Recent research from the Human Rights Campaign Foundation (HRC) suggests that while companies may appear to be stepping back from diversity, equity and inclusion (DEI), the reality is that the reduction is primarily in how openly organisations report their DEI initiatives.
The HRC's Corporate Equality Index (CEI) revealed a dramatic decline in public DEI disclosures. In 2026, only 131 Fortune 500 companies submitted publicly available information about their DEI policies, compared with 377 in 2025.
The report notes that this decline in transparency reflects the increasingly complex environment companies face, where heightened scrutiny and conflicting expectations shape how workplace inclusion is presented externally.
Criticism of corporate DEI policies has intensified, with people frequently citing organisations' own websites and statements as evidence. For example, last year Florida's Office of the Attorney General sued Starbucks over alleged race-based hiring quotas, drawing directly on information from the company's public materials.
Inclusion Remains a Priority
Despite the fall in transparency, HRC emphasises that there has been no retreat from inclusive workplace practices. Participating firms continue to implement and strengthen policies that support LGBTQ+ employees and other underrepresented groups.
Analysis of CEI data shows that companies that submitted surveys in 2026 reported increased adoption of inclusive measures across every category. This includes non-discrimination protections, equitable benefits, workforce training, data collection, employee resource groups, outreach programmes, and broader community engagement.
Effects on Employees
While overall corporate inclusion has not declined, HRC highlights that organisations reducing DEI initiatives have experienced negative impacts on employees. More than half of employees (54.2%) at companies scaling back DEI reported experiencing inequity over the past year, compared with 24.9% at organisations maintaining their commitments.
Transparency Pays Off
The report found that organisations leading with transparent DEI policies achieve net incomes more than eight times higher than peers with less visible initiatives.
Kelley Robinson, HRC President, emphasised that clear communication and transparency build trust, help retain talent, and strengthen business performance. She added that in times of uncertainty, providing clarity is not only responsible leadership but essential for success.
At Equi Consultancy Partners, we understand the challenges and opportunities of navigating DEI, and we can help your organisation develop strategies that embed equity throughout your workplace.