Following a 2021 initiative to increase diversity, McDonald’s is scaling back certain diversity programs, citing a Supreme Court ruling on college admissions.
This decision makes McDonald’s the latest major corporation to adjust its diversity, equity, and inclusion (DEI) strategies in response to the 2023 Supreme Court ruling and conservative pushback. Walmart, John Deere, and Harley-Davidson, among others, implemented similar changes last year.
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McDonald’s announced the discontinuation of specific diversity goals for senior leadership positions. A program encouraging supplier diversity training and increased minority representation within supplier leadership will also be ended.
Furthermore, McDonald’s will pause “external surveys.” While specifics weren’t provided, this action mirrors similar suspensions by Lowe’s and Ford, who ceased participation in the Human Rights Campaign’s workplace inclusion survey for LGBTQ+ employees.
McDonald’s, headquartered in Chicago, introduced these diversity initiatives in 2021 after facing multiple employee sexual harassment lawsuits and a discrimination lawsuit filed by 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 CEO Chris Kempczinski stated in a 2021 LinkedIn post.
However, McDonald’s attributes its policy adjustments to the “shifting legal landscape” following the Supreme Court decision and the actions of other companies.
The evolving political climate may also be a factor. The President-elect is a known opponent of DEI programs, appointing Stephen Miller, a former advisor and leader of America First Legal (a group actively challenging corporate DEI policies), as his incoming deputy chief of policy. Vice President-elect JD Vance also proposed legislation to eliminate such programs within the federal government last summer.
Robby Starbuck, a conservative commentator known for advocating consumer boycotts of companies with DEI programs, recently announced on X that he had contacted McDonald’s regarding their “woke policies.”
McDonald’s stated that policy updates had been under consideration for several months, with the announcement timed for the beginning of the year.
In communications to employees and franchisees, McDonald’s senior leadership reaffirmed its commitment to inclusion and the value of a diverse workforce. The company noted that 30% of its U.S. leaders are from underrepresented groups, an increase from 29% in 2021 (a previous goal of 35% by year’s end was not met).
McDonald’s reported achieving gender pay equity at all levels and exceeding its goal of allocating 25% of total supplier spending to diverse-owned businesses three years ahead of schedule.
McDonald’s will continue supporting a diverse employee, supplier, and franchisee base, though its diversity team will now be known as the Global Inclusion Team. Demographic data reporting will also continue.
The McDonald’s Hispanic Owner-Operators Association declined to comment on the policy change. A request for comment was sent to the National Black McDonald’s Operators Association.