Published: 2024-01-28 by, News Team in the Business & Finance news category

Report Shows LGBTQ+ Inclusion Can Boost Profits

A report published on Thursday suggests that being transparent about LGBTQIA+ corporate inclusion and staffing can contribute to better company profitability.

The Investor Guide to LGBTQIA+ Inclusion revealed that companies with top LGBTQIA+ transparency scores were 2.3 times more profitable than the bottom 25. Analysing the 290 largest listed companies in the United States, Britain, Germany, and Australia, the report focused on how these companies integrate LGBTQIA+ inclusion into their environmental, social, and governance (ESG) strategies and reporting.

Produced by Open for Business, a coalition advocating for inclusive and diverse societies as beneficial for business and economic growth, the report highlights a clear link between LGBTQ+ inclusion and higher returns for investors, according to Dominic Arnall, the CEO of Open for Business.

Despite this positive correlation, LGBTQIA+-friendly companies have faced challenges, particularly in some markets where advertising campaigns triggered backlash.

For instance, Budweiser's ad campaign featuring a transgender woman faced criticism, leading to a sales decline. Target also experienced a sales drop after stocking Pride-themed merchandise, facing backlash that prompted the withdrawal of some products.

However, research suggests that LGBTQIA+-friendly marketing can yield positive results, with 59% of consumers stating they would buy more from brands launching campaigns focused on diverse communities, as per a 2023 survey.

The report emphasizes that the focus should be on LGBTQIA+ reporting and inclusion rather than marketing trends. Ken Janssens, one of the report's authors, notes that investor demand for LGBTQIA+ funds remains high, especially among younger investors, with 67% of Gen Z investors seeking investment products that advance LGBT inclusion.

The report counters the notion that ESG is politically motivated, stating that many ESG issues directly impact the bottom line, making corporate engagement with them driven by commercial imperatives rather than political ideology. Ultimately, the report asserts that corporate LGBTQ+ inclusion is about more than Pride flags and rainbow logos—it's about running a good, LGBTQ+ community inclusive business.

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