Apple Shareholders Reject Proposal to Scrap Diversity Programs
Apple shareholders have voted against a resolution directing the company to end its Diversity, Equity and Inclusion (DEI) policies, although CEO Tim Cook acknowledged that the company may need to adjust its diversity practices to fit a shifting legal landscape in the U.S.
The vote could be seen as an indication that shareholders may not ubiquitously support an expanding series of moves by U.S. companies and investors to pull back on their DEI programs and policies, which began following a Supreme Court ruling that struck down Harvard’s use of race-based affirmative action criteria in college admissions, and led to increased scrutiny over the legality of key aspects of corporate DEI policies.
The phenomenon has picked up the pace since the election of Donald Trump, who signed an executive order after taking office eliminating DEI preferencing in federal contracting, and required contractors to affirm that they “will not engage in illegal discrimination, including illegal DEI.”
Apple has several diversity and inclusion-focused initiatives in place, including a Supplier Diversity Program dedicated to working with suppliers from historically underrepresented communities, and the company notes on its website that it has “inclusion and diversity considered as part of every performance review, for every person, at every level,” for the purpose of “creating a more equitable employee experience.”
The resolution was filed by conservative think tank the National Center for Public Policy Research, alongside a supporting statement that noted the Harvard case, and warns that in light of that decision, “if even only a fraction of employees file suit, and only some of those prove successful, the cost to Apple could reach tens of billions of dollars.”
Apple’s board recommended that shareholders vote against the proposal, noting that the company “has a well-established compliance program” and that the resolutions “inappropriately attempts to restrict Apple’s ability to manage its own ordinary business operations, people and teams, and business strategies.” The recommendation added that the “board and management maintain active oversight of legal and regulatory risks and compliance.”
Following the vote, Cook expressed support for Apple’s diversity efforts, noting that the company’s “strength has always come from hiring the very best people and then providing a culture of collaboration, one where people with diverse backgrounds and perspectives come together to innovate and create something magical for our users.”
Cook acknowledged, however, the need to take the recent changes in the U.S. legal environment into account for its diversity and inclusion efforts, adding:
“As the legal landscape around this issue evolves, we may need to make some changes to comply, but our north star of dignity and respect for everyone and our work to that end will never waver.”