McDonald’s is setting new diversity goals with its largest suppliers.
According to a report from Bloomberg, the world’s biggest restaurant chain by sales is making a pledge to diversify its supply chain by committing roughly 25 percent — or $3.5 billion — of the company’s annual domestic supply-chain spending to minority and women-owned suppliers by the year 2025.
“Throughout my career, I have historically seen supplier diversity viewed as a social program grounded in doing ‘the right thing,'” Reggie Miller — Chief Diversity, Inclusion, & Equity Officer at McDonald’s — said in a statement. “Today, however, consumers have greater access to information about the brands they purchase from. They want to support brands they can trust.”
“When we refreshed our global DEI strategy last year, we knew supplier diversity needed to be a central principle,” he continued. “We knew this was key to ensuring we generate innovative products and services, increase competition, and build economic growth in communities. Done right, it encourages the use of suppliers from a diverse mix of ownership.”
This increase from McDonald’s current 23 percent of supply-chain dollars will also include spending by franchisees who own and operate 93 percent of McDonald’s stores around the world.
Additionally, McDonald’s is also pledging a round of new measures that will include annual equity and inclusion training for employees, more minority representation in leadership and monitoring efforts to improve equality. The company also invites those who do business with it to join its Diversity and Inclusion Pledge, per an announcement.
Like many corporations, McDonald’s and others are feeling the pressure to improve their support for diverse communities and bolster their leadership teams with more minority candidates following last summer’s nationwide Black Lives Matter protests.
While some industries have yet to reflect the changes they’ve committed to, others are still trying to be more active players in correcting the faults of the corporate world. Even still, McDonald’s — despite launching initiatives like Black & Positively Golden Scholarship Program — is facing scrutiny for reportedly discriminating against Black-owned media.
One year ago, the company pledged to step up its efforts in the fight against systemic racism. Now, only time will be able to tell if those pledges and efforts hold up in mending the gap for racial equality.