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Apple Investors Reject Proposal To End DEI Measures

G. Muttoni; M. Rocca

While major U.S. tech companies have aligned themselves with conservative shifts under the leadership of newly elected President Donald Trump and abandoned DEI programs, Apple has recently refused to follow the trend, opting instead to uphold its internal policies in support of minority groups: investors followed the management’s recommendations and firmly opposed the conservative minority.


What are DEI measures?


In recent years, diversity and inclusion within organizations have become increasingly relevant, particularly regarding a business's strategic evolution. These concepts represent fundamental principles for building a workplace environment that respects and values every individual.The acronym "DEI" stands for Diversity, Equity, and Inclusion. The primary goal of a Diversity, Equity, and Inclusion (DE&I) policy is to create a work environment where all individuals feel respected and valued and have equal opportunities for growth and development. Such a policy aims to promote diversity in all its forms, combat discrimination, and ensure fair treatment for all employees.


Diversity refers to the many differences among people—including race, gender, age, sexual orientation, physical abilities, religious beliefs, and socio-economic background. When a company embraces diversity, it recognizes and celebrates these differences, understanding that every individual brings unique experiences and perspectives.


Equity involves fairness in business practices: every employee or collaborator should have access to the same opportunities while acknowledging that people start from different places and may need different types of support to achieve the same goal. It is not about treating everyone the same way but about understanding and responding to diverse needs to ensure that each person can fully express their potential.


Inclusion is what makes diversity and equity tangible. Creating an inclusive environment means ensuring that every person feels welcomed, respected, supported, and valued. It is not enough to have a diverse workforce; it is essential that everyone feels an integral part of the organization, with the opportunity to participate actively and influence decisions.


The shift in corporate priorities


Why have DEI initiatives suddenly been dismantled and are no longer considered a priority?


The conservative backlash that has swept through Silicon Valley originates from the belief that DEI initiatives are divisive, anti-American, and promote reverse discrimination against white men, while failing to prioritize merit. Beyond ideological arguments, the shift away from DEI policies is primarily driven by legal and economic concerns. The turning point came with the Supreme Court’s June 2023 ruling, which declared university affirmative action programs aimed at increasing access for racial minorities unconstitutional. The Court found that such policies violated the Fourteenth Amendment due to their discriminatory impact on Asian and white students.This landmark case was brought to the Court by right-wing activist Edward Blum, a legal strategist known for connecting potential plaintiffs with pro bono lawyers to establish legal precedents. Indeed, while the ruling did not directly address corporate policies, it opened the door to a wave of lawsuits challenging DEI initiatives in the private sector.


The dismantling of DEI measures accelerated with Donald Trump’s return to the presidency. The Republican leader has consistently argued they are discriminatory and repeatedly suggested the U.S. Department of Justice to investigate their legality.During his first term, he signed an executive order banning DEI initiatives in federal agencies, a measure that was later blocked. Yet, immediately upon reassuming office, Trump renewed the fight: first with an executive order banning DEI measures in federal hiring, followed by another targeting programs considered discriminatory. Even the Tech Tycoon Elon Musk wrote on X: "DEI is just another word for racism. Shame on anyone who uses it".


In response to growing legal risks and public pressure, many companies have started preemptively rolling back DEI programs to avoid potential litigation from employees or candidates claiming reverse discrimination. High-profile corporations such as Meta, Goldman Sachs, Alphabet, Walmart, and McDonald’s have either scaled back or entirely eliminated their DEI initiatives. Amazon, for example, eliminated equity programs and initiatives for underrepresented groups and decided to focus on programs with proven results instead; meanwhile, Meta dropped its requirements for diversity in hiring processes and dissolved teams dedicated to diversity efforts.


APPLE stands by DEI


In January, Apple’s Board of Directors issued directives to shareholders, including a clear rejection of a proposal from certain conservative shareholders to terminate the company’s Diversity, Equity, and Inclusion (DEI) programs. This set the stage for Apple’s annual shareholder meeting, which took place on February 25, 2025, and unfolded as expected without surprises. Shareholders adhered to Apple’s recommendations on all agenda items, from executive compensation decisions to broader corporate policy proposals, demonstrating strong alignment with the company’s strategic direction.


A key outcome of the meeting was the board’s firm rejection of the conservative proposal to eliminate Apple’s inclusion policies. The proposal, titled "Request to Cease DEI Efforts", was submitted by the National Center for Public Policy Research, a self-described free market think tank. The initiative called for Apple to discontinue its inclusion and diversity programs, as well as its overarching diversity policies, department, and goals, specifically targeting Apple’s inclusion and diversity program and its supplier diversity program.


To support its proposal, the National Center for Public Policy Research presented a detailed risk assessment, highlighting what it viewed as significant legal and financial threats. The report suggested that out of Apple’s 80,000 employees, at least 50,000 could potentially file lawsuits against the company for “reverse discrimination,” alleging disadvantage for not belonging to minority groups. The document estimated potential financial damages in the tens of billions of dollars, aiming to underscore the perceived risks of maintaining DEI initiatives.


Despite these claims, Apple reaffirmed its commitment to DEI principles. The company’s initiatives include the mandatory consideration of candidates from diverse backgrounds during hiring processes, employee training on cultural sensitivity, and mentorship programs for underrepresented minorities. This decision aligns with Apple’s long-standing efforts to foster an inclusive workplace and reflects broader trends in corporate America, where many companies expanded DEI programs in response to the Black Lives Matter movement in 2020.


The shareholder vote on this issue was widely regarded as a measure of investor sentiment toward the value of DEI programs. The overwhelming support for Apple’s stance not only solidified its position but also demonstrated that a majority of its shareholders recognize the strategic importance of diversity and inclusion in sustaining innovation and competitive advantage.


In addition to the DEI-related proposal, shareholders also rejected other initiatives that would have required Apple to provide greater transparency regarding its AI privacy practices, charitable contributions, and policies to combat child sexual abuse. These outcomes further emphasized investor trust in Apple’s current governance and strategic priorities.


Interestingly, throughout these developments, Apple CEO Tim Cook has maintained a cordial relationship with former President Donald Trump since his first term in office. This unlikely alliance has previously helped Apple avoid tariffs on iPhones manufactured in China. Following a recent meeting between Cook and Trump, Apple announced plans to invest $500 billion in the U.S. and create 20,000 new jobs over the next five years—a move that drew praise from the former president and underscored Apple’s broader strategic vision.

 
 
 

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