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Illustration: Sarah Grillo/Axios

Big or small, new or old, every business in America is witnessing a new reality — and a whole new set of unwritten workplace rules and unambiguous expectations.

Why it matters: Any CEO who ignores this bottom-up revolution will suffer public backlash, recruitment and retention challenges, and fits of internal turmoil.

There’s no market for half-assed diversity and inclusion efforts: This was true before the renewed focus on racism but will be an urgent essential for many years to come, thanks to the public response to the George Floyd murder.

  • This means constant conversation and action internally, including quicker, more decisive moves on increasing the number of people of color at work and in leadership, and taking time to truly understand the perspectives and realities of those who look or think or live differently than you.
  • Since 2018, we have increased the percentage of people of color at Axios from 14% to 37%. But we still suffer from too little racial diversity at the executive and editorial leadership level, so we have work to do.

Quit ducking uncomfortable conversations: CEOs are often more cautious and contrived than politicians when it comes to tough staff-wide conversations about race, LGBTQ issues, idealism or topics beyond business performance. You will have no credibility when you slip up or need it if you choose silence over authentic transparency.

  • If they cannot speak authentically to these issues, leaders need to listen and learn authentically. It is amazing how much tension and suspicion gets eased with an honest ear.

Doing good is no longer a niche. It's a necessity: The judgment CEOs feared most in the past was pesky reporters or regulators. The judgment they should fear the most now is idealistic employees on the inside and the social media warriors on the outside.

  • The balance of power has shifted in ways that baffle some business leaders — but make no mistake, staff can force changes overnight.
  • You have no choice but to take stands and do good — and make it very clear internally and externally what matters to you beyond profit. Otherwise, people will be quick to assume negative intent when bad things happen.
  • Leaders need to show and highlight the good their organization does with the same passion as selling a product.

The new employee expectation: Talented people have almost unlimited opportunities in today’s distributed world, so they expect — and can often demand — constant communications, true transparency and the chance to do good while also working.

  • Post-coronavirus, the flexibility to work from wherever will be as ubiquitous as snacks or paid time off at top performing companies.
  • We have found the new generation will work as hard or harder than we did if we provide this clarity of purpose and rolling, unvarnished dialogue.

The bottom line: The virus and renewed focus on racism have greatly accelerated the pace of the bottom-up revolution. The next wave of great leaders will adapt their styles and organizations to harness the passion — the weaker ones will be paralyzed and pummeled by it. 

Go deeper: The United States of corporate America

Go deeper

Updated 6 hours ago - World

Death toll mounts as fighting between Israel and Hamas intensifies

Palestinian Muslims exchange wishes for Eid al-Fitr, marking the end of the holy month of Ramadan, near a razed building in the northern Gaza Strip town of Beit Lahia, on May 13. Photo: Majdi Fathi/NurPhoto via Getty Images

At least 109 Palestinians and seven people in Israel have been killed since recent fighting between Israel's military and Hamas began Monday.

The big picture: Israel began massing troops on its border with Gaza on Thursday, launching attacks from the air and ground as Hamas continued to fire rockets into Israel.

By the numbers: Where the earmarks are wanted

Expand chart
Data: House Committee on Appropriations; Chart: Danielle Alberti/Axios

The Dallas-Fort Worth area is being targeted for the largest collective earmark request in the country, according to a detailed breakdown of overall requests released by the House Appropriations Committee.

Why it matters: House appropriators are trying to balance bipartisan momentum for infrastructure investment with "pork-barrel" spending's checkered political history. The data dump is an effort to provide transparency for what are now termed "community project funding" requests.

Democrats open to user fees for infrastructure deal

President Biden sits Thursday with Sen. Shelley Moore Capito (R-W.Va.) as they discuss his $2.3 trillion infrastructure proposal. Photo: T.J. Kirkpatrick/The New York Times/Bloomberg via Getty Images

Some Senate Democrats are open to paying for a compromise infrastructure package by imposing user fees, including increasing the gas tax and raising money from electric car drivers through a vehicle-miles-traveled charge.

Why it matters: By inching toward the Republican position on pay-fors, some Democrats are bucking President Biden's push to offset his proposed $2.3 trillion plan by focusing only on raising taxes on corporations and the wealthy.