McDonald’s pulls back on diversity goals amid conservative backlash and ‘legal landscape’ | Company Business News-OxBig News Network

United States fast-food giant McDonald’s is scaling back on its diversity program, citing the 2023 US Supreme Court order on affirmative action in college admissions, according to an AP report. This turn comes four years after the burger chain launched a campaign to increase diversity, it added.

It is now among other big US companies such as Harley-Davidson, John Deere and Walmart, who have since last year also pulled back on their diversity, equity, and inclusion (DEI) programs due to conservative backlash, the report noted.

What Is Affected?

In a statement on January 6, McDonald’s said it will “retire specific goals” for achieving diversity at senior leadership levels, and intends to end a program encouraging suppliers to develop diversity training and increase in number of minority group members represented within their own leadership ranks, as per the report.

The Chicago-based company also said it will also pause “external surveys” without specifying details. However, the report noted that other companies such as 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.

Reversal in Stance?

McDonald’s had released its DEI initiatives in 2021 on the back of a number of sexual harassment lawsuits filed by employees and a discrimination suit filed by a group of Black former McDonald’s franchise owners.

“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.

Why The Shift?

In its statement on January 6, McDonald’s said “shifting legal landscape” following last year’s SC order and the actions of other corporations caused it to take a hard look at its own policies.

A shifting political landscape may also have played a role, the report added, noting that US President-elect Donald Trump is a vocal opponent of DEI programs. Trump has nominated Stephen Miller as his incoming deputy chief of policy. Miller is a former adviser who leads a group called America First Legal that has aggressively challenged corporate DEI policies, it added. Further, Vice President-elect JD Vance introduced a bill in the Senate last summer to end such programs in the federal government.

In a post on X (formerly known as Twitter), on January , Robby Starbuck, a conservative political commentator who has threatened consumer boycotts of prominent consumer brands that don’t roll back DEI programs said that he recently told McDonald’s he would be doing a story on its “woke policies.”

‘Remain Committed’, Says Leadership

McDonald’s said it had been considering updates to its policies for several months and planned to time the announcement to the start of this year.

In an open letter to employees and franchisees, McDonald’s senior leadership team said it remains committed to inclusion and believes a diverse workforce is a competitive advantage. The company said 30 per cent of its US 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 met three years early a goal of having 25 per cent of total supplier spending go to diverse-owned businesses.

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.

On Monday, the McDonald’s Hispanic Owner-Operators Association said it had no comment on the policy change, according to AP. A message seeking comment was left with the National Black McDonald’s Operators Association, AP added.