"They're nuts" Shark Tank investor Kevin O'Leary reacts to Costco's decision to stand firm on DEI policies

Costco, the wholesale grocery giant, has planted its flag firmly in the diversity landscape, drawing a sharp reaction from none other than Kevin O'Leary. In the high-stakes arena of corporate America, where policy shifts happen faster than a Shark Tank pitch, one company is swimming against the current.

The Shark Tank investor declared on "The Big Money Show," setting the business world abuzz:

"They're nuts if they think I want them fighting the federal government on policy,"

Known for his no-nonsense approach and razor-sharp commentary, Kevin O'Leary isn't just another television personality—he's a seasoned investor with a keen eye for corporate strategy.

Shark Tank, ABC's entrepreneurial battleground, has been Kevin O'Leary's platform for years, where hopeful business owners pitch their dreams to a panel of tough-as-nails investors. But today, he's turning his sharp critique toward a different corporate challenge: Diversity, Equity, and Inclusion (DEI) policies.

Kevin O’Leary’s views on Costco’s DEI policies’ stance

The corporate landscape is experiencing a seismic shift in diversity policies. While giants like Target, McDonald's, and Walmart have begun scaling back their DEI initiatives, Costco is standing its ground. Shareholders recently rejected an anti-DEI proposal from the National Center for Public Policy Research, a move that has O'Leary scratching his head.

The backdrop to this corporate drama? An executive order during President Donald Trump's first week in office, which directed the termination of discriminatory practices. Attorneys general from 19 states have since urged companies to reconsider their DEI approaches.

"You don't fight the attorney general in multiple states, you've got to be out of your mind," O'Leary bluntly stated.

As a Costco shareholder, he's not mincing words.

"Chop chop, guys. Figure this out. You're breaking the law. Get compliant."

Kevin O'Leary's solution? A merit-based hiring approach.

"[If ] you just hire on merit as we do, you get tremendous diversity," he argues.

His philosophy is refreshingly straightforward:

"We don't care if you're gay or transvestite, or you have tattoos or fishhooks in your eyelids. We couldn't give a damn. 'Can you do the job, can you execute on the mandate?' Those are the people we advance."

For O'Leary, the issue isn't about eliminating diversity—it's about achieving it naturally.

"If you can do it, I don't care what planet you came from, you got a job, and that actually solves this whole problem," he explains.

Kevin O'Leary’s final word

The potential consequences are significant. Kevin O'Leary believes Costco's stance could lead to expensive legal battles and potential regulatory challenges. He reiterates, emphasizing the potential business risks:

"They're nuts if they think I want them fighting the federal government on policy,"

Costco stands somewhat alone in its approach. Many companies are pulling back from comprehensive DEI policies, driven by legal pressures and changing political landscapes. The wholesale giant's resistance has raised eyebrows across the business world.

"We should have never got ourselves in this place," he concludes, suggesting that a simpler, more straightforward approach to hiring and advancement could resolve the ongoing DEI debate.

As the corporate world continues to navigate these complex waters, Kevin O'Leary remains a vocal and unfiltered commentator. His message is clear: focus on capability, not characteristics. Whether you agree or not, one thing's certain—he's not afraid to tell it like he sees it.

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