Apple Shareholders Reject Anti-DEI Proposal, But Legal Pressure May Force Changes

by Alan North
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Apple’s shareholders rejected a proposal to dismantle the company’s diversity, equity, and inclusion program at their annual meeting on Tuesday. Minutes later, CEO Tim Cook acknowledged that Apple may still be forced to adjust its DEI policies in response to shifting legal and political pressures.

The rejection comes amid a growing wave of legal challenges and executive orders targeting corporate DEI programs. President Donald Trump has issued directives barring federal contractors — including many tech firms — from implementing DEI initiatives and has also directed federal agencies to investigate private-sector companies for potential violations.

Following Trump’s orders and recent Supreme Court Rulings, several companies — including Google, Amazon, and Meta — have scaled back their DEI initiatives, though Apple has continued to push back against the trend.

Trump’s executive orders frame DEI as “dangerous, demeaning, and immoral race-and-sex-based preferences” and emphasises hiring based strictly on “individual initiative, skills, performance, and hard work.”

SEE: Google Halts Its Diversity and Inclusion Hiring Goals

Conservative shareholders push for DEI rollback

Bloomberg reported that the proposal was brought to Apple by conservative think tank and shareholder, the National Center for Public Policy Research, claiming DEI “poses litigation, reputational and financial risks.” It argues that recent Supreme Court rulings have lowered the bar for discrimination claims, increasing the likelihood of lawsuits against companies with DEI programs.

In its Proxy Statement, distributed to shareholders in January, Apple’s board recommended a vote against the “unnecessary” proposal to cease DEI efforts. “The proposal also inappropriately attempts to restrict Apple’s ability to manage its own ordinary business operations, people and teams, and business strategies,” Apple’s board wrote.

The National Center for Public Policy research raised a similar proposal with investors at the retailer Costco, which was also rejected. At least 24 companies have received anti-DEI proposals from similar groups this proxy season, according to The Washington Post.

As well as the anti-DEI proposal, shareholders rejected proposals for Apple to publish annual reports assessing the risks of its work with artificial intelligence, the costs and benefits of its child sex abuse material-identifying software, and charitable giving. They voted to re-elect the board of directors and approve executive compensation, which equated to $59 million.

Tim Cook says Apple might still make some DEI-related changes to comply with new laws

Shortly after Apple shareholders upheld the board’s recommendation to reject the proposal, Cook said that his company “may need to make some changes to comply” with a shifting legal landscape that has Trump at the helm.

Nevertheless, he emphasised that Apple does not hire to fill “quotas” but maintains a culture where “people with diverse backgrounds and perspectives come together,” which ultimately benefits the company.

“Our north star of dignity and respect for everyone and our work to that end will never waver,” Cook said in the question-and-answer session, according to the BBC.

 



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