Apple under pressure as Trump targets DEI initiatives

US president Donald Trump has asked Apple to scrap its diversity, equity and inclusion (DEI) initiatives after the company’s shareholders voted to keep them. Trump argues that DEI initiatives discriminate against Americans, especially white men. In January, he signed an executive order to end DEI in the federal government and private sector. 

“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!” Trump said in a post on Truth Social on Wednesday. 

On Tuesday, Apple shareholders overwhelmingly rejected a proposal to cancel its DEI efforts with 8.84 billion votes opposing and only 210.45 million votes supporting it. Apple’s DEI efforts focus on programs such as racial justice initiative that provides support to historically Black colleges and universities in the US. 

Conservative groups in the US are mounting pressure on companies to end their DEI initiatives. After Trump’s executive order, several big firms including Amazon, Google, Meta, and Disney have rolled back their DEI policies. 

One-fifth of the companies in the Standard & Poor’s 100 list have reneged on their DEI promises since January, according to Bloomberg News.

Apple, Cisco, Goldman Sachs are some of the companies that have so far refused to give in to the demands. However, CEO Tim Cook hinted that the company is open to making some adjustments to its DEI rules to accommodate the new realities. 

“As the legal landscape around these issues 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 said at the investors meeting on Tuesday. 

DEI initiatives were started to address systematic under-representation of people from diverse and marginalized communities in the workforce and foster an environment where people from different racial, cultural and ethnic backgrounds feel valued and supported.  It includes people of colour, women, minorities, LGBTQ and people with disabilities. 

In 2021, then US president Joe Biden signed an executive order called Diversity, Equity, Inclusion and Accessibility in the Federal Workforce. 

Though DEI has been part of the hiring playbook of many companies for years, it received a huge boost after the  Blacks Lives Matter movement in the US.  Also, women workers in tech have been more vocal about feeling out of place in male-dominated workplaces, which has led many tech firms to prioritize diversity hiring. 

Trump and Elon Musk have targeted DEI initiatives, claiming that they weaken merit-based hiring and threaten essential services. Last month, Musk blamed the DEI initiatives for delayed response to California wildfire, arguing that it diverted funds from rescue efforts. Trump blamed DEI-centric hiring practices for the mid-air collision between a commercial flight and a military helicopter, in which 67 people died. 

Continuing with DEI may increase Apple’s legal challenges and risk of discrimination lawsuits. Apple is already facing the risk of being slapped with a 10% tariff on China-made iPhones. Consumer electronics have been exempted from such tariffs until now. 

Early this week, Apple announced plans to invest more than $500 billion over the next four years to expand its teams and facilities in the US, set up a new factory in Texas, and accelerate investments in AI and silicon engineering. 

Image credit: Apple