Apple is likely to see its shareholders vote against a proposal aimed at ending its diversity efforts within the company. The initiative, introduced by the National Center for Public Policy Research, a conservative organization, pushes Apple to stop its diversity, equity, and inclusion (DEI) programs. These corporate initiatives are under scrutiny by President Donald Trump and a variety of high-profile companies that have distanced themselves from DEI strategies.
The shareholder vote comes on the heels of a similar proposal that the same group put forward during Costco’s recent annual meeting. That proposal was overwhelmingly turned down. Apple’s upcoming annual meeting is expected to yield a similar decision, with the company’s management firmly supporting its diversity and inclusion policies, which they argue are beneficial for business.
The National Center for Public Policy Research’s proposal criticizes Apple’s diversity programs, claiming they contradict recent legal rulings and pose a risk of numerous discrimination lawsuits against the company. The group speculated that around 50,000 of Apple’s employees might bring legal action, without explaining how they calculated this estimate.
The group expressed their concerns, stating, “DEI poses litigation, reputational, and financial risks to companies, and consequently, financial risks to their shareholders.” They argue this puts further risk on companies for potentially not fulfilling their legal obligations. The risk of legal challenges was highlighted by a recent federal lawsuit in Florida where Attorney General James Uthmeier filed against Target. The lawsuit claimed that Target’s reduced DEI initiatives alienated consumers and impacted sales negatively.
In opposition to the anti-DEI proposal, Apple emphasized that its diversity initiatives are central to its corporate culture and contribute to its impressive market valuation of $3.7 trillion, the highest globally. Apple stated, “We believe that how we conduct ourselves is as critical to Apple’s success as making the best products in the world,” reinforcing its commitment to ethical and lawful business practices.
In its 2022 diversity and inclusion report, Apple revealed that almost three-quarters of its global workforce comprised white and Asian employees, with nearly two-thirds being male. The tech industry, for years, has faced pressure to diversify its workforce, especially as technology firms continue to report a predominance of white and Asian men in the highly lucrative engineering roles, despite ongoing efforts to address these imbalances.
