McDonald's is the latest company to roll back diversity goals

[January 07, 2025]  By DEE-ANN DURBIN

Four years after launching a push for more diversity in its ranks, McDonald’s is ending some of its diversity practices, citing a U.S. Supreme Court decision that outlawed affirmative action in college admissions.

McDonald's is the latest big company to shift its tactics in the wake of the 2023 ruling and a conservative backlash against diversity, equity and inclusion programs. Walmart, John Deere, Harley-Davidson and others rolled back their DEI initiatives last year.

McDonald's said Monday it will retire specific goals for achieving diversity at senior leadership levels. It also intends to end a program that encourages its suppliers to develop diversity training and to increase the number of minority group members represented within their own leadership ranks.

McDonald's said it will also pause “external surveys." The burger giant didn't elaborate, but several other companies, including Lowe's and Ford Motor Co., suspended their participation in an annual survey by the Human Rights Campaign that measures workplace inclusion for LGBTQ+ employees.

McDonald's, which has its headquarters in Chicago, rolled out a series of diversity initiatives in 2021 after a spate of sexual harassment lawsuits filed by employees and a lawsuit alleging discrimination brought by a group of Black former McDonald's 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 wrote in a LinkedIn post at the time.

But McDonald’s said Monday that the “shifting legal landscape” after the Supreme Court decision and the actions of other corporations caused it to take a hard look at its own policies.

A shifting political landscape may also have played a role. President-elect Donald Trump is a vocal opponent of diversity, equity and inclusion programs. Trump tapped Stephen Miller, a former adviser who leads a group called America First Legal that has aggressively challenged corporate DEI policies, as his incoming deputy chief of policy.

A McDonald's restaurant stands in Albany, Ore., April 29, 2024. (AP Photo/Jenny Kane, File)

Vice President-elect JD Vance introduced a bill in the Senate last summer to end such programs in the federal government.

Robby Starbuck, a conservative political commentator who has threatened consumer boycotts of prominent consumer brands that don't retreat from their diversity programs, said Monday on X that he recently told McDonald's he would be doing a story on its “woke policies.”

McDonald's said it had been considering updates to its policies for several months and planned to time the announcement to the start of this year.

In an open letter to employees and franchisees, McDonald's senior leadership team said it remains committed to inclusion and believes a diverse workforce is a competitive advantage. The company said 30% of its U.S. leaders are members of underrepresented groups, up from 29% in 2021. McDonald's previously committed to reaching 35% by the end of this year.

McDonald's said it has achieved one of the goals it announced in 2021: gender pay equity at all levels of the company. It also said it met three years early a goal of having 25% of total supplier spending go to diverse-owned businesses.

McDonald’s said it would continue to support efforts that ensure a diverse base of employees, suppliers and franchisees, but its diversity team will now be referred to as the Global Inclusion Team. The company said it would also continue to report its demographic information.

The McDonald's Hispanic Owner-Operators Association said it had no comment on the policy change Monday. A message seeking comment was left with the National Black McDonald's Operators Association.

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