Will Trump put pressure on Tim Cook to end Apple's DEI initiatives despite today's stockholder vote? (UPDATE)
UPDATE: This morning, President Trump wrote on his TruthSocial platform "Apple should get rid of DEI rules, not just make adjustments to them. DEI was a hoax that has been very bad for our country. DEI is gone."
President Trump says Apple should end its DEI initiatives. | Image credit-TruthSocial
The original story follows:
Amid the current mood among Republican lawmakers to do away with DEI (diversity, equity, and inclusion) programs in government agencies, corporations, sports leagues, media companies, and education-related organizations, Apple's shareholders had to make a decision of their own. A conservative think tank titled The National Center for Public Policy Research had bought what was probably one or two shares of Apple which gave it the right as a stockholder to request that investors vote on a proposal asking Apple to consider ending its DEI programs.
The proposal was included in the agenda for Apple's stockholder meeting which was held today. Proposal number six asked Apple stockholders to "request that the company consider abolishing its Inclusion & Diversity program, policies, department, and goals." The National Center for Public Policy Research noted that Apple has a "Supplier Diversity Program" that picks suppliers for Apple based on race and sex. The think tank also says that Apple bases some hiring decisions as well as those for promotions by using race and sex data.
Continuing with its statement, The National Center for Public Policy Research points out that Apple has a "VP of Inclusion & Diversity" and contributes stockholder money to organizations that support DEI. According to its statement, the conservative think tank says that with 50,000 Apple employees as potential victims "of this type of discrimination," Apple could be sued, and even if only a small fraction win, Apple could be on the hook for billions of dollars in payments.
"DEI 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 National Center for Public Policy Research
As it turns out, Apple stockholders are more aligned with the way Apple runs the company than the way the MAGA wing of the Republican Party wants the country to be run. The proposal asking Apple to consider ending its DEI programs was defeated. For The National Center for Public Policy Research, it was the second time that this proposal had been defeated by stockholders. Last month, the think tank was able to get a similar proposal voted on at Costco's stockholder meeting and it was rejected.
Apple CEO Tim Cook promised President Trump that Apple will invest more in the U.S. over the next few years. | Image credit-Apple
Even had Apple stockholders voted in favor of the proposal, nothing would have happened anyway. The vote is non-binding as far as Apple's management is concerned and from CEO Tim Cook down, Apple has always been in favor of DEI-based hiring practices. Stefan Padfield, executive director of the think tank's Free Enterprise Project, said in a pre-recorded comment during the meeting that "forced diversity is bad for business." However, it doesn't seem as though Apple has suffered over the years.
Lately, Apple CEO Tim Cook has given President Donald Trump just about everything he has wanted. Just the other day Apple announced that it will invest $500 billion in the U.S. and will create 20,000 new U.S. jobs over the next five years. Cook has a history of being able to wrap Trump around his finger so we wouldn't expect the president to go off on a rant about today's stockholder vote. [Guess I was wrong. See the Update at the top of this article].
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