McDonald’s has announced a revision of its diversity, equity, and inclusion (DEI) strategy, indicating a shift in its approach to representation goals and supplier commitments. The company plans to retire its representation goal-setting and its Mutual Commitment to Diversity, Equity, and Inclusion (MCDEI) pledge. Introduced in 2021, the MCDEI pledge required suppliers to implement DEI strategies, enhance representation, and report progress. The adjustments come as U.S. corporations re-evaluate DEI policies in light of a 2023 Supreme Court ruling that questioned the legality of race-based affirmative action.
Why is McDonald’s changing its DEI policies?
The company’s decision stems from a comprehensive Civil Rights Audit (CRA) and legal analysis following the Supreme Court decision. McDonald’s assessed its existing policies, consulted stakeholders, and benchmarked its practices against other companies considering similar changes. These efforts reflect growing scrutiny of corporate DEI initiatives, particularly those directly tied to representation and race-based metrics. The company emphasized maintaining its commitment to inclusion, describing it as “one of [its] core values.”
What will replace the retired initiatives?
Rather than adhering to specific numeric targets, McDonald’s aims to embed inclusion practices into its daily operations and business performance discussions. The company stated it will engage in broader conversations with suppliers about inclusion, integrating these principles into overall business strategy. Furthermore, the DEI team will now be referred to as the Global Inclusion Team, underlining a shift in how McDonald’s positions its diversity efforts internally and externally.
While revising policies, McDonald’s highlighted its past inclusion milestones, such as achieving gender pay equity globally, meeting a 25% supplier diversity spend target in the U.S., and increasing the number of franchisee applicants from underrepresented groups. The company reported that 30% of U.S. leaders currently belong to underrepresented groups, signaling progress toward prior representation goals.
The adjustments in McDonald’s DEI approach mirror broader trends within corporate America, as companies seek to navigate changing legal and social landscapes. Historically, McDonald’s has positioned itself as a leader in diversity efforts, exemplified by its 2021 DEI pledges. However, the recent Supreme Court ruling has intensified scrutiny of race-conscious initiatives, prompting a recalibration of corporate strategies. Other companies have similarly scaled back or redesigned their DEI frameworks to ensure compliance with evolving legal standards.
The letter from McDonald’s leadership reiterated the company’s pride in its inclusion work and its intention to sustain progress through integrated people practices, economic innovation, and franchisee pipeline development. McDonald’s stated:
“We will continue to drive business results through all three legs of the McDonald’s stool, specifically with our people practices, by fueling economic impact and innovation through our robust supply chain and by building a franchisee pipeline that thrives in the communities we serve and fuels our growth.”
The revisions to McDonald’s DEI policies highlight the challenges corporations face in balancing inclusion goals with legal compliance. While numeric representation targets and pledges are being retired, the company’s broader focus on embedding inclusion into its operations reflects an adaptive response to external pressures. This shift underscores the importance of aligning business practices with evolving legal standards while maintaining a commitment to workplace diversity and equity, albeit through less prescriptive means.
