McDonald’s Scales Back DEI Initiatives, Halting Diversity Efforts.

Fast-food giant McDonald’s is dialing back its diversity efforts following a 2023 Supreme Court ruling that struck down affirmative action in college admissions.

After four years of pushing for more diversity, McDonald’s is stepping back from some of its initiatives. They’re not alone; other major companies like Walmart, John Deere, and Harley-Davidson have also scaled back their DEI programs in response to the ruling and growing conservative criticism.

On Monday, McDonald’s announced it will no longer pursue specific diversity goals for its senior leadership. They’re also scrapping a program aimed at helping suppliers with diversity training and boosting minority representation in their leadership teams.

Additionally, McDonald’s plans to pause its “external surveys.” While they didn’t provide details, it’s worth noting that other companies, such as Lowe’s and Ford, have also halted their participation in an annual survey by the Human Rights Campaign that assesses workplace inclusion for LGBTQ+ employees.

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In 2021, McDonald’s, based in Chicago, launched a bunch of diversity initiatives following a wave of sexual harassment lawsuits from employees and a discrimination lawsuit from a group of Black former franchise owners.

“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,” McDonald’s chairman and chief executive Chris Kempczinski wrote in a LinkedIn post at the time.

“We also have to acknowledge that some people in our system feel like they haven’t been given a fair opportunity. We’ve got to face up to that fact and do better,” Kempczinski said in July 2020 when the diversity initiatives were first announced.

The company had promised back then to break down barriers so its leadership could be more diverse and reflect the communities it serves.

But on Monday, McDonald’s mentioned that the “changing legal environment” following the Supreme Court's ruling and the moves of other companies made them reassess their own policies.

The political climate might have influenced this decision too. Donald Trump has been a strong critic of diversity, equity, and inclusion initiatives. He brought in Stephen Miller, a former advisor who heads a group called America First Legal, which has been actively challenging corporate DEI policies, as his new deputy chief of policy.

Vice-president-elect JD Vance also proposed a bill last summer in the Senate aimed at eliminating these programs in the federal government.

Robby Starbuck, a conservative commentator who has threatened to lead consumer boycotts against major brands that don’t back down from their diversity initiatives, stated on X that he recently informed McDonald’s he would be covering its “woke policies.”

McDonald’s noted that they had been mulling over updates to their policies for several months and intended to announce changes at the beginning of this year.

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McDonald’s top leadership recently reached out to employees and franchisees, emphasizing their dedication to inclusion and highlighting that a diverse workforce gives them a competitive edge. They noted that 30% of their US leadership now comes from underrepresented groups, a slight increase from 29% in 2021, and they’re aiming for 35% by the end of this year.

The company also announced that it has met one of its 2021 goals: achieving gender pay equity across all levels. Additionally, they’re on track to ensure that 25% of their total supplier spending goes to diverse-owned businesses by year’s end.

Moving forward, McDonald’s will keep pushing for a diverse workforce, supplier base, and franchisee community, but they’re rebranding their diversity team to the global inclusion team. They’ll also keep sharing their demographic data.

The McDonald’s Hispanic Owner-Operators Association didn’t have any comments on the policy change, and a request for feedback was sent to the National Black McDonald’s Operators Association.

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McDonald’s decision to adjust its DEI programs reflects a pragmatic response to evolving legal and political landscapes while maintaining a commitment to inclusion. By focusing on measurable outcomes, such as achieving gender pay equity and increasing diverse leadership representation, the company demonstrates its ability to adapt while upholding key priorities. Rebranding its diversity team to the global inclusion team highlights a broader approach to fostering belonging and innovation.

These changes allow McDonald’s to balance compliance with legal frameworks and stakeholder expectations, ensuring sustainable progress without overreliance on controversial frameworks that may divide rather than unite its workforce and communities.