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Apple’s board of directors has urged shareholders to reject a proposal to dismantle its Diversity, Equity, and Inclusion (DEI) initiatives, resisting ongoing conservative efforts to curtail such programs across corporate America.
The proposal, put forward by the National Center for Public Policy Research (NCPPR), argues that DEI programs expose companies to legal, reputational, and financial risks. Apple’s leadership dismissed the claims as unfounded, however, stating in its filing to investors that the company already has robust compliance mechanisms in place to manage risk and ensure legal adherence.
“The proposal is unnecessary as Apple already has a well-established compliance program,” the company wrote, further criticizing the proposal for attempting to micromanage internal policies.
Shareholders will vote on the proposal at Apple’s annual general meeting on February 25th.
DEI under fire across industries
The pushback comes amid a wave of corporate retrenchment on DEI programs, particularly among US companies navigating intensified conservative scrutiny. Meta, Amazon, and Walmart are among the major firms to scale back their DEI efforts in recent months, citing legal and political pressures in the wake of the US Supreme Court’s 2023 decision to strike down affirmative action in college admissions.
Meta recently announced reductions in hiring, supplier diversity, and training initiatives, attributing the changes to a “shifting legal and policy landscape.” The company’s decision coincides with broader efforts by CEO Mark Zuckerberg to align with conservative policymakers, including a $1 million donation to Donald Trump’s inauguration fund.
Despite such shifts, some companies have resisted abandoning their DEI commitments. Costco recently reaffirmed its dedication to inclusion and diversity initiatives despite similar pressure from conservative groups. The retailer emphasized that fostering an equitable workplace aligns with its core values and long-term business strategy, highlighting a divide among corporations over how to navigate the politicized debate surrounding DEI.
The challenge for HR
The ongoing debate over DEI presents significant challenges for HR leaders, particularly those tasked with balancing compliance with evolving legal standards while maintaining employee engagement and fostering inclusive workplaces.
Chief Human Resources Officers and heads of HR must navigate a complex and rapidly changing landscape, ensuring their organizations stay ahead of regulatory changes while mitigating risks of internal and external backlash.
Companies like Apple and Costco, however, demonstrate that maintaining DEI initiatives can serve as a cornerstone of corporate identity, even amid mounting opposition.
For HR leaders, the decisions made in boardrooms today will shape the workforce dynamics of tomorrow, underscoring the importance of strategic foresight and resilience in the face of political and legal pressure.
