McDonald's is the latest company to roll back diversity goals

A McDonald's restaurant stands in Albany, Ore., April 29, 2024. (AP Photo/Jenny Kane, File)

Four years after launching a push for more diversity in its ranks, McDonald’s is ending some of its diversity practices, citing a U.S. Supreme Court’s decision that outlawed affirmative action in college admissions.

McDonald's is the latest big company to shift its tactics in the wake of the 2023 ruling and a conservative backlash against diversity, equity and inclusion programs. Walmart, John Deere, Harley-Davidson and others rolled back their DEI initiatives last year.

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McDonald's said Monday it will retire specific goals for achieving diversity at senior leadership 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 leadership ranks.

McDonald's said it will also pause “external surveys." The Chicago burger giant didn't elaborate, but several other companies, including Lowe's and Ford Motor Co., suspended their participation in an annual survey by the Human Rights Campaign that measures workplace inclusion for LGBTQ+ employees.

McDonald's rolled out a series of diversity initiatives in 2021 after a spate of sexual harassment lawsuits filed by employees and a lawsuit alleging discrimination by a group of Black former owners of McDonald's franchises.

“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,” McDonald's Chairman and CEO Chris Kempczinski wrote in a LinkedIn post at the time.

But McDonald’s said Monday that the “shifting legal landscape” after the Supreme Court decision and the actions of other corporations caused it to take a hard look at its own policies.

In an open letter to employees and franchisees, McDonald's senior leadership team said it remained committed to inclusion and believes a diverse workforce is a competitive advantage. The company said 30 per cent of its U.S. leaders are members of underrepresented groups, up from 29 per cent in 2021. McDonald's previously committed to reaching 35 per cent by the end of this year.

McDonald's said it has achieved one of the goals it announced in 2021: gender pay equity at all levels of the company. It also said it expected to achieve a goal of having 25 per cent of total supplier spending go to diverse-owned businesses by the end of the year.

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