McDonald’s Corp. has unveiled a significant change to its diversity, equity, and inclusion (DEI) strategy, signaling a retreat from its previous goals in response to growing pressure on corporate diversity initiatives. The fast-food giant will no longer set “aspirational representation goals” but will focus on integrating inclusion practices into its daily business operations, according to a statement released on its website.
In a move to further reshape its DEI efforts, McDonald’s is also retiring its DEI pledge with suppliers, opting instead for a more integrated approach that links inclusion to business performance. The company’s diversity team will be renamed the Global Inclusion Team, with McDonald’s reaffirming its commitment to fostering inclusion within the organization.
The shift comes as companies across the U.S. reassess their DEI policies, especially after the 2020 murder of George Floyd and the subsequent national reckoning on racial injustice. However, these policies are now facing mounting opposition, including legal challenges and criticism from conservative advocates. The recent Supreme Court ruling banning affirmative action in college admissions has also spurred corporate re-evaluations of diversity programs, particularly those that favor minority groups.
In its update, McDonald’s mentioned that it completed a civil rights audit last year and engaged with stakeholders to understand their expectations amid the evolving legal landscape. The company has also acknowledged the potential impact of the Supreme Court decision on its corporate practices.
Despite these changes, McDonald’s remains committed to transparency, stating that it will continue reporting demographic data on its board, employees, and suppliers in its annual impact report. The company emphasized its ongoing efforts to build a diverse workforce and ensure pay equity, focusing on nurturing a diverse pipeline of employees, applicants, and suppliers.
As corporate diversity policies come under scrutiny, McDonald’s shift reflects a broader trend of companies reevaluating their DEI practices in the face of shifting political and legal climates.
