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McDonald’s Moves Away from DEI Commitment in Supply Chain

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Dive Brief:

  • McDonald’s is discontinuing its commitment to diversity, equity, and inclusion (DEI) within its supply chain, and will be “retiring aspirational representation goals,” according to a letter disclosed on January 6 to employees and suppliers.
  • Despite this shift, the company announced that it successfully reached its target of allocating 25% of its supplier budget to diverse-owned businesses in the U.S. three years ahead of its timeline, as per the letter.
  • McDonald’s will maintain its practice of reporting demographic data regarding its board, staff, and suppliers in an annual report, as stated in the letter signed by multiple executives, including EVP and Global Chief Supply Chain Officer Marion Gross.

Dive Insight:

Additionally, McDonald’s is moving away from its DEI initiatives throughout the entire organization to concentrate on “inclusion” following a “comprehensive” civil rights audit conducted last year, as noted in the letter.

The company considered various factors leading to this decision, which included shareholder proposals, the 2023 Supreme Court ruling that invalidated affirmative action, and the reevaluation of programs by other companies.

As it shifts focus from its DEI commitments in the supply chain, McDonald’s stated it will engage in “more integrated discussions with suppliers concerning inclusion and its impact on business performance.”

The fast food giant did not provide any comments after a request to clarify the specifics of these discussions.

Such moves by McDonald’s reflect a broader trend, as numerous brands across different sectors have also reduced their DEI commitments. Last summer, Harley Davidson removed its supplier diversity budget goals alongside additional DEI rollbacks. Similarly, Tractor Supply cut its DEI positions among other reductions related to DEI.

In recent months, several tech companies, including Amazon, Microsoft, and Meta have also changed their stance on DEI. Meta, in particular, is discontinuing its supplier diversity initiative as part of its broader DEI cutbacks.

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Harley Davidson News

KR Ravindran Recognized for DEI Contributions by IFC/WIM

 

KR Ravindran Recognized for DEI Contributions by IFC/WIMK R Ravindran, one of Sri Lanka’s esteemed business figures and the only Sri Lankan to serve as Rotary International President from Chicago, USA, was honored as one of the Top 10 Diversity Champions by WIM/IFC (a member of the World Bank) for his contributions to promoting Diversity, Equity, and Inclusion (DEI) within Rotary and his workplace.

Nearly 40 years ago, Ravindran co-founded Printcare Plc with the late Merrill J Fernando. Printcare has evolved into one of South Asia’s most respected diversified printing and packaging enterprises, operating multiple manufacturing facilities in Sri Lanka, India, and Africa. The company is also well-recognized as a preferred employer in the industry, strongly advocating for DEI, implementing various worker-friendly initiatives, employing individuals with physical and mental challenges, and actively engaging with local schools and communities around its facilities.

“For example, in the US, major companies like Walmart, John Deere, Ford, and Harley Davidson have recently scaled back or paused their DEI efforts, citing financial challenges and prevailing political climates. In contrast, businesses in Sri Lanka are unwavering in their resolve to cultivate an authentically respectful workplace, where each individual feels valued, heard, and empowered, and where diversity is celebrated as a strength,” noted KR Ravindran, who has also been featured on the cover of the internationally circulated printing magazine Heidelberg News.

Ravindran holds the distinction of being the first Sri Lankan and the 11th Asian to lead Rotary International, based in Chicago. Following this, he was appointed Chairman of the Board of the $3 billion Rotary Foundation. He played a crucial role in establishing the National Cancer Detection Center and continues to serve as its ambassador, particularly in connecting investors and stakeholders. The center has offered free screenings to over 100,000 women and is now expanding its efforts to include cervical cancer screenings. Sri Lanka aims to be the first nation in the world to eliminate cervical cancer by 2030.

Amid the COVID-19 crisis, he spearheaded a Rotary initiative in Sri Lanka to enhance MRI capabilities. During the recent economic downturn, he successfully urged the Rotary International Board to permit a one-time exemption allowing the use of the Rotary brand in a unique partnership with UNICEF.