"You're breaking the law" — Shark Tank's Kevin O'Leary calls out Costco's DEI stance amid industry reversals

Costco's commitment to Diversity, Equity, and Inclusion (DEI) policies has drawn scrutiny from various sectors, particularly from investors like Kevin O'Leary, Chairman of O'Leary Ventures. O'Leary criticized Costco's position, stating:

"You don't fight the Attorney General in multiple states, you've got to be out of your mind. That's bad for business. So chop, chop guys, figure this out, you're breaking the law, get, get compliant."

The Shark Tank investor's remarks come after many companies are reevaluating their DEI strategies in light of shifting political and legal landscapes. Costco's decision to maintain its DEI stance has raised questions about its potential business impact and legal compliance.

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The legal and business implications of Costco's DEI commitment, according to Shark Tank's Kevin O'Leary

The reversal of DEI policies in corporate America

Across the corporate world, many companies are rethinking their DEI policies in response to both legal and market pressures. Major corporations like Target, McDonald's, and Walmart have been scaling back their DEI initiatives.

This decision is driven in part by legal actions from State Attorneys General and the growing perception that such policies may be detrimental to business performance.

Kevin O'Leary made his concerns clear regarding Costco's position, which contrasts sharply with this broader trend of corporate reconsideration. He said:

"They're nuts if they think I want them fighting the federal government on policy," referring to Costco’s refusal to adjust its DEI stance.

With state-level attorneys already taking action against companies with strong DEI policies, O'Leary's comment reflects his concern about the risk of expensive legal battles.

The shareholder vote against an anti-DEI proposal brought by the National Center for Public Policy Research only heightens the situation, as many businesses are choosing to reduce their DEI commitments in response to such mounting pressures.

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O'Leary's argument for merit-based hiring

Kevin O'Leary has long advocated merit-based hiring, a philosophy he continues to champion when discussing the issue of workplace diversity. The Shark Tank investor believes that by hiring based on ability and performance, companies can naturally achieve diversity without relying on the more controversial aspects of DEI policies. He stated:

"If you just hire on merit as we do, you get tremendous diversity, because we don't care if you're gay or transvestite, or you have tattoos or fish hooks in your eyelids, we couldn't give a damn."

The Shark Tank investor emphasized that a focus on qualifications and the ability to perform in a job results in diversity across all areas, including race, gender, and sexual orientation.

"Can you do the job? Can you execute on the mandate? Those are the people we advance," he added.

This approach, according to O'Leary, does not ignore diversity but emphasizes a candidate's professional capabilities over their characteristics. For O'Leary, a merit-based approach ensures that diversity is a natural byproduct of focusing on excellence. He explained:

"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."

The Shark Tank investor underscored his belief that the emphasis on merit eliminates the need for complex DEI programs and provides equal opportunities to all candidates based on their professional skills.

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