McDonald's drops diversity efforts after supreme court ruling
- McDonald's is retracting its diversity, equity, and inclusion initiatives due to a U.S. Supreme Court ruling.
- Numerous other major companies have also reduced their DEI efforts after the ruling.
- The new focus of McDonald's will be on inclusion rather than specific diversity goals.
In January 2024, McDonald’s announced it would be scaling back its diversity, equity, and inclusion (DEI) efforts, attributing this significant policy shift to a U.S. Supreme Court decision that declared affirmative action in college admissions unconstitutional. The fast-food chain had previously implemented an array of initiatives to improve racial and gender diversity in its workforce since 2021, driven by multiple lawsuits regarding workplace discrimination. However, the recent ruling, along with a broader conservative backlash against DEI initiatives across corporate America, prompted McDonald’s to reevaluate its programs. The company stated that it will discontinue several specific diversity goals at senior leadership levels and retire initiatives that encourage suppliers to develop diversity training aimed at increasing minority representation within their leadership structures. McDonald's also plans to pause external surveys that measure workplace inclusivity. This change reflects a growing trend among other major corporations, such as Walmart and John Deere, many of which have similarly rolled back their diversity initiatives in the wake of the Supreme Court ruling and shifting societal attitudes. Chris Kempczinski, McDonald’s Chairman and CEO, emphasized that while the name of the diversity team would change to the Global Inclusion Team, they remain committed to fostering an inclusive environment within the company. According to the company’s data, currently, 30% of its U.S. leadership consists of individuals from diverse backgrounds, which has increased from 29% in 2021, although the stated goal of reaching 35% by the end of that year was now being reconsidered. The company's diversity initiatives were introduced in response to a series of lawsuits, including allegations of sexual harassment and discrimination against Black franchise owners. In 2021, it achieved gender pay equity across all levels of its workforce. The decision to downplay these diversity efforts comes amidst a conservative political environment, where voices like former President Donald Trump have publicly critiqued such programs. McDonald's leadership suggested that they would continue to report demographic data and support policies ensuring a diverse workforce, revealing a nuanced understanding of the challenges facing diversity initiatives today.