Apple Pushes Back Against Proposal to Abolish DEI Program

Image Credit: Bloomberg

Oil prices reached a five-month high on Monday, impacting stocks of airlines, cruise operators, and other fuel-dependent businesses. This surge followed a more than 3% increase in oil prices last week after the U.S. Treasury Department imposed extensive sanctions on Russia’s oil industry, raising concerns about global supply disruptions.

In a separate development, corporate America's stance on diversity, equity, and inclusion (DEI) policies has shifted dramatically since 2020. After George Floyd's death and the subsequent wave of activism, many companies committed to DEI efforts. However, backlash against companies like Bud Light and Target for "going woke" and the U.S. Supreme Court's ruling ending affirmative action in college admissions has caused some companies to reevaluate their DEI programs.

Retail giants such as Walmart, Lowe's, Tractor Supply, and Harley-Davidson scaled back their DEI initiatives in 2023 due to consumer boycotts. More recently, companies like McDonald’s, Amazon, and Meta have followed suit. Apple, however, remains a staunch defender of its DEI policies.

Apple is facing increasing pressure from the National Center for Public Policy Research, a conservative think tank, which proposed abolishing the company’s DEI program. The proposal claims that Apple’s “Supplier Diversity Program” and employee groups exclusive to diverse individuals create discrimination risks. The think tank suggests that if even a small fraction of Apple employees sue over these practices, the costs could be significant.

In response, Apple’s board of directors has advised shareholders to vote against the proposal, asserting that the company is committed to non-discriminatory hiring practices and complies with all legal standards. The board further emphasized that the proposal would interfere with Apple’s ability to manage its operations and business strategies effectively.

Apple’s stance has drawn criticism, particularly from consumers who voiced opposition on social media, arguing that DEI policies should be eliminated from corporate America. This follows a similar defense of DEI by Costco, which also led to consumer boycott threats. Apple's defense of DEI comes ahead of Donald Trump's inauguration, a staunch critic of such initiatives, with his past remarks suggesting an end to DEI at the federal level.

Despite the controversy, Apple’s CEO Tim Cook reportedly plans to personally donate $1 million to Trump's inaugural committee, further stirring public debate over the company's position.

 

 

 

 

 

 

 

Paraphrasing text from "The Street" all rights reserved by the original author.