Apple CEO Tim Cook attended the grand opening of Apple’s new store at The Grove on November 19, 2021 in Los Angeles, California.
Mario Tama Getty Images
Apple shareholders approved a proposal Friday that said the company’s board would conduct a third-party audit, review the company’s policies and make recommendations to improve the impact on civil rights. Apple opposed the proposal.
Apple shareholders usually vote the way management recommends, so the approval is a sign that a majority of investors believe Apple can improve the way it handles issues such as gender equality, leadership diversity and confidentiality. related to products such as AirTags, all of which have been mentioned in the proposal.
The proposal comes after a period in which Apple faced public challenges with a pay fairness survey conducted by former employee Sher Scarlett, despite Apple’s position that it has a gender and race policy, and reports on diversity indicators that show that Spanish and black employees represent only a small percentage of Apple’s technology employees and executives.
SOC Investment Group, which backed the proposal with the International Union of Service Employees and Trillium Management, welcomed the approval and said it would help investors monitor whether Apple’s actions are in line with its public relations.
“We will take the company’s own indicators and say, ‘Okay, how are you fulfilling your own commitments?'” Said Dieter Weiseneger, CEO of SOC. “Does your activity actually move the needle?” Or is it just PR?
Waizenegger said the approval signals a growing desire of large investors to vote on shareholders’ proposals related to the management of large public companies. Last year, Microsoft hired a law firm to review sexual harassment policies after its shareholders approved a proposal at its general meeting.
“These big investors really recognize the value of these types of reports and audits,” Weiseneger said.
Although the proposal is advisable, Waizenegger said, shareholders will usually hold the company’s board accountable when something is passed by a majority of shareholders.
Apple said it was already meeting the objectives of the proposal through its current policies, but a spokesman declined to comment.
“Apple is already meeting the objectives of the proposal in several ways, including through impact and risk assessments, active management and oversight, engagement with our communities and key stakeholders, and regular, transparent public reporting,” Apple said in a statement.
The proposal was adopted by 5,125,278,012 votes in favor and 4,445,469,491 against, according to an SEC submission on Friday.
At Friday’s meeting, Apple shareholders approved the company’s compensation plan, including the recent donation of up to 1 million Apple shares to CEO Tim Cook, and re-elected the company’s board. Five other shareholders’ proposals were rejected.