McDonald’s Abandons Commitment to DEI in Supply Chain

McDonald’s is ending its commitment to diversity, equity and inclusion within its supply chain and “retiring setting aspirational representation goals,” per a letter to employees and suppliers made public January 6th.  Despite the change, McDonald’s said it met its U.S. goal of spending 25% of its supplier budget with diverse-owned companies three years ahead of schedule, the letter said.

The company said it will continue to report demographic information about its board, employees and suppliers in an annual report, according to the letter, which was signed by several executives, including EVP and Global Chief Supply Chain Officer Marion Gross.  McDonald’s is also abandoning its DEI initiatives across the rest of the company in favor of a focus on “inclusion,” following a “comprehensive” civil rights audit it completed last year, per the letter.

The company said it weighed several factors in making the change, including shareholder proposals, the 2023 Supreme Court decision that struck down affirmative action, and decisions by other companies that have re-evaluated their own programs.

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