Apple shareholders on Tuesday voted against a proposal to eliminate the company’s diversity, equity, and inclusion (DEI) program. The proposal, introduced by the National Center for Public Policy Research (NCPPR), a conservative think tank, argued that DEI initiatives posed financial and reputational risks. NCPPR, echoing a growing backlash from conservative activists, suggested that DEI policies were divisive and financially damaging to businesses, citing a broader political shift against such programs.
Stephen Padfield, executive director of the NCPPR’s Free Enterprise Project, argued in a prerecorded statement to shareholders that DEI “poses litigation, reputational and financial risks to companies.” He also pointed to President Donald Trump’s executive order targeting illegal discrimination in DEI efforts as part of a broader cultural shift, stating, “The vibe shift is clear, DEI is out and annual merit is in.”
However, Apple CEO Tim Cook defended the company’s diversity efforts, emphasizing that DEI initiatives are a core part of the company’s culture. Cook reassured shareholders that Apple does not employ quotas but instead focuses on hiring the best talent and fostering a collaborative environment. He acknowledged that some aspects of the program might need adjustment due to evolving legal landscapes but reiterated that Apple’s commitment to dignity and respect for all employees would remain unchanged.
Apple’s diversity program, which gained momentum following the 2020 murder of George Floyd, aims to enhance workplace fairness and opportunities for women, people of color, and other underrepresented groups. However, the landscape for DEI initiatives has become increasingly contentious. Major companies like Ford, Google, and Meta have scaled back their diversity efforts in response to pressure from conservative activists and recent legal challenges, including an executive order from President Trump that banned DEI programs within the federal government.
David Glasgow, an adjunct professor at NYU Law and expert on diversity, inclusion, and belonging, pointed out that DEI is a broad term encompassing not only racial and gender issues but also topics like disability, parental leave, and workplace flexibility. Glasgow noted that the anti-DEI narrative often focuses narrowly on racial quotas, a tactic that may mislead the public about the full scope of DEI programs.
As the legal and political climate continues to evolve, some companies are shifting their language, replacing “diversity” and “inclusion” with terms like “welcoming” and “belonging” to mitigate criticism, according to Glasgow.
Critics of DEI policies argue that hiring decisions should be based solely on merit, without consideration of race or gender. Supporters, however, contend that promoting inclusivity enhances corporate culture while still rewarding top performers.
Sources:
- CBS MoneyWatch
- Apple Annual Shareholder Meeting
- National Center for Public Policy Research