Apple (AAPL) to Defend DEI Policies and Open AI Partnership Despite Investor Angst
Tech giant Apple (AAPL) is set to defend its diversity, equity, and inclusion (DEI) policies at a likely fiery annual shareholder meeting tomorrow.
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Motion against DEI Policies
At the event investors will vote on a motion from the National Center for Public Policy Research attempting to force Apple to scrap its DEI policies. It argues, as reported by the Financial Times, that recent U.S. Supreme Court rulings around DEI policies leave the company exposed to potential lawsuits. An example of this is a a class-action lawsuit which has been filed against Target, alleging misleading investors about the financial risks linked to its DEI initiatives.
The motion targets Apple’s “Supplier Diversity Program”, its general promotion and hiring practices, employment of a vice-president of inclusion and diversity, and donations to organisations supporting DEI. Apple will oppose the motion declaring that it would restrict its ability to “manage its own ordinary business operations, people and teams, and business strategies.”
The move against DEI in the U.S. has gathered pace since the election of President Trump, who has described these programs as being “illegal and immoral.” On his first day in office, he told federal agencies to end all “equity-related” grants or contracts and required federal contractors to certify they don’t promote DEI. Many blue-chip corporations followed his lead such as retailer Target (TGT) which scaled back its DEI programs in January, as well as Meta Platforms (META) and Walmart (WMT).
DEI Policy Backlash
However, there has been pushback on the issue. A federal judge in Maryland last week issued a preliminary injunction in a lawsuit from civic and educational groups challenging the Trump policy. In addition, a comsumer boycott at Target has led to a decline in foot traffic into its stores.
Apple will also oppose a motion warning that its partnership with OpenAI could create data privacy and security risks. If data collected by OpenAI infringes on personal privacy or copyrighted material, then it could be a risk to Apple shareholders, the National Legal and Policy Center said in its petition.
Is AAPL a Good Stock to Buy Now?
On TipRanks, AAPL has a Moderate Buy consensus based on 18 Buy, 11 Hold and 4 Sell ratings. Its highest price target is $325. AAPL stock’s consensus price target is $250.95 implying an 1.98% upside.