Apple has joined the conversation on supporting corporate diversity, equity, and inclusion (DEI) strategies by advocating for its shareholders to reject a proposal to end such initiatives. This move comes as tech companies in the US, such as Meta and Amazon, scale back similar programmes in light of changing legal and political landscapes.
Amid growing scrutiny from conservative groups, Apple emphasises that DEI programmes are vital for fostering inclusive, innovative work environments that deliver competitive business advantages. But as the political climate evolves, businesses are being forced to weigh the risks and rewards of maintaining their DEI efforts.
What is the Issue with DEI Initiatives?
The debate around DEI strategies has intensified after the proposal submitted by the National Center for Public Policy Research, a conservative think tank. The group claims that DEI creates “litigation, reputational and financial risks” for companies, urging Apple to end its efforts. This proposal is scheduled for a vote at Apple’s annual general meeting on 25 February.
Apple’s board has recommended voting against the proposal, arguing that such measures are critical for managing business operations, teams, and strategies effectively. The board further emphasised existing compliance protocols designed to mitigate associated risks and maintain accountability.
DEI programmes aim to foster diverse, inclusive workplaces that support people from all backgrounds, including those historically underrepresented in the workforce. These initiatives gained momentum globally in 2020 following George Floyd’s murder, when businesses began re-evaluating internal policies to encourage racial and social equity.
However, these programmes have faced backlash in recent years, with conservative lawmakers like Donald Trump pledging to ban such initiatives in the public and private sectors. The US Supreme Court’s overturning of affirmative action in 2023 has only heightened these challenges, resulting in notable tech companies scaling back their DEI commitments.
The Industry-Wide Pullback on DEI
Meta and Amazon’s Dramatic Shift
Meta, the owner of Facebook and Instagram, recently announced the termination of its DEI efforts, referencing changes in the legal landscape and public sentiments. Internal memos have revealed that the company views DEI through a charged political lens, resulting in the immediate discontinuation of its diversity programmes.
Similarly, Amazon has made adjustments, labelling its prior initiatives as “outdated” and announcing plans to phase out diversity materials tied to representation and inclusion.
Other Companies Aligning with the Trend
The trend is far from isolated. Major corporations, including McDonald’s and Walmart, have pivoted their internal policies, citing risks tied to Supreme Court rulings or external political pressure. For instance, McDonald’s is scaling back leadership and supplier diversity targets, while Walmart has ceased DEI training and the use of the term entirely.
Financial Institutions Step Back from Progressive Commitments
Adding to this shift, global financial giants, including JP Morgan and Bank of America, have exited from the UN’s Net Zero Banking Alliance—a network aimed at reducing emissions. While this was not directly tied to DEI, analysts attribute the decision to avoiding confrontation with the Trump administration, which openly supports fossil fuels.
These examples highlight an emerging trend where businesses seem to prioritise political neutrality or risk mitigation over social responsibility.
Why Apple and Advocates Continue to Defend DEI
Despite these industry adjustments, Apple stands its ground, stating that DEI efforts are not just policies to manage business risks but strategic imperatives for fostering innovation and growth.
Advocates of DEI, including Kohinoor Choudhury, DEI campaigns manager at ShareAction, emphasise the material financial risks of neglecting diversity strategies. Choudhury states, “Whether we are tackling climate change or improving equality, these are critical aspects of responsible investment.”
Furthermore, Choudhury points out that scaling back on DEI initiatives in the US does not indicate a global shift. Laws in other countries, such as the UK, still mandate anti-discrimination compliance, demonstrating that many parts of the world continue to uphold diverse work environments.
DEI: Key to Business Survival
The choice to back or drop DEI initiatives isn’t just about ethics—it’s about long-term value and managing risks. Organisations like the ACLU warn that stepping away from DEI could harm broader civil rights efforts and undo progress made over decades.
By standing against the proposal, Apple is making it clear that diversity, equity, and inclusion aren’t just nice-to-have values; they’re essential for business. While abandoning DEI might seem like a quick fix to avoid lawsuits or political fallout, it could backfire in the long run. Companies risk losing top talent and loyal customers, especially in today’s globally connected and socially conscious world.
DEI Commitment for the Future
Entrepreneurial organisations, especially those navigating political and social risks, must carefully evaluate their diversity strategies in the coming years. Transparent communication with stakeholders about the value of DEI and robust measures to handle risks could ensure sustained progress.
Apple’s dedication to preserving DEI efforts demonstrates that while challenges exist, businesses can and should take principled stances to preserve inclusive workplace cultures. Only time will reveal whether Apple’s shareholders align with this mission, but its position shines a light on what’s at stake for the broader business world.
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