McDonald’s has become one of the latest major U.S. corporations to reconsider its diversity, equity, and inclusion (DEI) strategies, following mounting pressure from recent legal challenges and shifting public sentiment around diversity programs. The fast-food giant announced on Monday that it would phase out certain DEI-related practices, including its previous supplier diversity targets and participation in external diversity assessments.
In a statement, McDonald’s confirmed that it is restructuring its approach to DEI by renaming its diversity-focused team to the Global Inclusion Team, a move that reflects a broader trend among businesses scaling back their diversity commitments. The company emphasized, however, that it remains committed to fostering a diverse and inclusive workforce.
“Given our inclusion value and the nature of the work this team is undertaking, this name change is a better fit for McDonald’s,” the company said. “But we want to be clear that our commitment to inclusion and diversity within our workforce is unwavering.”
A Shift in Focus Amid Legal and Social Pressures
The decision to dial back McDonald’s diversity goals is in part a response to the U.S. Supreme Court’s recent ruling against affirmative action in college admissions, as well as mounting conservative opposition to diversity initiatives in the corporate world. McDonald’s joins a growing list of companies, including Walmart, Ford, and Harley-Davidson, that have reassessed their DEI programs in light of the shifting political and legal environment.
Despite these changes, McDonald’s stressed that its commitment to diversity remains integral to its values. The company pointed to its ongoing efforts to foster inclusion across its global operations, from supplier diversity to workplace practices, and pledged to continue working with vendors and suppliers to ensure diversity remains a priority.
“Our position on inclusion is steadfast,” McDonald’s affirmed. “Since day one, we’ve understood that our business is built on people, and we remain committed to reflecting the communities we serve.”
Evaluating Progress and Future Goals
McDonald’s emphasized that its previous DEI efforts had yielded positive results in 2024. The company reported that 30% of its leadership positions in the U.S. were filled by individuals from underrepresented groups, and that 78% of employees surveyed expressed satisfaction with the company’s internal culture. Additionally, McDonald’s met its goal of directing 25% of its supply chain spending toward diverse-owned suppliers by the end of 2025.
“We’re proud of what we’ve achieved, but we’re not stopping here,” the company said.
While McDonald’s is rolling back certain initiatives, it made clear that it will not abandon its franchisee affinity groups or business networks that promote entrepreneurship and support community connections. The company will also continue to report its workforce demographics annually and maintain its commitment to pay equity.
Broader Shifts in Corporate Diversity Efforts
While McDonald’s has adjusted its DEI practices, some industry observers argue that the broader corporate landscape is not entirely abandoning diversity efforts, but rather shifting toward a more inclusive, community-based approach. J. Danielle Carr, Chief Officer of Inclusion at Lowenstein Sandler, stated that despite some high-profile changes, DEI is evolving rather than disappearing.
“DEI isn’t going away. It’s just changing,” Carr told CNN. In fact, research shows that only 14 of the Fortune 500 companies have made significant public changes to their DEI teams or programs in 2024, indicating that many corporations are adapting their approaches rather than abandoning them altogether.
At Costco, for example, the company has doubled down on its commitment to supplier diversity, despite pushback from activist shareholders. The company’s efforts to expand relationships with small and diverse businesses have proven beneficial in attracting and retaining a diverse workforce.
“Diversity helps bring originality and creativity to our merchandise offerings, which promotes the ‘treasure hunt’ experience that our customers value,” Costco stated in a recent investor report.
Looking Ahead
As McDonald’s navigates its new approach to inclusion, the company outlined four core beliefs that will guide its future efforts: thriving by being shaped by local communities, leveraging inclusivity as a competitive advantage, acting responsibly, and ensuring that all individuals perform at their best when they feel they belong.
Despite the adjustments to its diversity strategy, McDonald’s remains firmly committed to diversity in the workplace and its ongoing work with suppliers and vendors. The company’s reevaluation reflects the broader trend of businesses recalibrating their diversity programs in a rapidly changing political and social environment.
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