McDonald’s Strengthens Commitment to Minority-Owned Suppliers | Business

Chicago-based McDonald’s spends about $ 14 billion a year across its entire supply chain in the United States, purchasing 23% of goods and services last year from various suppliers. The company needs to increase its annual spend with minority suppliers by 10%, or about $ 300 million, to meet its new goal.

“McDonald’s partnership with our extensive supplier network is not only fundamental to achieving our goal of nurturing and nurturing communities, it is also critical to achieving our ambition for diversity, equity and fairness. inclusion, ”Marion Gross, head of McDonald’s North American supply chain, said in a statement Thursday.

McDonald’s USA defines businesses belonging to diverse groups as those owned by women, people of color, veterans and other under-represented groups.

In addition to increasing its commitment to a more diverse supply chain, McDonald’s has recruited more than 20 of its largest U.S. suppliers to join a corporate initiative to promote economic opportunity and growth more broadly in diverse communities.

Companies that have endorsed the commitment to be responsible for progress in “accelerating cultures of inclusion” and “dismantling barriers to economic opportunity” include Accenture, Cargill, New Horizons Baking Co. and Tyson Foods.

“We are committed to promoting equality within our company with every team member – every shift, every day – and in the communities where we live and work,” said John Tyson, Director of Sustainability at Tyson Foods, in a statement.

The commitment outlines a number of areas suppliers need to focus on, ranging from increasing overall diversity in leadership and staff to investing in programs to make a ‘measurable difference’ in the workforce. talents in the communities where McDonald’s operates.

McDonald’s, one of the largest restaurant chains in the world with 39,000 locations, has 14,000 restaurants in the United States, 93% of which are franchised.

Last year, in the aftermath of George Floyd’s death at the hands of the Minneapolis Police Department and subsequent civil unrest, McDonald’s was among several leading Chicago companies expressing support for enhanced diversity programs and inclusion.

Since then, McDonald’s has said it has advanced a number of initiatives, including hiring Reginald Miller in November as global head of diversity, equity and inclusion. Strengthening diversity in the supply chain can be crucial in following through on the broader commitment to diversity, Miller said.

“As a values-based organization, we are obligated to do our part to make the world a fairer place, and the absolute best way to do that is to leverage our size and scale across our value chain. Miller said.

McDonald’s has not been without its own internal struggles to promote diversity and inclusion. In January 2020, two black McDonald’s executives filed a lawsuit against the fast food giant, alleging they were ignored for promotions, subjected to a hostile work environment and ultimately demoted due to racial discrimination. ubiquitous ”.

The ongoing Chicago federal court lawsuit alleges a “hostile and abusive work environment” that included threats, derogatory racial comments, and obstacles to the advancement of black employees.

The company also faces allegations of discrimination from more than 50 former black franchise owners, who alleged in an August lawsuit that the burger chain referred them to less profitable restaurants and failed to give them the same opportunities as white franchisees.