Major Companies Roll Back Diversity Equity Inclusion Goals

Jan. 7, 2025, 3:56 am ET

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  • McDonald’s has joined several major companies in rolling back their diversity, equity, and inclusion (DEI) goals.
  • The decision follows the U.S. Supreme Court’s 2023 ruling against affirmative action in college admissions.
  • This shift reflects growing conservative backlash against diversity initiatives in the workplace.

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Quick Brief

2-Minute Digest

Essential Context

McDonald’s announced it will retire specific diversity goals for senior leadership and end a program encouraging suppliers to develop diversity training. This move aligns with similar actions by other companies like Walmart, Ford, and John Deere, all citing the U.S. Supreme Court’s decision on affirmative action.

Core Players

  • McDonald’s – Global fast-food chain
  • Walmart – World’s largest retailer
  • Ford – Major automaker
  • John Deere – Farm equipment manufacturer
  • U.S. Supreme Court – Influenced policy with affirmative action ruling

Key Numbers

  • 2023: Year of the U.S. Supreme Court’s affirmative action ruling
  • 5: Number of major companies (including McDonald’s, Walmart, Ford, John Deere, and Tractor Supply) rolling back DEI goals
  • $57 million: Funding the U.S. Department of Labor committed to combat child labor and forced labor in 2021 (unrelated but highlighting broader labor concerns)
  • Multiple companies: Stopped participating in the Human Rights Campaign’s Corporate Equality Index

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The Catalyst

The U.S. Supreme Court’s 2023 decision outlawing affirmative action in college admissions has been the catalyst for these changes. Companies are adjusting their diversity policies to comply with the ruling and avoid potential legal challenges.

Inside Forces

McDonald’s plans to rename its diversity team to the Global Inclusion Team and will pause external surveys, including those related to LGBTQ+ workplace inclusion. Other companies like Walmart have also stopped participating in the Human Rights Campaign’s annual benchmark index.

These internal shifts reflect a broader reevaluation of diversity initiatives in response to legal and public pressure.

Power Dynamics

Conservative activists have been instrumental in challenging diversity programs, arguing they are unfair and should not single out participants based on race, gender, or sexual orientation. Companies are now navigating these criticisms while trying to maintain inclusive workplaces.

The influence of these activists is evident in the decisions made by multiple major corporations.

Outside Impact

The rollbacks have broader implications for workplace inclusion and diversity. Critics argue that these moves could lead to less diverse and inclusive work environments, potentially impacting the careers of historically marginalized groups.

Supporters, however, see this as a step towards fairness and equal opportunity for all employees, regardless of background.

Future Forces

As more companies reevaluate their DEI policies, it is likely that the landscape of workplace diversity will continue to evolve. This could involve new strategies for promoting inclusion that align with changing legal and social norms.

Key areas to watch include:

  • Alternative inclusion strategies that do not rely on affirmative action
  • Legal challenges and potential new laws affecting workplace diversity
  • Public and stakeholder reactions to these policy changes

Data Points

  • July 2023: U.S. Supreme Court’s affirmative action ruling
  • January 2025: McDonald’s announces changes to its DEI policies
  • November 2024: Walmart confirms it will not renew its equity racial center commitment
  • August 2024: Ford and Lowe’s adjust their DEI policies and participation in external indices

The decision by McDonald’s and other major companies to roll back their diversity goals marks a significant shift in corporate approaches to inclusion. As the legal and social landscape continues to evolve, it will be crucial to monitor how these changes impact workplace diversity and overall business strategies.