McDonald’s Adjusts DEI Policies Following Supreme Court Ruling

McDonald’s has announced significant changes to its diversity, equity, and inclusion (DEI) policies, including the retirement of its representation goal-setting and the discontinuation of its supply chain Mutual Commitment to DEI (MCDEI) pledge. The MCDEI initiative, launched in 2021, required suppliers to implement a DEI strategy, increase representation, and participate in talent pipeline programs, among other commitments.

Despite these changes, McDonald’s reaffirmed its dedication to inclusion as a core value. In a letter addressed to its owners, operators, employees, and suppliers, the company stated, “Our commitment to inclusion is steadfast.” The adjustments come in the wake of the 2023 U.S. Supreme Court decision that struck down race-based affirmative action in college admissions, prompting corporations to reassess aspects of their DEI policies amidst heightened legal scrutiny.

McDonald’s explained that the revisions followed the completion of a comprehensive Civil Rights Audit (CRA) and an evaluation of the legal implications of the Supreme Court ruling. The company also benchmarked its approach against other organizations and engaged with shareholders during the process.

Key changes include the retirement of aspirational representation goals, which targeted 45% women globally and 35% underrepresented groups in U.S. leadership roles by the end of 2025. McDonald’s will now focus on embedding inclusive practices into its everyday operations and maintaining integrated discussions with suppliers about inclusion as it relates to business performance. Additionally, the company’s diversity team will be rebranded as the Global Inclusion Team.

The letter highlighted several accomplishments under McDonald’s DEI efforts, such as:

• Reaching 30% of U.S. leadership positions held by individuals from underrepresented groups.
• Achieving gender pay equity across all levels and markets.
• Meeting its goal of 25% supplier diversity spend with U.S. diverse-owned suppliers.
• Growing the number of franchisee applicants from underrepresented groups to record levels.

McDonald’s emphasized its ongoing commitment to economic impact and innovation through its supply chain and the development of a thriving franchisee pipeline. The letter concluded, “We are proud of the work that we do at McDonald’s. 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.”