Apple shareholders are expected to reject a bid to press the technology leader to scrap its corporate programs that diversify its workforce.
The National Center for Public Policy Research, a conservative think tank that describes itself as such, has drafted a proposal that urges Apple Inc. to join a long list of companies that have abandoned diversity and equity initiatives. These companies are currently under the scrutiny of President Donald Trump.
This comes just a month after a group from the same organization presented a proposal similar at Costco’s Annual Meeting, but it was overwhelmingly rejected. Apple’s annual gathering is likely to have a similar outcome despite the vociferous objections from critics.
Apple, like Costco, has consistently supported diversity and inclusion initiatives that its management believes make good business sense.
The National Center for Public Policy Research has proposed that Apple’s commitments to diversity are out of step with recent court rulings. They also claim the programs could expose Cupertino’s company to a flood of lawsuits for discrimination. The group estimated that about 50,000 Apple workers could bring cases against Apple, without revealing how they arrived at this figure.
In its proposal, the National Center for Public Policy Research states that DEI poses financial, reputational, and litigation risks for companies. This, in turn, creates financial risks for their shareholders.
Last week, the specter of legal trouble was amplified when Florida Attorney-General James Uthmeier brought a federal suit against Target. He claimed that the retailer’s recently reduced DEI program alienated a large number of consumers and lowered sales to the detriment of shareholders.
Apple’s rebuttal of the anti-DEI plan said that its program was an integral part of a culture that has contributed to Apple reaching its current market valuation of $3.7 trillion, greater than any business in the entire world.
In a statement opposing the proposal, Apple said: “We believe our conduct is just as important to Apple’s future as producing the best products on the planet.” “We strive to conduct our business in a way that is ethical, honest, and compliant with all applicable laws and regulations.”
Apple’s last diversity and inclusiveness report, published in 2022 revealed that nearly three-fourths (74%) of its global workforce was made up of white and Asian workers. At that time, nearly two-thirds of Apple’s employees were male.
For years, other major technology companies have reported that they employ a majority of white and Asian men in engineering jobs with high salaries. This trend has prompted the industry to make what have been mostly unsuccessful attempts to diversify.
