In the wake of George Floyd’s 2020 murder, corporate America faced a widespread racial reckoning. Companies across multiple industries publicly pledged to strengthen diversity, equity, and inclusion (DEI) efforts by launching task forces, creating leadership roles, and promising to build workplaces that better reflected the communities they served.
However, as political and legal pressure surrounding DEI initiatives has intensified in recent months, many organizations have quietly scaled back or abandoned those commitments altogether.
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According to Bernice King, the retreat reveals a deeper truth: many companies were never genuinely committed to DEI in the first place.
“If you retreat that quick, it suggests to me that reveals who you really are,” King said Tuesday during Fortune Workplace Innovation Summit 2026 in Atlanta.
“When you know who you are, when you know those values, when you live by those values, and when those values are embedded in the culture, pressure does not make you retreat,” she added.
Still, King acknowledged that decisions surrounding DEI are often more complicated than simply choosing whether to support or reject such initiatives. She noted that many universities and institutions have faced heightened federal scrutiny over DEI-related policies, creating difficult legal and financial considerations for leaders.
“For some institutions, the question becomes how to continue practicing what DEI represents without facing enormous costs tied to litigation or the loss of funding,” King explained.
Despite the growing backlash, several major companies have continued to publicly defend their diversity and inclusion efforts.
King pointed to Delta Air Lines as one example. In its 2025 ESG report, the airline reaffirmed its commitment to “actively valuing diversity,” “boldly pursuing equity,” and “consciously promoting inclusion” through hiring practices, promotions, and employee support programs.
Costco has also remained vocal in support of DEI initiatives. CEO Ron Vachris defended the retailer’s efforts to create equal opportunities for employees, even as other corporations scaled back similar programs. Last year, Costco shareholders overwhelmingly rejected a proposal seeking a review of risks tied to DEI practices.
Jotaka Eaddy, who also participated in the Fortune panel discussion, argued that consistency is critical to maintaining trust with employees and consumers.
“Your consumers and employees may disagree with you, but they will respect your consistency,” Eaddy said. “The volatility we are seeing right now is creating distrust.”
She further criticized companies that treated DEI more as a branding exercise than a deeply rooted business principle, describing that approach as “a very dangerous mistake.” According to Eaddy, organizations that failed to embed those values into their culture found it easier to abandon them under pressure.
The debate could also carry long-term implications for recruiting and retention, particularly among younger workers. A 2025 study conducted by Catalyst and New York University School of Law found that 86 percent of Generation Z employees were more likely to remain with employers that support DEI initiatives, while 61 percent said they would avoid applying to companies that do not support such efforts.
Theresita Richard said companies demonstrate authenticity when values are reflected in everyday operations rather than public statements alone.
She highlighted Patagonia’s initiatives encouraging civic engagement and community involvement among employees and customers.
“When people see those values reflected in day-to-day actions, they understand it is real,” Richard said. “Otherwise, it creates cognitive dissonance.”
King concluded that long-term business success ultimately depends on companies embracing compassion, transparency, and genuine care for employees and communities alike.
“We cannot be afraid to show courage in this environment and lean into all of our team members, regardless of the communities they come from,” King said. “We have to listen, we have to care, and we have to show up in ways that demonstrate that care.”
