USA 
United Kingdom
McDonald’s has announced a significant shift in its diversity, equity, and inclusion (DEI) strategy, scaling back some initiatives while insisting a broader commitment to workplace inclusion remains in place.
The fast food giant’s decision comes as businesses nationwide respond to the Supreme Court’s ruling against affirmative action and increased scrutiny of DEI programs.
In a statement, McDonald’s revealed it would no longer enforce supplier DEI commitments or participate in external diversity surveys. Additionally, its DEI team has been renamed the “Global Inclusion Team,” a move the company says reflects its values and aligns with its evolving goals.
“This name change is more fitting for McDonald’s in light of our inclusion value and better aligns with this team’s work,” the statement read.
Despite the changes, McDonald’s emphasized that its inclusion efforts remain integral to its business philosophy. “Our position and commitment to inclusion are steadfast,” the company said, citing its history of prioritizing people as the foundation of its success.
Reevaluating priorities
McDonald’s is the latest in a series of high-profile companies revisiting DEI strategies under public pressure and legal challenges. Walmart, Ford, and John Deere are among the corporations that have reportedly adjusted their DEI programs.
The firm highlighted significant progress from its DEI initiatives, noting that 30% of US leadership roles are held by underrepresented groups. Additionally, 78% of employees rated the company positively in its pulse surveys, and McDonald’s achieved its goal to allocate 25% of supply chain spending to diverse-owned suppliers by 2025.
“We are immensely proud of these accomplishments, but we are not satisfied,” the firm said.
While scaling back certain programs, the company will retain franchisee affinity groups and business networks that promote entrepreneurship and connection. It will also continue reporting workforce demographics and remain committed to pay equity.
Broader industry trends
McDonald’s adjustments reflect a wider corporate reckoning with the costs and benefits of DEI initiatives after pressure from right wing agitators. Costco, however, has resisted calls to dismantle its diversity initiatives and recently affirmed its commitment to supplier diversity and workforce inclusion, citing them as tangible benefits.
“A diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the ‘treasure hunt’ that our customers value,” Costco said.
For McDonald’s, it says the future of DEI will be guided by four core beliefs: thriving through community influence, leveraging inclusivity as a competitive advantage, prioritizing responsible action, and fostering belonging to maximize employee performance.
More companies are certain to be challenged on their approach to DEI in the coming months and years and HR departments are sure to see challenges as they either change direction or resist outside pressure.
