McDonald’s is the latest company to roll back its diversity goals

Four years after launching a campaign for greater diversity in its ranks, McDonald’s is ending some of its diversity practices, citing a U.S. Supreme Court ruling that banned affirmative action in university admissions.

McDonald’s is the latest major company to change tactics in the wake of the 2023 decision and a conservative backlash against diversity, equity and inclusion programs. Walmart, John Deere, Harley-Davidson and others canceled their DEI initiatives last year.

McDonald’s announced Monday that it would withdraw its specific goals aimed at achieving diversity at senior management levels. It also intends to end a program that encourages its suppliers to develop diversity training and increase the number of minorities in their own management ranks.

McDonald’s said it would also suspend “external investigations.” The Chicago burger giant did not provide further details, but several other companies, including Lowe’s and Ford Motor Co., have suspended their participation in an annual Human Rights Campaign survey that measures the inclusion of LGBTQ+ employees on the workplace.

McDonald’s launched a series of diversity initiatives in 2021 after a series of sexual harassment lawsuits filed by employees and a lawsuit alleging discrimination by a group of Black former McDonald’s franchise owners.

“As a leading global brand that holds inclusion as 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 diverse perspectives 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 “changing legal landscape” after the Supreme Court ruling and the actions of other companies have caused it to take a hard look at its own policies.

In an open letter to employees and franchisees, McDonald’s 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. executives are members of underrepresented groups, up from 29% in 2021. McDonald’s previously pledged to reach 35% by the end of this year.

McDonald’s said it achieved one of its announced 2021 goals: gender pay equity at all levels of the company. It also said it plans to achieve the goal of having 25% of total supplier spending go to companies with diverse interests by the end of the year.

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