Strengthening the economic case

101 Pages·2017·8.76 MB·English

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Strengthening
the economic case
By Jon Miller and Lucy Parker
About this report
The report is published by Open For Business, a coalition of global companies
organized as a charity with the objective of promoting LGBT+ inclusion.
What is the report’s purpose? Who is it for?
Contents
This report aims to present a comprehensive This report is intended to set out the evidence that
evidence base for global LGBT+ inclusion, in will empower those making the case against LGBT+
order to demonstrate that successful businesses discrimination, wherever it exists in the world.
Executive Summary 02
thrive in diverse, inclusive societies and the
Part 1: The Global Situation 06
spread of anti-LGBT+ policies runs counter to the
Who are the authors? Business action on LGBT+ inclusion 08
interests of business and economic development.
This is the second report from Open For Business: Companies supporting Open For Business Global challengers 10
it updates and extends the evidence base, and contributed their global perspectives, experience Global backlash against LGBT+
has a special focus on the economic case for and expertise on the business case for LGBT+ inclusion 11
LGBT+ inclusion in cities. inclusion, and they actively participated in The closing of civil society space 13
shaping the argument throughout the A path towards LGBT+ inclusion 14
development of this report. The Open For
What is its scope? Business team undertook the final analysis and Part 2: Cities 20
This report sets out the case for inclusion and writing of the report, led by Jon Miller and Lucy Why cities matter 22
diversity, with a specific focus on LGBT+. It brings Parker of the Brunswick Group. Ann-Kathrin Richter The competitiveness of cities 24
together a broad base of research undertaken led the research on the core evidence base; LGBT+ inclusion in cities 26
from different perspectives and covering different Ruairidh Macintosh led the research on the cities
(i) Innovation 29
geographies and sectors, and identifies themes section of the report; Drew Keller is the Open For
that are globally relevant. Business Program Director. Additional research on (ii) Talent and skills 32
Global Challengers was undertaken by Boston (iii) Quality of Living 33
Consulting Group. Open For Business City Ratings 36
City case studies 38
Part 3: The evidence base 50
The Open For Business Research Advisory Board Strengthening the evidence base 52
The work of Open For Business is supported by a Research Advisory Board, which provides A. Economic performance 54
ongoing guidance and feedback, and helps to ensure the economic case for LGBT+ inclusion B. Company performance 66
is comprehensive and up to date.
C. Individual performance 75
M.V. Lee Badgett Suen Yiu Tung Part 4: Coalition action 84
Professor of Economics, University of Founding Director of Sexualities Research Open For Business Programs 86
Massachusetts Amherst Program, Chinese University of Hong Kong The voice of global business leaders 88
Williams Distinguished Scholar at the Assistant Professor of Gender Studies; Author Coalition Supporters’
Williams Institute; Former Director of the of studies on LGBT+ issues in Asia, including
Codes of Conduct 89
Center for Public Policy and Administration; business and workplace contexts.
Acknowledgements 92
Author of various key studies on the
Matteo Winkler Appendix 93
economic costs of homophobia.
Assistant Professor of Law, HEC Paris Starting a conversation
Felicity Daly DrPH Developed diversity and inclusion strategy on LGBT+ inclusion 96
Global Research Program Coordinator, course for the HEC MBA program; Member
OutRight Action International of non-profit association Avvocatura per i
Honorary Research Fellow, Australian Diritti LGBTI – Rete Lenford, which led
Research Centre in Sex, Health & Society at important antidiscrimination lawsuits before
LaTrobe University, Australia. Italian courts.
This publication has been made possible by the following sponsors:
Open For Business 01
About Open For Business
Open For Business is a response to the growing Our Global Influencer Program harnesses the
Open For Business is a coalition backlash against LGBT+ inclusion in many parts voice of high profile global business leaders,
of the world. Our coalition partners share building a consensus in the international business
of global companies making
a deep-rooted commitment to diversity community around the economic case for LGBT+
the case that inclusive, diverse and inclusion in their own workplaces, and they inclusion, and raising awareness through top tier
are concerned about the spread of anti-LGBT+ global press, social media and events.
societies are better for
policies in many countries in which they operate.
Our task is to present the business rationale
business and better for
The economic and business case for LGBT+ for global LGBT+ inclusion. The moral case
economic growth. The purpose inclusion is central to the mission of Open For has already been made, and now the economic
of the coalition is to advance Business. In 2015 the coalition published case continues to grow stronger: successful,
a report containing the most comprehensive enterprising businesses thrive in diverse, inclusive
LGBT+ inclusion globally, by evidence base linking LGBT+ inclusion to better societies and the spread of anti-LGBT+ policies
promoting a positive economic economic and business performance. This report runs counter to the interests of business and
was pivotal to reframing LGBT+ rights as an economic development.
and business case for equality economic issue, as well as a human rights issue.
of opportunity for everyone, This is the second report of the Open For Business
all across the world. coalition, and further strengthens the economic
case. It is intended to fuel our Open For Business
programs, which exist on two levels:
Our Local Influencer Program works with senior
business leaders in countries with anti-LGBT+
sentiments, creating advocates for positive
change by giving them the evidence and the
impetus to use their influence. Already, Open
For Business has initiated C-Suite networks in
nine countries, working closely with local
LGBT+ groups.
02 Open For Business
Open For Business 03
Executive
summary
04 Open For Business
Executive summary
The first Open For Business report synthesized The business and economic case for LGBT+
Open, inclusive and diverse a broad and fragmented evidence base into inclusion exists on three levels – economic
a clear and comprehensive economic case. performance, business performance and
societies are better for
It pulled upon the many strands of work that individual performance – and the evidence
business and better for have studied the subject from different angles, base is presented in the 27 Propositions,
including economic growth and development, outlined opposite.
economic growth. This report
business performance and productivity, and
This report also focuses on a compelling
presents the evidence base human resources and talent management. It
dimension of the economic case: cities. Cities
helped to reframe the global debate on LGBT+
that supports this: it have become a top priority for policymakers and
inclusion: as well as a moral imperative, it
demonstrates that businesses presented a compelling economic case. politicians around the world because of their
potential to drive economic growth. This report
thrive in tolerant societies and In the two years since the first report was presents the evidence that open and diverse
that the spread of anti-LGBT+ published, we have seen how the economic case cities are more competitive. LGBT+ inclusion sends
for LGBT+ inclusion has the power to catalyze a a clear signal that a city has a tolerant, dynamic
policies runs counter to the consensus in the global business community, as cultural life, and that it is a globally integrated
interests of business and well as fueling conversations on-the-ground in place to do business.
countries with anti-LGBT+ policies. This second
economic development.
report aims to build on this momentum. It updates
and strengthens the economic case, and it
represents the most comprehensive evidence
base published to date on LGBT+ inclusion.
Report structure
Part 1: The Global Situation. The report Part 3: The Evidence Base. This is the most
begins by describing the backlash against LGBT+ comprehensive presentation of evidence in
inclusion that is taking place in many parts of the support of global LGBT+ inclusion, updated
world, and shows how this is a concern for many based on a review of 166 new pieces of
in the global business community. Companies evidence – research papers, reports, articles
are working to curb discrimination and promote and presentations. The evidence is presented
diversity in their workplaces, and this becomes as 27 propositions on three levels – economic
difficult in countries that are hostile to LGBT+ performance, business performance and
people. In the last couple of years, the actions individual performance. It includes compelling
of many leading businesses show their strong new data connecting LGBT+ inclusion to greater
support for LGBT+ inclusion, all over the world. national competitiveness and stronger company
financial results.
Part 2: Cities. This presents the economic case
for LGBT+ inclusion in cities. Cities that are LGBT+ Part 4: Coalition Action. Together with coalition
inclusive are better placed to develop their global partners, Open For Business has been working
competitiveness: evidence shows they have to promote the economic case for global LGBT+
stronger “innovation ecosystems”, greater inclusion, and this section presents a summary
concentrations of skills and talent, and better of activities: at a local level, working with senior
quality of life. LGBT+ inclusive cities are more business leaders to equip them for conversations
likely to become globally connected hubs for with policymakers; at a global level, strengthening
high value businesses. This section introduces the consensus amongst the global business
the Open For Business City Ratings, which assess community. This section also presents the position
to what extent a city is “open for business”. and codes of conduct of all Open For Business
coalition partners.
The Open For Business City Ratings
This report introduces the Open For Business City Ratings, which provide a consolidated view of
how open for business a city is. It is a guide to which cities are open, progressive and competitive
– and which are not. An open for business city is a globally connected, welcoming place for
people from all types of backgrounds, including LGBT+ people.
Open For Business 05
The evidence base
A. Economic performance B. Business performance C. Individual performance
The evidence shows that open, inclusive Stronger financial performance flows from Individuals working in open, diverse and
and diverse societies are better for the increased ability of LGBT+ inclusive inclusive environments tend to perform
economic growth, and that discrimination companies to attract and retain talent, to better. A culture of inclusion and diversity
on the basis of sexual orientation or innovate, and to build customer loyalty can boost individual performance – for
gender identity can damage long-term and brand strength. everyone, not just LGBT+ individuals.
economic prospects.
Proposition 1: Competitiveness Proposition 12: Attracting Talent Proposition 20: Authenticity
LGBT+ inclusive economies are more Companies that are more diverse and inclusive Individuals working in open, diverse, inclusive
competitive. are better able to compete for talented environments are able to be themselves, instead
employees. of concealing important aspects of themselves.
Proposition 2: Entrepreneurship
LGBT+ inclusion results in higher levels of Proposition 13: Retaining Talent Proposition 21: Motivation
entrepreneurship, creativity and innovation. Companies that are more diverse and inclusive Individuals working in open, diverse, inclusive
have higher rates of retention of talented environments have higher levels of motivation.
Proposition 3: Corruption
employees.
LGBT+ discrimination often goes hand-in-hand Proposition 22: Affinity
with corrupt practices and a lack of openness. Proposition 14: Innovation Individuals working in open, diverse, inclusive
Companies that are more diverse and inclusive environments have greater affinity with values
Proposition 4: Direct Investment
have higher levels of innovation and creativity. and culture of the workplace.
LGBT+ inclusion is associated with higher levels
of direct investment. Proposition 15: Collaboration Proposition 23: Satisfaction
Companies that are more diverse and Individuals working in open, diverse, inclusive
Proposition 5: Global Markets
inclusive create an atmosphere of trust and environments have higher levels of satisfaction.
LGBT+ discrimination may inhibit local
communication, which is essential to effective
companies from connecting to global markets. Proposition 24: Health
teamwork.
Individuals working in open, diverse, inclusive
Proposition 6: Brain Drain
Proposition 16: Customer Orientation environments are free from discrimination –
LGBT+ discrimination results in a ‘brain drain’
Companies that are more diverse and inclusive a cause of poor mental health and physical
– the emigration of talented and skilled
are better able to anticipate the needs of all violence.
individuals.
customers, and to access a broader client base.
Proposition 25: Speaking Up
Proposition 7: Public health
Proposition 17: LGBT+ Consumers Individuals working in open, diverse, inclusive
LGBT+ discrimination leads to negative
Companies that are LGBT+ inclusive are better environments are more likely to speak up with
economic consequences as a result of poor
placed to benefit from the large, growing, suggestions to improve performance.
health outcomes.
global spending power of LGBT+ consumers
Proposition 26: The Extra Mile
Proposition 8: National Reputation
Proposition 18: Brand Strength Individuals working in open, diverse, inclusive
LGBT+ discrimination impacts perceptions
Companies that are more diverse and inclusive environments are more likely to go beyond
on a world stage, which drive tourism, talent
have greater brand appeal and loyalty with duties and make a contribution to the life
attraction and export markets for consumer
consumers who want socially responsible and culture of the company.
goods.
brands.
Proposition 27: Individual Productivity
Proposition 9: National Productivity
Proposition 19: Financial Performance Individuals working in open, diverse, inclusive
LGBT+ discrimination leads to lower levels of
Companies that are LGBT+ inclusive have better environments have greater productivity – more
national productivity.
share price performance, higher return on efficient work with higher quality outputs.
Proposition 10: Urban Economic equity, higher market valuations and stronger
Development cash flows.
LGBT+ inclusion signals a diverse and creative
environment, which creates the right conditions
for urban economic development.
Proposition 11: National Economic
Development
LGBT+ inclusive economies have higher levels
of economic development.
Open For Business
Foreword
Bill de Blasio We’re proud that New York achieved a AAA
Mayor of New York There’s no doubt that the rating and is the highest scoring city in the Open
For Business City Ratings, a reflection of the fact
economic future belongs to
that we are indeed, fully and energetically “open
places that believe in inclusion. for business.” As the birthplace of the modern
LGBTQ rights movement and the host city for
There’s no doubt that the
World Pride 2019, we stand with this report’s
economic future belongs conclusion that cities that embrace their LGBTQ
residents are the world’s most competitive – they
to places that are open to
are more innovative, entrepreneurial and filled
connecting with the larger with talent.
world around them. There’s The struggle for progress is never easy. It certainly
no doubt that the economic hasn’t been here, and there’s still much more to
do. But there’s a reason that people from around
future belongs to places that the world look to New York City and places like it
accept and embrace people for hope. Our hope is that New York will continue
to be an inspiration to others.
from all parts of the world, all
backgrounds and all ways of
life. In short, the economic
future belongs to cities.
Bill de Blasio
Mayor of New York
The insights and information in this report confirm
and illuminate what New Yorkers have long
understood: Inclusion is the not-so-secret formula
that makes us great. We’re not perfect by any
means, but jump on our subway and you’ll see
all faiths, all ethnicities, all sexual orientations,
gender identities, and levels of income jostled
together, maybe a little frustrated, but making
it work. A New York City subway represents
a powerful idea of human unity in action.
06 Open For Business
Open For Business 07
Part 1
The global
situation
Business action on LGBT+ inclusion p08
Global challengers p10
Global backlash against LGBT+
inclusion p11
The closing of civil society space p13
A path towards LGBT+ inclusion p14