McDonald’s Increases Spend for Diverse-Owned Businesses

McDonald’s has plans to increase its spending with diverse-owned suppliers, but will this have an impact on diversity and inclusion in the supply chain?

The majority of businesses in 2021 are committed to diversity and inclusion (D&I) in the workplace. But how do they go about their D&I programmes? McDonald’s has come up with an innovative way to promote diversity across the business. 

How will McDonald’s Support Diversity and Inclusion?

McDonald’s plans to promote diversity across its network by starting with its suppliers. The company has said it will increase its spending with diverse-owned suppliers by nearly 10% over the next four years, while also educating suppliers on how they can support the initiative. McDonald’s made the commitment to diversity last year and has put forward its US$14bn supply chain network as a driving force for social responsibility. 

‘McDonald’s partnership with our vast network of suppliers is not only fundamental to delivering on our purpose to feed and foster communities, [but] it’s also key to realising our diversity, equity and inclusion ambition’, says Marion Gross, McDonald’s Chief North America Supply Chain Officer.

The company plans to spend around US$3.5bn with diverse-owned suppliers by 2025, which amounts to nearly a quarter of its annual supply chain budget. McDonald’s says that it works with more than 385 diverse-owned suppliers across the US.

How will this Support Diversity? 

Perhaps a more suitable question is, ‘can money buy social justice?’. For large corporations, the proof is in the action. Is this an effort to throw money at a somewhat historic global issue, or will McDonald’s ensure that this extra spending with diverse-owned organisations is filtered down to the wider cause? 

Along with 20 of its largest suppliers, McDonald’s has joined the ‘Mutual Commitment to Diversity Equity and Inclusion’ (MCDEI). The company is kickstarting its efforts to conform with the pledge, to improve its working culture and bringing down barriers to economic opportunities for diverse businesses. Part of the company’s commitment involves spending on advertising with black-owned media; it will also provide training to the organisations that have joined on the D&I journey.


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