• Celebrity
    • OTE – Screen Kings
    • Daniel Kaluuya Digital Cover
    • Digital Cover Method Man
    • Digital Cover Zazie
    • Celebrity News
    • ‘Yes, Girl!’ Podcast
    • Entertainment
    • Black Celeb Couples
    • Celebrity Moms
    • Red Carpet
    • If Not For My Girls
  • Fashion
    • ESSENCE Fashion House 2022
    • Fashion News
    • Street Style
    • Accessories
    • Fashion Week
  • Beauty
    • Best In Black Beauty 2023
    • ESSENCE Hair Awards 2022
    • AVEENO Skin Health Startup Accelerator
    • Beauty News
    • Skin
    • Makeup
    • Nails
    • Girls United: Beautiful Possibilities
  • Hair
    • Hair News
    • Natural
    • Relaxed
    • Transitioning
    • Weave
    • 4C
  • Love
    • Love & Sex News
    • The Solve Podcast
    • Weddings
    • Parenting
    • Relationships
  • Lifestyle
    • Black History Month
    • ESSENCE Gift Guide 2022
    • ESSENCE + smartwater Live Well Challenge
    • Build Your Legacy 2022
    • Dream & Plan with Confidence Prudential
    • AMEX Platinum Travel
    • Homecoming Season 2022
    • Lifestyle News
    • Health & Wellness
    • ESSENCE Eats
    • Money & Career
    • Entrepreneurship
    • Travel
    • Food & Drink
    • Black Travel Guide
  • News
    • Latest News
    • Paint The Polls Black
    • Raise Your Voice
    • Culture
    • Politics
  • Video
  • Festival
    • 2023 ESSENCE Festival Of Culture
    • 2022 Fest Videos
  • Events
    • 2023 Wellness House
    • 2023 Black Women In Hollywood
    • 2023 HOLLYWOOD HOUSE
    • 2023 ESSENCE Film Festival
    • 2022 Girls United Summit
    • 2022 ESSENCE Fashion House
    • 2022 Homecoming Season
    • She Got Now
    • Dear Black Men
    • I Am Speaking
    • Power Tools
  • Studios
  • Girls United

WHERE BLACK CULTURE, COMMUNITY AND CONSCIOUSNESS MEET

Sign up for ESSENCE Newsletters the keep the Black women at the forefront of conversation.

Your email is required.
Your email is in invalid format.
Confirm email is required.
Email did not match.
Select the newsletters you'd like to receive:
Please select at least one option.
By clicking Subscribe Now, you agree to our Terms of Use and Privacy Policy.
Skip to content
SUBSCRIBE
  • MAGAZINE
  • NEWSLETTER
  • Celebrity
    • OTE – Screen Kings
    • Daniel Kaluuya Digital Cover
    • Digital Cover Method Man
    • Digital Cover Zazie
    • Celebrity News
    • ‘Yes, Girl!’ Podcast
    • Entertainment
      • The State Of R&B
    • Black Celeb Couples
    • Celebrity Moms
    • Red Carpet
    • If Not For My Girls
  • Fashion
    • ESSENCE Fashion House 2022
    • Fashion News
    • Street Style
    • Accessories
    • Fashion Week
  • Beauty
    • Best In Black Beauty 2023
    • ESSENCE Hair Awards 2022
    • AVEENO Skin Health Startup Accelerator
    • Beauty News
    • Skin
    • Makeup
    • Nails
    • Girls United: Beautiful Possibilities
  • Hair
    • Hair News
    • Natural
    • Relaxed
    • Transitioning
    • Weave
    • 4C
  • Love
    • Love & Sex News
    • The Solve Podcast
    • Weddings
    • Parenting
    • Relationships
  • Lifestyle
    • Black History Month
    • ESSENCE Gift Guide 2022
    • ESSENCE + smartwater Live Well Challenge
    • Build Your Legacy 2022
    • Dream & Plan with Confidence Prudential
    • AMEX Platinum Travel
    • Homecoming Season 2022
    • Lifestyle News
    • Health & Wellness
    • ESSENCE Eats
    • Money & Career
    • Entrepreneurship
    • Travel
    • Food & Drink
    • Black Travel Guide
  • News
    • Latest News
    • Paint The Polls Black
    • Raise Your Voice
    • Culture
    • Politics
  • Video
  • Festival
    • 2023 ESSENCE Festival Of Culture
    • 2022 Fest Videos
  • Events
    • 2023 Wellness House
    • 2023 Black Women In Hollywood
    • 2023 HOLLYWOOD HOUSE
    • 2023 ESSENCE Film Festival
    • 2022 Girls United Summit
    • 2022 ESSENCE Fashion House
    • 2022 Homecoming Season
    • She Got Now
    • Dear Black Men
    • I Am Speaking
    • Power Tools
  • Studios
  • Girls United
Home · News

Is The World Ready For McDonald’s First Racial Audit?

The world’s biggest restaurant company wants to gain support for an independent civil-rights inspection.
Is The World Ready For McDonald’s First Racial Audit?
By Kevin L. Clark · Updated June 8, 2022

In a changing world where words like diversity, inclusion, and critical race theory make people from all different walks of life feel some kind of way, a great unifier is hoping to gain support to push for change in its own company.

According to an article on Bloomberg, McDonald’s Corp. investors have cast ballots to encourage the fast-food giant’s first companywide racial equity audit. The proposal would involve an independent civil-rights audit, introduced by SOC Investment Group in 2021, and would compel McDonald’s to assess if, and how, its business contributes to racial disparities.

The review would include input from restaurant franchisees, corporate staff, suppliers, and customers. The vote has support from some large shareholders and is among a handful of contentious issues on the docket for McDonald’s at its annual meeting. The vote will be a litmus test for whether shareholders see companies as responsible for their franchised stores.

If successful, the measure will also show that investors expect companies to do more to ensure their policies aren’t contributing to social and economic inequality.

“It’s a big deal, as far as, is this going to be now the standard that the big companies are going to be held to,” said Bill Ide, an attorney at Akerman LLP who advises boards on corporate governance. “Diversity and inclusion aren’t going away, and it shouldn’t. But how it’s disclosed and how it’s managed, it’s sort of still a jump ball.”

McDonald’s doesn’t have to follow through on a “yes” vote if it doesn’t want to. But that wouldn’t look good after many other companies, like Amazon.com Inc. and Tyson Foods Inc., have agreed to these types of audits. A Chicago-based McDonald’s has urged shareholders to vote against the proposal. The company has promised to boost spending at minority-owned suppliers and increase diversity among management — tying some executive pay to its goals. The Golden Arches aims to increase minority representation in U.S. leadership roles to 35 percent by the end of 2025, which would be up from 30 percent at the end of last year.

The company has also pledged to do more to recruit, train, and invest in minority franchisees.

Prominent shareholder-advisory firms Glass Lewis & Co. and Institutional Shareholder Services Inc. have both recommended that investors vote in favor of the audit. 

The firm backed McDonald’s in its proxy fight against billionaire Carl Icahn, who is seeking to elect two new board members at the annual meeting in his quest for more ethical treatment of pigs.

The Wall Street Journal reported Tuesday that the company is poised to prevail in that proxy fight, citing unidentified people familiar with the matter.

TOPICS:  racial audit workplace discrimination
COMPANY INFORMATION
  • Our Company
  • Customer Service
  • Essence Ventures
  • Change Your Address
  • Contact Us
  • Job Opportunities
  • Internships
  • Media Kit
  • tag
SUBSCRIBE
  • Newsletters
  • Give a Gift of ESSENCE
  • Magazine Tablet Edition
FOLLOW US
MORE ON ESSENCE
  • Home
  • Love
  • Celebrity
  • Beauty
  • Hair
  • Fashion
  • ESSENCE festival

ESSENCE.com is part of ESSENCE Communications, Inc.

Essence may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.

©2023 ESSENCE Communications Inc. All Rights Reserved. | Privacy Policy | Terms of Use | Essence.com Advertising Terms

Get The ESSENCE Newsletter and
Special Offers delivered to your inbox

By clicking Sign Up, you agree to our Terms of Use and Privacy Policy.

Get The ESSENCE Magazine
by subscribing below
subscribe now