Evergreen Reporter

America First Legal (AFL) has sent a letter to Apple's CEO and Board of Directors, urging them to discontinue the company's diversity, equity, and inclusion (DEI) programs. AFL warns that rejecting a shareholder proposal to eliminate DEI at Apple's upcoming annual meeting poses significant risks to investors.

Apple's shareholders have put forward Proposal Number 6, which seeks the abolition of the company's DEI initiatives. In response, Apple's Board recommended a "No" vote on this proposal, asserting that "the proposal is unnecessary as Apple already has a well-established compliance program."

Evidence presented by AFL suggests that Apple may be engaging in discriminatory hiring practices. Jon Andrews, Apple's Vice President of Core OS – Software Engineering, reportedly discussed such practices during internal meetings. AFL claims these actions violate civil rights laws and contradict Apple's statements about its compliance program.

AFL also accuses Apple of misleading investors by not fully disclosing potential risks associated with DEI and environmental, social, and governance (ESG) policies. The letter cites examples of other companies facing reputational and financial damage due to similar policies.

Recent legal developments have increased the risk associated with DEI programs. AFL references their lawsuit against Target for similar issues and notes that changes in securities litigation law now pose additional challenges for companies like Apple.

The Trump Administration's stance on racial discrimination is highlighted as a factor that could impact Apple. Executive Order 14,173 directs agencies to investigate corporations for potential civil compliance violations related to discrimination.

Reed D. Rubinstein from America First Legal stated: “Apple’s illegal DEI programs are dangerous, demeaning, and immoral; they deny, discredit, and undermine the traditional American values of hard work, excellence, and individual achievement in favor of an unlawful, corrosive, and pernicious identity-based spoils system." He emphasized the need for Apple’s management to comply with the law.

Andrew Block from America First Legal added: “America First Legal is committed to enforcing the law and holding corporations accountable... We urge the Board to reconsider its recommendation on Proposal Number 6.”