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Apple’s board of directors pleads for investor support to reject a proposal to end the company’s diversity programs.
Meanwhile, other major corporations have scaled back similar initiatives in recent months as President-elect Donald Trump’s inauguration day approaches.
The National Center for Public Policy Research (NCPPR) submitted the proposal. The conservative think tank claims that Diversity, Equity, and Inclusion (DEI) programs expose Apple to legal and financial risks. However, Apple has yet to decide the proposal’s fate at its February 25 annual meeting.
“The proposal is unnecessary as Apple already has a well-established compliance program,” the company wrote in its filing to investors. Apple’s board described the request as an inappropriate attempt “to restrict Apple’s ability to manage its own business operations.”
Costco performed the same defensive stance when faced with an identical challenge earlier this month. The company rejected NCPRR’s request to study its DEI program. Costco’s board also criticized NCPRR’s “broader agenda” of abolishing its diversity initiatives.
Apple’s pushback comes as several major U.S. companies have recently scaled back similar initiatives. Meta was the latest to announce it would end its DEI programs, citing changes in the legal landscape. Amazon followed suit, saying it would wind down certain diversity efforts by the end of 2024. Walmart and McDonald’s have made similar moves.
These corporate retreats gained momentum after two significant court decisions. The Supreme Court restricted race-based college admissions in 2023. Another ruling in the Muldrow case made it easier for employees to sue companies for discrimination.
Apple affirms that its approach to diversity aligns with both legal requirements and business goals. “At Apple, 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.
The Human Rights Campaign, an LGBTQ+ advocacy group, stands its ground on DEI policies. “When companies are transparent and open about their commitment to workplace inclusion policies, it only helps to attract and retain top talent,” said the organization’s senior director, RaShawn Hawkins.
Legal experts note that companies face a complex balancing act. While some firms worry about potential discrimination lawsuits, others fear losing talented employees and damaging their corporate reputation by abandoning diversity efforts.
The NCPPR proposal needs majority support from voting shareholders to pass, though such measures rarely succeed. Last year, similar social policy proposals received an average of only 15% support from shareholders.
The outcome of Apple’s shareholder vote could influence how other companies approach diversity initiatives as corporate America navigates changing political and legal pressures in 2025.
