McDonald's is stepping back from its previous diversity, equity, and inclusion (DEI) commitments as part of a new strategy announced this week.
The fast-food giant revealed it will no longer set specific goals for achieving diverse representation in its senior roles or demand diversity pledges from its suppliers. Instead, the company plans to focus on discussions with suppliers regarding inclusion as it relates to business performance.
McDonald's Shifts DEI Focus to Global Inclusion After Supreme Court Ruling
The changes come after the Supreme Court's recent decision to reverse affirmative action in college admissions, which has sparked a wider shift among large corporations, including Ford, Lowe's, and others, to pull back on DEI policies.
According to CBS News, this change will also see McDonald's diversity team rebranded as the "Global Inclusion Team," a name the company says better aligns with its updated approach to inclusion.
McDonald's, however, has stated that it remains committed to inclusion, though it will no longer set aspirational representation targets for hiring.
The company has emphasized its intention to embed inclusion practices into its day-to-day operations rather than continuing with specific numerical goals. McDonald's also mentioned that it will pause its external surveys, although details were not provided.
The company remains proud of its progress to date, reporting that over 30% of its US leadership positions are held by individuals from underrepresented groups. McDonald's also achieved gender pay equity across its workforce, and it has made strides in increasing its supplier diversity.
By 2025, McDonald's plans to allocate 25% of its supply chain spending to diverse-owned suppliers, a target it is on track to meet.
Critics Warn McDonald's DEI Pullback Could Hurt Long-Term Success
Despite these steps back from some DEI initiatives, McDonald's reassured stakeholders that its commitment to inclusion is unwavering.
The company introduced a "golden rule," stating that everyone should be treated with dignity, fairness, and respect. McDonald's also said it would continue to report on its diversity data in its annual Purpose and Impact report, Restaurant Business said.
The announcement has sparked mixed reactions. On one hand, McDonald's argues that focusing on business performance and integrated inclusion practices will lead to more meaningful and sustainable change.
On the other hand, critics, including civil rights organizations, warn that abandoning DEI goals could harm long-term business success by limiting access to diverse talent and diminishing company performance.
For McDonald's, this shift comes as it faces ongoing legal challenges related to its treatment of Black franchisees, workers, and suppliers. The company is currently involved in a discrimination lawsuit filed by media mogul Byron Allen, which could further influence its future approach to diversity and inclusion.
While McDonald's has made notable progress in some areas, it is clear that the company is navigating a difficult balance between advancing diversity and responding to shifting political and legal pressures in the corporate landscape.
