The Securities and Exchange Commission has rejected Apple Inc’s (AAPL.O) attempt to avoid a shareholder proposal calling for greater openness in the iPhone maker’s attempts to keep forced labor out of its supply chain.
Apple’s board of directors was requested by a group of shareholders early this year to draught a report on how the business safeguards workers in its supply chain against forced labor. The information sought addressed the extent to which Apple has identified suppliers and sub-suppliers at danger of forced labor, as well as the number of suppliers against whom Apple has taken action.
Apple did not immediately respond to a request for comment. American lawmakers last week passed a bill banning imports from China’s Xinjiang region over concerns about forced labor.
Apple’s attempt to prevent the idea was refused by the SEC in a letter obtained by Reuters on Wednesday, which stated that “it does not appear that the proposal’s key objectives have been implemented” so far.
The letter means that, barring a compromise with the initiative’s backers, Apple will have to put the idea to a vote at its annual shareholder meeting next year.
Apple frequently asks the SEC to waive shareholder resolutions, and about half of the time, the request is approved. Apple’s request to bypass a shareholder resolution that would provide investors with more information about the company’s use of non-disclosure agreements was also refused by the SEC.
