McDonald's, one of the world's most recognizable brands, announced on Monday a significant rollback of its diversity, equity, and inclusion (DEI) initiatives, becoming the latest major U.S. company to retreat from policies that have drawn increasing scrutiny. The changes reflect a broader trend across corporate America, spurred by legal challenges, shifting public sentiment, and mounting political pressure.
The fast-food chain said in an email to franchise owners, employees, and suppliers that it would eliminate aspirational representation goals-informal hiring and supplier diversity targets-and instead shift to "a more integrated discussion with suppliers about inclusion as it relates to business performance." Additionally, McDonald's will pause external surveys and rename its diversity team the "Global Inclusion Team."
McDonald's cited the 2023 Supreme Court ruling in Students for Fair Admissions v. Harvard as a key factor in reassessing its DEI policies. The court's decision, which struck down affirmative action in university admissions, has created a ripple effect, prompting many corporations to reconsider race-conscious diversity programs amid a changing legal and cultural landscape.
"This updated approach reflects our commitment to inclusion while ensuring compliance with evolving legal frameworks," the company stated in its announcement.
The move comes amid a broader wave of corporate retreats from DEI initiatives. Companies such as Walmart, John Deere, and Lowe's have made similar changes in recent months. Anti-DEI campaigns by activists, including conservative figure Robby Starbuck, have added pressure on firms to reconsider their policies. Starbuck, who claimed credit for McDonald's decision, said on social media, "As our first corporate flip of 2025, I just want to say, HAPPY NEW YEAR!"
McDonald's denied that Starbuck's outreach directly influenced its decision, emphasizing that the changes were months in the making. In an email to Axios, the company said its plan was to "communicate our updated approach at the start of the year," noting that the evolving DEI landscape required a reassessment of its programs.
The rollback marks a notable shift for McDonald's, which has previously championed DEI as central to its corporate philosophy. Last year, Suheily Natal Davis, the company's global chief diversity officer, described DEI as essential to fostering a safe and inclusive workplace. The company's decision to scale back on such initiatives is likely to ignite debates over the balance between legal compliance and social responsibility.
The fast-food giant's changes come amid heightened scrutiny of corporate DEI programs under the incoming administration of President-elect Donald Trump, who has been a vocal critic of so-called "woke" policies. Trump's inauguration later this month adds another layer of political context to McDonald's decision, as many corporations anticipate further pressure to moderate their diversity commitments.
The decision has also been linked to legal challenges beyond the Supreme Court ruling. In December, the Fifth Circuit Court of Appeals struck down Nasdaq rules that encouraged board diversity, further illustrating the growing constraints on corporate DEI programs.
