Following the recent U.S. Supreme Court ruling which deemed affirmative action unlawful, McDonald's announced on Monday its intention to reduce some of its diversity, equity, and inclusion (DEI) goals, reflecting the shifting legal and cultural environment.
McDonald's decision is indicative of the broader trend among U.S. corporations reassessing their DEI initiatives under the heightened scrutiny from conservative groups. Companies like Walmart and John Deere have also scaled back their DEI efforts over the past year, responding to the new legal realities.
Specifically, the iconic fast-food giant has decided to eliminate specific diversity benchmarks for its senior leadership and halt initiatives aimed at increasing minority representation and training for suppliers. This also includes suspending participation in external assessments intended to measure workplace inclusivity, mirroring similar moves by companies such as Lowe's and Ford Motor Company, which recently withdrew from the Human Rights Campaign's annual survey measuring LGBTQ+ workplace inclusion.
This pivot by McDonald's happens after the company previously rolled out ambitious DEI strategies amid facing legal issues, including sexual harassment lawsuits and accusations of racism from Black former franchise owners. At the time, McDonald's CEO Chris Kempczinski emphasized the need for substantial progress and the importance of diverse perspectives for fostering effective decision-making.
Now, citing "the changing legal environment" following the Supreme Court ruling, McDonald's is recalibring its commitment to DEI. A letter sent to employees and franchise owners reaffirmed the company's dedication to inclusion, highlighting plans to maintain diverse leadership. Currently, 30% of the company's domestic leaders are from minority groups, slightly up from 29% in 2021, with aims to raise this to 35% by year's end.
Despite the challenges posed by the recent ruling, McDonald's reported progress toward achieving gender pay equality. The company also stated it is on track to direct 25% of its supplier spending to diverse companies by the end of this calendar year.
Reactions to McDonald’s shift have been diverse. Kempczinski previously expressed on LinkedIn, "We expect truly measurable progress as we lead with empathy, treating people with dignity and respect, and pursuing diverse perspectives to drive decision-making."
Conversely, conservative filmmaker Robbie Starbuck reacted on X (formerly Twitter), stating, "Companies understand America wants to restore sanity. The era of 'woke' is ending. The corporate American scene is rapidly shifting back to sanity and neutrality. We are winning. One by one, we are restoring sanity to corporate America." His remarks reflect the growing conservative backlash against corporate DEI efforts.
Looking forward, McDonald's will continue to operate its diversity team under the banner of the "Global Inclusion Team" and has confirmed it will keep releasing demographic data. This approach seems aimed at reconciling its commitment to diversity within the framework of the newly imposed restrictions.