Apple Urges Shareholders to Reject Proposal Criticising Diversity Efforts

Apple has urged its shareholders to reject a proposal from the National Center for Public Policy Research (NCPPR), a conservative think tank, which calls for the termination of the company's Diversity, Equity, and Inclusion (DEI) programs. The NCPPR argues that such initiatives expose companies to "litigation, reputational, and financial risks," especially in light of the 2023 Supreme Court ruling against affirmative action in universities.

In a notice to shareholders, Apple's board recommended voting against the proposal, emphasizing that the company already has appropriate compliance procedures to manage potential risks. The board stated that the proposal "inappropriately attempts to restrict Apple's ability to manage its own ordinary business operations, people and teams, and business strategies."

This stance contrasts with recent actions by other tech giants. For instance, Meta has reportedly terminated its DEI programs in anticipation of potential policy shifts under the incoming administration.

Apple's commitment to DEI is evident in its public statements and initiatives. The company asserts that its policies are designed to foster an inclusive environment, stating, "We're continuing to create a culture of inclusion, increasing representation across teams, and holding ourselves accountable at every level."

However, the company has faced challenges in this area. In mid-2024, Apple was named in a proposed class-action lawsuit filed in California by two long-term female employees. The lawsuit accuses the tech giant of systematically underpaying over 12,000 female employees compared to their male counterparts in comparable roles within the company's engineering, marketing, and AppleCare divisions. The complaint highlights that Apple's practice of basing workers' starting pay on previous salaries or "pay expectations" leads to lower pay rates for women. Additionally, the lawsuit alleges that Apple's performance evaluation system, which is used to determine raises and bonuses, is biased against women.

The upcoming annual general meeting on February 25 will provide a platform for shareholders to express their views on the company's DEI initiatives. The outcome will not only influence Apple's internal policies but could also signal broader industry trends regarding corporate diversity programs amid changing political and legal landscapes.