Apple boss says its DEI programmes may change

Apple CEO Tim Cook stated that the company may need to adjust its diversity practices as the U.S. legal landscape changes. This statement was made shortly after a majority of shareholders rejected a proposal calling for the tech giant to consider ending its diversity policies, such as considering race and gender in hiring decisions. This decision highlights the ongoing debate surrounding diversity initiatives in corporate America.

Apple had previously urged shareholders to vote against the proposal, arguing that it "inappropriately" sought to "micromanage" its business. The scrutiny comes amid calls from former U.S. President Donald Trump to end diversity, equity, and inclusion (DEI) programs in government and the private sector. Although Trump's orders have faced legal challenges, many U.S. companies, including prominent names like Meta, Amazon, and Goldman Sachs, have ended or scaled back their DEI policies, citing legal risks. These changes reflect a broader trend of companies reassessing their DEI strategies in response to evolving legal and political pressures.

Despite the shareholders' rejection of the proposal, Cook acknowledged on Tuesday that the company may need to change some of its practices. "As the legal environment around this issue evolves, we may need to make some changes to comply, but our overarching principles of dignity and respect for everyone and the work we're doing for that will never change," he said during a Q&A session at the company's annual shareholder meeting. He noted that Apple does not use hiring "quotas"—a practice that has drawn the harshest criticism—while stating that the company's strength comes from a culture of "people with different backgrounds and perspectives coming together." Cook's remarks underscore Apple's commitment to diversity while acknowledging the need to adapt to changing legal requirements.

The proposal targeting Apple's DEI policies was backed by the National Center for Public Policy Research, a conservative think tank that has previously introduced similar proposals at Costco. The center argued that Apple's diversity and inclusion programs expose the company to "litigation, reputational, and financial risk," pointing to the broader corporate retreat and recent lawsuits making it easier for workers to sue over discrimination issues. Stefan Padfield of the organization's Free Enterprise Project, who presented the proposal at Tuesday's meeting, said that Apple's risks have increased following the Trump administration's recent order for staff to investigate DEI in the private sector. This highlights the growing legal and political challenges faced by companies with DEI programs.

Angela Jackson, a senior advisor at Harvard's Labor and Worklife Program and author of the forthcoming book "The Win-Win Workplace," said that Apple's both opposing the shareholder proposal and opening the door to changing its policies could satisfy both sides of the dispute. But she cautioned that it puts Apple "on the defensive." She would like to see the company take a leadership role by making a stronger business case for these programs. "They've taken the right moves. What they could do more of is really say, 'Yes, these are our values, we think this is the right thing to do, but it's also an economic imperative.'" Jackson's analysis suggests that Apple needs to proactively defend its DEI initiatives by emphasizing their business benefits.

Catherine Howarth, chief executive of responsible investment charity ShareAction, said she believes Apple—a company that caters to a global consumer base—is betting that the benefits of opposing the shareholder proposal outweigh the risks. "Abandoning things that until very recently were understood to be your principles is not popular with consumers and employees," she said. "They will see that it gives a very bad impression to their global consumer base—and it does." Shareholders also rejected proposals requesting Apple to report on its AI privacy practices, charitable giving, and policies to combat child sexual abuse. They supported the company's board nominees, as well as executive compensation, including Cook's more than $74 million pay package. This indicates a broader trend of shareholder support for Apple's existing corporate governance and leadership.