Apple Shareholders Face Proposals on DEI and Progressive Funding

At the upcoming 2025 Annual Meeting of Shareholders, Apple’s board has urged shareholders to vote against proposals that criticize the company’s contributions to progressive groups and call for the elimination of its Diversity, Equity, and Inclusion (DEI) programs.

Proposal 6: Abolishing DEI Initiatives

Initiated by the National Center for Public Policy Research, Proposal 6 asserts that DEI practices pose "obvious risks" and that Apple’s omission of "equity" in program titles is "meaningless" due to explicit commitments to equity in program goals. The proposal cites financial, reputational, and litigation risks associated with DEI programs, referencing similar initiatives that have been scaled back by Alphabet, Meta, Microsoft, and Zoom.

The proposal also takes aim at Apple’s Supplier Diversity Program, alleging that it discriminates based on race and sex. It estimates that potential lawsuits from affected employees could cost Apple billions of dollars.

Proposal 7: Scrutiny of Progressive Donations

Proposed by Wayne Frantzen of Inspire Investing LLC, Proposal 7 criticizes Apple’s contributions to progressive organizations. It requests an annual report analyzing the impact of these contributions on discrimination risks based on speech or religious exercise.

The proposal takes specific issue with Apple’s support for the Southern Poverty Law Center (SPLC), which it accuses of targeting conservative and religious groups and individuals. It notes that many companies have distanced themselves from similar organizations in recent years.

The proposal also expresses concerns about Apple’s ties to the Human Rights Campaign (HRC), which it links to efforts to censor "hate speech" and support "puberty blockers" in healthcare plans.

Apple’s Board Recommendation

In a statement opposing the two proposals, Apple’s board argues that they are unnecessary and inappropriate. Regarding Proposal 6, the board claims that Apple has a robust compliance program and that the proposal attempts to restrict its management of business operations.

As for Proposal 7, the board maintains that Apple has a well-established corporate donations program with internal governance procedures and that the proposal would improperly limit its business decisions.

Context and Implications

The shareholder proposals align with a growing backlash against DEI initiatives and progressive causes in the corporate world. Conservative groups have argued that DEI programs promote bias and stifle free speech, while some companies have faced criticism for supporting organizations deemed divisive or intolerant.

Apple, in particular, has previously been accused of suppressing free speech. In 2018, it reportedly instructed Apple TV+ show creators to avoid negative portrayals of China. Additionally, it has rejected apps related to opposing views on LGBTQ+ issues and delisted Parler, a social media platform popular with conservatives.

The outcome of the shareholder vote on these proposals will provide insights into the balance between corporate governance, stakeholder demands, and social responsibility at Apple and potentially other tech giants.