McDonald’s has announced significant changes to its diversity initiatives, becoming the latest in a growing list of major U.S. corporations to scale back their diversity, equity, and inclusion (DEI) programs following the 2023 U.S. Supreme Court ruling that banned affirmative action in college admissions. The fast-food giant, which has long positioned inclusion as one of its core values, will now retire specific diversity goals for senior leadership and pause certain external surveys.
The decision, revealed earlier this week, is a direct response to the shifting legal and political landscape around DEI initiatives. McDonald’s, which initially launched a suite of diversity-focused programs in 2021 after facing several lawsuits alleging discrimination and sexual harassment, will no longer mandate diversity training for suppliers or enforce quotas for minority leadership representation within its corporate partners.
In a statement, McDonald’s outlined its commitment to a diverse and inclusive workplace while acknowledging the changing regulatory environment. The company explained that the Supreme Court’s ruling, alongside actions from other corporations, prompted a reevaluation of its policies.
The move follows similar steps by other prominent companies like Walmart, John Deere, and Harley-Davidson, who have scaled back their diversity efforts in light of the legal challenges to affirmative action and increasing political pressure against DEI programs. The decision is also seen as a response to political figures like President-elect Donald Trump, who has been a vocal critic of such initiatives, and his incoming administration’s push to restrict DEI programs in the federal sector.
McDonald’s, headquartered in Chicago, had initially rolled out its diversity agenda in response to lawsuits from former employees, including one filed by a group of Black former franchise owners. Under the leadership of CEO Chris Kempczinski, the company pledged to foster a more inclusive environment, with initiatives that included gender pay equity and efforts to increase the representation of underrepresented groups within its workforce and supplier network.
However, as part of the new strategy, McDonald’s will eliminate its senior leadership diversity goals and instead focus on broader inclusion initiatives. It is also pausing its participation in external surveys, such as the Human Rights Campaign’s annual assessment of LGBTQ+ workplace inclusion, a step also taken by companies like Ford and Lowe’s.
Despite these shifts, McDonald’s affirmed its ongoing commitment to diversity, with senior leadership stating that the company believes a diverse workforce is a competitive advantage. The company reports that 30% of its U.S. leaders are from underrepresented groups, a slight increase from 29% in 2021. McDonald’s had previously set a goal to reach 35% by the end of 2023 but now says it will focus on “real, measurable progress” rather than rigid targets.
While McDonald’s continues to highlight its achievements, including reaching gender pay equity and meeting supplier diversity goals ahead of schedule, it has opted to rebrand its diversity division as the Global Inclusion Team. The company also stated it would maintain transparency with regular reports on workforce demographics.
The policy shift has already sparked reactions from various stakeholders. Robby Starbuck, a conservative commentator, praised McDonald’s decision, linking it to growing backlash against corporate “woke” policies. Meanwhile, other groups have voiced concern over the long-term impact on workplace diversity and the company’s public image.
The McDonald’s Hispanic Owner-Operators Association did not comment on the policy change, and the National Black McDonald’s Operators Association has yet to respond.
As McDonald’s navigates these policy changes, the broader corporate world continues to grapple with how best to balance diversity efforts with the evolving political and legal climate surrounding DEI programs.
