How To Find LGBT-Inclusive Businesses

When you make a large investment, say more than $ 1,000, what do you look for in a corporation? Maybe you want them to be environmentally friendly (or at least conscious), maybe you want them to pay equal wages to all genders, maybe you just want them to not be evil. When I make a large purchase decision, I look at all these things, but I also want to know what their stance on LGBT-rights is. After all, I don’t want my money to support causes that harm my community. I try to spend my money as consciously as possible, to avoid supporting reclusive causes. For me, the same goes for how I choose my workplace. I want to be recognized for the work I do and I want my companies to extend the same benefits and opportunities to everyone, no matter their gender, sexual identity, or religion. Finding out whether a company is environmentally friendly is fairly easy – there are thousands of articles about it one click away on google. Gay-friendliness is a bit harder to track.

The HRC Corporate Equality Index

With the vision of providing a tool enabling people to spot corporate gay-friendliness, the Human Rights Campaign, the largest American LGBT and queer civil rights organization fighting for equal rights at home, at work, and in the community, has been publishing an annual Corporate Equality Index report since 2002. The report measures American businesses on their treatment of LGBT employees, consumers, and investors. They collect their data for the report through surveys mostly, but their researchers also cross-check business policies and their implications for LGBT workers through public records independently. In the first year, the index awarded the best 100 percent rating to 13 corporations. That number increased every year, with 686 companies receiving a 100 percent rating in the 2020 report. The criteria have evolved over time, to better include transgender rights issues as well.
As with everything, opinions towards the Corporate Equality Index vary. Some view the report as an opportunity for highly rated companies, others think they will lose popularity among conservative customers. However, an American study found such concerns don’t hold up in practice: a good rating in the CEI does not harm a company’s stocks (Johnston & Malina, 2008). The HRC’s goal is to change corporate policies regarding LGBT employees, and in many cases, the report helps them accomplish this mission. From 2004 to 2005, 92 percent of companies listed in the index started including discrimination protections for transgender employees, where they previously had not (Hornsby, 2006). Additionally, poor scores on the index have lead to bad press for corporations, which has forced many of them to change their policies under pressure to improve their score (Raeburn, 2004). Until now, the index has largely focused on large corporations, while small or medium companies have been flying under the radar somewhat, as they are subject to less public backlash for poor CEI scores.

Criteria

The HRC rates the companies they choose to rank on a scale from 0 to 100 based on flexible criteria funded in the core principles of the Equality Project, which are:

1. 1. 1. Prohibits discrimination based on sexual orientation for all operations (15 points)
      2. Prohibits discrimination based on gender identity for all operations (15 points)
      3. Equivalency in same- and different-sex spousal medical and soft benefits (10 points)
         (half credit for parity across some, but not all benefits)
      4. Equivalency in same- and different-sex domestic partner medical and soft benefits (10 points)
         (half credit for parity across some, but not all benefits)
      5. Equal health coverage for transgender individuals without exclusion for medically necessary care (10 points)
         (half credit for inclusive coverage, but blanket exclusions for transition-related care remain in place)
      6. Three LGBTQ internal training and education best practices (10 points)
      7. Employee group or diversity council (10 points)
      8. Three distinct efforts of outreach or engagement to broader LGBTQ community,
         and if supplier diversity program is in place, must include LGBTQ suppliers (15 points)
      9. Contractor/supplier non-discrimination standards and philanthropic giving guidelines (5 points)

How to Use the Report

Now that you know everything you need to about the report, let’s have a look at the 2020 Corporate Equality Index together, shall we?

https://www.youtube.com/watch?v=g_IVHYElefs

Now, I’m looking forward to hearing from you! Let me know in the comments how your favorite company scored, if you were surprised, and how a good or bad score might change your consumer habits going forward.

See you soon with a video interview about the perception of LGBT-marketing in the LGBT community.

In the meantime, please share my blog post with your peers! 

Literature:

Hornsby, E. E. (2006). Using policy to drive organizational change. New directions for adult and continuing education, 2006(112), 73-83.

Johnston, D., & Malina, M. A. (2008). Managing sexual orientation diversity: The impact on firm value. Group & Organization Management, 33(5), 602-625.

Raeburn, N. C. (2004). Changing corporate America from inside out: Lesbian and gay workplace rights (Vol. 20). U of Minnesota Press.