New Study: US Work Culture Under Fire—Leaders Back Down

Our Culture Pulse study shows most leaders retreating under pressure, but the best are doubling down.

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America’s workplace is at a crossroads. We can no longer avoid this conversation.

For the first time in decades of interviewing executives about workplace culture, I noticed something different. Not frustration, or skepticism: deflation.

This is what we found when interviewing Chief People Officers across the US. These conversations, part of our Fearless Culture’s Global Culture Pulse study, reveal a worrying trend. Leaders who once championed culture with conviction are now acting out of fear rather than principle.

Finding leaders to participate was harder than expected. Many declined, even with guaranteed anonymity. Almost everyone we interviewed asked not to be quoted directly. This caution speaks volumes about the current state of American workplace culture.

This deflation isn’t just a result of the political climate and social pressure. True culture shows itself during tough times. Today’s situation has simply amplified existing tensions, especially the gap between what leaders say and what they actually do.

Culture: Praised but Not Respected

Every leader I speak with says culture matters. Who wouldn’t? This mirrors exactly what our respondents described about their organizations. But what actually happens is a different story.

In reality, companies praise culture, but they don’t really respect it. When budgets tighten, culture initiatives are cut first. When new leaders join, culture initiatives get delayed. When pressure mounts, values become optional. Only 1 in 5 organizations treats culture as seriously as business strategy.

Most companies (3 out of 4) have generic values like integrity, collaboration, or respect. These basic principles don’t make organizations stand out. As Patrick Lencioni pointed out, these “permission-to-play” values don’t create unique identities. They actually make people wonder why such basic standards need to be stated at all.

The biggest issue? The mismatch between stated culture and observed behavior. Senior leaders talk about transparency but make decisions in a vacuum. Companies promote collaboration but reward individual performance. Organizations claim purpose matters, but financial metrics rule everything else.

This gap is more evident in how companies have reversed course on diversity, equity, and inclusion. Leaders praised its importance, built programs, and made it part of their core values. Then, under pressure, many abandoned their efforts entirely. Some companies removed DEI language completely and canceled most programs. Others watered down their language and renamed initiatives to avoid criticism.

But there’s good news. A third group has strengthened its commitment to DEI despite the backlash.

For employees watching all this, the message is clear: What leaders do in tough times matters more than what they say. And recently, when faced with challenges, many leaders just backed down.

When Fear Becomes Your Culture

You can’t hide behind buzzwords. When fear drives every major decision, promoting an “innovation-driven” or “AI-first” culture feels like a joke. Culture, once a lever for bold experimentation, is now treated as a liability.

Today’s tense environment makes leaders defensive. Their fear is real. They worry about backlash not only against their companies but also against them personally. Fear has replaced common sense in decision-making.

Don’t use certain words. Drop certain initiatives. Don’t take stands that might draw criticism.

But fear does more than just silence conversations. It eventually becomes your culture.

Look at AI adoption. Companies say they want teams to try new tools and innovate, but employees question the real intent. Many worry they’re helping to automate their own work—essentially digging their own graves by becoming expendable.

Despite encouragement to experiment with AI, workers fear being seen as lazy, as “tech does part of their job for them.” Without clear guidelines and safety, people keep many experiments secret.

Most companies lack clear guidelines about disclosing when and how employees use AI. Few have effective systems to collect lessons learned. Middle managers don’t know how to effectively bring AI into their teams. They need coaching and support from leadership, not just technical chats with IT.

A fearful environment leads to fragmented adoption and missed opportunities.

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Back to the Office, Back to Distrust

Companies that once trusted people to keep business running during the pandemic have changed their minds. They’re now forcing people back to the office—and employees aren’t happy about it.

Five years ago, organizations had no choice but to trust remote workers. They gave employees autonomy and flexibility. No one was fully prepared. Leaders navigated uncharted territory alongside their teams. They paid more attention to people’s well-being, made check-ins normal, and let people try new ways of working.

The results were impressive. Most companies didn’t just survive; they thrived. The benefits were clearly positive: better relationships, more ownership, and stronger trust.

Yet now many companies are forcing employees back to the office.

Leaders defend these return-to-office mandates with vague claims about declining belonging and collaboration. When pressed, few can provide evidence that physical presence improves productivity. Instead, these policies merely promote a culture of presenteeism.

About four in five interviewees say employees see value in face-to-face connection. What they reject is losing autonomy and trust. Flexibility isn’t just a perk; it’s a superpower. If some people abuse this freedom, companies should deal with those few offenders rather than punish everyone.

Despite the growing prevalence of RTO mandates, employees continue to resist. New data reveals the situation isn’t as dramatic as headlines suggest. Employees don’t see the upside. Commuting just to spend all day on Zoom calls makes little sense.

The erosion of trust goes beyond office policies.

When leaders also drop DEI commitments, fail to support values with action, and don’t invest in culture, they create the perfect storm of trust. This happens because of a pattern: leaders saying one thing while doing another. No wonder employees are skeptical.

Trust was one of the few good things to result from the pandemic. And it’s under threat again. Your employees might show up at the office more, but trust is staying home.

When Others Back Down, These Leaders Step Up

Not every organization in our study is giving up. Many leaders continue building culture with the same commitment they apply to business strategy. They recognize how each makes the other stronger.

These organizations treat culture as a system, not a slogan. They’re intentional about how decisions are, which behaviors get rewarded, and that actions match their principles.

Most importantly, these leaders close the gap between words and actions. When values become irrelevant, they revise them. Instead of defending old practices, they encourage people to challenge them. They focus on outcomes over presenteeism, and on true innovation over the latest shiny objects. Their credibility comes from consistency, not perfection.

They make cultural accountability explicit. These CEOs don’t delegate culture to HR and walk away. Senior leaders take culture as seriously as sales targets. When budget cuts happen, culture initiatives aren’t the first casualty.

The difference isn’t that these organizations face less pressure. It’s how they respond without compromising their principles. When others cave, authentic leaders double down on doing what’s right.

The Choice Ahead

Culture reveals itself under pressure. The problems we’re seeing now were always there. They’re just more visible now.

The question isn’t whether culture matters to your organization. It’s about what you do when things get tough. That response? That’s your real culture.

When challenges arise, do leaders back down or step up? Do they stick to their principles or abandon them? Do they treat culture as something to protect or as a liability to manage?

Thriving organizations aren’t just waiting for the pressure to ease. They’re using these challenges to demonstrate what they really stand for. The choice is simple. What path will your organization take?

Facing these issues in your organization? Reach out.

This article draws from our US Culture Pulse 2025, part of the Fearless Culture study covering 12 countries: Download the complete report here