Apple Urges Shareholders To Reject Anti-DEI Policy

 

The company's shareholders will vote on the resolution next month

Apple urged shareholders to vote against a proposal to abandon its diversity, equity and inclusion commitments, making the company one of few to take a public stance in favor of its diversity standards as a wave of anti-DEI sentiment has prompted companies to ditch these policies in recent months.

Key Facts

Apple’s board urged shareholders to reject the proposal, which was raised by the National Center for Public Policy Research think tank, a group that pushes conservative shareholder policies on DEI and climate change at various companies to oppose what it calls the “woke takeover of American corporate life.”

The proposal cited the Students for Fair Admissions v. Harvard Supreme Court case, which ended affirmative action at colleges and universities, arguing the ruling could be extended to corporate DEI programs (the ruling applied specifically to colleges’ admissions practices).

The group accused Apple’s DEI program of being “consistent with, if not more radical than, most corporate DEI programs,” and accused its various initiatives—including its supplier diversity program and its hiring of a VP for diversity—of being forms of discrimination.

The company’s board said the proposal is “unnecessary,” arguing it does not discriminate in hiring or promoting, and accused the group of “inappropriately” attempting to “restrict Apple's ability to manage its own ordinary business operations.”

Apple argued it follows the law and complies with nondiscrimination regulations and says its audit committee maintains active oversight of the legal or business risks of its DEI programs.

What To Watch For

Apple shareholders will vote on the proposal at its annual meeting on Feb. 25. It’s fairly common for the boards of publicly traded companies to oppose shareholder proposals.

What Companies Are Abandoning Dei Policies?

Last week, Meta and McDonald’s joined the growing list of companies abandoning their DEI policies, many of which cited the affirmative action Supreme Court case as legal precedent as well as shifting cultural attitudes. In an internal memo, Meta’s vice president of people Janelle Gale said the company would roll back various diversity initiatives, including ending supplier diversity requirements and getting rid of its DEI team, citing the changing “legal and policy landscape” and the term “DEI” becoming “charged.” Other companies that have abandoned DEI commitments in recent months include Walmart, Boeing, Molson Coors, Lowe’s, Ford and Harley-Davidson. The anti-DEI movement has been championed by conservative activists, including billionaires Elon Musk and Bill Ackman, who say the programs are discriminatory and infringe on free speech. Robby Starbuck, a former music video director and anti-DEI activist, has targeted companies online and threatened to expose their “woke” policies unless they abandon their DEI commitments. He has claimed credit for several companies killing DEI, including Walmart, with whom he said he had “productive conversations.”

Tangent

Costco’s board of directors unanimously urged its shareholders to reject a similar policy proposal that would require the company to evaluate, and potentially gut, its DEI programs. The company said “believes that our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary.”