Apple is holding its annual shareholder meeting today as investors vote on several proposals and hear updates from CEO Tim Cook.
Most notably, Apple shareholders rejected an outside proposal calling for the company to end its DEI initiatives.
Apple doubles down on DEI
As we reported last month, the conservative think tank National Center for Public Policy Research submitted a shareholder proposal calling on Apple to end its diversity, equity, and inclusion programs. The proposal claimed 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.”
According to the think tank, Apple’s “Inclusion & Diversity” program policies are “consistent with, if not more radical than, most corporate DEI programs.”
Apple, however, recommended that shareholders vote against this proposal in its annual proxy report and said:
At Apple, we believe that how we conduct ourselves is as critical to Apple’s success as making the best products in the world. We seek to conduct business ethically, honestly, and in compliance with applicable laws and regulations, and our Business Conduct and Compliance policies are foundational to how we do business. And we strive to create a culture of belonging where everyone can do their best work.
At today’s shareholder meeting, investors followed Apple’s advice and rejected the proposal (via Bloomberg). This means Apple’s “Inclusion & Diversity” program will continue unchanged.
Apple is one of the very few companies sticking with its DEI programs. Meta announced plans to roll back DEI programs last month, alongside similar announcements from Google, Amazon, Walmart, Ford, and more. Costco is another company that has rebuked calls to end its diversity policies.
According to Mark Gurman, Apple CEO Tim Cook did acknowledge during today’s shareholder meeting that Apple might have to make DEI changes “as the legal landscape evolves.” Still, Cook said the company remains committed to its “culture of belonging.”
More comments from Cook today via BBC News:
“As the legal landscape around this issue evolves, we may need to make some changes to comply, but our north star of dignity and respect for everyone and our work to that end will never waver,” Mr Cook said during a question-and-answer session at the company’s annual shareholder meeting.
He noted that Apple did not use “quotas” for hiring – a practice that has come in for some of the fiercest criticism – while saying the firm’s strength came from a culture where “people with diverse backgrounds and perspectives come together”.
“We’ll continue to work together to create a culture of belonging where everyone can do their best work,” he added, saying the company would remain “committed to the values that have always made us who we are”.
Investors also followed Apple’s guidance and voted against three other outside proposals:
- Report on Ethical AI Data Acquisition and Usage
- Report on Costs and Benefits of Child Sex Abuse Material-Identifying Software & User Privacy
- Report on Charitable Giving
It’s incredibly rare for Apple shareholders to stray from Apple’s recommendations when voting on outside proposals. The last time investors did so was in 2022, when they voted to audit Apple’s civil rights impact and use of concealment clauses in employee contracts.
Also, during today’s meeting, Cook emphasized that Apple continues to plan for annual dividend increases.
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