Institutional Shareholder Services (ISS), a prominent proxy advisory firm, has advised Apple investors to reject a proposal to potentially dismantle the company’s diversity, equity, and inclusion (DEI) initiatives.
The recommendation comes as ISS believes Apple provides adequate transparency regarding its DEI policies and there have been no notable controversies or evidence of discrimination against employee groups.
Apple’s board of directors has also urged shareholders to vote against this anti-DEI proposal. The board argues that such a measure would unnecessarily restrict Apple’s ability to manage its business operations, personnel, and strategic planning. Furthermore, they emphasise that the company already operates under a robust compliance program.
Meanwhile, several major U.S. corporations like Meta and Amazon have either scaled back or abandoned their DEI objectives in response to increasing conservative backlash following Donald Trump’s return to office. This pushback gained momentum after a 2023 U.S. Supreme Court decision that invalidated affirmative action in college admissions.
Conservative groups have intensified their criticism of DEI programs since then, threatening legal action against companies implementing these initiatives.
The National Center for Public Policy Research (NCPPR), which identifies itself as a free-market think tank, submitted the proposal targeting Apple’s diversity policies. Previously, NCPPR had requested Costco Wholesale report on potential risks associated with maintaining similar initiatives. However, Costco shareholders overwhelmingly rejected this proposal during their January meeting.
Shareholder resolutions that aimed to counter DEI programs within U.S. corporations generally received minimal support last year, averaging less than 2% approval rate across various proposals focused on corporate social considerations.