McDonald’s Caves to Pressure, Scales Back DEI Goals But Maintains Inclusion Commitments
McDonald’s, one of the world’s largest fast-food chains, announced significant changes to its diversity, equity, and inclusion (DEI) practices on Monday. The company will no longer set specific representation goals in hiring or require its suppliers to sign DEI pledges, marking a shift in its approach to inclusion amid what it called a “shifting legal landscape.”
This move follows a U.S. Supreme Court ruling in 2023 that deemed affirmative action policies in college admissions unconstitutional, prompting several corporations to reassess their DEI programs.
In an internal memo, McDonald’s leadership, led by CEO Chris Kempczinski, stated that the company would now refer to its diversity team as the “Global Inclusion Team,” a rebranding aimed at aligning with its evolving priorities. The company emphasized that it remains committed to fostering inclusion, citing its “golden rule” of treating everyone with dignity, fairness, and respect.
Key Changes to Policies
The Chicago-based chain outlined several updates to its DEI initiatives:
- Representation Goals: McDonald’s will retire its aspirational representation targets for leadership roles. Previously, it aimed for women to hold 45% of leadership positions and individuals from underrepresented groups to hold 35%.
- Supplier Commitments: The company will end mutual DEI pledges with suppliers, instead focusing on integrating inclusion into broader business discussions.
- Survey Participation: McDonald’s will pause external surveys, including those measuring workplace inclusion for LGBTQ+ employees.
Despite these rollbacks, McDonald’s highlighted progress in some areas. More than 30% of its U.S. leaders are from underrepresented groups, and the company achieved gender pay equity at all levels. Additionally, McDonald’s reported reaching its goal of spending 25% of its supply budget on diverse-owned businesses three years ahead of schedule.
Context and Backlash
The changes come as many corporations face increasing scrutiny and legal challenges over DEI initiatives. Conservative commentators have criticized such programs as “woke policies,” with some, like Robby Starbuck, threatening boycotts. Meanwhile, civil rights organizations warn that scaling back DEI efforts could harm businesses in the long term.
A coalition of 19 civil rights groups wrote to major corporations last year urging them to maintain their diversity programs. The letter cautioned that abandoning DEI “shirks fiduciary responsibility” by limiting access to a broader talent pool and could negatively impact overall business performance.
McDonald’s has faced its share of legal challenges related to diversity, including discrimination lawsuits from Black franchisees and media mogul Byron Allen. These issues underscore the importance of maintaining inclusive practices in a company that serves a wide and diverse customer base.
Looking Ahead
McDonald’s affirmed its belief in the value of a diverse workforce, calling it a “competitive advantage.” The company will continue reporting demographic data through its annual Purpose and Impact report and remains committed to recruiting franchisees from underrepresented groups.
As the fast-food giant navigates a politically and legally charged environment, its leadership reiterated its dedication to inclusion as a core value, even as it adapts its policies to reflect the current climate.
This shift highlights a broader trend among U.S. companies recalibrating their DEI strategies in response to evolving societal and legal pressures.
Photo: Dirk Tussing from Chicago IL, United States, CC BY-SA 2.0, via Wikimedia Commons
