By Waylon Cunningham and Nicholas P. Brown
(Reuters) - McDonald's (NYSE:MCD) is retiring its goal for diversity in corporate leadership and shifting away from some diversity practices, citing a "shifting legal landscape" in the United States in an open letter sent to employees and franchise owners.
The rollback by the fast-food chain follows other U.S. corporations shying away from diversity, equity and inclusion (DEI) initiatives as pressure bears down from conservative activists.
McDonald's letter said the company remains committed to inclusion and would continue to "embed inclusion practices" in its operations.
McDonald's said it was an accomplishment that 30% of its U.S. leaders come from "underrepresented groups." McDonald's previous commitment was that it would reach 35% by the end of 2025.
McDonald's is also ending its requirement that suppliers make a DEI commitment, and said its diversity team will now be called its "Global Inclusion Team."
McDonald's said it was pausing participation in "external surveys", likely referring to the kind put together by LGBTQ advocacy group Human Rights Campaign that seeks to measure workplace inclusion.
The announcement comes days after conservative activist Robby Starbuck told McDonald's he was planning a story on its DEI initiatives.
In a direct message sent via X to McDonald's Senior Marketing Director Guillaume Huin, which Starbuck provided to Reuters, Starbuck asked Huin if McDonald's was considering any changes "to embrace corporate neutrality."
Starbuck has 745,000 followers on X, and companies he has previously targeted, including Tractor Supply (NASDAQ:TSCO) Co, John Deere (NYSE:DE) and Walmart (NYSE:WMT), have backed away from DEI practices in the wake of his criticism.
Corporate America stepped up its focus on diversity initiatives after widespread protests following the police killings of George Floyd and other Black Americans in 2020. But some companies have backtracked recently in response to pressure from conservative legal organizations.
Such groups have been energized by a U.S. Supreme Court ruling in June 2023 that struck down affirmative action in university admissions.