Apple’s board of directors has urged shareholders to reject a proposal from the conservative National Center for Public Policy Research (NCPPR) that seeks to end the tech giant’s diversity, equity, and inclusion (DEI) programs. In a statement issued Friday, Apple reiterated its commitment to ethical business practices and highlighted the importance of its DEI initiatives to the company’s success.
“At Apple, how we operate is as integral to our success as making the world’s best products,” the company said in its proxy statement. Apple emphasized that its Business Conduct and Compliance policies play a key role in its operations, ensuring the company adheres to laws and regulations globally.
The NCPPR, a conservative think tank, announced in September its intention to submit a proposal for the upcoming annual shareholder meeting on February 25. If approved, the proposal could force Apple to reconsider or eliminate its DEI initiatives. However, Apple criticized the proposal, stating that it “inappropriately attempts to restrict” and “micromanage” company operations.
The NCPPR’s Stefan Padfield argued that DEI programs expose companies like Apple to risks, including potential lawsuits, customer backlash, and employee division. He also claimed that over 50,000 Apple employees could be at risk of discrimination as a result of the company’s DEI policies. Padfield maintained that the proposal merely seeks to prompt a review of these policies, not their immediate elimination. “Corporations that have been pushing DEI have lost the goodwill to simply say ‘trust us,’” Padfield told CNN.
Apple’s commitment to diversity is long-standing. The company’s supplier diversity program has been in place since 1993, and it has consistently supported various nonprofits, including the National Minority Supplier Development Council. In 2017, Apple hired its first vice president of inclusion and diversity, and the company now has 67 employee groups, known as “diversity network associations,” which began forming in 1986.
Despite these efforts, other companies have recently modified their DEI policies in response to growing pressure from right-wing activists and legal groups. Meta, John Deere, and Walmart have all made changes to their diversity commitments, with some renaming their programs to appeal to critics, including the incoming Trump administration.
However, pushing back against DEI initiatives has not shielded companies from further backlash. For instance, McDonald’s recently announced it would scale back its DEI practices but was promptly sued by the American Alliance for Equal Rights, an anti-affirmative action group, for continuing a scholarship program for Hispanic and Latino students.
While some companies, like McDonald’s, have adapted their DEI strategies, others, such as Costco, have also faced similar shareholder proposals. Despite these challenges, experts like Nani Vishwanath, a consultant specializing in DEI, argue that companies that remain committed to diversity recognize its critical importance.
Vishwanath noted that DEI efforts are often misunderstood, with companies failing to understand why they implemented such policies in the first place. Originally intended to promote the representation of diverse identities and backgrounds, DEI programs encompass employee training, resource networks, and recruitment. However, the lack of a clear, universally accepted definition for DEI has complicated its implementation.
For companies to remain relevant, Vishwanath suggested that they assess whether their DEI initiatives are essential to their success or simply a reaction to external pressures. “DEI will continue to be met with curiosity or resentment,” she said, stressing the need for organizations to evolve their practices to stay meaningful to both internal and external audiences.
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