McDonald's on Monday said it will scale back some of its diversity, equity and inclusion (DEI) efforts in response to a shifting legal and cultural landscape after the U.S. Supreme Court's decision that outlawed affirmative action in college admissions.
Why It Matters
McDonald's is the latest company to reexamine their DEI commitments amidst growing political scrutiny and conservative backlash following the Supreme Court's 2024 ruling.
Companies like Walmart, John Deere and others rolled back their DEI initiatives in the past year.
What To Know
McDonald's, the world's largest fast-food chain, announced it will retire specific diversity benchmarks for senior leadership and halt a supplier-focused initiative aimed at increasing minority representation and training.
Additionally, McDonald's will pause its participation in external surveys that assess workplace inclusion, echoing similar moves by other corporations like Lowe's and Ford Motor Company who suspended their participation in an annual survey by the Human Rights Campaign that measures workplace inclusion for LGBTQ+ employees.
The move comes after McDonald's initially unveiled an ambitious DEI strategy in 2021 after facing legal challenges, including sexual harassment lawsuits and accusations of racial discrimination from Black former franchise owners.
At the time, CEO Chris Kempczinski championed the initiative, emphasizing the importance of measurable progress and diverse perspectives in driving better decision-making.
However, McDonald's now cites the "shifting legal landscape" after the Supreme Court decision and actions by other companies as factors behind its policy overhaul.
In a letter to employees and franchisees, the company's leadership reiterated its commitment to inclusion, noting that 30 percent of its U.S. leaders come from underrepresented groups—up from 29 percent in 2021. McDonald's previously committed to reaching 35 percent by the end of this year.
In addition, McDonald's said it has made progress on gender pay equity and projected it would meet its goal of directing 25 percent of supplier spending to diverse-owned businesses by year-end.
What People Are Saying
McDonald's Chairman and CEO Chris Kempczinski previously wrote in a LinkedIn post: "As a world-leading brand that considers inclusion one of our core values, we will accept nothing less than real, measurable progress in our efforts to lead with empathy, treat people with dignity and respect, and seek out diverse points of view to drive better decision-making."
Robby Starbuck, a conservative filmmaker, wrote X, formerly Twitter, on Monday about McDonald's: "Companies can see that America wants sanity back. The era of wokeness is dying right in front of our eyes. The landscape of corporate America is quickly shifting to sanity and neutrality. We are the trend, not the anomaly anymore."
"We're winning and one by one we WILL bring sanity back to corporate America," Starbuck wrote, in part.
What Happens Next
Moving forward, McDonald's diversity team will operate under the banner of the "Global Inclusion Team," and the company has also confirmed it will continue to publicly disclose demographic data.
This article includes reporting from The Associated Press.
English (US) ·