Apple’s board of directors has recommended shareholders vote against a conservative think tank’s proposal to consider scrapping the tech giant’s diversity, equity and inclusion (DEI) initiatives.
“At Apple, we believe that how we conduct ourselves is as critical to Apple’s success as making the best products in the world. We seek to conduct business ethically, honestly, and in compliance with applicable laws and regulations, and our Business Conduct and Compliance policies are foundational to how we do business,” the company said Friday in its proxy statement.
The National Center for Public Policy Research (NCPPR) notified Apple in September that it intends to submit the anti-DEI proposal at Apple’s annual shareholder meeting on February 25. If passed by shareholders, it would require Apple to consider eliminating some or all of its DEI policies.
But Apple said the proposal “inappropriately attempts to restrict” and “micromanage” company operations and policies. The company also said it has a “well-established compliance program,” and its board actively manages business and legal conduct to ensure it complies with laws in multiple jurisdictions.
Stefan Padfield, executive director of the NCPPR’s Free Enterprise Project, said DEI poses risks, including litigation, customer backlash and divisiveness among employees, that outweigh the benefits.
The NCPPR said that Apple “likely has over 50,000 who are potentially victims of this type of discrimination.” The NCPPR said if any employees sue the company, Apple could lose “tens of billions of dollars.”
“We are simply asking for a consideration. The proposal, if approved, would not automatically result in the abolishment of DEI,” Padfield told CNN. He called Apple’s statement “non-responsive” and said that “corporations that have been pushing DEI have lost the goodwill to simply say ‘trust us.’”
DEI isn’t new. Neither is the backlash
Apple’s diversity programs aren’t new. Its supplier diversity program was established in 1993 and works with various nonprofits, including the National Minority Supplier Development Council and National Veterans Business Development Council. Apple also hired its first vice president of inclusion and diversity in 2017 and has 67 employee groups known as “diversity network associations,” the first of which was established in 1986.
But other companies are abandoning their commitments or renaming programs to “appear more palatable” to the incoming Trump administration and other critics, said Nani Vishwanath, a consultant and facilitator of DEI and employee experiences at the Courage Collective.
Meta, John Deere and Walmart are among the companies that have made such changes to their DEI commitments following pressure from right-wing activists, legal groups, customers and President-elect Donald Trump.
Changing DEI programs doesn’t necessarily shield a company from further backlash. McDonald’s, which announced on January 6 that it would roll back DEI practices, was sued Sunday by the American Alliance for Equal Rights, an anti-affirmative action group. The lawsuit claims the fast food company did not fully adhere to its commitment to treat “everyone” fairly because it kept a college scholarship program for Hispanic and Latino high school students.
Other companies aren’t buckling to demand. The NCPPR has made similar proposals to shareholders of major companies, including retail giant Costco, whose board of directors recommended shareholders vote against DEI policies.
“Those who are staying fiercely committed understand how it’s imperative,” Vishwanath said.
Vishwanath said DEI is “vastly misunderstood” and companies don’t always understand why they implemented the programs. DEI efforts were originally intended to advance the representation of people from various identities and backgrounds, and this affected employee trainings, resource networks and recruiting practices. But there isn’t a single definition for DEI, which has complicated its implementation.
She said these misunderstandings cause inconsistency with DEI initiatives. She suggested companies should ask themselves if DEI policies were “a reactive add-on or was it intrinsically important to the company’s success?”
“(DEI) will continue to be met with curiosity or resentment,” said Vishwanath. “For organizations to remain relevant and meaningful to both their internal and external audiences, they need to think about what practices they need to evolve.”
CNN’s Nathaniel Meyersohn contributed to this report.
