Apple's board recommends shareholders vote against proposal to eliminate diversity programs

(Reuters) - Apple's board of directors recommended investors vote against a shareholder proposal to abolish the company's Diversity, Equity, and Inclusion (DEI) programs, according to a proxy filing from the company.

The National Center for Public Policy, a conservative think tank, submitted a proposal that the company consider abolishing its "Inclusion & Diversity program, policies, department and goals."

The proposal cited recent Supreme Court decisions, and made the argument that DEI poses "litigation, reputational and financial risks to companies" and could make Apple more vulnerable to lawsuits.

Apple responded that it had a well-established compliance program and the proposal was unnecessary. It added that the shareholder proposal was an inappropriate attempt to micromanage Apple's business strategy.

"Apple is an equal opportunity employer and does not discriminate in recruiting, hiring, training, or promoting on any basis protected by law", the iPhone maker said in the filing. The news was first reported by TechCrunch.

Several major companies including Meta and Amazon are winding down diversity programs ahead of Republican Donald Trump's return to the U.S. presidency as conservative opposition to such initiatives grows louder.

Conservative groups have denounced DEI programs and threatened to sue companies over them, emboldened by a U.S. Supreme Court ruling in 2023 that struck down affirmative action in university admissions decisions.

The changes show how some of America's biggest businesses have reacted to a larger conservative backlash against diversity initiatives, which multiplied after widespread protests following the police killings of George Floyd and other Black Americans in 2020.

(Reporting by Chandni Shah in Bengaluru)

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