Companies That Have Stripped Back Their DEI Efforts - Page 5

Several major U.S. companies are buckling under pressure from conservative groups to scale back or eliminate diversity, equity, and inclusion (DEI) programs. This shift follows the U.S. Supreme Court’s June 2023 ruling that ended affirmative action in college admissions. Spurred by this decision, conservative organizations have filed lawsuits targeting DEI initiatives in corporate America, challenging workplace practices that aim to support marginalized groups. McDonald’s is the latest company to dial back its DEI efforts. In a statement posted on the fast-food chain’s website on Jan. 6, the company announced it would revise its DEI protocols. Although McDonald’s will continue to review diversity goals through its Purpose & Impact Report, which covers the board, employees, and suppliers, the company is introducing the “Golden Rule”—treating everyone with dignity, fairness, and respect—as a core principle of its inclusion strategy. McDonald’s has also outlined four key guiding principles: promoting community reflection, leveraging inclusion for competitive advantage, fostering a sense of belonging, and maintaining business accountability. In addition, McDonald’s is implementing several strategic changes. The company said that it would be moving away from “aspirational representation goals” and focusing instead on embedding inclusion practices into daily operations. It is also pausing external surveys to focus on internal growth, and replacing its supplier diversity pledge with a more integrated approach to inclusion and business performance. The diversity team will be renamed the Global Inclusion Team to better align with the company’s values.

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As part of its ongoing DEI efforts, McDonald’s said it made significant strides. The company reported that over 30% of its U.S. leadership team comes from underrepresented groups. On pay equity, McDonald’s has achieved gender pay parity across all levels and markets, as highlighted in its 2024 Purpose and Impact Report. The most recent employee Pulse Survey found that 84% of employees feel McDonald’s is an environment where they can be themselves, and 78% of employees rated the company positively on its Inclusion Index. Additionally, McDonald’s has exceeded its U.S. supplier diversity goal of 25% diverse-owned supplier spend by 2025, achieving it three years ahead of schedule, the letter stated. “Inclusion is one of our core values and in 2024 “we opened our doors” to hundreds of millions of customers and two million crew people from all walks of life. Everyone is welcome under our Golden Arches, and this broad-based appeal is why McDonald’s is one of the world’s most beloved brands,” the company added in their announcement. Here are several other companies that have scaled back DEI efforts.

1. Walmart

In November 2024, Walmart made a significant shift in its corporate strategy, announcing the termination of its racial equity training programs for employees and initiating a review of its supplier diversity initiatives, CNN reported. The retail giant has previously worked to increase its pool of suppliers owned or managed by women, minorities, veterans, and LGBTQ+ individuals, but now plans to reassess these efforts.

Additionally, Walmart disclosed that it would no longer continue funding its five-year, $100 million Center for Racial Equity, which was established in 2020 to address systemic disparities faced by African Americans in areas such as education, health, and criminal justice. The company also stated it would reevaluate its support for Pride and similar events, and it plans to monitor its online marketplace to ensure that products aimed at children—specifically those related to sexual or transgender themes—are removed.

2. Ford

In August 2024, an internal memo from Ford revealed that the automaker would be scaling back its involvement in public debates on divisive issues. The company made it clear that while it would continue to support workplace inclusivity, it would no longer participate in external surveys like the Human Rights Campaign’s Corporate Equality Index, which is the national benchmarking tool on corporate policies, practices, and benefits.

The memo emphasized that Ford is committed to creating a safe and inclusive workplace but acknowledged that the political and social landscape continues to shift. Ford noted that it would refrain from taking public positions on many controversial topics to respect the diverse beliefs of both its employees and customers.

3. Lowe's

In August, Lowe’s, the home improvement retailer, announced a shift in its corporate policies with a decision to exit the Human Rights Campaign’s Corporate Equality Index and consolidate its internal support resources for minority groups under one umbrella program, The Advocate noted.

In a further move away from its previous diversity initiatives, Lowe’s will no longer sponsor or participate in LGBTQ+ Pride events such as parades, festivals, or fairs. The decision was linked to mounting pressure from conservative groups.

4. Tractor Supply

After facing months of online backlash from conservative groups, Tractor Supply announced in June 2024 that it would be scaling back its diversity, equity, and inclusion (DEI) efforts, including eliminating all DEI positions within the company.

As per The Associated Press, the rural retailer, known for its products ranging from farming equipment to pet supplies, also revealed that it would no longer sponsor non-business-related activities such as Pride events and voting campaigns, nor would it continue submitting data to the Human Rights Campaign. In addition, Tractor Supply indicated it would withdraw from its carbon emission reduction goals, opting instead to focus on conservation efforts related to land and water. The decision marked a clear shift away from the company’s previous engagement with both diversity and environmental sustainability initiatives.