McDonald's Takes Stock: DEI Strategy in Transition

The fast-food giant McDonald's is scaling back some of its initiatives in the areas of Diversity, Equity, and Inclusion (DEI), citing a 'changing legal landscape' in the USA. This decision comes four years after the company's diversity efforts began. In 2021, McDonald's had introduced a series of diversity programs. This measure followed a wave of lawsuits concerning sexual harassment and a discrimination lawsuit by former Black franchise owners. An increasing number of US companies are observing a similar trend in the realignment of DEI programs, especially after a Supreme Court ruling against affirmative action and ongoing resistance from conservative circles. The pressure from legal challenges, customer opinions, and online platforms has also prompted companies like Ford, Harley-Davidson, Walmart, and John Deere to reconsider their DEI programs. In an open letter to employees, franchisees, and suppliers, McDonald's stated that certain DEI practices would be adjusted. Although the company asserts that it continues to place great importance on inclusion and integrates it into business operations, the requirement for suppliers to demonstrate a DEI commitment has been removed. A significant achievement is that 30% of US executives are from underrepresented groups, with a goal of reaching 35% by the end of 2025. Another step is renaming the diversity team to the 'Global Inclusion Team' – a name that, according to McDonald's, better aligns with the philosophy of inclusion. Additionally, the company will no longer participate in external surveys assessing corporate diversity. Nonetheless, McDonald's remains committed to a diverse workforce and aims to promote inclusion practices both within the company and with suppliers. 'Our stance on inclusion is unwavering. Since our founding, we have seen people as the foundation of our business operations,' the company emphasized in conclusion.