Board argues that it and management ‘maintain active oversight of legal and regulatory risks and compliance’
Apple’s board is urging shareholders to vote at its February 25 AGM against a proposal asking the tech company to consider dropping its diversity efforts.
The National Center for Public Policy Research, which filed the proposal, is one of the most active of the conservative groups that have been submitting anti-DE&I and other anti-ESG resolutions in recent years.
In this case, the center directly requests in its proposal that Apple ‘consider abolishing its inclusion and diversity program, policies, department and goals.’ It notes the US Supreme Court ruling that effectively barred race-based affirmative action in college admissions programs.
In the wake of that ruling, Republican attorneys general from 13 states sent a letter to large US companies warning that continuing with their DE&I efforts would put them at legal risk. Several companies have already faced potential or actual lawsuits over such programs. In this environment, several major companies have dropped their initiatives.
‘Sensibly, many major companies have responded by rolling back their [DE&I] commitments and laying off [DE&I] departments… It’s clear that [DE&I] poses litigation, reputational and financial risks to companies, and therefore financial risks to their shareholders and therefore further risks to companies for not abiding by their fiduciary duties,’ the center writes.
Apple’s response
In the company’s 2025 proxy statement released last Friday, Apple’s board recommends that investors vote against the proposal, arguing that:
- ‘[It] is unnecessary as Apple already has a well-established compliance program and the proposal inappropriately attempts to restrict [the company’s] ability to manage its own ordinary business operations, people and teams and business strategies
- ‘[O]ur board and management maintain active oversight of legal and regulatory risks and compliance for our global business.’
The board writes: ‘We seek to conduct business ethically, honestly and in compliance with applicable laws and regulations, and our business conduct and compliance policies are foundational to how we do business… [W]e strive to create a culture of belonging where everyone can do their best work…
‘Apple is an equal opportunity employer and does not discriminate in recruiting, hiring, training or promoting on any basis protected by law… The proposal inappropriately seeks to micromanage the company’s programs and policies by suggesting a specific means of legal compliance.’
The board adds that its audit committee oversees business conduct, legal and regulatory risks and its people and its compensation committee assists the full board in its overseeing Apple’s strategies, policies and practices regarding employees. ‘Apple’s board also receives regular updates on legal and regulatory developments, including updates on legislative developments, government investigations, litigation and other legal proceedings,’ the board states.
A request for comment from the company was not returned immediately.
