Apple’s shareholders are on the verge of casting their votes on a notable proposal during the annual meeting this Tuesday. This proposal, crafted by the National Center for Public Policy Research, aims to pressurize Apple into halting its comprehensive workforce diversity initiatives. This conservative think tank has encouraged Apple to follow other prominent companies that have recently scaled back their diversity, equity, and inclusion (DEI) strategies amid increased scrutiny.
A similar attempt to curb DEI initiatives was made during Costco’s recent annual meeting, where it was overwhelmingly turned down. Apple faces a similar expectation of rejection despite persistent objections from critics of its diversity stratagems. Like Costco, Apple firmly supports its diversity and inclusion endeavors, justifying them as essential to sound business practice.
Opponents of Apple’s efforts, particularly the National Center for Public Policy Research, argue that its diversity commitments could conflict with recent court decisions and expose the tech giant to numerous potential discrimination lawsuits. The group speculated that 50,000 Apple employees could potentially take legal action against the corporation without providing a detailed basis for this figure.
The think tank insists that DEI initiatives present litigation and reputational risks which could adversely affect shareholders. They argue that such risks could further jeopardize a company’s adherence to its fiduciary responsibilities. The debate over potential legal challenges was heightened with the recent lawsuit filed by Florida Attorney General James Uthmeier against Target. The case contends that Target’s DEI program, which was recently scaled back, negatively impacted consumer connections and sales, thus harming shareholder interests.
In response to the anti-DEI proposal, Apple has defended its initiatives, highlighting their role in fostering a corporate culture that significantly contributed to its impressive market value of $3.7 trillion, the largest globally. “We believe that how we conduct ourselves is as critical to Apple’s success as making the best products in the world,” the company stated in opposition to the proposal. “We seek to conduct business ethically, honestly, and in compliance with applicable laws and regulations.”
According to Apple’s most recent diversity and inclusion report from 2022, nearly 75% of its workforce worldwide is composed of white and Asian individuals, and about two-thirds are men. While many leading tech companies have reported similar workforce demographics, especially among high-paying engineering roles, these realities have driven the tech industry to invest in diversity efforts which have thus far yielded limited success.
