As other tech companies rushed to fall in line with US President Donald Trump’s anti-diversity and inclusion agenda, Apple’s decision to retain its DEI commitments has been vindicated by its shareholders, who voted down a proposal to curb the company’s diversity efforts yesterday.
The decision shows why following the crowd is not always the best strategy. Other companies that hurriedly dismantled their DEI programmes are now facing a new wave of opposition themselves.
Blowing with the political winds
After Donald Trump’s re-election in November, it appeared the DEI dominoes were all set to fall. A raft of businesses, including Amazon, Meta and McDonald’s, ditched their diversity and inclusion goals as Trump set about dismantling DEI programmes in the federal government.
The anti-DEI movement even reached the UK’s shores this month as BT told investors it plans to stop using diversity metrics as part of its method to calculate bonuses for middle managers.
The conservative think-tank, the National Center for Public Policy Research (NCPPR), has been looking to capitalise on this momentum by submitting shareholder proposals pushing more firms to abolish their DEI programmes. In a message to Apple shareholders, Stefan Padfield of the organisation’s Free Enterprise Project, said: “The vibe shift is clear, DEI is out and merit is in.”
But not all companies targeted by the NCPPR have bowed to the pressure. Apple successfully fought the think-tank’s proposal and persuaded its shareholders to reject the motion in a vote on Tuesday. Apple said the proposal would restrict its ability to “manage its own ordinary business operations, people and teams and business strategies”.
It raises questions over how committed these businesses were to diversity and inclusion in the first place
Apple CEO Tim Cook has acknowledged that the company may still have to make some adjustments to its diversity initiatives in response to the changing legal landscape.
US retailer Costco faced a similar proposal in its annual shareholder meeting in January, but 98% of shareholders voted against it. A message from the company board neatly summarised the benefits of DEI: “Our efforts at diversity, equity and inclusion remind and reinforce with everyone at our company the importance of creating opportunities for all. We believe that these efforts enhance our capacity to attract and retain employees who will help our business succeed.”
These examples show that some companies are still willing to stand firm on their commitments, despite Trump’s anti-DEI rhetoric. The speed at which other companies have ditched their diversity goals would lead some to question how committed these businesses were to diversity and inclusion in the first place.
The drawbacks of rollbacks
Blindly following Trump’s lead on rolling back DEI is already creating issues for some businesses.
Target was once an outspoken supporter of diversity and inclusion initiatives. In the wake of George Floyd’s murder, which took place a short walk from Target’s head office, the company committed to increasing its Black workforce by 20% and established a committee focused on improving racial equity.
However, in January this year it announced a scaling back of its DEI efforts. This has not gone down well with civil rights leaders, who subsequently called for people to boycott the company’s stores.
It appears this is already having an impact. Foot traffic at Target’s outlets declined 9% the week beginning 3 February, according to data from Placer.ai, while the company’s share price dropped 8.7% following the announcement of its DEI reversal.
Target now finds itself under pressure from both conservatives and progressives over its approach to DEI. It’s impossible for companies to win over both these groups, so sometimes staying true to your convictions is the best course of action.
As other tech companies rushed to fall in line with US President Donald Trump’s anti-diversity and inclusion agenda, Apple’s decision to retain its DEI commitments has been vindicated by its shareholders, who voted down a proposal to curb the company’s diversity efforts yesterday.
The decision shows why following the crowd is not always the best strategy. Other companies that hurriedly dismantled their DEI programmes are now facing a new wave of opposition themselves.
