Diversity and Inclusion Efforts in Corporate America: A New Snapshot
There seems to be a quiet undercurrent of diversity efforts and LGBTQ initiatives still present in corporate America, according to the Human Rights Campaign (HRC) in its 2026 annual report. The report, known as the Corporate Equality Index (CEI), evaluates companies on their “policies, practices, and benefits” for LGBTQ employees.
Interestingly, HRC noted a significant drop of 65% in Fortune 500 companies actively participating in “Communicating Diversity and Inclusion Commitments” within just one year. In 2026, the count was down to 131 companies from 377 in 2025. This decrease appears to correlate with several major Fortune 500 companies opting out of HRC’s annual survey after 2024.
However, some large companies may still be engaging in diversity, equity, and inclusion (DEI) and LGBTQ initiatives, albeit less visibly. Steve Milloy, executive director of the National Center for Free Enterprise Projects, suggested that businesses might avoid openly promoting these efforts to minimize consumer backlash.
Milloy described the situation as “very controversial,” noting that the past administration under President Trump put pressure on companies regarding DEI initiatives. It seems that firms are still addressing diversity internally but are choosing to do so discreetly, perhaps to avoid drawing criticism or scrutiny.
The HRC, a notable advocate for LGBTQ rights, has reportedly brought in over $50 million in revenues for the fiscal year ending March 2025, even with participation declining from numerous companies. Despite this, HRC maintains that the implementation of inclusive policies as measured by CEI has either stayed the same or improved, contradicting the drop in participation.
According to the 2026 CEI report, a substantial majority—93%—of Fortune 500 companies now include “sexual orientation” and “gender identity” in their nondiscrimination policies. More than 72% also provide “transgender-inclusive” health benefits. The report highlighted that 376 Fortune 500 companies received CEI ratings, with an average score of 88.
Moreover, the survey found that 1,135 major employers have implemented gender transition guidelines in the workplace, a notable increase from 660 in 2022. About 74% of surveyed employers—1,080 out of 1,450—have policies aimed at ensuring a positive experience for transgender and non-binary workers, which include gender-affirming restroom policies and pronoun sharing guidance.
Yet, there’s a concerning trend as well; 39.1% of American workers indicated that their employers have scaled back DEI practices. The HRC’s website even lists certain companies with “Unconfirmed” scores, meaning they did not complete the 2026 CEI survey.
In 2025, several U.S. companies retracted some diversity policies and opted out of LGBTQ Pride events amid a political climate that has seen attempts to dismantle DEI initiatives. Still, Milloy expressed skepticism that “woke” policies in American companies have been entirely eradicated, despite ongoing pressures.
“It’s probably going to be a gradual process, varying from company to company,” Milloy remarked. Many companies are likely trying to navigate what they feel is necessary for profit while avoiding negative publicity, especially in light of backlash like that faced by Bud Light after a marketing campaign featuring a transgender influencer.
Before the approaching 2024 presidential election, HRC announced plans to invest $15 million in efforts to mobilize voters, pointing out that a record high of 75 million equality voters exist across the nation.
