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Press Release

Emerging-market companies are embracing LGBT+ inclusion to achieve their global ambitions: Report on New Global Champions

Nov 18, 2019

 

  •  Growing numbers of companies in emerging markets are supporting LGBT+ inclusion - even in countries where the human rights of LGBT+ people are challenged
  •  First-ever quantitative analysis of the financial impact of LGBT+ inclusion on emerging-market companies found a direct relationship between a company's support for LGBT+ inclusion and its ability to more effectively connect with global markets and supply chains
  •  Companies that explicitly prohibited discrimination based on sexual orientation and/or gender identity saw 20 percentage points higher in proportion of revenue coming from international sources than companies that did not have any evidence of publicly available non-discrimination policies
  •  Fears that supporting LGBT+ inclusion may have negative impacts for companies in emerging markets are unfounded: the findings show LGBT+ inclusive companies within the sample group have revenue growth and earnings before interest and taxes (EBIT) margins in line with peers

 

NEW DELHI, 18 November 2019: Open For Business (OFB), a coalition of global companies promoting LGBT+ inclusive societies, published the first-ever quantitative analysis of the financial impact of LGBT+ inclusion on emerging-market companies in a new report today. "New Global Champions: Why the fastest growing companies from emerging markets are embracing LGBT+ inclusion" highlights the direct relationship between an emerging-market company's support for LGBT+ inclusion and its ability to more effectively connect with global markets and supply chains, without seeing any negative financial impacts.

The findings from this report have far-reaching implications for emerging-market companies looking to expand internationally. LGBT+ inclusion can be a key growth catalyst for them to achieve their global ambitions, and fears of reputational and revenue damage from support of LGBT+ inclusion, which are common in markets where LGBT+ rights are challenged, are unfounded.

In collaboration with Boston Consulting Group (BCG), Open For Business analysed the impact of LGBT+ inclusion on the financial performance of 96 of the fastest growing companies headquartered in emerging markets.[1] The key findings were:

  •  Companies that explicitly prohibited discrimination based on sexual orientation and/or gender identity (referred to as "Tier 1") saw 20 percentage points higher in proportion of revenue coming from international sources than companies that did not have any evidence of publicly available non-discrimination policies (referred to as "Tier 3"), after controlling for companies' region and industry
  •  Tier 1 companies did not suffer any negative impacts on their revenue growth or earnings before interest and taxes (EBIT) margins, even though they publicly supported LGBT+ inclusion in countries where the human rights of LGBT+ people are challenged

 Table of Tier 1 companies

Airlines

  • LATAM

  • Chile

 

Engineered

  • Alfa

  • Mexico

 

  • Turkish Airlines
  • Anonymous[2]

  • Turkey
  • Malaysia

 

products and

  • Elsewedy

  • Egypt

 

 

 

infrastructure

  • Votorantim

  • Brazil

Automotive

  • Apollo Tyres

  • India

 

 

  • WEG

  • Brazil

 

  • Mahindra & Mahindra

  • India

 

Finance & Insurance

  • Cielo

  • Brazil

Consumer

  • Alpargatas

  • Brazil

 

Healthcare

  • Dr. Reddy's

  • India

 

  • Arca Continental

  • Mexico

 

 

  • Lupin

  • India

 

  • Brasil Foods

  • Brazil

 

 

  • Sun Pharma

  • India

 

  • Concha y Torro

  • Chile

 

Processing,

  • Gerdau

  • Brazil

 

  • Falabella

  • Chile

 

metals &

  • Grupo Maxico

  • Mexico

 

  • Femsa

  • Mexico

 

mining

  • Indorama Ventures

  • Thailand

 

  • Godrej

  • India

 

 

  • Mexico

 

  • Gruma

  • Mexico

 

 

  • Tata Steel

  • India

 

  • LC Waikiki

  • Turkey

 

Technology, Media &

  • Infosys

  • India

 

  • Mercadolibre

  • Argentina

 

Telecommunication

  • Safaricom

  • Kenya

 

  • Natura

  • Brazil

 

 

  • Tech Mahindra

  • India

 

  • Thai Union Frozen Food

  • Thailand

 

 

  • Wipro
  • Anonymous2

  • India
  • Malaysia

Energy

  • PTT
  • Reliance Industries

  • Thailand
  • India

 

 

 

 





 

 



































Mr Elliot Vaughn, Managing Director & Partner at Boston Consulting Group said, "This new research highlights the business imperative of LGBT+ inclusivity for companies looking to succeed on a global scale."

"We hope this new data will encourage more companies to start thinking about incorporating LGBT+ inclusion into their core strategy. They can play a key role in advocating for greater LGBT+ inclusion in countries where it might be challenging for the LGBT+ community, whilst also harnessing the business benefits that come with it," he added.

Mr Dilip Chenoy, Secretary General of the Federation of Indian Chambers of Commerce and Industry, said, "When emerging-market companies expand globally, they go up against international peers who are LGBT+ inclusive. If they choose not to embrace LGBT+ inclusion, they are diminishing their competitiveness and missing out on achieving their full potential. It is heartening to see that a number of Indian companies are leading on LGBT+ inclusion - both internally at the workplace and externally to advocate a more LGBT+ inclusive society."

Mr Jon Miller, Founder of Open For Business said, "Most crucially, this report focuses on the regions of the world where support is currently most needed - the global south. Many of these companies are being progressive on LGBT+ issues despite being based in countries where LGBT+ rights are challenged - and that's real leadership. We think of these companies as the new global champions for LGBT+ inclusion. This report shows why LGBT+ inclusion is rising to the top of their agendas. It sends a clear message that companies are not realizing their full potential if they procrastinate on LGBT+ inclusion."

The analysis yielded six dimensions in which LGBT+ inclusion is linked to business performance:

  •   Financial performance: High-potential emerging-market companies which openly support LGBT+ inclusion suffer no negative impact on revenue growth or earnings before interest and taxes (EBIT).
  •  Global markets & supply chains: LGBT+ inclusion allows the high-potential emerging-market companies to more effectively tap into global markets and supply chains.
  •   Talent acquisition & retention: High-potential emerging-market companies which openly support LGBT+ inclusion are better able to attract and retain talent. 
  •  Brand strength & customer orientation: High-potential emerging-market companies which openly support LGBT+ inclusion see stronger brands & better customer orientation.
  •  Corporate governance: LGBT+ inclusive policies can be taken as an indicator of stronger corporate governance.
  •  LGBT+ inclusive cities: LGBT+ inclusive cities can provide a supportive environment to help boost the competitiveness of high-potential emerging-market companies.

In addition to featuring examples of emerging-market companies taking external actions to advocate for LGBT+ inclusive societies, the report also includes in-depth case studies of Godrej, Natura and Wipro's inclusion journeys. These case studies identified three key stakeholder groups that drive companies to focus on LGBT+ inclusion - senior leadership, employees and external stakeholders (i.e. consumers and civil society).

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