Should the computer and smartphone maker Apple eliminate its diversity, equity, and inclusion (DEI) policies? That is the question the company's shareholders will face on Tuesday.
A proposal drafted by the National Center for Public Policy Research will go before shareholders on Tuesday, as the organization claims DEI policies put Apple in financial and legal jeopardy.
The National Center for Public Policy Research stated that the Supreme Court decision reached in 2023 in SFFA v. Harvard indicated that companies' DEI programs could potentially be illegal. The Supreme Court ruled that affirmative action policies by colleges violated the Equal Protection Clause of the 14th Amendment.
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"It’s clear that DEI poses litigation, reputational and financial risks to companies, and therefore financial risks to their shareholders, and therefore further risks to companies for not abiding by their fiduciary duties," the National Center for Public Policy Research wrote in its argument against Apple's diversity programs.
The National Center for Public Policy Research claimed that thousands of Apple workers have likely been "discriminated against" because of its diversity policies.
Apple's board of trustees urged shareholders to turn down the proposal.
"Apple is an equal opportunity employer and does not discriminate in recruiting, hiring, training, or promoting on any basis protected by law," the board said in response. "Apple seeks to operate in compliance with applicable non‑discrimination laws, both in the United States and in the many other jurisdictions in which we operate, and in that regard, monitors and evolves its practices, policies, and goals as appropriate to address compliance risks. The proposal inappropriately seeks to micromanage the company’s programs and policies by suggesting a specific means of legal compliance."
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Apple is among numerous companies reassessing DEI policies. Last month, Costco shareholders overwhelmingly voted against a proposal to eliminate its diversity programs.
Other companies, however, have eliminated DEI programs in response to backlash from conservatives and President Donald Trump.
Within hours of taking office, President Trump signed an executive order last month that effectively rid the federal government of DEI training and positions. The president also eliminated a previous executive order that required federal contractors to have non-discriminatory practices in hiring and employment.
