Shift in DEI Strategies
Four years after launching ambitious diversity initiatives, McDonald’s is scaling back some of its diversity, equity, and inclusion (DEI) practices in response to the 2023 U.S. Supreme Court decision outlawing affirmative action in college admissions. This move aligns McDonald’s with other corporations, such as Walmart, John Deere, and Harley-Davidson, that have reevaluated their DEI programs following the ruling and increased conservative opposition.
Changes in Goals and Programs
McDonald’s announced Monday it will:
- Retire specific diversity targets for senior leadership.
- End a supplier program aimed at fostering diversity training and increasing minority leadership.
- Pause participation in “external surveys,” which likely includes the Human Rights Campaign’s annual workplace inclusion assessment for LGBTQ+ employees, as other companies have done.
These shifts come after McDonald’s rolled out its diversity initiatives in 2021 following lawsuits alleging sexual harassment and racial discrimination. At the time, CEO Chris Kempczinski emphasized the company’s commitment to measurable progress in fostering inclusion and diverse perspectives.
Legal Landscape Influences Policy
In an open letter to employees and franchisees, McDonald’s leadership cited the “shifting legal landscape” after the Supreme Court ruling as a catalyst for reexamining its DEI policies. Despite these changes, McDonald’s reaffirmed its belief that a diverse workforce is a competitive advantage.
Currently, 30% of the company’s U.S. leaders are from underrepresented groups, a slight increase from 29% in 2021. While McDonald’s previously set a goal of reaching 35% by the end of this year, it is unclear if this target will remain active.
Achievements and Ongoing Commitments
McDonald’s highlighted several accomplishments from its 2021 DEI strategy:
- Achieving gender pay equity at all levels.
- Expecting to meet its goal of 25% of total supplier spending going to diverse-owned businesses by year-end.
Moving forward, McDonald’s will continue to emphasize inclusion through a renamed Global Inclusion Team and maintain reporting on its demographic information. The company reiterated its commitment to ensuring a diverse base of employees, suppliers, and franchisees.
Broader Implications for Corporate DEI
McDonald’s decision reflects a broader trend among corporations revisiting their DEI strategies under legal and political pressure. By redefining its approach, McDonald’s seeks to balance its inclusion values with the changing regulatory and social environment.
