Report: why companies still need to be open about DEI in 2026

The current business environment is facing significant uncertainty, driven by political pressures, economic shifts, and social divisions. Within this landscape, the Human Rights Campaign Foundation's 'State of the Workplace for LGBTQ+ Americans and Corporate Equality Index 2026' highlights a key point: clear communication about diversity, equity, and inclusion (DEI) is more essential than ever. The report argues that transparency in DEI is no longer just a good practice, but a necessary one, and that a lack of openness can lead to serious problems for companies.

There's been "unprecedented" pressure from the federal government, including actions that roll back protections and threaten investigations related to DEI work. This has caused some businesses to pull back from their public DEI efforts. For example, the 2026 Corporate Equality Index (CEI) saw a 65% drop in submissions from Fortune 500 companies compared to last year. While the report notes this doesn't always mean policies have changed among these companies, it does show a shift in how they choose to share their DEI practices publicly.

However, the report makes it clear that "when companies pull back from clarity, workers feel it immediately." As HRC President Kelley Robinson states, "Silence is rarely experienced as neutrality. More often, it signals uncertainty about whether people will be protected when it matters most." This lack of clear communication has real consequences.

Nearly 40% of U.S. workers reported that their employer reduced or rebranded a DEI practice in the past year. Over half of these workers (54.2%) then experienced stigma or bias, which is twice the rate seen in companies that kept their inclusion efforts strong.

These experiences contribute to a negative workplace atmosphere and cause increased anxiety for LGBTQ+ employees about their job security and safety. This impact also affects a company's ability to keep its talent and maintain productivity.

"More than 86 percent of U.S. workers who described their workplace as hostile also reported being at risk of leaving their job," and "more than a quarter of those at risk reported declining productivity." The report's conclusion is direct: "Silence is not neutrality. It is a choice—and that choice can become a future liability for a business."

In contrast, the report demonstrates the powerful positive effects of leadership and transparency from employers. When companies "communicate clearly, maintain consistent policies, and visibly affirm their commitment to fairness, LGBTQ+ workers report feeling safer, more engaged, and more loyal." This leads to direct business benefits, as "inclusive workplaces do not just retain talent—they unlock it."

Additionally, "companies that lead on LGBTQ+ workplace equality outperform their peers in financial stability, talent retention, and long-term resilience." Specifically, high-scoring CEI companies reported "net income more than eight times higher than companies with lower scores," along with stronger revenue growth and more stable stock prices.

In summary, the report highlights that "transparency is the foundation of trust, belonging, and business resilience." In challenging times where people’s lives and livelihoods depend on it, openly sharing DEI commitments is beyond just the right thing to do. It is a strategic business decision that builds trust, protects progress, and allows employees to thrive, ultimately strengthening the entire organization.

Read the full Corporate Equality Index 2026 here.