13, 2025, https://www.cbsnews.com/news/costco-dei-policy-board-statement-shareholder-meeting-vote/
46. Retail Politics – Demos, accessed on December 13, 2025, https://www.demos.org/research/retail-politics-how-americas-big-box-retailers-turn-their-economic-power-political
47. As drought marches on, Israel marches in again – J Weekly, accessed on December 13, 2025, https://jweekly.com/2015/07/24/as-drought-marches-on-israel-marches-in-again/
48. JCRC Action Alert: Boycott of Israeli Products – Milwaukee Jewish Federation, accessed on December 13, 2025, http://milwaukeejewish.org/wp-content/uploads/2014/03/JCRC-Action-Alert-Boycott-Israeli-Products.pdf