Apple shareholders are anticipated to reject a proposal on Tuesday that seeks to pressure the company into ending its workforce diversity initiatives. The proposal, created by the National Center for Public Policy Research, a conservative think tank, calls on Apple to follow the example of several high-profile companies that have scaled back or abandoned their diversity, equity, and inclusion programs.
This move follows a similar proposal put forward during Costco’s annual meeting last month, which was overwhelmingly voted down. A similar result is expected at Apple’s upcoming meeting, despite strong opposition from critics. Apple, like Costco, has consistently defended its diversity and inclusion efforts, arguing that they make good business sense.
The National Center for Public Policy Research’s proposal has criticized Apple’s diversity programs, claiming they are at odds with recent court rulings and could expose the company to a significant number of lawsuits for alleged discrimination. The group estimated that around 50,000 Apple employees could potentially file lawsuits against the company, although it did not provide details on how this figure was calculated.
The National Center for Public Policy Research argues in its proposal that diversity, equity, and inclusion (DEI) programs pose litigation, reputational, and financial risks to companies, which in turn create risks for shareholders and may lead to violations of fiduciary duties.
This concern over potential legal consequences was heightened last week when Florida Attorney General James Uthmeier filed a federal lawsuit against Target, claiming the company’s decision to scale back its DEI program alienated customers and harmed sales, negatively impacting shareholders.
In response to the anti-DEI proposal, Apple defended its diversity initiatives, stating that the program is a key element of the company’s culture, which has contributed to its $3.7 trillion market value, the highest of any company in the world.
In response to the proposal, Apple emphasized that the way the company operates is just as crucial to its success as producing top-quality products. The company stated, “We aim to conduct business ethically, honestly, and in compliance with all relevant laws and regulations.”
In its 2022 diversity and inclusion report, Apple revealed that nearly three-fourths of its global workforce was made up of white and Asian employees. At that time, nearly two-thirds of its employees were men.
For years, other major tech companies have reported similar demographics, with a significant majority of employees being white and Asian men, especially in higher-paying engineering roles. This has led to ongoing, though largely unsuccessful, efforts across the industry to increase diversity.
