McDonald’s Says It Will End Some DEI Practices Amid ‘Shifting Legal Landscape’

A McDonald's restaurant in Albany, Ore., on April 29, 2024. Jenny Kane/AP Photo

McDonald’s said on Monday that it would roll back some of its diversity, equity, and inclusion (DEI) initiatives due to the “shifting legal landscape” following a Supreme Court ruling in 2023 that rejected affirmative action in university admissions.

In a memo to restaurant operators, employees, and suppliers, the fast-food chain said it would no longer set “aspirational representation goals” and instead focus on embedding inclusion practices into its operations.

McDonald’s said that it will end the requirement for suppliers to commit to a DEI pledge, suspend participation in external surveys, and rename its diversity team the Global Inclusion Team. It did not specify the focus of the external surveys it was referring to.

“This name change is more fitting for McDonald’s in light of our inclusion value and better aligns with this team’s work,” the company stated.

More than 30 percent of the company’s U.S. leaders were from underrepresented groups, and McDonald’s achieved its 25 percent spending goal on diverse-owned suppliers by 2025, according to the memo.

Despite these achievements, McDonald’s said it remains committed to prioritizing inclusion practices moving forward.

“We are immensely proud of these accomplishments, but we are not satisfied,” it stated, adding that efforts to foster inclusion will require ongoing focus.

The company stated that it made the decision after completing a Civil Rights Audit, which evaluated all aspects of inclusion throughout the company’s system.

“We also engaged with shareholders to understand their expectations and assessed the overall landscape of shareholder proposals,” it stated.

The company cited a 2023 Supreme Court ruling in a lawsuit filed by the Students for Fair Admissions against Harvard College alleging that the college’s admissions process violated the equal protection clause of the U.S. Constitution.

McDonald’s said it assessed how the ruling may impact corporations and benchmarked its approach to other companies reevaluating their diversity programs.

Several companies, including Tractor Supply Co., Harley Davidson, John Deere, Lowes, and others, have announced they will repeal their DEI policies after facing pushback from conservatives and lawmakers.

Costco’s board of directors has encouraged shareholders to vote to support its DEI program after the National Center for Public Policy, a conservative think tank, urged Costco to ditch DEI because it promoted discriminatory practices.

The company’s board has urged shareholders to reject the center’s proposal, saying that Costco’s DEI efforts attract employees and improve store services.

“Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the ‘treasure hunt’ that our customers value,” Costco said in its proxy statement to its investors on Dec. 26.

Jack Phillips contributed to this report.