Apple CEO Tim Cook has indicated that the company may need to adjust its diversity, equity, and inclusion (DEI) programs as the legal landscape in the U.S. continues to evolve. His comments came just moments after a majority of Apple shareholders rejected a proposal that called for the company to reconsider its DEI initiatives, including race and gender considerations in hiring practices.

Apple had urged shareholders to vote against the proposal, arguing that it inappropriately sought to micromanage the company’s internal operations. Despite the rejection, Cook acknowledged the growing scrutiny surrounding corporate DEI programs and suggested that Apple may need to adapt to remain compliant with potential legal changes.

“As the legal landscape around this issue evolves, we may need to make some changes to comply, but our north star of dignity and respect for everyone and our work to that end will never waver,” Cook stated during Apple’s annual shareholder meeting.

The debate over Apple’s DEI policies comes at a time when corporate diversity programs are facing heightened challenges across the U.S. Former President Donald Trump has called for the elimination of DEI initiatives in both the government and private sectors, although these efforts have faced legal setbacks. Meanwhile, several major corporations, including Meta, Amazon, and Goldman Sachs, have already scaled back or eliminated their DEI programs, citing legal and financial risks.

Apple’s decision to fight the shareholder proposal stands in contrast to this trend, signaling its commitment to fostering an inclusive workplace. However, the rejection of the proposal was largely expected, as shareholder measures opposed by companies rarely succeed. This marked the second high-profile defeat of a proposal targeting corporate DEI policies, following a similar outcome at retailer Costco.

During the meeting, Cook emphasized that Apple does not use hiring quotas—a practice that has been a focal point of criticism from DEI opponents. Instead, he reiterated that Apple’s strength lies in its diverse workforce, which brings together people from different backgrounds and perspectives.

“We’ll continue to work together to create a culture of belonging where everyone can do their best work,” Cook stated, reaffirming Apple’s dedication to its core values.

The shareholder proposal was spearheaded by the National Center for Public Policy Research, a conservative think tank that has been vocal in its opposition to corporate DEI programs. The group argued that Apple’s diversity initiatives could expose the company to legal, reputational, and financial risks, particularly in light of recent lawsuits making it easier for employees to file discrimination claims.

Stefan Padfield, a representative of the think tank’s Free Enterprise Project, underscored these risks, stating, “The vibe shift is clear. DEI is out and merit is in.”

Industry experts suggest that Apple’s stance—a combination of opposing the shareholder proposal while leaving the door open for potential policy changes—could serve to appease both sides of the debate. Angela Jackson, a senior advisor to the Project on Workforce at Harvard University, noted that Apple is “playing defense” on the issue. She suggested that the company should take a more assertive stance by making a business case for DEI rather than simply defending it as a core value.

“They’ve made the right moves. The one step they could go further... is to really say, ‘Yes, it’s our values, we believe it’s the right thing to do, but it’s also an economic imperative,’” Jackson said.

As the DEI debate intensifies in the U.S., questions are emerging about whether similar policies in other countries will face comparable challenges. Catherine Howarth, chief executive of the responsible investment charity ShareAction, suggested that Apple’s approach reflects its global outlook. She noted that maintaining DEI initiatives aligns with the expectations of Apple’s international customer base and workforce.

“It’s not popular with consumers and it’s not popular with employees to abandon what were supposedly your principles in this area until very recently,” Howarth said. “They think it would go down very badly—and it would—with their global consumer base.”

In addition to rejecting the DEI-related proposal, Apple shareholders also dismissed measures that would have required the company to disclose more details about its AI privacy policies, charitable giving, and efforts to combat child exploitation. However, shareholders approved Apple’s executive compensation plan, including a $74 million pay package for Cook.

As Apple navigates the shifting legal and political landscape surrounding DEI, its next moves will be closely watched, particularly as corporate America grapples with the future of workplace diversity policies.

Apple CEO Tim Cook has indicated that the company may need to adjust its diversity, equity, and inclusion (DEI) programs as the legal landscape in the U.S. continues to evolve. His comments came just moments after a majority of Apple shareholders rejected a proposal that called for the company to reconsider its DEI initiatives, including race and gender considerations in hiring practices.

Apple had urged shareholders to vote against the proposal, arguing that it inappropriately sought to micromanage the company’s internal operations. Despite the rejection, Cook acknowledged the growing scrutiny surrounding corporate DEI programs and suggested that Apple may need to adapt to remain compliant with potential legal changes.

“As the legal landscape around this issue evolves, we may need to make some changes to comply, but our north star of dignity and respect for everyone and our work to that end will never waver,” Cook stated during Apple’s annual shareholder meeting.

The debate over Apple’s DEI policies comes at a time when corporate diversity programs are facing heightened challenges across the U.S. Former President Donald Trump has called for the elimination of DEI initiatives in both the government and private sectors, although these efforts have faced legal setbacks. Meanwhile, several major corporations, including Meta, Amazon, and Goldman Sachs, have already scaled back or eliminated their DEI programs, citing legal and financial risks.

Apple’s decision to fight the shareholder proposal stands in contrast to this trend, signaling its commitment to fostering an inclusive workplace. However, the rejection of the proposal was largely expected, as shareholder measures opposed by companies rarely succeed. This marked the second high-profile defeat of a proposal targeting corporate DEI policies, following a similar outcome at retailer Costco.

During the meeting, Cook emphasized that Apple does not use hiring quotas—a practice that has been a focal point of criticism from DEI opponents. Instead, he reiterated that Apple’s strength lies in its diverse workforce, which brings together people from different backgrounds and perspectives.

“We’ll continue to work together to create a culture of belonging where everyone can do their best work,” Cook stated, reaffirming Apple’s dedication to its core values.

The shareholder proposal was spearheaded by the National Center for Public Policy Research, a conservative think tank that has been vocal in its opposition to corporate DEI programs. The group argued that Apple’s diversity initiatives could expose the company to legal, reputational, and financial risks, particularly in light of recent lawsuits making it easier for employees to file discrimination claims.

Stefan Padfield, a representative of the think tank’s Free Enterprise Project, underscored these risks, stating, “The vibe shift is clear. DEI is out and merit is in.”

Industry experts suggest that Apple’s stance—a combination of opposing the shareholder proposal while leaving the door open for potential policy changes—could serve to appease both sides of the debate. Angela Jackson, a senior advisor to the Project on Workforce at Harvard University, noted that Apple is “playing defense” on the issue. She suggested that the company should take a more assertive stance by making a business case for DEI rather than simply defending it as a core value.

“They’ve made the right moves. The one step they could go further... is to really say, ‘Yes, it’s our values, we believe it’s the right thing to do, but it’s also an economic imperative,’” Jackson said.

As the DEI debate intensifies in the U.S., questions are emerging about whether similar policies in other countries will face comparable challenges. Catherine Howarth, chief executive of the responsible investment charity ShareAction, suggested that Apple’s approach reflects its global outlook. She noted that maintaining DEI initiatives aligns with the expectations of Apple’s international customer base and workforce.

“It’s not popular with consumers and it’s not popular with employees to abandon what were supposedly your principles in this area until very recently,” Howarth said. “They think it would go down very badly—and it would—with their global consumer base.”

In addition to rejecting the DEI-related proposal, Apple shareholders also dismissed measures that would have required the company to disclose more details about its AI privacy policies, charitable giving, and efforts to combat child exploitation. However, shareholders approved Apple’s executive compensation plan, including a $74 million pay package for Cook.

As Apple navigates the shifting legal and political landscape surrounding DEI, its next moves will be closely watched, particularly as corporate America grapples with the future of workplace diversity policies.