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Market AnalysisMarket Analysis
Market Analysis

McDonald's Changes Diversity Approach in Corporate Leadership

Amos Simanungkalit · 15.3K Views

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Image Credit: Reuters

McDonald's is scaling back its diversity goals for corporate leadership and modifying some diversity practices, citing a "shifting legal landscape" in the U.S. In an open letter to employees and franchise owners, the company explained the decision, which mirrors trends among other U.S. corporations that are pulling back from diversity, equity, and inclusion (DEI) initiatives amid pressure from conservative activists.

Despite these changes, McDonald's reaffirmed its commitment to inclusion, stating that it would continue to integrate inclusive practices into its operations. The company highlighted that 30% of its U.S. leadership positions are filled by individuals from "underrepresented groups," a figure that falls short of its original target of 35% by the end of 2025.

Additionally, McDonald's will no longer require its suppliers to make DEI commitments, and its diversity team will now be known as the "Global Inclusion Team." The company is also pausing its participation in "external surveys," likely referring to those conducted by LGBTQ advocacy groups like the Human Rights Campaign, which assess workplace inclusion.

This move follows a recent inquiry by conservative activist Robby Starbuck, who indicated he would be publishing a story on McDonald's DEI efforts. Starbuck had asked McDonald's whether the company was considering adjusting its approach to "embrace corporate neutrality." His previous targets, including Walmart, John Deere, and Tractor Supply Co, have similarly scaled back their DEI efforts following his criticisms.

Corporate America increased its focus on diversity initiatives after the 2020 protests sparked by the police killings of George Floyd and other Black Americans. However, some companies are now retreating in response to pressure from conservative legal organizations, particularly after the U.S. Supreme Court's June 2023 ruling that eliminated affirmative action in university admissions.

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.

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