Corporate America Still Embracing LGBTQ+ Inclusion Despite Backlash

As some high-profile corporations scale back diversity and inclusion initiatives, the 2025 Corporate Equality Index (CEI) from the Human Rights Campaign Foundation (HRCF) reveals a hopeful trajectory for LGBTQ+ inclusion in the American workplace.

The index measures corporate policies, practices, and benefits pertinent to LGBTQ+ employees among US companies that voluntarily participate in the annual assessment. It allows prospective LGBTQ+ employees to verify how inclusive their potential employer is.

Released this week, the 2025 report highlights a record-breaking 1,449 companies participating in the CEI, with 72 businesses joining for the first time this year—a nearly 5% increase compared to 2024. And 376 of these participants are Fortune 500 companies.

The results come amid a conservative backlash against diversity, equity, and inclusion (DEI) policies and programmes in corporate America, with companies like Microsoft, Brown-Forman (Jack Daniel’s), Molson Coors (the world’s third-largest brewer), Ford Motor Company, and Harley-Davidson scaling back on these initiatives.

“Progress sometimes meets backlash, but companies continue to dedicate resources to reinforcing workplace inclusion,” said HRC President Kelley Robinson. “As a result, they attract top talent, widen their consumer base, and foster creativity.”

Milestones in LGBTQ+ Inclusion

The CEI’s key findings reveal a significant expansion of inclusive practices and equitable benefits for LGBTQ+ employees:

Comprehensive Non-Discrimination Policies: An impressive 98% of companies now include sexual orientation and gender identity in their Employment Non-Discrimination policies, up from just 5% in 2002.

Enhanced LGBTQ+ Health Benefits: This year saw a 25% rise in companies offering LGBTQ+ health benefits guides. Additionally, 87% of participants provide equal health coverage for transgender individuals.

Support for Transitioning Employees: Over 1,000 companies (75%) now have gender transition guidelines, a 21% increase from the previous year.

Why Inclusion Matters

For many LGBTQ+ individuals, the workplace offers a rare space where they can feel respected as their authentic selves, particularly amid reduced access to gender-affirming care.

HRCF argues that companies rolling back on diversity initiatives will face backlash from employees and consumers alike, as reflected in its 2024 LGBTQ+ Climate Survey:

Workplace Impact: Nearly 20% of LGBTQ+ employees at such companies report considering resignation, and one-third said their productivity would decline.

Consumer Boycotts: 80% of LGBTQ+ consumers are boycotting companies reducing inclusion efforts, with more than half encouraging others to do the same via social media or negative reviews.

Driving Business Success

Research supports the business case for diversity. A 2024 Edelman study found that 60% of workers prioritise inclusive work cultures with robust diversity programmes when evaluating employers, a nine-point increase since 2022.

Moreover, McKinsey reports that companies leading in gender and ethnic diversity outperform their competitors.

Robinson said that DEI efforts aim to create supportive environments where every employee can thrive, adding that “by doing so, businesses not only support LGBTQ+ communities but also position themselves for long-term success”.

For more details, view the full report at www.hrc.org/cei.