On Tuesday, Apple shareholders opted to reject a proposal aimed at terminating the company’s diversity, equity, and inclusion (DEI) program.
The proposal came from the National Center for Public Policy Research, a conservative think tank that urged Apple to adopt the stance of other major corporations by backing away from DEI initiatives, which have faced criticism from Republicans and President Donald Trump.
The group’s proposal stated, “DEI poses litigation, reputational and financial risks to companies, and therefore financial risks to their shareholders, and therefore further risks to companies for not abiding by their fiduciary duties.” They put forth a similar proposal at Costco’s annual meeting in January, which shareholders also rejected.
Stephen Padfield, executive director of the National Center for Public Policy Research’s Free Enterprise Project, said in a pre-recorded statement to Apple shareholders on Tuesday, “The risks to Apple stemming from continuing to push these divisive and value-destroying agendas is only increasing in light of President Trump’s recent executive order focusing the Department of Justice on rooting out illegal discrimination being carried out in the name of DEI.”
Padfield remarked, “The vibe shift is clear; DEI is out and annual merit is in.”
In response to the anti-DEI proposal, Apple emphasized that its diversity program is a core aspect of its corporate culture, attributing part of its success as the world’s most valuable company to these policies.
During a Q&A session at the meeting, Apple CEO Tim Cook stated, “We’ve never had quotas or targets for Apple. Our strength has always come from hiring the very best people and then providing a culture of collaboration.” He acknowledged that the company might need to adjust certain aspects of its diversity policies as “the legal landscape” surrounding DEI changes.
“However, our North Star of dignity and respect for everyone, and our efforts toward that mission, will never waver,” he affirmed.
In 2022, Apple revealed that nearly 75% of its global workforce was comprised of white and Asian employees, with nearly two-thirds being men.
Mr. Trump criticized Apple’s shareholders for rejecting the proposal to eliminate the company’s DEI initiatives.
He stated, “Apple should get rid of DEI rules, not just make adjustments to them. DEI was a hoax that has been very bad for our country. DEI is gone!!!” in a social media post on Wednesday.
DEI, which aims to foster fairness in the workplace and increase opportunities for people of color, women, and other protected groups, gained traction after the 2020 murder of George Floyd.
However, recent trends indicate a backlash, with companies such as Ford, Google, McDonald’s, Meta, Target, Walmart, and others scaling back their diversity initiatives under pressure from conservative activists, influenced by legal rulings and President Trump’s ban on DEI programs in the federal government.
Shifting DEI Landscape
Certain types of DEI initiatives have become riskier from a legal perspective compared to a few years ago. Nonetheless, practices like using standardized questions in hiring to reduce implicit bias are still legally sound, according to David Glasgow, an adjunct professor at New York University School of Law and executive director of its Meltzer Center for Diversity, Inclusion, and Belonging.
“DEI encompasses a broad range of issues, including disabilities, parental leave, and flexible work arrangements. The anti-DEI movement has effectively shaped the narrative to suggest it’s all about racial quotas and preferences,” which only represents a small fraction of DEI initiatives, Glasgow explained to CBS MoneyWatch.
In response to the current legal and political climate, some companies are opting for rebranding. They might abandon the terms diversity, equity, and inclusion in favor of phrases like “welcoming” and “belonging.”
“[I]t’s more about getting anti-DEI activists off their back,” Glasgow added.
Critics of DEI argue that hiring and promotion decisions should strictly be based on merit, without consideration of race, gender, or other characteristics. Conversely, supporters of DEI advocate that fostering inclusivity does not hinder companies from rewarding top talent, while also contributing to a respectful workplace culture.
Despite the growing resistance to diversity initiatives, approximately half of corporate leaders surveyed after Mr. Trump’s inauguration expressed that they do not plan to roll back their DEI programs, as revealed by a recent survey of 350 C-suite executives from Littler, a law firm focused on labor and employment issues. The survey indicated that roughly 22% of executives are contemplating reducing or phasing out DEI roles.
contributed to this report.
