WEEK 6 599 RESP

Please responded to both Peers posting below:

· Review your classmates' answers and find two with which your companies’ grades differ.

· Post a response to those classmates as to why their or your answer is more accurate or may need to be reconsidered.

TEXTBOOK: Required Textbook: David, F. R., David, F. R. & David, M.E. (2023). Strategic management: a competitive advantage approach, concepts and cases (18th ed.). Upper Saddle River: Pearson. ISBN: 9780137897667

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1A. McDonald’s vs. RBI: DEI Compared

 Here I have a comparison between McDonald’s DEI initiatives, objectives, and metrics with those of major rival RBI which owns Burger King and other fast-food restaurants that compete with McDonald.

While McDonald's emphasizes inclusion as a core value, with an affirmation of equal access and representation of employees, suppliers, and franchisees. Although it discontinued public DEI goals in 2025, McDonald's proudly proclaims that over 30% of U.S. leaders represent underrepresented groups, has achieved global gender pay equity, and possesses high employee inclusion scores (McDonald's Corporation, 2025). It previously reached its goal of spending 25% with American diverse-owned suppliers and maintains initiatives like inclusive technology for hiring, anti-harassment training, and demographic monitoring in-house. Restaurant Brands International (RBI) embeds DEI into its ESG approach through executive accountability, formal development training, and global ethics standards across the Burger King and Popeyes brands. Although RBI has no specific public statistics, it concentrates on talent building, equity, and global integration through its "For Good" platform (RBI, 2025).

            I have also reviewed the Corporate Equality Index (CEI) for 2021 and 2022 Reports. The information I found on both the How to Measure Inclusion in the Workplace and Corporate Equality Index regarding how to best walk the walk on DEI is presented in the next paragraph.

In both 2021 and 2022, McDonald's received a 100% rating on the Human Rights Campaign's Corporate Equality Index (CEI) and was named one of the "Best Places to Work for LGBTQ+ Equality" (HRC Foundation, 2021; HRC Foundation, 2022). These scores reflect McDonald's expansive nondiscrimination practices such as sexual orientation and gender identity, equitable benefits to LGBTQ+ employees and their families, and continued commitment to inclusive corporate and supplier practices. In order to score 100 in the CEI, firms must have to comply with demands across a number of categories, from transgender-inclusive medical care to supplier inclusion programs and internal culture support (HRC Foundation, 2022).

Measuring inclusion effectively requires both quantitative and qualitative metrics, according to Harvard Business Review (Romansky et al., 2021). Key suggested measures include representation data such as promotion, hiring, and exit rates by demographic group, inclusion experience surveys (annual or pulse), and pipeline monitoring to expose barriers to progression. Second, linking inclusion performance to leadership accountability such as incorporating DEI metrics into performance reviews or compensation structures increases its effectiveness (Romansky et al., 2021). Together, CEI scoring and inclusion measurement model best practices make businesses "walk the walk" on DEI by turning commitments into measurable organizational change.

Finally, I have identified five areas where MCD can be compared to RBI in the most recent 2 years, which firm is better on each of the five criteria or areas and the overall grade I would give MCD and RBI on DEI.

 

Five Areas of Comparison: McDonald’s vs. RBI (2023–2025)

DEI Focus Area	McDonald’s (MCD)	RBI	Better Firm
1.  Leadership/ Representation	Over 30% of U.S. leadership from underrepresented groups (McDonald’s, 2025).	No public representation statistics disclosed; relies on general equity pledges.	McDonald’s
2.  LGBTQ+/ Equality (CEI Score)	Scored 100% on Human Rights Campaign’s CEI for 9 straight years (HRC, 2023).	Scored 100% CEI in 2022; no public updates since.	McDonald’s
3.  Supplier Diversity	Met 25% spend goal with diverse-owned U.S. suppliers by 2021; ended program in 2025 (Supply Chain Dive, 2025).	No published supplier diversity data shared publicly.	McDonald’s
4.  DEI Governance & Leadership	Rebranded DEI department to "Global Inclusion Team"; pulled back public metrics in 2025 (Axios, 2025).	Embeds DEI in executive accountability and talent reviews across all brands (RBI, 2025).	RBI
5.  Employee Development & Training	Anti-harassment policies, AI tools, inclusive hiring, and employee sentiment tracking (McDonald’s, 2025).	360 feedback, performance reviews, and global Code of Ethics enforcement (RBI, 2025).	Tie

 

Overall Evaluation

McDonald’s has historically been a leader in DEI transparency, reporting strong inclusion metrics and setting public goals. However, in 2025 it scaled back public-facing commitments, choosing to integrate inclusion into daily business operations without external benchmarks. This has slightly weakened its accountability posture. In contrast, RBI is more consistent in executive-level DEI integration but shares fewer public data and targets.

Final Grades (2023–2025)

· McDonald’s (MCD): B+

· Strengths: Strong inclusion track record, transparency, and cultural programs.

· Weaknesses: Retreated from measurable goals in 2025, reducing external accountability.

· Restaurant Brands International (RBI): B

· Strengths: Strong leadership accountability and integrated systems.

· Weaknesses: Lacks public DEI metrics, especially around representation and supplier engagement.

Summary

McDonald’s remains committed to embedding inclusion into its global operations, even as it shifts away from numerical targets toward inclusive business practices (McDonald’s Corporation, 2025). It continues measuring internal representation and inclusion sentiment and advancing supplier DEI historically. On the other hand, RBI’s approach centers on executive responsibility, structured talent development, and ethics governance though it lacks detailed public metrics like leadership representation or supplier spend levels.

 

References

Axios. (2025, January 17). DEI name change at McDonald’s and others.

HRC Foundation. (2021). Corporate Equality Index 2021.

HRC Foundation. (2022). Corporate Equality Index 2022.

McDonald’s Corporation. (2021–2022). Global Diversity, Equity, and Inclusion Report.

McDonald’s Corporation. (2025). Our Commitment to Inclusion.

Nation’s Restaurant News. (2020). RBI commits to diversity in hiring. RBI. (2025). Talent Development & Ethics.

Restaurant Brands International. (2025). Sustainability – People & Communities. Retrieved from RBI website.

Romansky, L., Garrod, M., Brown, K., & Deo, K. (2021, May 27). How to measure inclusion in the workplace. Harvard Business Review. https://hbr.org/2021/05/how-to-measure-inclusion-in-the-workplace

Supply Chain Dive. (2025, January 17).  McDonald’s ends supplier diversity DEI goals. 

1B.

McDonalds and Restaurant Brands International (RBI) both communicate a commitment to diversity and inclusion on their respective websites, but they differ significantly in the depth, structure, and transparency of their approaches. McDonald’s frames diversity, equity, and inclusion as a central pillar of its global purpose and business strategy. On its Commitment to Inclusion webpage, the company emphasizes creating a culture where everyone feels welcome and valued, with a clear definition of inclusion that encompasses enabling every individual to reach their full potential, regardless of background (Our commitment to inclusion, n.d.). In contrast, RBI addresses diversity and inclusion within the broader context of its sustainability vision. While the company acknowledges the importance of inclusive workplaces and ethical operations, DEI is not presented as a core strategic driver but rather as one part of its environmental, social, and governance framework (Ethics & Human Rights, n.d.).

A key distinction between the two companies is the presence of specific, measurable goals and publicly reported progress. McDonald’s sets transparent DEI targets, such as achieving gender parity in leadership by 2030 and increasing representation of underrepresented groups in senior U.S. leadership roles to 35 percent by 2025 (Our commitment to inclusion, n.d.). The company regularly publishes DEI progress reports and workforce demographic data to track these objectives (Our commitment to inclusion, n.d.). RBI, by comparison, does not list any quantifiable DEI goals or publish progress metrics on its website. While it mentions inclusion training programs and creating safe spaces, these statements are more aspirational than action-oriented and lack the performance accountability evident in McDonald’s approach.

In terms of implementation, McDonald’s also provides detailed information about its DEI initiatives, including employee business networks, inclusive leadership training, supplier diversity efforts, and community engagement programs. The company extends its DEI expectations to suppliers and franchisees, reflecting an integrated strategy that touches all levels of the business. RBI, on the other hand, refers to inclusion councils and a commitment to supporting diverse teams but provides fewer specifics regarding the structure, reach, or impact of such programs. This suggests that while RBI recognizes the importance of diversity and inclusion, its strategy is less formalized and less transparent than that of McDonald’s. Overall, McDonald’s presents a comprehensive and mature DEI strategy, whereas RBI appears to be in the earlier stages of development or communicating less extensively about its progress. These differences reflect the broader strategic management practices emphasized by David et al. (2023), who highlight the importance of measurable objectives and accountability systems for organizational success.

To evaluate the effectiveness of diversity, equity, and inclusion efforts at McDonald’s Corporation and Restaurant Brands International, five key areas were compared using criteria based on the Human Rights Campaign’s Corporate Equality Index (CEI) reports for 2021 and 2022 (Corporate equality index 2025, n.d.). These areas include non-discrimination policies, equitable employee benefits, internal accountability and training, public transparency, and external engagement with communities. The analysis shows a significant contrast in the maturity and transparency of DEI initiatives between the two companies.

First, McDonald’s demonstrates robust non-discrimination policies that explicitly cover sexual orientation and gender identity, earning a perfect score of 100 on the CEI in both 2021 and 2022 (Corporate equality index 2025, n.d.). In contrast, RBI has a score of 85 on the CEI rankings and lacks detailed public statements regarding LGBTQ+ protections in its workforce policies. The only area where RBI lost points was in corporate social responsibility, namely, having at least 5 distinct efforts of outreach or engagement in the LGBTQ+ community. Second, McDonald’s offers equitable health and wellness benefits, including transgender-inclusive healthcare and domestic partner coverage, which are validated through its CEI submissions. RBI, while expressing support for inclusive workplaces, does not publish comprehensive information about benefit equity for LGBTQ+ employees, suggesting a gap in transparency and potentially in coverage (Our commitment to inclusion, n.d.; Ethics & Human Rights, n.d.).

Third, in terms of internal accountability, McDonald’s has implemented DEI training across the company and ties executive compensation to progress on DEI goals. The company has also publicly committed to increasing underrepresented group representation in senior leadership to 35% by 2025 (Our commitment to inclusion, n.d.). RBI mentions diversity councils and safe spaces, but offers less clarity on structural accountability or leadership metrics, indicating a more developmental stage of execution. Fourth, McDonald’s publishes detailed annual DEI reports and workforce demographic data, whereas RBI provides only general ESG updates with limited measurable outcomes. This lack of public disclosure from RBI makes it difficult to evaluate their progress (Ethics & Human Rights, n.d.).

Lastly, McDonald’s actively supports external DEI efforts through supplier diversity programs, community partnerships, and advocacy for marginalized groups. Its CEI profile includes documented philanthropic engagement. RBI’s website references community impact initiatives, but these are framed within broad sustainability categories rather than targeted DEI strategies. Based on these five comparative areas, McDonald’s demonstrates a structured, transparent, and measurable approach to inclusion and equity, meriting an overall grade of A. RBI, while showing intent, lacks the depth and public accountability needed to drive meaningful progress and therefore receives a grade of C.

References

Corporate equality index 2025. HRC. (n.d.).  https://www.hrc.org/resources/corporate-equality-index  

David, F. R., David, F. R., & David, M. E. (2023).  Strategic management (18th ed.). Pearson Education (US).  https://reader2.yuzu.com/books/9780137963201

Ethics & Human Rights. Restaurant Brands International. (n.d.). https://www.rbi.com/English/sustainability/ethics-and-human-rights/default.aspx 

Our commitment to inclusion. McDonald’s Corporation. (n.d.).  https://corporate.mcdonalds.com/corpmcd/our-purpose-and-impact/jobs-inclusion-and-empowerment/commitment-to-inclusion.html