Over the past year, corporate America has undergone a major shift in attitude towards a central work policy created five years ago.
After an African American man named George Floyd was murdered by a white police officer who assisted in his arrest in May 2020, many large companies committed to implementing diversity, equity, and inclusion policies in their workplaces, citing that the incident brought to light many inequities Black people face in America.
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However, in 2023, after Bud Light and Target faced massive boycotts from consumers for “going woke,” and the U.S. Supreme Court ended affirmative action (aimed to eliminate discrimination and create opportunities for minorities) in college admissions, many companies began to reevaluate their DEI policies.
Related: Costco faces boycott threats after defending controversial policy
Last year, retail giants like Walmart, Lowe’s, Tractor Supply and Harley-Davidson notably cut their DEI initiatives after facing boycott threats from consumers who blasted the companies for going “woke.”
So far this year, McDonald’s, Amazon and Meta have also hopped on the trend of cutting their DEI programs. However, Apple (AAPL) , the largest company in the world, is one of the few companies that has opted to defend the controversial policy.
Apple faces pressure to cut DEI
Apple recently faced increased pressure from the National Center for Public Policy Research, a conservative think tank, in a recent shareholder proposal to “abolish” its DEI program due to the “litigation, reputational and financial risks” it poses to investors and the company.
Related: Apple plans major change to future iPhones
In the proposal, the National Center for Public Policy Research claims that Apple has a DEI policy that includes a "Supplier Diversity Program" that picks suppliers based on their race and sex. It also states that Apple allows employee member groups exclusive to “diverse” employees and contributes shareholder money to organizations that promote DEI.
“With 80,000 employees, Apple likely has over 50,000 who are potentially victims of this type of discrimination,” said the National Center for Public Policy Research in the proposal. “If even only a fraction of employees file suit, and only some of those prove successful, the cost to Apple could reach tens of billions of dollars.”
Apple issues a sharp response to the proposal
Shareholders are set to vote on the proposal at Apple's annual general meeting on Feb. 25. In response to the proposal, Apple’s board of directors sent a notice to shareholders advising them to vote against it.
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Apple’s board states that the proposal is "unnecessary" since the company doesn’t discriminate in “recruiting, hiring, training” and is in compliance with non-discrimination laws.
“The proposal is unnecessary as Apple already has a well-established compliance program and the proposal inappropriately attempts to restrict Apple's ability to manage its own ordinary business operations, people and teams, and business strategies; and our Board and management maintain active oversight of legal and regulatory risks and compliance for our global business,” said the board in the notice.
Apple’s decision faces harsh criticism from consumers
Apple’s choice to defend DEI did not sit well with some consumers who took to social media platform X to claim that DEI must be put on corporate America's chopping block.
No company needs a special program for DEI. How about hiring the most qualified? Wow, what a concept.
— Anunnaki (@Annunaki4u) January 12, 2025
Apple Wants to Keep Diversity Programs Disavowed by Other US Firms https://t.co/lNU2OLUkbT
Some even warned that Apple could suffer significant financial harm due to its defense of DEI.
@Apple Apple board better back off fighting ending of DEI initiatives or face biggest boycott in history not to mention poor stock performance & major lawsuit losses for fucking spying on people @Samsung @microsoft
— Stephen (@prairieoceanboy) January 13, 2025
Apple's move comes after Costco also defended its DEI policy earlier this month, which sparked boycott threats from some consumers.
Apple’s strict DEI defense also comes ahead of Donald Trump’s inauguration as president of the United States on Jan. 20. Trump has previously opposed DEI initiatives and even vowed to end DEI on the federal level when he takes office.
While individuals from Apple have donated roughly $2.5 million to Vice President Kamala Harris’ presidential campaign and only about $94,000 to Trump’s in 2024, earlier this month, Apple CEO Tim Cook allegedly vowed to donate $1 million to Trump's inaugural committee personally.
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