In response to a combination of legal decisions, public backlash, and a focus on self-interest, US institutions are shifting away from the focus on diversity, equity, and inclusion. One prominent example of this shift is McDonald’s, which recently announced a scaling back of its diversity initiatives.
The decision was communicated in an open letter to McDonald’s owner/operators, employees, and suppliers. The company cited the Supreme Court’s ruling on race-centric admissions practices as a factor in its decision to reevaluate its approach to DEI. McDonald’s emphasized the need to adapt to the changing legal landscape and how it may impact businesses like theirs.
This move by McDonald’s is part of a larger trend among major US companies, including Walmart, Ford, John Deere, and others, to reevaluate their diversity initiatives. While McDonald’s affirmed its commitment to inclusion, it announced modifications to certain practices, such as retiring aspirational representation goals and pausing external surveys.
The company also announced the retirement of its Supply Chain’s Mutual Commitment to DEI pledge, shifting towards a more integrated discussion with suppliers about inclusion and business performance. McDonald’s decision to move away from DEI schemes imposed on suppliers reflects a broader trend of reevaluation in corporate America.
One notable aspect of McDonald’s announcement is its embrace of “benevolent neutrality” and a commitment to treating everyone with dignity, fairness, and respect. This shift towards neutrality aligns with a larger trend towards sanity and balance in corporate America, driven in part by consumer backlash against woke policies.
While some elements of McDonald’s DEI infrastructure will remain, the company is renaming its diversity team to better reflect its focus on inclusion. Despite progress in increasing representation among its US leaders, McDonald’s fell short of its diversity goals for 2025, highlighting the challenges and complexities of DEI initiatives.
McDonald’s decision to scale back its diversity initiatives marks a significant shift in the corporate landscape, as companies reevaluate their approach to DEI in response to changing legal and social dynamics. As the Great DEI Rollback continues, the future remains uncertain for who may be the next to follow suit.