Big firms defend civil liberty

Recently, and for the first time, the private sector found its collective voice on a human rights issue: we saw the business community fervently denounce Indiana’s and Arkansas’ newly minted religious freedom laws. Companies like Apple, Salesforce, and Eli Lilly flexed their market muscle to ensure that bakers, florists, and other customer-facing businesses could not legally deny their goods and services to same-sex couples. The subsequent move by state governors to revise the legislation at break-neck speed was a stunning testament to the ability of the private sector to affect social change.

And given the widespread absence of explicit protection from bias, LGBT individuals desperately need proactive allies at the top of America’s most revered corporations. The U.S., which has criticized other countries’ records on LGBT issues, fails to provide basic protections. Federal civil rights laws in the U.S. do not expressly ban anti-LGBT employment discrimination. Neither do laws of most U.S. states. And, anti-discrimination and LGBT-friendly policies within companies don’t go far enough: Center for Talent Innovation research (2011) finds that workplace discrimination and its ripple effects remain daunting hurdles for many LGBT individuals, keeping 41 percent of them closeted on the job.

{mosads}But what most businesses seem not to realize is the tremendous market opportunity that the nation’s patchwork of protections affords them should they assert themselves as allies. When businesses step into the breach, advocating on behalf of their LGBT employees and consumers, their own bottom line benefits. According to 2011 data from Witeck Communications, 71 percent of LGBT adults say they are likely to remain loyal to a brand they believe to be very friendly to the LGBT community “even when less friendly companies may offer lower prices or be more convenient.” Further, three-quarters of heterosexual people and 87 percent of LGBT people said they would consider choosing a brand known to provide equal workplace benefits. With LGBT buying power comprising $830 billion in the U.S. alone, it clearly pays to build and sustain connections to this large and expanding market segment.

But businesses that fight to ensure that LGBT individuals can thrive both in and out of the workplace realize a second benefit, one that promotes growth as well as human flourishing: “out” employees are far more likely to be engaged, committed contributors and leaders than closeted ones, according to CTI research. Being open about their sexual orientation or gender identity gives LGBT professionals access to unique business opportunities and platforms on which to exercise their leadership. Additionally, being out magnifies the visibility of LGBT professionals to clients and consumers specifically seeking the outlook and expertise of a company that values diversity. What’s good for human rights turns out to be good for business.

Recent events underscore this win-win. Business leaders righted some of the wrongs that threaten to shred the moral fiber of this nation, burnishing their brand as they did so. That puts them in the vanguard—and, in my view—on the right side of history on this issue.

Hewlett is founder and CEO of the Center for Talent Innovation.