RESOLVED: Shareholders request that McDonald’s Corporation (“McDonald’s”) publish annually a report assessing McDonald’s diversity, equity and inclusion (DEI) efforts, at reasonable expense and excluding proprietary information.  The report should include:

• the Board’s process for assessing the effectiveness of its DEI programs, and
• the Board’s assessment of program effectiveness, as reflected in any goals, metrics and trends related to its promotion, recruitment and retention of protected classes of employees.

WHEREAS: Investors seek quantitative, comparable data to understand the effectiveness of McDonald’s DEI programs.

Numerous studies point to the benefits of a diverse workforce. They include findings such as:

• Companies with the strongest racial and ethnic diversity are 35% more likely to have financial returns above their industry medians.
• Companies in the top quartile for gender diversity are 21% more likely to outperform on profitability and 27% more likely to have superior value creation.[1]
• The 20 most diverse S&P 500 companies had an average annual five-year stock return that was 5.8% higher than the 20 least-diverse companies.[2]

Nevertheless, significant barriers exist for women and people of color who seek to advance their careers. Women enter the workforce in numbers almost equal to men (48%). However, they only comprise 22% of the executive suite. Similarly, people of color comprise 33% of entry level workers, but only 13% of the c-suite.[3]

McDonald’s website states, “Our belief is rooted in ‘Diversity IS Inclusion’, a bold and seismic value proposition where EVERY individual feels their culture, identity, and experiences are valued and respected.”[4] It also states, “Going forward, McDonald's will use our influence and scale to accelerate meaningful and overdue societal change for our employees, franchisees, suppliers, customers and communities.”[5]

McDonald’s efforts to attract diverse consumers are extensive. They include advertisements focused on racial justice issues, a collaboration with rapper Travis Scott and “Black & Positively Golden,” a millennial-focused campaign. However, McDonald’s has not released information that allows investors to determine the effectiveness of its workplace diversity programs.  Stakeholders may become concerned that McDonald’s statements are corporate puffery, language described by the United States Federal Trade Commission as marketing exaggerations intended to “puff up” products and not able to be relied upon by consumers and investors.

Investors have reason to be wary. McDonald’s currently faces multiple allegations from employees and franchisees of racial harassment and discrimination.

Investors want information on this issue. As of October 2020, $1.9 trillion in represented assets backed an investor statement on the importance of workplace equity data. It states:

It is essential that investors have access to the most up-to-date and accurate information related to diverse workplace policies, practices, and outcomes.[6]

[1]McKinsey & Company, “Delivering through Diversity”, January 2018 (https://www.mckinsey.com/~/media/mckinsey/business%20functions/organization/our%20insights/delivering%20through%20diversity/delivering-through-diversity_full-report.ashx)

[2] Holger, Dieter, “The business case for more diversity” Wall Street Journal, October 26, 2019 (https://www.wsj.com/articles/the-business-case-for-more-diversity-11572091200)

[3] McKinsey & Company, “Women in the Workplace 2018”, (https://womenintheworkplace.com/)

[4] https://corporate.mcdonalds.com/corpmcd/about-us/diversity-and-inclusion.html

[5] https://mcfamily.mcdonalds.com/article/how-were-showing-up-for-our-communities-hear-from-our-leaders-at-wwc.html

[6] https://www.asyousow.org/our-work/gender-workplace-equity-disclosure-statement