McDonald’s has revealed plans to roll back parts of its diversity, equity, and inclusion policies. The move follows the re-examination of DEI by several other multinationals amid the review of many such companies in the wake of new laws and political steps. The fast food giant’s revised approach reflects a refocusing of inclusion in more tangible business objectives over aspirational ones.
Shift in aspirational goals
One of the most jarring changes is McDonald’s decision to drop “aspirational representation goals.” The company had previously set specific targets for diverse representation in senior leadership positions. Instead of these measurable objectives, McDonald’s will focus on embedding inclusion practices into its day-to-day operations. This revision is meant to integrate diversity efforts more organically into business and culture rather than standing as separate programs.
Supplier diversity initiatives
In addition to changing its internal goals, McDonald’s will retire its “Mutual Commitment to DEI” pledge for suppliers. The program was created for suppliers to encourage them to develop their own diversity training and initiatives.
Going forward, McDonald’s will seek to have a dialogue with suppliers around how inclusion can help drive better business performance rather than requiring specific DEI commitments from them. This change reflects a shift toward more flexible and integrated conversations about diversity within the supply chain.
Rebranding the diversity team
Another important shift in McDonald’s approach is that it rebranded its diversity team to “Global Inclusion Team.” The company believes that this new name is more aligned with its values and the mission of the team. The use of “inclusion” instead of “diversity” was intended by McDonald’s to foster a comprehensive view of their commitment to an inclusive environment for all employees and customers.
Stall external surveys
McDonald’s has also stopped third-party-driven employee-perception surveys on how inclusive the environment within McDonald’s is. Other than announcing the pause, the details are not clear on what that exactly entails; it suggests a shift toward using internal assessments and improvement, as opposed to these third-party metrics.
It likely reflects an intent in streamlining its efforts, assuring the internal practices really address inclusivity concerns.
Contextual background
The backdrop for these changes includes a shifting legal landscape regarding affirmative action and diversity initiatives, particularly following a U.S. Supreme Court ruling that has influenced corporate policies across various sectors. Many companies, including Ford and Walmart, have similarly scaled back their DEI efforts amid growing scrutiny from conservative advocates who challenge such programs as “woke” policies.
Despite these rollbacks, McDonald’s says it remains committed to an inclusive workplace. It said that more than 30% of its U.S. leadership positions are held by people from underrepresented groups, thus showing some diversity gains even as it recalibrates its approach14. McDonald’s also reached pay equity for women at every level, suggesting a certain success in earlier DEI efforts.
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