The largest companies in the U.S. are notably pulling back from openly discussing their diversity, equity, and inclusion (DEI) strategies, which marks a shift from recent trends.
According to a report released in February, participation from Fortune 500 companies in the Human Rights Campaign Foundation’s Corporate Equality Index fell dramatically by 65%, with only 131 companies providing their information this year compared to 377 in 2025.
Dustin DeVito, who leads research at the conservative group 1792 Exchange, referred to this decrease as “shocking” during a recent interview. He pointed out that this year the drop is a double-digit decline, contrary to expectations that the participation would stabilize.
DeVito noted that while fewer companies are submitting their DEI policies for assessment, it doesn’t necessarily mean they are abandoning such initiatives altogether. The Human Rights Campaign (HRC) stated that the reduction in submissions indicates a change in how companies approach transparency, rather than a complete withdrawal from workplace inclusion efforts. They also mentioned that many of the participating companies maintained or enhanced their policy implementations from 2025 to 2026.
This year’s index revealed that 534 companies earned perfect scores in terms of LGBTQ+ workplace inclusion policies.
However, DeVito raised some concerns regarding the transparency of the HRC, mentioning that the organization does not identify the companies achieving perfect scores or reveal the members of its Business Advisory Board. He criticized the lack of detailed company profiles, suggesting that it might shield companies from thorough evaluation.
“They’re expressing frustration over a perceived lack of transparency, yet they’re also part of the problem,” DeVito remarked.
He cited the backlash against Cracker Barrel’s rebranding last year as an instance of how negative public response to DEI policies has impacted major corporations.
1792 Exchange, which pushes for more politically neutral corporate practices, acknowledged that despite the drop in participation, essential DEI policies still exist in many workplaces. The group found that 72% of Fortune 500 companies now offer transgender-inclusive health benefits, along with an expansion of care coverage requirements for those looking to achieve perfect scores.
Nonetheless, many have ceased using DEI terminology in their communications. A report indicated that the use of the term “DEI” has plummeted by 98% among Fortune 100 companies, analyzing over 1,000 corporate documents from early 2023 to mid-2025.
This shift is notable as legislative actions tighten against private sector DEI programs. In early 2025, an executive order was signed, aimed at curbing what the administration labeled “illegal DEI discrimination.” This directive called for various federal agencies to promote the elimination of such policies through a range of regulatory measures.
Notably, lawsuits have been filed against several prominent companies including Starbucks and Nike, alleging discriminatory hiring practices within their DEI programs. At least 26 corporations have publicly opted out of participating in the Corporate Equality Index, such as major brands like Walmart and McDonald’s.
Despite these challenges, it’s important to note that Kelly Robinson, president of the HRC, emphasized in the report that discrimination against LGBTQ+ workers remains illegal. She highlighted the unprecedented pressure from the federal government as a driving factor behind some companies choosing to withdraw from participation in the index.
The Human Rights Campaign did not respond to requests for comment regarding the report.
