Apple has asked shareholders to vote against a proposal to scrap its diversity, equity and inclusion programmes, as tech rivals scale back similar schemes before Donald Trump’s return to the White House.
The National Center for Public Policy Research, a conservative thinktank, wants the iPhone maker to end its DEI efforts because they expose companies to “litigation, reputational and financial risks”. The proposal will be voted on at Apple’s annual general meeting on 25 February.
In a notice to shareholders, Apple’s board has recommended investors vote against the proposal because, it says, it already has the right compliance procedures to deal with any risks and because the proposal “inappropriately attempts to restrict Apple’s ability to manage its own ordinary business operations, people and teams, and business strategies”.
DEI schemes are sets of measures designed to make people of all backgrounds – regardless of ethnicity, class, sexuality and gender – feel supported and included in the workplace.
Discussions on ways to increase diversity, particularly on race, rose to global prominence in 2020 when the murder of George Floyd by a US police officer prompted businesses to examine their own policies amid global protests.
However, the concept has since become a focus for rightwing politicians and Trump has pledged to ban DEI programmes in both the government and the private sector.
Last week, Meta, the owner of Facebook and Instagram, said it was terminating its DEI programmes immediately.
Janelle Gale, the vice-president of human resources at Meta, said in an internal memo: “The legal and policy landscape surrounding diversity, equity and inclusion efforts in the US is changing.”
Meta also referenced recent supreme court decisions and the “charged” views of DEI that are held by some people. The US supreme court, which has a conservative majority, ruled in 2023 to overturn “affirmative action” policies under which universities sought to adjust admissions to take into account disadvantages for racial minorities.
The change followed Meta’s announcement that it was changing moderation practices at the company to “get back to our roots around free expression”.
Meta is not the only company to row back on diversity programmes.
Amazon also announced last week that it was winding down its diversity programmes. In a memo to employees on Friday, the tech company said it was “winding down outdated programmes and materials” related to representation and inclusion.
McDonald’s last week said it would end some diversity goals for its leadership and suppliers, also citing the supreme court decision. The company had introduced the targets – including having women account for 45% of leaders, and 35% of US company leaders to come from “underrepresented” groups – in 2021 after lawsuits alleging discrimination and sexual harassment.
Walmart, the world’s largest retailer, in November said it would stop using the term DEI, drop DEI training and stop considering race or gender when deciding on supplier contracts, after it was threatened with a boycott by conservatives.
The American Civil Liberties Union (ACLU), a century-old campaign group, has said it will take legal action to prevent what it describes as the “second Trump administration’s retreat from civil rights enforcement and attacks on efforts to promote racial justice”.
Kohinoor Choudhury, the DEI campaigns manager at ShareAction, said: “Whether we are talking about tackling climate change or improving equality and inclusion, these are material financial risks for companies and investors, and are critical to responsible investment.
“Whilst it’s concerning to see some companies in the US scaling back their DEI efforts, it’s important that we don’t mistake this change for a global shift. In the UK, companies have a legal duty to address discrimination through requirements …
“We urge investors to continue using their influence on the companies they own and invest in to uphold responsible investment standards.”
Other companies have signalled a shift in focus away from other issues supposedly aligned with progressive politics. Six of the world’s largest banks – JP Morgan, Citigroup, Bank of America, Morgan Stanley, Wells Fargo and Goldman Sachs – have left the UN-sponsored net zero banking alliance since the start of December. Activists have criticised the move as a way to avoid attacks from the Trump administration, which is strongly committed to the fossil fuel sector.
