Apple (AAPL) is preparing to defend its diversity, equity, and inclusion (DEI) policies at an upcoming shareholder meeting, where investors will vote on a motion challenging these initiatives. The vote comes amid a growing national debate surrounding DEI programs and their potential legal risks.
The motion, put forth by the National Center for Public Policy Research, seeks to compel Apple to abandon its DEI policies, citing concerns about the impact of recent U.S. Supreme Court rulings on the legality of such programs. The proponents of the motion point to a class-action lawsuit against Target as an example of the potential legal pitfalls companies may face. This suit alleges that Target misled investors regarding the financial risks associated with its DEI initiatives. The motion specifically targets Apple’s “Supplier Diversity Program,” general hiring and promotional practices, the role of its vice-president of inclusion and diversity, and the company’s charitable donations supporting DEI.
Apple is expected to oppose the motion, arguing that it would improperly restrict the company’s ability to “manage its own ordinary business operations, people and teams, and business strategies.”
The pressure on DEI programs has intensified since the election of former President Donald Trump, who has publicly criticized these initiatives. During his time in office, Trump issued directives to federal agencies aiming to end equity-related grants and contracts, while also requiring federal contractors to certify that they do not promote DEI. Several large corporations followed suit, including retailers like Target, which scaled back its DEI programs in January. Meta Platforms (META) and Walmart (WMT) have also made similar adjustments.
However, there is also pushback against the dismantling of DEI programs. A federal judge in Maryland recently issued a preliminary injunction in response to a lawsuit from civic and educational groups challenging the Trump administration’s policy. Additionally, Target has faced consumer boycotts, which have led to declines in store foot traffic.
Aside from the DEI motion, Apple will also address a separate motion regarding its partnership with OpenAI. This motion warns that the collaboration could pose data privacy and security risks. The National Legal and Policy Center, which submitted the petition, argued that if data collected by OpenAI infringes on personal privacy or copyrights, it could jeopardize Apple shareholders.
On TipRanks, AAPL has a Moderate Buy consensus based on analyst ratings. The consensus price target for AAPL stock is $250.95, implying a nearly 2% upside.
