McDonald’s joins the wave of US companies moving away from DEI

McDonald’s joins the wave of US companies moving away from DEI

The DEI rollback across corporate America is now affecting the country’s best-known fast food chain, McDonald’s (MCD).

The burger giant said in a Monday announcement that it would abandon its practice of setting ambitious representation goals, called quotas, and scrap the company’s commitment to hiring a diverse group of suppliers in favor of a “more integrated discussion with suppliers about inclusion.” on business performance.”

McDonald’s added that it would also pause external surveys and change the name of its diversity team to the “Global Inclusion Team.”

The changes, communicated Monday via email to McDonald’s restaurant owners, operators, employees and suppliers, come amid a backlash against diversity initiatives and “woke” policies that have gained momentum across corporate America in 2024.

The list of companies that have moved away from or adapted such policies now includes many of the biggest names in the industry. Walmart (WMT), for example, pulled back from its DEI initiatives in November after public and shareholder pressure.

Home improvement giant Lowe’s (LOW), rural retailer Tractor Supply (TSCO) and tractor maker John Deere (DE) also announced DEI policy withdrawals last summer.

Harley-Davidson (HOG), Jack Daniel’s maker Brown-Forman (BF-A), Polaris (PII) and its motorcycle subsidiary Indian Motorcycle are among other recent setbacks.

Conservative activist Robby Starbuck said many of the scrapped diversity initiatives came after he communicated plans to “uncover” woke policies.

Des Plaines, IL, USA – May 4, 2011: Original McDonald's franchise opened by Ray Kroc on April 15, 1955. Now a museum.
The original McDonald’s franchise was opened in 1955 by Ray Kroc in Des Plaines, Illinois. · patty_c via Getty Images

According to CNBC, Starbuck contacted McDonald’s to inquire about its policies but did not participate in discussions with the company.

Additional court-enforced rollbacks were made.

Last month, a federal appeals court struck down Nasdaq rules aimed at encouraging more diverse corporate boards.

The decision, made by nine judges on the Fifth Circuit Court of Appeals in New Orleans, concluded that the Securities and Exchange Commission should not have approved the Nasdaq rules in 2021.

McDonald’s on Monday cited a 2023 U.S. Supreme Court ruling: Students for Fair Admissions v. President and Fellows of Harvard Collegeas a catalyst for a reassessment of its DEI approach.

After the ruling, the company believed the legal landscape had changed and measured its approach against other companies that were also reevaluating diversity programs.

The court in Students for fair admission explicitly ruled against race-conscious student admissions programs at Harvard University and the University of North Carolina, saying the programs violated the Equal Protection Clause of the Fourteenth Amendment.

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