Investors Reject Anti-DEI Proposals, Backing Apple, John Deere, Costco Initiatives

Despite some companies potentially scaling back their diversity, equity, and inclusion (DEI) policies, investors continue to reject anti-DEI shareholder proposals. This trend was evident at Apple, John Deere, and Costco, where shareholders overwhelmingly voted down proposals submitted by conservative think tanks.

At Apple's annual meeting, 98% of shareholders voted against a proposal that sought to eliminate the company's DEI initiatives. Similarly, at John Deere's meeting, 97% of shareholders rejected a proposal to end the company's diversity training programs. Costco shareholders also demonstrated their support for DEI, with 96% voting against a proposal to eliminate the company's diversity and inclusion initiatives.

These votes reflect a broader trend among investors, who increasingly view DEI as a critical factor in a company's long-term success. A study by McKinsey & Company found that ethnically diverse companies are 35% more likely to outperform their peers, while gender-diverse companies are 15% more likely to do the same. Additionally, a report by the Boston Consulting Group (BCG) found that companies with above-average diversity on their management teams reported innovation revenue that was 19 percentage points higher than that of companies with below-average leadership diversity.

Investors are also recognizing the importance of DEI in mitigating risks and enhancing a company's reputation. A diverse workforce can help companies better understand and serve their diverse customer base, while also fostering a more inclusive and innovative work environment. Moreover, companies with strong DEI practices are less likely to face reputational damage from discrimination-related controversies.

However, some companies have been facing pressure to roll back their DEI initiatives. Conservative groups have been pushing for the elimination of diversity training programs, arguing that they promote "critical race theory" and "woke" ideologies. Some companies have responded to this pressure by scaling back or eliminating their DEI programs, despite the evidence supporting the business benefits of diversity.

Investors, however, appear to be sending a clear message to companies: they value DEI initiatives and expect companies to maintain and strengthen their commitment to diversity, equity, and inclusion. As the votes at Apple, John Deere, and Costco demonstrate, shareholders are increasingly recognizing the importance of DEI in driving long-term business success and are willing to hold companies accountable for their DEI practices.