Apple shareholders have recently rejected a proposal that would have pressured the company to join President Donald Trump’s call to eliminate diversity, equity, and inclusion (DEI) initiatives. The proposal, drafted by the National Center for Public Policy Research, a conservative think tank, urged Apple to follow in the footsteps of other high-profile companies that have backed away from diversity programs currently under scrutiny by the Trump administration.
After a brief presentation on the proposal, Apple announced that 97% of shareholders voted against it, vindicating the company’s decision to stand behind its commitment to diversity. This commitment has come under fire as Trump has asked the Department of Justice to investigate whether these programs discriminate against employees based on their race or gender.
Despite the pressure from the Trump administration, Apple CEO Tim Cook has maintained a cordial relationship with the president, which has helped the company avoid tariffs on its products made in China. In fact, after a meeting between Cook and Trump last week, Apple announced a $500 billion investment in the US and the creation of 20,000 new jobs over the next four years, a move that was applauded by the president.
This shareholder vote comes just a month after a similar proposal was presented at Costco’s annual meeting and was also overwhelmingly rejected. However, this did not deter the National Center for Public Policy Research from confronting Apple about its DEI program. In a pre-recorded presentation, the think tank’s executive director, Stefan Padfield, argued that “forced diversity is bad for business.”
Padfield also claimed that Apple’s diversity commitments are not in line with recent court rulings and could potentially expose the company to lawsuits for alleged discrimination. He pointed to the Trump administration as a potential legal adversary for Apple.
“The shift in attitude is clear: DEI is out, and merit is in,” Padfield stated in the presentation.
The fear of legal repercussions was further amplified last week when Florida Attorney General James Uthmeier filed a federal lawsuit against Target, accusing the retailer’s scaled-back DEI program of alienating customers and hurting sales, to the detriment of shareholders.
However, like Costco, Apple maintains that promoting a diverse workforce is not only the right thing to do, but it also makes good business sense. During the shareholder meeting, Cook acknowledged that the company may need to make adjustments to its DEI program as the legal landscape changes, but emphasized the importance of maintaining a culture that has helped Apple become the world’s most valuable company with a market value of $3.7 trillion.
“We will continue to foster a culture of belonging,” Cook assured shareholders.
In its 2022 diversity and inclusion report, Apple revealed that nearly three-fourths of its global workforce is made up of white and Asian employees, with men making up two-thirds of the workforce. This is not uncommon in the tech industry, where companies have long struggled to diversify their predominantly white and male workforce, especially in high-paying engineering roles.
The push for diversity in the tech industry has been ongoing for years, but progress has been slow. However, companies like Apple are committed to making a change and creating a more inclusive workplace. As Cook stated during the shareholder meeting, “We believe diversity drives innovation and leads to better products and services for our customers.”
In conclusion, Apple’s shareholders have reaffirmed the company’s commitment to diversity by rejecting a proposal that would have undermined its DEI initiatives. Despite pressure from the Trump administration and potential legal challenges, Apple remains dedicated to creating a culture of belonging and promoting diversity in its workforce. As one of the world’s most influential and successful companies, Apple’s stance on diversity sends a powerful message to other businesses that diversity is not only the right thing to do, but it also makes good business sense.
