McDonald’s has announced crucial changes to its diversity, equity, and inclusion (DEI) policies, joining a growing list of companies pulling back on such initiatives. The fast-food giant cited the US Supreme Court’s July 2023 ruling, which also banned affirmative action in college admissions, as a key factor influencing its decision.
The Chicago-based burger chain will discontinue specific diversity goals for senior leadership and retire its program encouraging suppliers to adopt DEI training.
Additionally, the fast food entity’s diversity team will be rebranded as the Global Inclusion Team, a shift the company says better reflects its values and business focus. Despite these changes,
McDonald’s emphasised its commitment to fostering inclusion, calling a diverse workforce a “competitive advantage.”
Back in 2021, McDonald’s introduced a range of diversity initiatives following multiple sexual harassment lawsuits from employees and a discrimination lawsuit filed by a group of Black former franchise owners.
At the time, McDonald’s chairman and CEO Chris Kempczinski wrote in a LinkedIn post, “As a world-leading brand that considers inclusion 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 out diverse points of view to drive better decision-making.”
However, the company said that the “shifting legal landscape” following the Supreme Court decision and the actions of other corporations caused it to reconsider its own policies.
This decision reflects a broader trend as conservative activists challenge DEI programs in corporate America, targeting workplace initiatives aimed at supporting historically marginalised groups. Critics argue such policies are unfair and advocate for equal opportunities without consideration of race, gender, or sexual orientation.
What is the DEI initiative?
The DEI (diversity, equity, and inclusion) initiative refers to a set of policies and programs aimed at promoting a more inclusive and equitable environment within organisations. These initiatives often include measures to promote diversity in leadership roles, support historically marginalised groups, and ensure fair treatment regardless of race, gender, or sexual orientation.
Conservative activists have been targeting companies through legal action and social media campaigns, aiming to challenge workplace initiatives. Their focus includes diversity programs and hiring practices designed to support historically marginalised groups, as well as broader objections to initiatives centred on gender identity and sexual orientation.
Other companies scaling back DEI initiatives
Walmart
The world’s largest retailer had announced earlier in November that it would not renew its five-year commitment to an equity racial centre established after George Floyd’s death in 2020. It also exited the Human Rights Campaign’s LGBTQ+ workplace inclusion index and revised its supplier diversity policies, ceasing to prioritise demographic factors such as race and gender.
Furthermore, Walmart pledged to monitor its third party marketplace more closely to prevent the sale of products aimed at LGBTQ+ minors, such as chest binders for transgender youth.
Ford
In August, Ford’s CEO Jim Farley outlined changes to the company’s DEI policies, including withdrawing from the Human Rights Campaign’s Corporate Equality Index. Farley stated that thr company does not use hiring quotas or link compensation to diversity metrics but remains committed to fostering an inclusive workplace.
“We will continue to put our effort and resources into taking care of our customers, our team, and our communities versus publicly commenting on the many polarizing issues of the day,” the memo stated.
Lowe’s
Lowe’s also reevaluated its DEI programs, consolidating employee resource groups into one organisation and stepping back from LGBTQ+ inclusion events like parades and festivals. The retailer said these adjustments were made following the Supreme Court’s affirmative action decision.
Previously, the company had “individual groups representing diverse sections of our associate population.”
It will cease to participate in festivals and parades that are outside of its business domain.
John Deere
In July, the farm equipment manufacturer announced it would no longer sponsor cultural awareness events or implement diversity quotas. John Deere also committed to auditing its training materials to ensure compliance with federal laws and to remove “socially motivated messages.”
Moline, Illinois based company further added “the existence of diversity quotas and pronoun identification have never been and are not company policy.” However, it would still work to “track and advance” the diversity of the company.
Tractor Supply
The rural retailer eliminated all DEI roles and goals in June after facing conservative backlash online. It also announced it would cease sponsoring Pride festivals and voting campaigns and no longer be submitting data for the HRC index.
The National Black Farmers Association also called on Tractor Supply’s president and CEO to step down shortly after the company’s announcement.