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.
