McDonald’s and Meta Roll Back DEI Initiatives
In the wake of George Floyd’s death, McDonald’s and several other companies expanded their Diversity, Equity, and Inclusion (DEI) goals. However, both McDonald’s and Meta (the parent company of Facebook and Instagram) have recently announced that they are reducing some of these DEI programs.
Meta’s DEI Policy Changes
Meta confirmed on Friday that it plans to end several of its DEI policies. The company will:
- Eliminate its DEI team and cancel its equity and inclusion programs.
- Remove the “diverse slate” hiring program, which ensured diverse candidates were considered for every open position.
- Stop collaborating with third-party suppliers that are diverse-owned.
- Transition its Chief Diversity Officer, Maxine Williams, to a new role.
Despite these changes, Meta emphasized that it remains focused on making its products accessible to all consumers and maintaining a multi-talented workforce.
McDonald’s Adjusts Its DEI Strategy
McDonald’s also made a similar announcement earlier this week. The company stated that while it is still committed to inclusion, it will:
- Remove its diversity goals for senior leadership roles.
- Discontinue a program encouraging suppliers to conduct diversity training and improve diversity at the management level.
- Continue to have 30% of its U.S. leadership from underrepresented groups, although its initial goal was 35% by 2025.
McDonald’s mentioned that it had achieved some of its diversity goals, including spending 25% of its third-party supplier budget on diverse-owned businesses.
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Why Are Companies Reversing Their DEI Policies?
Both Meta and McDonald’s, like many other companies, had committed to expanding DEI programs following George Floyd’s death in 2020. However, in recent years, businesses have faced mounting pressure to roll back these policies, especially after the Supreme Court ruling that limited affirmative action in college admissions and growing conservative backlash.
These recent moves by Meta and McDonald’s are part of a broader trend, with companies like Walmart and John Deere also scaling back their DEI efforts.
The Impact of Policy Rollbacks
Experts say the full impact of these rollbacks is still unclear, especially when it comes to worker diversity at these companies. McDonald’s, for example, pointed to the “shifting legal landscape” after the Supreme Court ruling and noted that many other companies are reassessing their DEI programs.
Some critics, however, argue that companies like McDonald’s are abandoning their DEI commitments under political pressure. Andrea Abrams from American Pride Rises criticized the changes, calling them a capitulation to right-wing activists.
Are the Rollbacks Superficial?
Despite the criticism, some experts believe the changes may not be as drastic as they seem. Corinne Post, a professor at Villanova University, suggested that while the changes may be superficial, companies still have a strong incentive to create inclusive environments to attract and retain talented employees. She argued that these adjustments are likely intended to appease critics rather than represent a full cancellation of DEI programs.
However, Traci Sitzmann, a professor at the University of Colorado, argued that these changes show that corporate commitment to DEI is often influenced by public opinion. She warned that such inauthentic commitment could harm employee trust and affect company performance in the long run.
Other Companies Rolling Back DEI Efforts
Several other companies have also announced similar rollbacks of their DEI programs, including:
- Walmart: In November, Walmart stated it would stop considering gender and race when evaluating companies for its supply chain. It also announced that it would review its support for Pride events and exit the Human Rights Campaign’s annual benchmark index.
- John Deere: In July, John Deere announced it would stop supporting cultural awareness events and focus its Business Resource Groups solely on work-related topics. The company still believes a diverse workforce is essential for meeting customer needs.
- Ford: In September, Ford CEO Jim Farley stated that the company would stop participating in the Human Rights Campaign’s annual index and make its Employee Resource Groups open to all workers. Ford emphasized that it does not use hiring quotas or tie compensation to diversity goals but remains committed to building an inclusive workplace.
- Harley-Davidson: In August, Harley-Davidson revealed that it had already stopped its DEI efforts and no longer operates a DEI function. The company would ensure that all employee training remains free of “socially motivated content.”
The rollbacks of DEI policies at companies like Meta, McDonald’s, Walmart, and others reflect a shift in corporate strategies amid political and public pressures. While some argue that these changes are superficial or driven by political forces, others believe they might affect employee trust and the overall company culture in the long term. The full impact of these shifts remains to be seen.