McDonald’s Ends Specific Diversity Targets, Rebrands DEI Team

In a major shift in corporate diversity practices, McDonald’s has announced the discontinuation of its specific diversity, equity, and inclusion (DEI) targets. This decision comes after a recent Supreme Court ruling against affirmative action, and it is part of a larger trend where businesses are reevaluating their DEI pledges amidst growing conservative backlash.

On Monday, the global fast-food chain stated that it would no longer require its suppliers to commit to DEI goals and would cease participating in external surveys that measure diversity. Additionally, McDonald’s announced a rebranding of its diversity team, renaming it the “Global Inclusion Team.” The company described the name change as a more fitting reflection of its focus on inclusion rather than specific diversity targets, aligning with the team’s current mission.

Despite these changes, McDonald’s emphasized that it remains committed to fostering an inclusive workplace and continuing its diversity practices across operations. The company affirmed that it would still work with suppliers and vendors to discuss and promote inclusion. “McDonald’s position and our commitment to inclusion is steadfast,” the company stated. “Since our founding, we’ve prided ourselves on understanding that the foundation of our business is people.”

The re-evaluation of diversity goals comes in the wake of a significant shift in corporate America, triggered by the Supreme Court ruling that limits the scope of affirmative action in hiring practices. This decision, along with mounting online pressure, legal challenges, and public opposition, has prompted companies like Walmart, Ford, and Harley-Davidson to reassess their diversity initiatives.

However, some experts argue that many of these changes may not signal the end of DEI commitments, but rather a transformation. J. Danielle Carr, chief officer of inclusion at Lowenstein Sandler, commented that “DEI isn’t going away. It’s just changing,” pointing out that only 14 of the Fortune 500 companies made public changes to their DEI teams or programs in 2024.

McDonald’s pointed out that despite shifting its specific DEI targets, the company has seen growth in leadership diversity and supplier inclusion. By the end of 2024, 30% of its leadership in the U.S. came from underrepresented groups, and the company was on track to meet its goal of allocating 25% of supply-chain spending to diverse-owned suppliers by the end of 2025. McDonald’s also reported that 78% of employees surveyed positively rated the company’s inclusivity efforts.

Despite these adjustments, McDonald’s emphasized that it would maintain its franchisee affinity groups and business networks, which promote entrepreneurship and provide support to diverse communities. The company will continue to report on its demographics annually and uphold its commitment to pay equity.

In contrast to McDonald’s, Costco has seen positive outcomes from its DEI practices, with the retailer acknowledging that its focus on supplier diversity has helped attract and retain diverse talent. The company emphasized that diversity in its workforce fosters creativity and originality, which in turn drives its business success.

In summary, McDonald’s is recalibrating its DEI goals, responding to the shifting legal and political landscape, but it remains committed to inclusion and diversity at its core. The company will focus on the broader values of inclusion, responsibility, and community engagement to guide its future practices.

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