Last Updated on February 26, 2025 by Bertrand Clarke
In a tense annual shareholder meeting, Apple CEO Tim Cook defended the tech giant’s diversity, equity, and inclusion (DEI) initiatives, even as he acknowledged potential adjustments to these programs in response to shifting legal and political landscapes in the United States. The meeting, held on Tuesday, highlighted the growing divide between corporate values and external pressures, as Apple faced a shareholder proposal urging the company to reconsider its DEI policies.
The proposal, put forward by the National Center for Public Policy Research (NCPPR), a conservative think tank, called for Apple to evaluate the risks associated with its diversity programs, including potential litigation and reputational damage. It argued that DEI initiatives, which consider race and gender in hiring and promotion decisions, expose the company to legal challenges and financial liabilities. However, the proposal was overwhelmingly rejected by shareholders, with Apple’s board urging investors to vote against it, calling the measure an attempt to “micromanage” the company’s operations.
Despite the proposal’s defeat, Cook’s remarks during the meeting signaled a cautious approach to the future of Apple’s DEI efforts. “As the legal landscape around this issue evolves, we may need to make some changes to comply, but our north star of dignity and respect for everyone and our work to that end will never waver,” Cook said. He emphasized that Apple does not use quotas in hiring—a practice that has drawn significant criticism—but instead focuses on fostering a culture where “people with diverse backgrounds and perspectives come together.”
Cook’s comments come amid a broader national debate over the role of DEI programs in both the public and private sectors. Former President Donald Trump has been a vocal critic of such initiatives, recently calling for their elimination in a social media post. “Apple should get rid of DEI rules, not just make adjustments to them,” Trump wrote in all-capital letters. “DEI was a hoax that has been very bad for our country. DEI is gone!!!” His administration has also taken steps to scrutinize DEI programs in the private sector, further intensifying the pressure on companies like Apple.
While Trump’s executive orders on DEI have faced legal challenges, many corporations have already scaled back or abandoned their diversity initiatives. Companies such as Meta, Amazon, and Goldman Sachs have cited legal risks and changing political climates as reasons for their retreat. Apple, however, has chosen to push back against this trend, at least for now. The company’s decision to oppose the shareholder proposal and reaffirm its commitment to DEI has positioned it as a holdout in an increasingly polarized environment.
Stefan Padfield, a representative from NCPPR’s Free Enterprise Project, argued during the meeting that Apple’s DEI programs are out of step with the current “vibe shift” in corporate America. “DEI is out, and merit is in,” he said, pointing to recent lawsuits that have made it easier for employees to challenge diversity policies in court. Padfield warned that Apple’s continued adherence to DEI principles could lead to significant legal and financial consequences.
Angela Jackson, a senior advisor to Harvard University’s Project on Workforce and author of the forthcoming book The Win-Win Workplace, noted that Apple’s approach reflects an attempt to balance competing pressures. “They’re trying to satisfy both sides of the debate,” she said. “But by leaving the door open to potential changes, they’re also playing defense.” Jackson urged Apple to make a stronger business case for its DEI programs, arguing that diversity is not just a moral imperative but also an economic one. “They need to say, ‘Yes, it’s our values, we believe it’s the right thing to do, but it’s also essential for our success,’” she added.
The debate over DEI programs extends beyond Apple and the United States. As a global company with a vast consumer base, Apple’s stance on diversity could have far-reaching implications. Catherine Howarth, CEO of the responsible investment charity ShareAction, suggested that Apple’s decision to resist the shareholder proposal was a calculated move. “It’s not popular with consumers or employees to abandon principles that were supposedly core to your identity until very recently,” she said. “Apple likely believes that standing by its DEI commitments will resonate positively with its global audience.”
In addition to the DEI proposal, shareholders rejected several other measures, including those requiring Apple to report on its artificial intelligence privacy practices, charitable giving, and policies to combat child sexual abuse. The meeting also saw the re-election of Apple’s board members and approval of executive compensation packages, including a $74 million pay package for Tim Cook.
As Apple navigates the complex intersection of corporate values, legal challenges, and political pressures, its handling of DEI programs will likely serve as a bellwether for other companies. While the shareholder vote reaffirmed Apple’s commitment to diversity, Cook’s acknowledgment of potential changes underscores the precarious position of DEI initiatives in today’s climate. For now, Apple appears determined to uphold its principles, even as it prepares to adapt to an uncertain future.
