McDonald’s latest company to reverse diversity goals, citing U.S. Supreme Court ruling banning affirmative action

CHICAGO– 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 plans to end a program that encourages its suppliers to develop diversity training and increase the number of members of minority groups represented within their own management ranks.

McDonald’s said it would also suspend “external investigations.” The hamburger giant did not provide 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 workplace inclusion of LGBTQ+ employees. work.

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

“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.

SEE ALSO: DEI: What does this mean and what is its purpose?

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.

A changing political landscape may also have played a role. President-elect Donald Trump is a vocal opponent of diversity, equity and inclusion agendas. Trump named Stephen Miller, a former adviser who leads a group called America First Legal that has aggressively challenged corporate DEI policies, as his new deputy policy chief.

Vice President-elect JD Vance introduced a bill in the Senate last summer aimed at ending such programs in the federal government.

Robby Starbuck, a conservative political commentator who has threatened consumer boycotts of major consumer brands that don’t abandon their diversity programs, said Monday on X that he recently told McDonald’s he would do a story on its “woke politics”.

McDonald’s said it has been considering updating its policies for several months and plans to make the announcement early this year.

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 had reached its goal of having 25% of total supplier spend going to companies with diverse interests three years early.

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.

The McDonald’s Hispanic Owner-Operator Association said Monday it had no comment on the policy change. A message seeking comment was left with the National Black McDonald’s Operators Association.