SEC rejects Apple's bid to block shareholder proposal on forced labor, letter shows

SEC rejects Apples bid to block shareholder proposal on forced labor

December 24, 2021: -The U.S. Securities and Exchange Commission has declined an effort by Apple to skip a shareholder proposal that asks the iPhone maker to provide greater transparency in its efforts to keep forced labor out of its supply chain.

A group of shareholders asked Apple’s board to prepare a report on how the company protects workers in its supply chain from forced labor. The request for information covered the extent to which Apple has identified suppliers and sub-suppliers that are a risk for forced labor and how many suppliers Apple has taken action against.

In a letter from the SEC reviewed by Reuters, regulators denied Apple’s move to block the proposal, which says that “it does not appear that the essential objectives of the proposal have been implemented” so far.

The letter meant that Apple would have to face a vote on the proposal at its annual shareholder meeting in the coming year, barring a deal with the shareholders who made it.

American lawmakers in the previous week passed a bill banning imports from China’s Xinjiang region over concerns about forced labor.

“There’s rightfully growing concerned at all levels of government about the concentration camp-such as conditions for Uyghurs and other Turkic Muslims living under Chinese government rule,” Vicky Wyatt, campaign director for SumOfUs, a group which supports the shareholder proposal, said in a statement on Wednesday.

Apple routinely is asking the SEC to skip shareholder proposals, and the requests are granted nearly half the time.

The SEC also denied Apple’s request to skip a shareholder proposal that would give investors more information about the company’s use of non-disclosure agreements.

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SEC rejects Apple's bid to block shareholder proposal on forced labor
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SEC rejects Apple's bid to block shareholder proposal on forced labor
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A group of shareholders asked Apple’s board to prepare a report on how the company protects workers in its supply chain from forced labor.
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The Women Leaders
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