Apple is bracing itself for a high-stakes diversity battle ahead as it gears up to defend its DEI programs against critical investors at its upcoming annual shareholder meeting. A vote is looming on a motion, introduced by a conservative think tank, aiming to dismantle Apple’s diversity, equity, and inclusion initiatives. The tech giant is scheduled to face off with shareholders this week in a bid to safeguard its DEI policies against staunch opposition within its investor community.
The National Center for Public Policy Research, based in Washington, is spearheading the motion, arguing that recent US Supreme Court rulings have cast doubt on the legality of corporate DEI programs, potentially exposing employers to discrimination claims. In response, Apple, the world’s most valuable company, has unequivocally stated its intention to challenge the proposal, contending that it encroaches upon the company’s autonomy in managing its operations.
This clash unfolds amidst a backdrop where other tech industry players have begun retracting their DEI initiatives. Meta, led by Mark Zuckerberg, recently announced the cessation of its diversity programs citing shifts in the legal and policy landscape surrounding DEI efforts in the United States. Similarly, Google has disclosed its decision to abandon hiring targets linked to DEI, while Amazon has altered references to DEI benefits on its websites.
The pivot away from DEI efforts by some companies predates the current administration, but the outset of President Donald Trump’s second term has spurred a fresh wave of actions among tech leaders to reassess their DEI policies, which the President has criticized as “wasteful.” Apple’s steadfast commitment to upholding its DEI policies may impact its relationship with the administration, especially considering CEO Tim Cook’s efforts to cultivate a rapport with President Trump, exemplified by a visit to Mar-a-Lago in December.
In a move to further bolster its presence in the United States, Apple recently unveiled plans to recruit approximately 20,000 employees over the next four years as part of a substantial $500 billion investment commitment. Notably, Apple stands out as a rare exception among tech companies straying from DEI initiatives, as major shareholders in its investor base, like Blackrock, have historically refrained from engaging in activist campaigns.
While shareholder proposals challenging ESG policies, including those related to DEI, occasionally make it to the voting stage, a review by the consultancy ISS-Corporate indicates limited support for such proposals over the past three years. Apple’s response to these challenges remains awaited, as the tech giant navigates the intricate terrain of balancing shareholder interests and its commitment to diversity, equity, and inclusion.
