Does Lesbian and Gay Friendliness Pay Off? A New Look at LGBT Policies and Firm Performance

Abstract

This paper examines the association between LGBT-friendly corporate policies and firm performance. Using data on US firms from 2003 to 2016, we document that LGBT friendliness is positively associated with firm performance. Specifically, we find strong evidence that more LGBT-friendly firms have higher profitability and higher stock market valuations. Our results further demonstrate that the positive effect of progressive LGBT policies on firm performance is more pronounced for firms located in more liberal states. Overall, our empirical findings provide support for the view that socially progressive corporate policies and diversity management may create value for the firm.

Consumer responses toward LGBTQ+ diversity CSR: what differences do CSR levels and CSR fit make?

“…This study expands on previous research attempts to establish the competitive advantage that corporate policies and initiatives related to LGBTQ+ rights can bring (e.g. Sears and Mallory, 2011; Fatmya et al. , 2019; Hossain et al.…”

“…This study expands on previous research attempts to establish the competitive advantage that corporate policies and initiatives related to LGBTQþ rights can bring (e.g. Sears and Mallory, 2011;Fatmya et al, 2019;Hossain et al, 2019); recent studies attempted to show whether business performance measures, such as credit ratings and stock prices, were correlated with management of LGBTQþ diversity within organizations. However, these studies have limitations in that they infer positive corporate outcomes that LGBTQþ diversity practice can bring by examining the correlation between financial indicators and LGBTQþ diversity corporate policies.…”

The value-relevance of social media activity of Finnish listed companies

“…Our results did not highlight the value-relevance of sentiment, however, although the different social media variables typically correlated positively. Further, the value-relevance of IG suggests that companies with good news may be more prone to adopt new tools and that the early adoption of social media tools, too, may be a sign of understanding trends and reputational issues, often gradually indicating also transparency and good stock market performance (Amir and Ziv, 1997; Fatmy et al , 2021; Malmi, 1999; Spenner and Freeman, 2012).…”

“…Typically, early adopters are those who benefit from the change or are eager to try new things (Amir and Ziv, 1997; Malmi, 1999). The early adoption of new technologies may indicate that the company is technologically in the frontline also in other current practices and can identify the trends or preferences of various stakeholder groups (Amir and Ziv, 1997; Fatmy et al , 2021; Malmi, 1999; Rautiainen and Luoma-aho, 2021; Spenner and Freeman, 2012). Adoption of social media tools involves aspects of marketing, investing and communicating so that news can be told and recruitment can be facilitated, potentially helping the future performance (e.g.…”

LGBT Workplace Equality Policy and Customer Satisfaction: The Roles of Marketing Capability and Demand Instability

“…Changing buildup of customer commitment and identification under demand instability could render marketing capability circuitry weaker and the linkages among resources in greater flux. Furthermore, demand instability weakens the relational capital with customers and broader stakeholders, an important input to strengthening input-output conversion routines for marketing capability (Fatmy et al 2019) and facilitating organizational learning between employees and customers (Jayachandran et al 2005). Such changes in adaptation may be challenging due to demand instability straining the marketing-related input-output conversion routines.…”