Why inclusivity matters and how global expectations of inclusion can be created. A look at the progress of the Corporate Equality Index in the US
Given the progress of our community in the past decade and a half, it may be hard to remember that, in 2003, consensual same-sex relationships were still considered criminal behaviour in some parts of the US – only becoming legal when the landmark civil rights case, Lawrence vs. Texas, was decided by the Supreme Court of the United States.
A year earlier, the Human Rights Campaign (HRC) Foundation – the educational arm of the US’s largest civil rights organisation working to achieve equality for lesbian, gay, bisexual, transgender and queer (LGBTQ) people – broke new ground for LGBTQ workers across the US with the 2002 launch of the Corporate Equality Index (CEI).
Reporting on corporate policies and best practices
The annual CEI reports on corporate policies and practices pertinent to LGBTQ employees and their families. The CEI rates employers on a 100-point scorecard that assesses:
- Non-discrimination policies inclusive of sexual orientation and gender identity
- Parity in employment benefits for same- and different-sex spouses and same- and different-sex domestic partners
- Supporting an inclusive culture and corporate social responsibility including public commitment to LGBTQ equality
- Responsible citizenship
Serving as a roadmap for businesses to improve their LGBTQ-inclusive policies and practices, the CEI report details best practice standards. HRC Foundation staff provides resources to help any employer – no matter where they are in their journey towards a more inclusive workplace – in their efforts to create workplaces in which every employee, in every office and operation of the company, can thrive.
Why inclusivity is good for the bottom line
When a company is more inclusive, it gives every individual the opportunity to tap into their highest potential. When employees don’t have to worry about being fired from their job because of who they are, or worry about having the same benefits as their colleagues, they have the freedom to engage fully in their work and within their working groups without distraction or pretence. When LGBTQ employees (or potential employees) see that their employer is making a concerted effort to welcome and value their unique attributes in the workplace, there is tangible payoff in recruitment, retention, satisfaction, and engagement.
In other words, engaging in the CEI and demonstrating a commitment to LGBTQ diversity and inclusion is good for the bottom line. Employers’ recognition of the CEI’s value is clear – CEI results over the past 17 years show that wherever successful business is being done, LGBTQ equality has become the norm.
From 3% to 85% in 17 years: non-discrimination protections in the Fortune 500
In 2002, 318 companies participated in the CEI survey process and were rated in the report. In the most recent CEI, more than 1,000 employers were rated. Not only has the number of top-rated companies earning 100 points on the CEI grown from 13 in 2002 to 572 in 2019, but the standards these ‘Best Places to Work for LGBTQ Equality’ are held to are increasingly stringent year after year. As HRC moves the needle, employers participating in the CEI have kept pace.
In 2002, only 3% of Fortune 500 companies offered non-discrimination protections on the basis of sexual orientation and gender identity. Today, that number has grown to 85%. These most basic protections are still critically important for LGBTQ workers in the US, in the absence of uniform federal civil rights protections.
Nearly 200 top businesses – including 110 that have earned top scores on the CEI this year – are also corporate supporters on the Equality Act, critical bipartisan legislation that would finally add clear, comprehensive non-discrimination protections for LGBTQ people to civil rights laws in the US. The LGBTQ community in the US is not explicitly protected by non-discrimination law at the federal level, but these companies are bridging that gap for their employees and their families.
Raising expectations by extending LGBTQ-inclusive policies outwards
Private employers have long outpaced lawmakers in the implementation of fully-inclusive non-discrimination policies. And, increasingly, global businesses are centralising their core policies of LGBTQ inclusion by extending their inclusive US non-discrimination policies to their operations worldwide.
In 2016, the CEI’s criteria called on participating employers with global operations to extend their US non-discrimination policies, which includes sexual orientation and gender identity, to wherever in the world they do business. The consistent application of LGBTQ-inclusive policies for their employees while on mission or travel abroad is helping to create global expectations of inclusion.
While cultural and operating environments may differ from country to country, the CEI requirement to have the basic principles of fairness in the workplace consistently upheld is not only critical to business functionality but also ensures greater consistency across an increasingly mobile, international workforce. Business-wide, all employees should have the same set of expectations with regards to sexual orientation and gender identity protections in the context of hiring, firing and promotional practices.
The CEI has long-provided a path forward for LGBTQ people who faced barriers to legal protections and social inclusion. It also gives large employers the opportunity to be ahead of federal, state and local laws, establishing best practices for LGBTQ employees not just because it was the right thing to do, but because it made good business sense.
For MBA students and professionals, whether you are LGBTQ-identified yourself or identify as an ally to the LGBTQ community, the CEI can help inform your job search with respect to the LGBTQ-inclusive policies, practices and benefits of potential employers. If your current or prospective employer is not rated, consider encouraging them to participate as a way to make their values and commitment to inclusion transparent to prospective employees and consumers alike.
Beck Bailey is Acting Director of HRC’s Workplace Equality Program, focusing on helping US workplaces become more LGBTQ inclusive. Prior to HRC, Bailey spent 25 years in operations and change management roles. He holds an MBA from UMass Amherst and serves on the Advisory Board for Reaching Out MBA (ROMBA).
