Apple shareholders are expected to reject an attempt to pressure the technology trendsetter into scrapping corporate programs designed to diversify its workforce.
Apple shareholders are predicted to dismiss a bid to force the tech giant to abandon its corporate schemes aimed at diversifying its workforce.
The proposal, put forward by the National Center for Public Policy Research – a self-proclaimed conservative think tank – encourages Apple to join a host of high-profile companies that have backed away from diversity, equity and inclusion initiatives currently under scrutiny by President Donald Trump.
This shareholder vote follows a similar proposal presented at Costco’s annual meeting last month, which was resoundingly rejected. A comparable result is anticipated at Apple’s annual meeting, despite vocal opposition from critics.
Much like Costco, Apple has consistently supported diversity and inclusion efforts, which its management argues are good for business. However, the National Center for Public Policy Research’s proposal criticises Apple’s diversity commitments as being inconsistent with recent court rulings and claims the programmes expose the Cupertino, California-based company to a potential wave of lawsuits alleging discrimination.
The group estimates that around 50,000 Apple employees could file cases against Apple, although it does not provide details on how this figure was calculated.
“It’s clear that 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,” states the National Center for Public Policy Research in its proposal.
Last week’s legal developments intensified concerns as Florida Attorney General James Uthmeier filed a federal lawsuit against Target, arguing that the company’s downsized DEI program had alienated consumers and harmed sales, affecting shareholders negatively.
In opposing the anti-DEI proposal, Apple maintained that its DEI initiatives are fundamental to the company’s ethos—a key element in achieving a record market value of $3.7tn, making it the most valuable company globally. “We believe that how we conduct ourselves is as critical to Apple’s success as making the best products in the world,” Apple argued in a statement. “We seek to conduct business ethically, honestly, and in compliance with applicable laws and regulations.”
In the latest diversity and inclusion report released by Apple in 2022, it was revealed that white and Asian employees makeup nearly three-fourths of its global workforce, while men constitute almost two-thirds of its total employees. Major tech firms have long been dominated by white and Asian men, particularly in lucrative engineering roles. This trend has led to largely unsuccessful attempts to diversify within the industry.
