http://www.loc.gov/mods/v3 http://www.loc.gov/standards/mods/v3/mods-3-2.xsd
Accusations of racial discrimination with employees and franchisees and questions of diversity at McDonald's
This case discusses accusations made by McDonald's executives in a lawsuit filed in January 2020 that the company engages in racial discrimination. The executives asserted that under the leadership of Steve Easterbrook (CEO of McDonald's between 2015 and 2019), McDonald's discriminated against Black communities and businesses. The lawsuit also accused current CEO Chris Kempczinski of further reducing the number of Black executives from 42 to 7. In another lawsuit, filed by 52 former Black McDonald's franchisees (franchise owners) in September 2020, McDonald's was accused of forcing Black franchisees to operate restaurants in "economically depressed" communities that generated less sales than comparable stores elsewhere. The lawsuit also accused McDonald's of reduced financial commitment in marketing efforts toward Black American consumers, which led to a decline in the number of Black customers. What should Kempczinski do to ensure that franchisees do not feel racially discriminated against? How can he enhance marketing activities targeted at Black American consumers? What should Kempczinski do to enhance racial diversity at McDonald's? The case encourages students to explore how racial discrimination can occur at a strategic level. It also helps students examine routes through which firms may avoid such discrimination.