Apple Rebuffs Investor Pressure to Cut DEI, Scrutinize AI (2)

Apple Inc. shareholders voted against an investor bid at the tech giant’s annual meeting aiming to reel in its diversity initiatives.

The proposal from the National Center for Public Policy Research, a group that says corporate diversity programs can discriminate against White men, asked the tech giant to cut its inclusion and diversity programs, as well as its broader diversity policies, department, and goals. The group specifically referenced Apple’s inclusion and diversity program and its supplier diversity program. Apple did not immediately respond to a request for comment after the meeting.

Addressing an investor question about Apple’s diversity and inclusion efforts, Tim Cook, Apple’s CEO, said: “We’ve never had quotas or targets for Apple. Our strength has always come from hiring the very best people and then providing a culture of collaboration, one where people with diverse backgrounds and perspectives come together to innovate and create something magical for our users time and time again.”

Cook added, however, that “as the legal landscape around those issues 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.”

The bid, which was presented at Apple’s annual shareholder meeting Tuesday, marks the first time the group called for a company to completely shut down its DEI efforts. Similar proposals at other companies including Costco and Boeing have only garnered support in the single digits.

The proposal at Costco asked the big-box retail chain to detail the risks of maintaining its diversity initiatives, while the bid at Boeing last year asked for a report on the risks diversity efforts pose to the business.

The Apple bid pointed out that Google parent Alphabet Inc. and social media giant Meta Platforms Inc. rolled back diversity, equity, and inclusion efforts in recent months following a conservative backlash against such corporate initiatives. That pressure has ramped up as President Donald Trump ordered federal agencies to identify and potentially to investigate what the administration describes as illegal diversity programs in the private sector.

“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 proposal said.

Apple pushed back against the proposal, asserting in its proxy statement that it has well-established legal checks and balances.

“We strive to create a culture of belonging where everyone can do their best work,” the company said, adding that “Apple is an equal opportunity employer and does not discriminate in recruiting, hiring, training, or promoting on any basis protected by law.”

Other companies have more defiantly backed DEI in response to such proposals: Costco Wholesale Corp. emphasized how important diversity is throughout its business when fending off the shareholder bid from the same group at the company’s annual meeting in January.

John Deere, which announced in the summer that it would roll back certain diversity initiatives, faces another proposal from the center scrutinizing its diversity efforts. The bid to be considered at the company’s annual meeting on Wednesday asks for a report on hiring statistics to prove Deere isn’t discriminating against White employees and applicants.

“Apple’s management has a duty to maximize shareholder value and our proposal is consistent with that duty,” said Stefan Padfield, who presented the proposal for the Center, after the meeting. “The fact that possibly biased, conflicted, or misled shareholders disagree with us doesn’t make us wrong.”

AI Ethics

The tech giant faced another proposal at its annual meeting that did not pass asking it to report on the risks of potentially using personal or proprietary data to develop and train artificial intelligence models.

The bid, from the National Legal and Policy Center, comes amid growing disquiet from shareholders and the public about data privacy and AI. The group filed similar proposals at tech companies including Alphabet and Meta.

“Troves of data openly available via the Internet still may not be enough to quench developers’ insatiable thirst for high‑quality AI training data,” the bid said.

Apple said in its proxy statement that the company “has a strong track record on protecting user privacy and a robust approach to integrating ethical considerations into our technology.”

The report sought in the proposal is unnecessary because the company “already provides all the information requested regarding Apple’s strong AI data privacy practices,” Apple said.