McDonald’s, the iconic fast-food chain, has joined a growing list of US corporations scaling back diversity, equity, and inclusion (DEI) initiatives.
In a Monday announcement, the company revealed significant changes to its approach, including the elimination of aspirational representation goals, commonly referred to as quotas.
McDonald’s also retired its pledge to hire a diverse group of suppliers, opting instead for “a more integrated discussion with suppliers about inclusion as it relates to business performance.”
In addition, the company announced it would pause external surveys and rebrand its diversity team as the “Global Inclusion Team.”
These adjustments were communicated via email to McDonald’s employees, franchise owners, operators, and suppliers, reflecting a broader trend of corporate America re-evaluating diversity-focused policies in response to legal and public pressures.
Increasing backlash against DEI programs
This move comes amid an increasing backlash against DEI programs, often criticized as “woke” policies, with similar rollbacks seen across major companies.
Retail giant Walmart (WMT) scaled back its DEI initiatives in November following shareholder and public scrutiny.
Other corporations like Lowe’s (LOW), Tractor Supply (TSCO), and John Deere (DE) announced similar retreats over the summer.
Even lifestyle brands such as Harley-Davidson (HOG), Brown-Forman (BF-A), and Polaris (PII) have made adjustments to their diversity strategies.
Conservative activist Robby Starbuck has been vocal about pressuring companies to reconsider their DEI policies.
According to reports, Starbuck contacted McDonald’s to inquire about its practices but did not engage in direct discussions with the company.
Legal developments over DEI
Many corporate rollbacks, however, have also been influenced by legal developments.
Last month, a federal appeals court struck down Nasdaq’s 2021 rules aimed at promoting board diversity, ruling that the Securities and Exchange Commission had overstepped its authority in approving the regulations.
Similarly, McDonald’s cited the 2023 US Supreme Court decision in Students for Fair Admissions v. President and Fellows of Harvard College as a key factor in reassessing its DEI approach.
The ruling, which struck down race-conscious admissions programs at Harvard and the University of North Carolina, declared such policies a violation of the Equal Protection Clause of the Fourteenth Amendment.
Following this landmark decision, McDonald’s stated that the shifting legal environment prompted a review of its policies.
Benchmarking against other corporations undergoing similar evaluations, the company chose to align its strategy with the evolving regulatory and cultural landscape.
The rollback of DEI initiatives has sparked debates across industries, with supporters arguing that such moves ensure fairness and focus on merit, while critics warn they undermine progress in creating equitable workplaces.
As McDonald’s recalibrates its diversity efforts, its decision reflects a significant shift in how companies approach inclusivity and navigate the complexities of public perception, shareholder interests, and legal requirements.
This restructured strategy signals McDonald’s response to an ongoing nationwide reassessment of corporate diversity programs, marking another pivotal moment in the broader conversation around equity and inclusion in the workplace.
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