A notable trend is emerging as America's largest corporations increasingly distance themselves from publicly disclosing their diversity, equity, and inclusion (DEI) policies. This marks a significant divergence from the practices observed in previous years.

Plummeting Participation in Corporate Equality Index

HRC's 2026 Findings Reveal Massive Drop

The Human Rights Campaign Foundation's 2026 Corporate Equality Index (CEI), released in February, documented a dramatic decrease in corporate engagement. Participation among Fortune 500 companies fell by 65% compared to the prior year.

Specifically, only 131 companies submitted data for evaluation in 2026. This figure is a steep decline from the 377 companies that participated in the 2025 index.

Analysis of the Decline

Dustin DeVito, head of research at the conservative watchdog 1792 Exchange, described the drop as "shocking" in an interview with Fox News Digital. He noted that this year represented the first time Fortune 500 CEI participation had "plummeted" by double digits, following a period of plateauing in 2025.

DeVito stated, "But this year, it's totally fallen apart."

Interpreting the Shift in Transparency

HRC Cites Environmental Changes

The HRC suggests that this reduction in submissions does not necessarily indicate a complete abandonment of workplace inclusion efforts by these companies.

The foundation's report clarifies, "Instead, the decline in submissions reflects a shift in how employers are approaching transparency in the current environment." Furthermore, the HRC reported that policy implementation among the participating companies either remained "sustained or increased" across measured criteria from 2025 to 2026.

Sustained Inclusion Metrics

Despite the participation drop, 534 companies achieved a perfect score for their LGBTQ+ workplace inclusion policies in this year's index.

The 1792 Exchange, which monitors corporate activism, observed that some underlying DEI workplace policies remain in place. For instance, the 2026 index shows that 72% of Fortune 500 companies continue to offer transgender-inclusive healthcare benefits.

Criticism of HRC's Reporting Methods

Concerns Over Reduced Disclosure

DeVito raised concerns regarding the HRC's own transparency in the current report. He pointed out that the HRC did not list the companies that earned perfect scores, nor did it name individuals on the HRC Business Advisory Council, as it had done previously.

He argued that the report lacks the detailed profiles on submitted policies, which he believes shields companies from necessary scrutiny. DeVito summarized this contradiction by saying, "They’re upset that companies are not being transparent, yet they’re also contributing to the lack of transparency."

External Pressures and Corporate Retreats

The shift away from public DEI advocacy follows increased consumer backlash, exemplified by the Cracker Barrel rebrand controversy last August. DeVito cited scrutiny faced by the company after a former executive served on the HRC Business Advisory Council.

Data from Gravity Research in November indicated a massive reduction in DEI language, showing the term 'DEI' fell 98% across Fortune 100 communications between January 2023 and May 2025.

Regulatory Environment and Legal Challenges

Federal Actions Impacting DEI

This corporate pullback coincides with increased regulatory pressure from the federal government. In January 2025, President Donald Trump signed an executive order aimed at "end[ing] illegal DEI discrimination and preferences."

The order directed federal agencies to encourage private sector companies to cease what are deemed illicit DEI policies through regulatory actions and investigations.

Lawsuits and Public Withdrawals

Several major corporations, including Starbucks, Nike, and JPMorgan Chase, have faced lawsuits alleging discrimination in their DEI hiring practices. According to 1792 Exchange, at least 26 companies have publicly withdrawn from participating in the CEI, including Walmart, Target, Lowe’s, and McDonald’s.

HRC Acknowledges External Pressure

HRC President Kelley Robinson stated in the report that while discrimination against LGBTQ+ workers remains illegal, the environment has changed significantly.

Robinson noted, "pressure from the federal government has been unprecedented, rolling back protections, publishing executive orders and threatening investigations for diversity and inclusion work." She concluded, "It's in this context that some companies have pulled back from this work."