McDonald's, Walmart: These companies are rolling back some DEI policies

McDonald's announced earlier this week that the company would end a few initiatives centered on diversity, equity and inclusion, or DEI.

While emphasizing a "steadfast" commitment to "inclusion," the company said it would remove goals for diversity within its senior leadership ranks, and do away with a program that encourages suppliers to conduct diversity training and achieve diversity at the management level.

McDonald's – like many of its peers – expanded its DEI commitments in the wake of the police killing of George Floyd in 2020. In recent years, however, companies have faced pressure to revoke DEI policies amid an upsurge of conservative backlash and a Supreme Court decision effectively ending affirmative action in college admissions.

The announcement from McDonald's marks the latest in a string of corporations rolling back their DEI programs, including Walmart and John Deere, experts told ABC News. It remains unclear to what extent the moves will impact worker diversity at the firms, they added.

McDonald's said it remains committed to inclusion, noting that 30% of its U.S. leaders belong to underrepresented groups. The company previously aimed to attain 35% of such leaders from underrepresented groups by the end of 2025, according to their 2023-24 Purpose & Impact Report.

In a statement about the policy shift, McDonald's said it "completed a comprehensive Civil Rights Audit (CRA) that looked at all aspects of inclusion across our system" and also cited the "shifting legal landscape" following the Supreme Court decision on affirmative action in college admissions, as well as "other companies who are also re-evaluating their own programs."

McDonald's also said it had achieved some of its diversity goals, including spending at least 25% of its budget for third-party suppliers on "diverse-owned" companies.

"The tides have turned," Traci Sitzmann, a professor of workforce development at the University of Colorado, Denver who studies corporate diversity, told ABC News. "Many CEOs are responding to the pushback by retracting these policies."

Some proponents of DEI sharply criticized the policy changes announced by McDonald's.

"McDonald’s is joining a small but concerning list of companies that once touted the importance of diversity, equity and inclusion, but have now abandoned their values and capitulated to right-wing activists," Andrea Abrams, executive director of advocacy group American Pride Rises, told ABC News in a statement.

Still, the exact implications of the recent rollbacks remain unclear, and alarm among DEI advocates may prove overstated, Corinne Post, a professor of management at Villanova University who specializes in diversity programs, told ABC News.

Corporations face competitive pressure to recruit and retain talented workers, giving them incentive to establish an environment where employees of varied identities feel welcome, Post said. She noted that some of the announced changes at McDonald's and elsewhere appear to be "surface-level" efforts meant to assuage critics.

"This is not a fundamental cancellation of DEI policies," Post said.

Sitzmann, of the University of Colorado, disagreed. The policy changes at these firms suggest that corporate commitment to DEI depends on where public opinion on the issue stands at a given time, Sitzmann said, which risks compromising employee trust and hurting company performance.

"By being inauthentic in their commitment to diversity, these companies are muddying the waters and hindering their employees' ability to produce," Sitzmann said.

Here are some of the companies that have announced rollbacks of their DEI programs:

Walmart

Walmart said in November that it would end some DEI efforts, including the consideration of gender and race in its evaluation of companies participating in its supply chain.

The retail giant said it didn't currently have quotas and didn't plan to impose them going forward; however, it planned to stop collecting demographic data when determining financing eligibility for grants.

Walmart will be "reviewing grants to Pride events to make sure it is not financially supporting sexualized content targeting kids," the company said, noting that it would also exit the Human Rights Campaign's annual benchmark index, which evaluates companies for their LGBTQ+ inclusion.

“We've been on a journey and know we aren't perfect," the statement continued, "but every decision comes from a place of wanting to foster a sense of belonging, to open doors to opportunities for all our associates, customers and suppliers and to be a Walmart for everyone."

The company said in a statement to ABC News, "Our purpose, to help people save money and live better, has been at our core since our founding 62 years ago and continues to guide us today. We can deliver on it because we are willing to change alongside our associates and customers who represent all of America."

John Deere

John Deere posted a list of policy changes on X in July, citing a need to prioritize efforts that "more closely align our business strategy to meet the needs of our customers."

The company said it would no longer participate in or support cultural awareness events, such as parades or festivals. Business Resource Groups – which connect workers who share racial, gender, sexual orientation or other identities – would focus solely on work-related topics, the company added.

Still, John Deere affirmed its belief that "a diverse workforce enables us to best meet our customers' needs and because of that we will track and advance the diversity of our organization."

Ford

In September, Ford CEO Jim Farley said in a memo to employees that the company would no longer pursue some of its DEI initiatives.

The Dearborn, Michigan-based automaker would stop participating in the Human Rights Campaign's annual benchmark index and make identity-based Employee Resource Groups open to all workers, Farley said in the memo, which was posted on X by conservative activist Robby Starbuck.

"Ford does not utilize hiring quotas or tie compensation to the achievement of specific diversity goals," Farley said.

However, he added, the company remains "deeply committed to fostering a safe and inclusive workplace and building a team that leverages diverse perspectives backgrounds and thinking styles."

Harley-Davidson

In August, Harley-Davidson said in a post on X that it had put an end to its DEI efforts months earlier. "We have not operated a DEI function since April 2024, and we do not have a DEI function today," the company said.

The motorcycle manufacturer would stop participating in the Human Rights Campaign and ensure that all employee training is free of "socially motivated content," Harley-Davidson said.

Employee Resource Groups would focus strictly on professional development and other workplace topics, the company added.

"We see it as every leader's role to ensure we have an employee base that reflects our customers and the geographies in which we operate," Harley-Davidson said.