Major companies within the United States are increasingly scaling back their diversity, equity and inclusion initiatives, with McDonald’s being the latest to join the list.
The fast-food giant announced on Monday significant changes to its diversity practices, including eliminating aspirational representation quotas and discontinuing its Supply Chain’s Mutual Commitment to DEI pledge. The company will now refer to its diversity team as the “Global Inclusion Team.”
This move follows similar actions by other prominent corporations like Walmart, Ford, John Deere and Harley-Davidson, who have also reduced their DEI efforts in recent months.
McDonald’s emphasized that while it’s changing its approach, the fast-food chain remains committed to inclusion as a core business value and reinforces that everyone is welcome under its golden arches. The company noted that 30% of its U.S. leaders are currently from underrepresented groups, and it has achieved gender pay equity across all levels.
“Our success is a direct result of the work our collective system has done to become the world’s community restaurant,” McDonald’s stated in a corporate memo. “We are shaped by the communities we serve and open our doors to everyone. Whether it’s recruiting restaurant team members directly from the communities in which we operate or creating more opportunities for entrepreneurs and growing a robust and innovative supply chain, our system leverages inclusion to operate successfully and grow our businesses.”
The company plans to maintain transparency by continuing to publish annual demographic reports that cover the composition of its board of directors, employee base and supplier network.
The Pivot Away From DEI
McDonald’s conducted an extensive evaluation of its inclusion strategies, which involved multiple key assessments. The review included a comprehensive Civil Rights Audit examining inclusion across the entire company system, engagement with shareholders to understand their expectations and benchmarks against other corporations that are re-evaluating their diversity programs.
It also pointed to the shifting legal landscape in the U.S. “Our priority is to be a responsible business, acting lawfully and being responsive to the business environment,” McDonald’s said.
Students for Fair Admissions brought a pivotal lawsuit against Harvard University and the University of North Carolina, asserting that their affirmative action policies unfairly disadvantaged Asian American applicants in the admissions process.
The plaintiffs argued that these institutions employed a de facto quota system that artificially constrained the number of Asian American students admitted, despite their strong academic credentials.
The case culminated in a landmark Supreme Court decision in 2023, which effectively ended the use of affirmative action admissions policies in higher education.
In response to growing legal uncertainties and pressure from conservative groups, many organizations are reevaluating their diversity initiatives to mitigate risks. Some are implementing a “Merit, Excellence and Intelligence” system, which focuses on selecting candidates based exclusively on their qualifications, skills and cognitive abilities, without considering demographic factors. Others are shifting toward inclusion strategies that foster a welcoming workplace culture without setting specific diversity goals.