Apple board urges investors to block proposal to end equity programmes

Bengaluru — Apple’s board of directors recommended investors vote against a shareholder proposal to abolish the company’s Diversity, Equity, and Inclusion (DEI) programmes, according to a proxy filing from the company.

The National Centre for Public Policy, a conservative think-tank, submitted a proposal that the company consider abolishing its “inclusion & diversity programme, policies, department and goals.”

The proposal cited recent Supreme Court decisions and made the argument that DEI poses “litigation, reputational and financial risks to companies” and could make Apple more vulnerable to lawsuits.

Apple responded that it had a well-established compliance programme and the proposal was unnecessary. It added that the shareholder proposal was an inappropriate attempt to micromanage Apple’s business strategy.

“Apple is an equal opportunity employer and does not discriminate in recruiting, hiring, training or promoting on any basis protected by law”, the iPhone maker said in the filing. The news was first reported by TechCrunch.

Several major companies including Meta and Amazon are winding down diversity programmes ahead of Republican Donald Trump’s return to the US presidency as conservative opposition to such initiatives grows louder.

Conservative groups have denounced DEI programmes and threatened to sue companies over them, emboldened by a US Supreme Court ruling in 2023 that struck down affirmative action in university admissions decisions.

The changes show how some of America’s biggest businesses have reacted to a larger conservative backlash against diversity initiatives, which multiplied after widespread protests after the police killings of George Floyd and other Black Americans in 2020.

Reuters