The queer-friendly business is going full throttle. A new study shows that LGBTQ+ inclusion makes LGBTQ+ businesses more money
The debate about diversity, equality and inclusion (DEI) has intensified in recent years - especially in the US, where some in the political scene and conservative activists are fighting against corporate programs that support the LGBTQ+ community or other minorities. But new analysis from the Human Rights Campaign (HRC) Foundation and investment firm Whistle Stop Capital shows that inclusion is not just a question of values - it also delivers concrete economic results.
The economics of equality: the numbers don't lie
The study is based on fifteen years of data from the so-called Corporate Equality Index (CEI). Since 2002, the CEI has tracked how companies treat LGBTQ+ employees - from protection from discrimination to benefits to inclusive company culture and public support for the community.
The result? The companies with the highest CEI scores experienced an average revenue growth of 12.3% between 2008 and 2023, while those with the lowest scores only grew 5.2%. The difference was even more striking for profitability: companies with the best inclusion scores reported net profits eight times higher than their competitors with the worst scores.
This was compounded by more stable share values and higher gross profits. In short, when employees feel embraced, it's reflected not only in their performance, but also in the bottom line.
Shareholders know that inclusion works
Conservative politicians and some shareholders have opposed DEI (diversity, equity and inclusion) programs in recent years. Since Donald Trump took the White House, more than twenty resolutions have been filed calling on big players like Visa, Netflix and Amazon to end inclusion programs.
But the results of the vote speak volumes: shareholders representing nearly $10 trillion in value stood up for corporate leadership and for maintaining DEI policies. In business, the facts are simply the facts - and they show that inclusion is not a liability, but an asset.
Employees stay where they feel accepted
The economic effect of inclusion is confirmed by other figures. A 2023 Out Leadership survey published in the Harvard Business Review showed that 97% of LGBTQ+ employees who perceived their workplace as inclusive planned to stay with the company for the next year. In an environment where inclusion is lacking, the figure was just 38%.
Meanwhile, employee turnover is one of the most expensive items companies deal with. But if employees feel safe and can be themselves, they not only stay, but are willing to perform at their peak.
Conservative countries are no exception
A common argument from opponents of inclusion is that LGBTQ+ friendly policies don't work "outside the bubble." But even that is belied by the data. A 2023 study by the London School of Economics found that even in firms operating in traditionally conservative US states, LGBTQ+ inclusivity had either a positive or neutral impact on the bottom line. There was no negative effect.
In other words, when companies open up to diversity, it not only benefits employees and customers, but also the business itself. And if someone still claims otherwise? Just look at these numbers.
