Tech giant Apple's board has urged shareholders to vote against a proposal by the National Center for Public Policy Research, a conservative think tank, to end the company's Diversity, Equity, and Inclusion (DEI) programs at the upcoming Feb. 25 shareholder meeting.
The conservative think tank argues that DEI programs expose companies to litigation, reputational, and financial risks, particularly following the US Supreme Court's 2023 ruling against affirmative action.
Major tech companies, including Meta, Amazon, and Walmart, have already scaled back or eliminated their DEI programs, with Meta citing changes in the legal and policy landscape surrounding diversity efforts.
The Apple board is right. The proposal to eliminate Apple's DEI policies is based on many falsities, including the idea that DEI leads to hiring unqualified applicants. On the contrary, Apple hires the best candidates, but from a larger candidate pool. There is plenty of data also disproving the notion that DEI policies negatively impact profits.
The shareholders should ignore Apple's board. But the board should face the reality that it's operating in the same legal and policy landscape as its competitors. DEI is detrimental to the company's culture and bottom line, and the Supreme Court affirmative action ruling will eventually open up all companies to costly litigation.