LGBTQ+ Friendly Firms Are Better for the Environment, Research Says. Here’s the Secret
U.S. companies that foster pro-LGBTQ+ initiatives favor a different notion: being clean. People from the LGBTQ+ community “demonstrate greater environmental awareness and are more engaged in environmentalism,” according to a new report. A company can actually “gain competitive advantage by utilizing unique resources and capabilities” of its LGTBQ+ workers, according to the report by scientists from universities in the U.S and U.K. The results support the idea that “the LGBTQ+ friendliness of a firm, as an intangible resource, can enhance its environmental innovation capacity, which translates into improved green performance,’ the report says. The researchers suggest training programs “that educate employees about the importance of inclusion and actively promote the role of LGBTQ+ inclusion in decision-making processes in achieving environmental objectives,�” the report adds.“If your company doesn’t have pro-LGTBQ+ policies, you may be missing out on employing talented, innovative people who will choose to work elsewhere where they feel more welcome.”
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In the current political and social climate , words like “ diversity ,” “equality” and “ inclusivity ” are profoundly negative terms. But new research into the environmental chops of U.S. companies that foster pro-LGBTQ+ initiatives favor a different notion: being clean. Essentially companies that have strong inclusivity have higher environmental performance scores, and better green energy histories Phys.org reports . It might all be about the innovative thinking that this community embodies — and that’s something your company can learn from. The scientists, from universities in the U.K., analyzed data on nearly 900 U.S. firms between 2010 and 2023, focusing on one principal issue. Data showed people from the LGBTQ+ community “demonstrate greater environmental awareness and are more engaged in environmentalism,” than their non-LGBTQ+ colleagues, they said, citing research evidence, but does that translate to the companies that try to cater to this segment of the labor market? The answer was a resounding yes. Overall the results support the idea that “the LGBTQ+ friendliness of a firm, as an intangible resource, can enhance its environmental innovation capacity, which translates into improved green performance,” the report says. In this sense “green performance” means carrying out their business with reduced environmental impact—a factor that may, the researchers say, lead to an “improved reputation” for the company involved, from a public and customer point of view. The teams also looked into the differences between firms headquartered in states that recognized same-sex marriage before the landmark Obergefell v. Hodges that established marriage as a fundamental right for same-sex couples, and states that did not. They found that firms in states that recognized same-sex marriage early had higher environmental performance—again potentially boosting the company’s standing in the eyes of customers or the public. In general this all suggests that “managers should be cognizant that implementing LGBTQ+ workplace inclusion policies can spur innovation, particularly in eco-friendly technologies,” the scientists wrote. And what’s the mechanism driving this higher environmental friendliness? It’s clear, the team found, that a company’s “environmental innovation,” which is its ability to “lower environmental costs and burdens for its customers,” is essentially a link between “corporate sexual equality and environmental performance.” The implication is that “the inclusion of LGBTQ+ employees in the workplace can foster creativity and innovation and lead to the development of new environmental technologies, processes and eco-friendly products, which in turn enhance environmental performance.” So far you may be thinking this is just mildly interesting research that reflects some different philosophies held by different groups — trends that will inevitably be reflected in the workplace. But there’s an interesting undercurrent here too. If your company is actively seeking to improve its environmental impact, the researchers wrote, you should think about implementing training programs “that educate employees about the importance of inclusion and actively promote the role of LGBTQ+ inclusion in decision-making processes in achieving environmental objectives.” Essentially you can tap into the greater green-friendly resources and thinking your LGTBQ+ staff have. And if you think about it, this indicates a deeper innovative trend. A company can actually “gain competitive advantage by utilizing unique resources and capabilities” of its LGTBQ+ workers, beyond improving your green credentials. Managers should be “cognizant that implementing LGBTQ+ workplace inclusion policies can spur innovation.” Essentially, your LGBTQ+ workers may be an untapped innovation engine inside your company, beyond green initiatives and environmental tech. And, as the scientists point out, it’s easy to forget that data from as recently as 2021 show 7.1 percent of the U.S. population identifies as LGBTQ, with estimates showing about 5.9 percent of the workforce also identifies this way. Looking at figures for employment in the U.S., this means about 9 million working people identify as LGBTQ — essentially a huge pool of people, who are both impacted directly by their employers’ stance on equality and inclusion, as well as greeter legal precedents, but who are also ready to contribute in unique ways to company culture. This of course goes deeper than merely seeing LGBTQ+ workers as a useful, unique force for driving innovation inside a company (a notion that may, to some, have exploitative tones). It’s a sign that if your company doesn’t have pro-LGTBQ+ policies, you may be missing out on employing talented, innovative people who will choose to work elsewhere where they feel more welcome .