Market Analysis

Apple Defends Diversity Efforts as Shareholders Reject Proposal to End Them

Amos Simanungkalit · 26 Feb44.5K Views

Image Credit: Reuters

Apple shareholders voted to maintain the company's diversity, equity, and inclusion (DEI) policies during Tuesday's annual meeting, rejecting a proposal from a conservative group to end the program. This outcome was seen as a victory for Apple's management, which had opposed the move.

The vote was closely watched as a gauge of shareholder sentiment toward DEI initiatives, which many corporations expanded after the 2020 Black Lives Matter movement. However, growing conservative opposition has led some major U.S. companies, including Meta and Alphabet, to scale back or drop their DEI efforts, especially as former President Donald Trump criticized such programs, calling them discriminatory and suggesting the U.S. Department of Justice might investigate their legality.

The National Center for Public Policy Research, a free-market think tank, put forward the proposal to end DEI initiatives at Apple, but it was decisively rejected with 210.45 million votes in favor and 8.84 billion votes against.

Supporters of the proposal argued that legal changes would lead to more discrimination lawsuits if Apple continued its DEI efforts. In response, Apple stated it actively monitors its policies to mitigate legal risks and argued that the proposal unfairly restricted management's discretion.

Although Apple discloses diversity data, it does not set specific diversity targets or quotas. Its DEI initiatives include supporting historically Black colleges and universities in the U.S. and providing coding education to indigenous communities in Mexico, as well as working with a nonprofit in Australia focused on criminal justice reform.

Apple has consistently rejected proposals to disclose more information on racial and gender pay disparities. CEO Tim Cook emphasized that Apple's strength comes from hiring top talent and fostering a culture of collaboration and innovation. However, he acknowledged that the evolving legal landscape may require adjustments to DEI policies, but reaffirmed the company's commitment to dignity and respect for all.

In related news, Apple shareholders also voted against a proposal to assess risks related to Apple's use of AI, although it garnered the highest number of votes of any shareholder proposal. Cook also shared that Apple plans to be the biggest customer of a Taiwan Semiconductor Manufacturing Co factory in Arizona, a project championed by Trump.