RESEARCH SERIESNew Global Champions
Why fast-growing companies
from emerging markets areembracing LGBT+ inclusion

DISCLAIMER
This report is prepared for information purposes only by Open For Business. While the report has been prepared based upon sources, information and systems
believed to be reliable and accurate, they are provided on an “as-is” basis. The information contained in this report is intended as a guide only, and whilst believed
to be correct at the date of publication, is not a substitute for appropriate legal or financial advice, detailed specific research or the exercise of professional
judgement. Open For Business, its coalition partners, the contribution authors to this report, or the members of the Open For Business Research Advisory Board
have not, and will not, verify the information in this report, and in no event will they be liable for any decision made or action taken in reliance of the results
obtained through the use of, or the information or data contained in, this report. Neither the authors nor any contributors to this report make any representation,
expressed or implied, or accept any responsibility, with respect to the accuracy or completeness of the information in this report. The opinions expressed in thisreport are those of the editorial team and do not represent an official position of Open For Business or any of the companies supporting the coalition.

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Contents
About Open For Business

4

About this Report

5

Executive Summary

6

Forewords

9

Introduction

11

Section 1: LGBT+ inclusion in high-potential emerging-market companies

14

Section 2: Links between LGBT+ inclusion and business performance

22

Section 3: Actions that high-potential emerging-market companies
are taking on LGBT+ inclusion

32

Appendices and Sources40

Acknowledgements

50

Talking about LGBT+ inclusion

51

4Open For Business

About Open For BusinessOpen For Business is a coalition of
global companies making the casethat inclusive, diverse societies are
better for business and better for
economic growth. The purpose of
the coalition is to advance LGBT+
inclusion globally, by promoting the
economic and business case for
equality of opportunity foreveryone, all across the world.

Open For Business coalition partners
share a deep-rooted commitment todiversity and inclusion in their own
workplaces, and they are concerned
about the spread of anti-LGBT+ policies
in many countries in which they operate.
In order to promote open and inclusive
societies where business can flourish,
the coalition presents the data that
demonstrates inclusion is better forbusiness and better for economic
growth.

Open For Business

About this report
What is the purpose of this report?

Who are the authors?

This report aims to further strengthen
the business case for LGBT+ inclusion,
with a focus on emerging markets –where support for LGBT+ inclusion isoften most needed. Many of the fastest
growing companies based in emerging
markets are embracing LGBT+ inclusion.
This report presents a qualitativeevaluation of this trend, and explores
the underlying drivers.

Boston Consulting Group, led by Elliot
Vaughn, Pavlos Papaefstathiou andJoanna Green, undertook the coreresearch. Additional research, final
analysis and writing of the report wasundertaken by the Open For Business
team, led by Drew Keller in Washington
DC, alongside Tisha Cromwell andCJ Lin as well as Yvonne Muthoni in
Nairobi, Kenya. Contributing authors
include Ann-Kathrin Richter, Ruairidh
Macintosh, James Moss and Monica
Rivero of the Brunswick Group. Godrej,
Natura and Wipro contributed theirperspectives on and experience inpromoting LGBT+ inclusive societies intheir home countries. Jon Miller is theexecutive editor of Open For Business.

What is its scope?
This report presents a comprehensive
evidence base linking LGBT+ inclusion
with the business performance of agroup of the fastest growing companies
headquartered in emerging markets.
Building upon the global evidence basedeveloped by Open For Business, italso includes the internal and external
actions that businesses can take topromote LGBT+ inclusive societies.

Who is this report for?
For companies headquartered inemerging markets, this report provides
a strong business rationale for LGBT+
inclusion.
For civil society organisations seeking
to work with businesses in emerging
markets, this report provides compellingarguments to secure more corporate
support.
For policymakers in emerging markets,
this report shows how LGBT+ inclusion
can boost the competitiveness of fastgrowing companies. This report shows
why LGBT+ inclusion is a business andeconomic issue.

The Open For BusinessResearch Advisory Board
The work of Open For Business is
supported by a Research Advisory
Board, which provides ongoingguidance and feedback, and helps
to ensure the economic case for
LGBT+ inclusion is comprehensive
and up to date.

Pawel Adrjan
Economist, Indeed

M.V. Lee Badgett
Professor of Economics,
University of Massachusetts
Amherst, U.S.

Felicity Daly Dr.PH
Researcher, “Strong in Diversity- Bold on Inclusion“ Project, theInstitute of CommonwealthStudies, School of Advanced
Study, University of London

Paul Jansen
Senior Advisor for Global
Advocacy, OutRight Action
International

Dr. Vivienne Ming
Cognitive neuroscience faculty
member of Singularity University;
Co-Founder of Socos Lab

Suen Yiu Tung
Founding Director of Sexualities
Research Program, Chinese
University of Hong Kong

Matteo Winkler
Professor of Law, HEC Paris

56Open For Business

Executive summary
Many of the fastest growing companies based in emerging markets are embracing LGBT+ inclusion. This report presents aqualitative evaluation of this trend, and explores the underlying drivers. The sample of selected companies for this research
represent 96 of the fastest growing companies headquartered in emerging markets. They are poised to become the world’s
next global firms and are quickly improving on global best practices to secure this position. One of these best practices thecompanies are beginning to adopt and improve upon is LGBT+ inclusion, even though many are based in countries or cities
that are dangerous or hostile for the LGBT+ community.

Since 2015, support for LGBT+
inclusion has doubled among
fast-growing companies inemerging markets

This report examines how support for
LGBT+ inclusion has grown over recent
years by comparing the latest resultswith data from Open For Business
reports published in 20151 and 2018.2
In that time, the number of companies
that have public policies against LGBT+
discrimination has doubled: from 19 in2015 to 37 in 2019.

In this report, we categorise thecompanies into three Tiers according towhether they have public statements
against LGBT+ discrimination (Tier 1),
public statements against generaldiscrimination (Tier 2) or no publicstatements (Tier 3). The results showthat only a minority of companies (22%)
have no public statements at all.

This is impressive, given that many ofthese companies are based in countries
with a mixed record on LGBT+ inclusion.
Seven countries have laws that can leadto the arrest of LGBT+ people, 12 do nothave workplace protections, and 14 do
not recognise marriage equality.3

Tier 1
Public statement against LGBT+ discrimination

22%
39%

Tier 2Public statement against general discrimination

39%

Tier 3
No public statement against discrimination

Figure 1: 39% of companies explicitly prohibit discrimination based on
sexual orientation and/or gender identity.

Open For Business

LGBT+ inclusion allows highpotential emerging-market
companies to more effectively
connect with global markets andsupply chains, without seeing any
negative financial impacts.

An analysis of financial indicators
finds that the companies which openly
support LGBT+ inclusion suffer nonegative impact on revenue growthor earnings before interest and taxes(EBIT) margins. This finding holds whenindustry and region are controlled for.*This finding empirically shows that fears
of reputational and revenue damage
from supporting LGBT+ inclusion, which
are common in anti-LGBT+ markets, arelikely overstated.

7

The analysis found a direct relationshipbetween a company’s support for
LGBT+ inclusion and its ability to more
effectively connect with global markets
and supply chains: companies who arein Tier 1 see 20 percentage point higher
proportion of revenue come frominternational sources than those thatare in Tier 3. This finding holds whenindustry and region are controlled for.**

70

60
10 pp
50
10 pp
40

30

20

10

0

Tier 3
No public statement
against discrimination

Tier 2Public statement
against general discrimination

Tier 1
Public statement against
LGBT+ discrimination

Figure 2: A Tier 1 company that is located in the same region andoperates in the same industry as a Tier 3 company can expect to see 20
percentage points more revenue come from international sources.****	Industries included in the analysis are industrial goods, consumer goods, TMT (tech, media, telecommunications), financial institutions and insurance. Regions included are Africa/Middle
East, Asia Pacific, Europe and Latin America. Please see Appendix A for more details.
**	Please see Appendix A for more details on the regression results.
***	For the example in the chart, we assume the Tier 1, Tier 2 and Tier 3 companies are based in the Africa/Middle East region and operate in the energy industry.

8Open For Business

There are a number of connections
between LGBT+ inclusion andbusiness performance in highpotential emerging-market
companies.

This report explores the links between LGBT+ inclusion and the performanceof high potential emerging market companies through an analysis of financial
data and a series of interviews with leaders of the companies in this cohort. Thisquantitative and qualitative review yields six dimensions in which LGBT+ inclusion islinked to aspects of business performance:

1. Financial performance

High-potential emerging-market companies which
openly support LGBT+ inclusion suffer no negative
impact on revenue growth or earnings before interestand taxes (EBIT).

See p25

2. Global markets &supply chains

LGBT+ inclusive companies have a higher proportion ofinternational revenues, indicating they can more
effectively tap into global markets and supply chains.

See p25

3. Talent acquisition &retention

High-potential emerging-market companies which
openly support LGBT+ inclusion are better able toattract and retain talent.

See p27

4. Brand strength &customer orientation

High-potential emerging-market companies which
openly support LGBT+ inclusion see stronger brands &better customer orientation.

See p27

5. Corporate governance

LGBT+ inclusive policies can be taken as an indicator ofstronger corporate governance.

See p28

6. LGBT+ inclusive cities

LGBT+ inclusive cities can provide a supportive
environment to help boost the competitiveness ofhigh-potential emerging-market companies.

See p29

Open For Business9

Forewords
Parmesh Shahani
Author and Founder,
Godrej India Culture Lab

There is a growing body of evidence thatshows diverse and inclusive societies
foster an environment that enables
businesses to thrive and economies toprosper. By bringing together different
groups of people, societies cultivate an
ecosystem where ideas are exchanged,
creativity flows and value is unlocked
through innovation. Diversity comesin various forms and there remains
significant progress to be made for one
particular group – the LGBT+ community.
As economies around the worldcontinue to grow, it is encouraging
to see that many are changing theirlaws to be inclusive of the LGBT+
community – India, together with Angola,
Belize, Bhutan, Botswana, Lesotho,
Mozambique, Nauru, Palau, Seychelles
as well as Trinidad and Tobago, havedecriminalised same-sex acts in thelast five years. However, many countries
remain unfriendly for LGBT+ people,
which creates growing tension forcompanies headquartered there thatare looking to adopt best practices
on LGBT+ inclusion as they grow andexpand across borders.
One of the most common concerns
emerging-market companies have on
becoming more LGBT+ inclusive is thepotential negative impacts on theirreputation and financial performance.
Companies are worried that open
support for LGBT+ inclusion could
trigger a backlash from their customers.
The findings from this report show
otherwise. An analysis of the highpotential emerging-market companies
found that LGBT+ inclusion enables
these companies to tap into global
markets and supply chains more
effectively, without seeing any negative
financial impacts.

Against today’s backdrop of intensecompetition, diversity and inclusion
are now essential if companies andsocieties want to foster sustainablegrowth. This is especially true for
emerging-market companies as they
continue to grow beyond their homemarkets and compete with their global
competitors. Furthermore, consumer andemployee expectations of businesses
are changing and a narrow focus onserving just shareholders is no longer
enough. Businesses are increasingly
seen as having a responsibility to thesocieties and communities in which they
operate.
Similar to how our 2018 Godrej white
paper on transgender inclusion serves
as a public resource for other companies
to use, this report presents compelling
evidence for emerging-market
companies to initiate or continue their
LGBT+ inclusion journeys.
More importantly, this report sends
a strong message to businesses
headquartered in emerging markets.
Each of them has a role to play increating a more diverse and inclusive
workforce, and this will foster theenvironment needed for businesses tothrive. Businesses need to take a standand engage with their stakeholders,
especially civil society organisations
and policymakers, to work together
because LGBT+ inclusion will ultimately
benefit everyone, not only the LGBT+
community.

10Open For Business

Elliot Vaughn
Global Pride@BCG Leader,Managing Director & Partner,
Boston Consulting Group

Looking across the globe, I see
tremendous progress towards LGBT+
inclusion by the corporate sector,
with 261 companies now signed up to
the United Nations’ global standards
for business to tackle discrimination
against LGBT+ people. But while big
global brands in mature markets havereceived much attention, multinationals
in emerging markets have been left outof the discussion. This study changes allthat.
In our ground-breaking research, wehave looked at almost 100 leading
multinationals in emerging markets,
how LGBT+ inclusive they are, andhow that feeds into their businesssuccess and their ability to expand
internationally. What we have found ispositive: some 40% of the high-potential
emerging-market companies explicitly
prohibit discrimination based on sexual
orientation and/or gender identity, with
38 of the companies stating that they
promote equal opportunity employment,
specifically mentioning sexual
orientation and/or gender identity, and36 stating that they promote equal
opportunity employment, although
without making specific mention ofsexual orientation or gender identity.
Case studies underline the progresscompanies are making. Brazil’s Natura,for example, introduced its diversity andinclusion policy in 2014. In India, Wipro
last year announced that it would add
LGBT+ to its long-standing diversity
and inclusion policy. And Godrej, which
has long supported LGBT+ rights, in2011 funded and housed the India
Culture Lab, a public platform that
fosters a wide range of conversations
on contemporary India, including LGBT
issues. What these and other companies
demonstrate is that LGBT+ inclusion isfar from limited to western brands.

Importantly, our research also showsthat these companies, headquarteredin emerging markets, incur no economic
penalty for being LGBT+ inclusive – infact, they are more likely to grow fasteron the world stage. The global economic
and business case for LGBT+ inclusion
has been well documented in previous
Open For Business reports. What our
new report shows is that high-potential
emerging-market companies can also
benefit, enabling them to tap into
international markets and supply chains.
More broadly, recent research byOpen for Business has found acorrelation between GDP growth andLGBT+ inclusion. These findings areimportant. Evidence of links between
the friendliness of countries towards
the LGBT+ community and economic
success provides powerful arguments
about the benefits of openness, helping
promote change in greater numbersof markets. As attention moves toemerging-market companies, LGBT+
inclusion is creating a stage on which
they can step forward and show
the world how they want to position
themselves for the future.

Open For Business

11

Introduction
Companies headquartered in emerging economies are increasingly taking action to advance LGBT+ inclusion – even when
they are based in countries that are hostile towards LGBT+ people. These actions may include measures to promote LGBT+
inclusive workplaces, as well as taking action outside the business, as advocates in the public sphere.

A number of Brazilian companies
have taken an increasingly publicstance on LGBT+ inclusion – inspite of, or perhaps because of,the increasingly hostileenvironment for LGBT+ people inBrazil:Cosmetics company Natura has actively
implemented advertisement campaigns
to promote LGBT+ rights in Brazil. For
National Kiss Day in 2019, the company
promoted its new Love Collection
products through advertisements thatfeatured three lesbian couples kissing.4
Gol Airlines, a Brazilian airline and cargotransportation provider, has presented
market data and shared best practices
for marketing to LGBT+ travellers at
Fórum de Turismo LGBT do Brasil.5

Same-sex acts have been
decriminalized in India, but theLGBT+ community still faces a longroad to equality: many LGBT+
people still suffer stigmatizationand discrimination. Increasingly,
Indian companies are publicly
supporting LGBT+ inclusion:

Mahindra Group, a multinational
conglomerate headquartered in Mumbai,
made a clear statement by firing an
employee that made homophobiccomments.12 Mahindra Groupchairman, Anand Mahindra, Tweeted,“I can categorically assure you that wecelebrate diversity in our workplace.
Our Code of Conduct is explicit on
this subject. Fairness & dignity of
the individual is enshrined in our corevalues.” 13
In India, The LaLiT Suri Hospitality
Group, a leading privately-owned
hospitality company, has hosted Prideparade parties and invited famous dragartists to perform.14 The company also
supported decriminalisation in India
by joining a petition* that challenged
Section 377 of the Indian Penal Codethat criminalises same-sex consensual
relationships.**Chinese global businesses are also e-commerce company Alibaba partneredwith BlueD to send 10 same-sex couples
working to promote LGBT+
acceptance across their platforms: from China to get married in California.
An Alibaba’s spokesperson said that thecompany hopes their actions will “raiseawareness and respect and understanding of gay people.” 7 Alibaba was thefirst major Chinese company to publicly
support marriage equality and more
broadly, the LGBT+ community in China.8

Challenging social norms in China, BlueD
also launched an overseas surrogacy
service for gay men to help them
become parents.9

Braskem, Brazil’s leading petrochemicalcompany, was the first major company
to sign the Forum on Companies
and LGBT Rights initiative. FernandoMusa, president of Braskem,
reaffirmed Braskem’s responsibility
to strengthen LGBT+ rights. He said,“we are all potential agents of socialtransformation.6”

Cyberbullying, blackmailing and extortionis common in India for people using
gay dating apps. Taking a stand on
this, BlueD, China’s leading gay dating
application, launched India’s first anticyberbullying campaign for the LGBT+
community to raise awareness and offer
assistance to users.15
Tata Steel, now a global company
with operations in more than 100
countries and over 660,000 employees,16
was one of the early supporters of
LGBT+ inclusion in India, prohibiting
discrimination, offering same-sex
partner benefits and launching an
LGBT+ employee resource group – allwhen same-sex acts were criminalised
in India.17

Didi Chuxing, China’s leading ridehailing application, has promoted video
advertisements that featured a gay
couple holding hands in the back of ataxi.10
Cathay Pacific also ran anadvertisement depicting a same-sex
couple on a beach, as part of theairline’s effort to highlight its attitude
towards diversity.11

The public support for LGBT+ inclusion from companies such as these is encouraging. To explore this further, Open For
Business worked with Boston Consulting Group (BCG), a coalition partner. BCG regularly analyses the performance ofcompanies headquartered in emerging markets, with a particular focus on the most rapidly growing companies. Together, in
this report we analyse LGBT+ inclusion in a group of companies who are amongst the most high-potential companies in theworld.
*	Petitioners include Navtej Singh Johar, Sunil Mehra, Ritu Dalmia, Aman Nath, Keshav Suri and Ayesha Kapur.
**	On September 6, 2018, the Apex Court Bench decriminalised consensual adult same-sex intercourse (“What is Section 377 of IPC?“ 2018).

12Open For BusinessSupport for LGBT+ inclusion frombusiness leaders in emerging
economies“DLD14 Conference Day 2” by Hubert Burda Mediais licensed under CC BY-NC-SA 2.0

Keshav Suri by Cosmopolitan India“Being inclusive is not just the morally
right thing to do, but it has a lot of
benefits. You think more creatively; yousee things from varied perspectives.” 18“Inclusion has economic benefits as well,and people should see that. By including
members of the LGBTQ+ community
in society, by giving them respect, westand to enhance productivity, reduce
mental health issues, and see a higher
contribution to the GDP.” 21Peter Arvai
Co-founder and CEO of Prezi

Keshav Suri
Executive Director of The LaLiT Suri Hospitality GroupMarianna Moraes at the EXAME Diversity Forum(Flávio Santana/Biofoto/EXAME)

Marcelo Arantes by Portal dos Journalistas“When diversity becomes part ofeveryday life, we eliminate any kind of
barrier between people. Everyone iscapable and encouraged to do theirbest.” 19“By fostering relationships that arecollaborative and free from discrimination,
we create a working environment
where people can be themselves, thus
contributing to their engagement andsatisfaction.” 20Marianna Moraes
Director of Perfumery of Natura Brasil

Marcelo Arantes
Vice President for People, Communications, Marketingand Sustainable Development of Braskem

Open For Business

What is an “emerging market”?

While it is understood that the term “emerging markets” refers to economies
that are on track to becoming developed nations based on the assessment ofa range of socio-economic factors, there isn’t an agreed-upon list of countries
that are categorised as “emerging markets.” 22 In fact, there are a few widely
accepted classifications of “emerging markets” – the International Monetary
Fund (IMF), Morgan Stanley Capital International, Standard and Poor’s, and Dow
Jones each have their own lists of countries they consider to be “emerging
markets.”
For the purpose of this report, we have adopted the IMF’s classification of“emerging markets” which is based on three criteria:23• Per capita income level• Export diversification• Degree of integration into the global financial system
The IMF qualifies that the above criteria “are not the only factors considered indeciding the classification of countries.” The IMF further notes that the World
Economic Outlook Statistical Appendix states, “This classification is not basedon strict criteria, economic or otherwise, and it has evolved over time. The
objective is to facilitate analysis by providing a reasonably meaningful methodof organising data.” 24

13

14

Open For BusinessOpen For Business

Section 1
LGBT+ inclusion in high-potential
emerging-market companies

15

16

Open For Business

LGBT+ inclusion in high-potential
emerging-market companies
High-potential emerging-market
companies are the next frontier in
global growth – and LGBT+
inclusion.

Emerging-market companies havegrown faster than companies indeveloped markets in most industries
over the past decade. BCG, an OpenFor Business coalition partner,
regularly looks at the most rapidly
growing companies headquartered inemerging markets and, together, wehave identified a select group of 96
companies who are amongst the mosthigh-potential companies in the world.*
These companies were chosen basedon a combination of quantitative andqualitative criteria: they each have atleast $1 billion in annual revenue, atleast $500 million or 10% of revenue
coming from international sales, over
1,000 employees, and see growth rates
that outpace their home market’s GDP
and their industry’s average growth.
Exceptions were made for fast-growing,high-impact companies that are rapidly
approaching these thresholds.
The rapid growth of these companies
reflects the rapid growth of emerging
markets as a whole. According to theWorld Bank’s 2018 Global Economic
Prospects report, emerging markets
are expected to grow at 4.7% in
2019, compared to just 2% growth indeveloped markets.25 Credit Suisse
expects emerging markets to accountfor 27% of global wealth by 2023, up
from 24% in 2018.26 As the economic
centre of gravity moves further East,attention will increasingly focus on
these companies.
The high-potential emerging-market
companies included in this report arepoised to become the world’s next
great global corporations and many
companies which would previously
have been considered high-potential
companies based on similar criteria are
now among the largest companies in
the world, with truly global presences:companies such as Alibaba, Tata
Consultancy Services and Tencent.
This group of high-potential emergingmarket companies operates across 169
countries, reaching 99% of the world’s
population. They are headquartered in
19 countries, home to approximately
4.3 billion people. The top five locations,which represent approximately 67% of
the companies in the group, are includedin the following graph. Other locations
where the companies are headquartered
include Argentina, Chile, Colombia, Egypt,Indonesia, Kenya, Malaysia, Morocco,
Nigeria, Peru, the Philippines, South
Africa and Thailand.

100

80

6
6

60
9
18
40

25
20

0

China

India

BrazilMexicoFigure 3: Top 5 countries represent approximately 67% of thecompanies in the group.

*	Not all emerging markets are represented in the study.

TurkeyOpen For Business

As the high-potential emergingmarket companies grow andglobalise, they begin to adopt
global business best practices,
including LGBT+ inclusion, toaccelerate their growth.

The countries that these companies callhome have a mixed record on LGBT+
inclusion. Seven countries have lawsthat can lead to the arrest of LGBT+
people, 12 do not have workplace
protections, and 14 do not recognise
marriage equality.31 Even countries
with the most robust legal protections
face challenges with social integration.
For example, there are high levels ofanti-LGBT+ violence in South Africa
and Brazil is currently experiencing
homophobic and transphobic politicalrhetoric. As this report will show, thiscreates a challenging situation forthe high-potential emerging-market
companies that are focused on LGBT+
inclusion as a policy to boost their global
competitiveness.

According to BCG’s 2018 Global
Challengers report, which highlights theimportance of fast-growing companies
in emerging markets, these companies
have been leapfrogging their developed
world counterparts by being the“driving force behind the global digital
revolution”.27 They are learning fromand greatly improving upon global bestpractices set by multinational firms. And
this is true outside of digital innovation
as well. An increasing number of global
challengers are also beginning to adopt
and improve upon best practices in
LGBT+ inclusion.

evidence. In fact, 91% of Fortune 500
companies have policies that prohibit
discrimination on the basis of sexual
orientation. 83% prohibit discrimination
based on gender identity, up from 25%
in 2008.30 These companies continue toincrease their dedication to inclusionand diversity by signing on to global
standards like the United Nations
Standards of Conduct for Business ontackling discrimination against LGBT+
people, joining coalitions like Open For
Business, and participating in indices,such as those run by the Human Rights
Campaign, Stonewall, Community
Business and others.

The global economic and businesscase for LGBT+ inclusion has been
well documented in previous OpenFor Business reports published in
201528 and 2018.29 The largest andmost competitive companies in theworld understand and internalise thisWhile the majority of companies
focused on LGBT+ inclusion havetraditionally been based indeveloped markets, a growing
number of companies in emerging
markets are implementing LGBT+
inclusive policies. Analysis
conducted on the 96 companies
included in this report found that:17• 39% of the companies state that they promote equal opportunity employment,
specifically mentioning sexual orientation and/or gender identity. We refer tothese companies as Tier 1.
• 39% of the companies state that they promote equal opportunity employment,
although they make no specific mention of sexual orientation or gender identity.
We refer to these companies as Tier 2.
• The remaining 22% companies have no evidence of publicly available nondiscrimination policies. We refer to these companies as Tier 3.

Tier 1
Public statement against LGBT+ discrimination

22%
39%

Tier 2Public statement against general discrimination

39%

Tier 3
No public statement against discrimination

Figure 4: 39% of companies explicitly prohibit discrimination based on
sexual orientation and/or gender identity.

18

Open For Business

Airlines

Automotive
Consumer

Energy

LATAM

Chile

Turkish Airlines

TurkeyAnonymous

Malaysia

Engineered
products andinfrastructure

Alfa

MexicoElsewedy

Egypt

Votorantim

BrazilWEG

BrazilCielo

BrazilDr. Reddy’s

India

Apollo Tyres

India

Mahindra & Mahindra

India

Alpargatas

BrazilFinance &Insurance

Arca Continental

MexicoHealthcare

Brasil Foods

Brazil

Lupin

India

Concha y Torro

Chile

Sun Pharma

India

Falabella

Chile

GerdauBrazilFemsa

MexicoGrupo México

MexicoGodrejIndia

Indorama Ventures

ThailandGruma

MexicoOrbia*

MexicoLC Waikiki

TurkeyMercadolibre

Argentina

NaturaBrazilThai Union Frozen Food

ThailandPTT

ThailandReliance Industries

India

Processing, metals& mining

Tata SteelTechnology,
InfosysMedia &
Safaricom
Telecommunication
Tech Mahindra
Wipro
Anonymous

India
India
Kenya
India
India
Malaysia

Note: Two companies in the above analysis, both headquartered in Malaysia, have been anonymised to protect employee safety, given LGBT+ attitudes in the
country.

Table 1: A new generation of successful businesses based in emerging markets are supporting LGBT+ inclusion.

Why LGBT+ inclusion? Why is“general” inclusion not enough?

This report highlights companies that are supporting LGBT+ inclusion. Whilst
increasing numbers of companies are making public statements against generaldiscrimination, the evidence shows that this isn’t enough: sexual orientation
and/or gender identity must be explicitly mentioned in order for a company to betruly LGBT+ inclusive. There are a number of reasons for this.
In many of the countries included in this report, LGBT+ people suffer a highdegree of marginalisation, social exclusion and even criminalisation. Generalstatements of inclusion don’t reach such marginalised individuals: even if acompany states that its equal opportunities policies include “everyone”, LGBT+
people will assume “everyone” doesn’t include them.
While all aspects of inclusion are necessary for a company to truly thrive, LGBT+
inclusion is the frontier for inclusion and diversity. Companies that support
LGBT+ inclusion clearly signal that they are leaders in diversity and inclusion,
which in turn sends a clear message that everybody is welcome.

*

Until September 2019, Orbia was known as Mexichem.

Open For BusinessSupporting LGBT+ inclusion is a
growing trend among highperforming companies in emerging
markets

19

Open For Business analysed a similar cohort of companies in reports published in
201532 and 201833 , and comparing these results shows that there is growing support
for LGBT+ inclusion among high-performing companies in emerging markets. In thattime, the number of Tier 1 companies has nearly doubled: from 19 in 2015 to 37 in
2019.
40
37
35
31
30

25

20

19

15

10

5

0

2015

2018

2019

Tier 1
Public statement against LGBT+ discrimination

Figure 5: The number of Tier 1 companies has nearly doubled from 2015
to 2019.

20

Open For BusinessSpecial Focus

LGBT+ inclusion differs across industry andcompany ownership
When the high-potential emerging-market companies are analysed based on industry, type of business and company
ownership, interesting patterns arise which show that certain types of companies are more likely to be LGBT+ inclusive. Our
analysis found that the following companies are most likely to be inclusive:

Companies which belong to theConsumer and TMT* industries,
with 57% and 50% categorised asTier 1, respectively. The industry
least likely to support LGBT+
inclusion is automotive, with only
17% of companies categorised asTier 1.

Tier 1
Public statement against
LGBT+ discrimination

Tier 2Public statement against
general discrimination

Tier 3
No public statement
against discrimination
17%

25%
50%

57%

38%

50%
44%
38%
30%

24%

Companies which operate primarily
as business-to-consumer (B2C),
with 56% categorised as Tier 1.

19%

20%

23%

Consumer

TMT

Processing,
Metals & Mining

31%

33%

EPI

Automotive

26%

35%

56%

37%

57%
26%

28%

B2B

Companies which are family-run,with 58% categorised as Tier 1.
Family-run companies are 1.8
times more likely to support LGBT+
inclusion than non-family-run
companies.

17%

19%

Both

B2C

32%
58%

40%

33%
28%
8%
Family-run

Not family-run

Interestingly, these trends show that companies which are consumer-facing are the most LGBT+ inclusive. This may seemcounterintuitive to some, since public opinion in many emerging markets is not so supportive of LGBT+ inclusion or may
be actively hostile. However, many of these companies market to a global audience of consumers and so develop a more
inclusive outlook. As this report will show, LGBT+ inclusive companies have greater customer orientation and are better at
generating brand preference, and LGBT+ inclusion brings a broad range of business benefits that help high-potential emerging
market companies outperform their competition.
*

Technology, Media and Telecommunications.

Open For Business

High-potential emerging-market
companies which openly support
LGBT+ inclusion suffer no negative
impact on revenue growth or EBIT
margins.

21

The growing number of emerging-market
companies supporting LGBT+ inclusion
runs counter to conventional wisdomthat such support would damagea company’s reputation and brand,leading to worse financial performance.
Open For Business has found that thisassumption is deeply held by manybusiness leaders in emerging markets.

The results show companies which
openly support LGBT+ inclusion suffer
no obvious negative impact onrevenue growth or EBIT margins.* Thissuggests that fears surrounding supportof LGBT+ inclusion may be overblown.
At the very least, the first attempt toquantify them can find no evidence tosupport them.

However, until now there has not been
any quantitative evaluation of thefinancial impact of LGBT+ inclusionin emerging markets. We analysed
the relationship between support for
LGBT+ inclusion and three aspects ofa company’s financial performance:
Revenue growth, EBIT margin andproportion of revenue from internationalsources. The analysis used multivariate
regression to account for differences inregion and industry to more accurately
assess the relationship with LGBT+
inclusion.

This is consistent with a growing
evidence base of global, mainly
developed-market companies,
which shows that LGBT+ inclusion
is connected to higher share priceperformance, higher return on equity
and stronger free cash flow.

LGBT+ inclusive companies within the sample groupshow revenue growth in line with peers

0.70

0.70

0.60

0.60

0.50

0.50

Revenue CAGR ‘16 to ’18

Average EBIT margin ‘16 to ’18

LGBT+ inclusive companies within the sample group
have an EBIT margin in line with peers

0.40

0.30

0.20

0.10

0.40

0.30

0.20

0.10

0.00

0.00

-0.10

-0.10

-0.20

Tier 3Tier 2Tier 1

No public
statement against
discrimination

Public statement
against generaldiscrimination

Public statement
against LGBT+
discrimination

Mean

14%

12%

14%

N

21

35

36

-0.20

Tier 3Tier 2Tier 1

No public
statement against
discrimination

Public statement
against generaldiscrimination

Public statement
against LGBT+
discrimination

Mean

14%

13%

10%

N

19

36

37

Figure 6: Multivariate regression shows that Tier 1 companies suffer no
obvious negative impact on revenue growth and EBIT margins.

*

There were very slight differences in mean EBIT margins and revenue growth, but none of the differences were statistically significant.

22Open For BusinessOpen For Business

Section 2
Links between
LGBT+ inclusion and business performance

23

24

Open For Business

Links between LGBT+ inclusion
and business performance
Links between LGBT+ inclusion
and business performanceThis report explores the links between LGBT+ inclusion and the performanceof high potential emerging market companies through an analysis of financial
data and a series of interviews with leaders of the companies in this cohort. Thisquantitative and qualitative review yields six dimensions in which LGBT+ inclusion islinked to aspects of business performance:

1. Financial performance

High-potential emerging-market companies which
openly support LGBT+ inclusion suffer no negative
impact on revenue growth or earnings before interestand taxes (EBIT).

See p25

2. Global markets &supply chains

LGBT+ inclusive companies have a higher proportion ofinternational revenues, indicating they can more
effectively tap into global markets and supply chains.

See p25

3. Talent acquisition &retention

High-potential emerging-market companies which
openly support LGBT+ inclusion are better able toattract and retain talent.

See p27

4. Brand strength &customer orientation

High-potential emerging-market companies which
openly support LGBT+ inclusion see stronger brands &better customer orientation.

See p27

5. Corporate governance

LGBT+ inclusive policies can be taken as an indicator ofstronger corporate governance.

See p28

6. LGBT+ inclusive cities

LGBT+ inclusive cities can provide a supportive
environment to help boost the competitiveness ofhigh-potential emerging-market companies.

See p29

Open For Business

1. Financial performance

High-potential emerging-market
companies which openly support
LGBT+ inclusion suffer no negative
impact on revenue growth or EBIT.
As illustrated in the previous section,
our analysis found that the highpotential emerging-market companies
which openly support LGBT+ inclusion
suffer no negative impact on revenue
growth or EBIT margins, even when
their industry and region are taken into
account.

25• A study in Kenya found that the top
24 ethnically diverse companies listedon the Nairobi Securities Exchange
achieved a 5-year absolute returnof 1.8% compared with the bottom
23 companies, which saw a 5-year
absolute loss of 12.9%.34• A study in Zambia analyzing 22 firms
listed on the Lusaka Stock Exchangefound a positive correlation between
the proportion of women on the board
and return on assets and return on
equity.35

There is, therefore, no evidence that• A global study by Credit Suisse of
public support of LGBT+ inclusion harms
3,000 companies in 56 countries founda company’s reputation and financial
that firms where over 20% of top
performance. In fact, there is a growing
managers are female had stronger
evidence base that shows diversity
share price performance.36
positively correlates with better financial
performance:

2. Global markets & supply chains

LGBT+ inclusion allows highpotential emerging-market
companies to more effectively tap
into global markets and supply
chains.
In addition to the revenue growth and
EBIT margin regressions describedabove, we also analysed how acompany’s proportion of revenue thatcomes from international sources isrelated to support for LGBT+ inclusion.

The results show that companies that
openly support LGBT+ inclusion (Tier 1) see
a 20 percentage point higher proportionof revenue come from internationalsources than those that are in Tier 3.
Importantly, these results control for theeffects that industry and region haveon proportion of international revenue.
In other words, for two companies inthe same region and industry, one that
explicitly supports LGBT+ inclusion is
expected to see a higher proportion ofrevenue come from international sources.

70

60
10 pp
50
10 pp
40

30

20

10

0

Tier 3
No public statement
against discrimination

Tier 2Public statement
against general discrimination

Tier 1
Public statement against
LGBT+ discrimination

Figure 7: A Tier 1 company that is located in the same region andoperates in the same industry as a Tier 3 company can expect to see 20
percentage points more revenue come from international sources.**

For the example in the chart, we assume the Tier 1, Tier 2 and Tier 3 companies are based in the Africa/Middle East region and operate in the energy industry.

26

Open For Business

Furthermore, amongst the top 10
high-potential emerging-market
companies ranked by the proportionof revenue coming from internationalsources, 7 explicitly do not tolerate
LGBT+ discrimination. In the bottom
10, only one protects against LGBT+
discrimination.

RankingCompany

1

Infosys2

Tech Mahindra Limited

3

Inodrama Ventures

4

Anonymous

5

Wipro

8

Thai Union Frozen Foods

10

LATAM Airlines

Table 2: 7 of the top 10 companies ranked by proportion of international
revenue that support LGBT+ inclusion.

This analysis shows a strong
relationship, but it does not confirm
if LGBT+ inclusion or greater levels ofinternational revenue happens first.
Some of these companies might havefirst adopted LGBT+ inclusive policies,
which then paved the way for their highlevels of international revenue. However,other companies might have had strong
international revenues before adopting
LGBT+ inclusive policies. These firms
might have had to adopt these policies
to continue attracting talent andconsumers in more inclusive markets.
Regardless of the causal direction,
though, it becomes clear that LGBT+
inclusive policies and international
revenues go hand-in-hand. It also fits
in with a larger body of evidence whichshows that inclusive companies are
more effective at tapping into global
markets and supply chains.

The companies and organisations
trading in the global marketplace tend tobe those which have implemented global
standards of best practice with regard
to LGBT+ inclusion – and they expect thesame of those they do business with.
Therefore, emerging market companies
that foster a culture of diversity andinclusion may find it easier to engage
with global markets.
An increasing number of global
companies are beginning to incorporate
LGBT+ inclusion into their supplier codesof conduct, and these companies are
insisting on working with suppliers
that are LGBT+ inclusive. Companies
that prohibit LGBT+ discrimination in
their supply chain include Diageo37,
Dow Chemical38, EY39, Google40, GSK41,
IBM42, Inditex43, KPMG44, LinkedIn45,
Mastercard46 and Microsoft.47

Open For Business3. Talent acquisition & retention

High-potential emerging-market
companies which openly support
LGBT+ inclusion are better able toattract and retain talent.
As companies begin to globalise, they
compete with global companies for thebest talent. LGBT+ inclusion is a key
factor that top talent look for whenselecting a place to work. Additionally,
as companies increase M&A activity in
LGBT+ inclusive countries, they need toadopt LGBT+ inclusive policies to avoid
losing talent.
Top talent around the world arelooking for inclusive places to work. For
instance:• In a global study of allies who support
LGBT+ inclusion, 72% said that theywould be more likely to accept a job
at a company that is more supportiveof LGBT+ employees.48• Another study focused on Hong
Kong found that 80% of LGB people
are more likely to accept a job in acompany that is LGBT+ inclusive.49

4. Brand strength & customer
orientation

High-potential emerging-market
companies which openly support
LGBT+ inclusion see stronger
brands and better customer
orientation.
LGBT+ inclusive companies can position
themselves as global and progressive
companies, which improves theirbrands, at home and around the world.
Today’s globally aware consumers are
increasingly attuned to the values of
the companies they buy from. This istrue for a broad base of consumers, notjust LGBT+ individuals.
• The global “millennial” generation
expects brands with shared values:
there are 1.8 billion millennials
globally, and research suggeststhat they share similar values
across nations.52 A study by Boston
Consulting Group found millennials
expect brands to “say something
about who I am, my values, and where
I fit in”.53• In several studies around the world,the majority of the populations
surveyed believe that LGBT+ people
should not be discriminated againstin the workplace. For example, 58%of people in India, 63% in Kenya, 65%27• A survey of the US population foundthat 72% of non-LGBT+ people
expect a company to have a policy
prohibiting discrimination based on
sexual orientation or gender identity
when looking for a place to work.50
In addition, emerging market companies
are acquiring developed market
companies at a fast-growing rate. From2000 to 2013, growth in emerging todeveloped deals grew at double digits
on an annual basis.51 The two main
reasons behind these deals are toaccess new knowledge or technology
and to access new markets andcustomers. Many developed market
firms that are acquired likely have
LGBT+ inclusive policies in place, andthese new employees will expect
the acquiring company to be LGBT+
inclusive as well, even though it isheadquartered in an LGBT+ unfriendly
country.

in Mexico, 56% in Nigeria, and 62%
in the Philippines agree or strongly
agree that LGBT+ people should beprotected at work.54
In many countries, companies focusedon diversity and inclusion are reportingstronger brands and public image.
• 88% of respondents to a survey
amongst Kenyan business leadersreported that their organisation has
an improved public image as a resultof being more diverse and inclusive.
• Sodexo found that an organisation’s
brand image strengthens by 5
percentage points when there is an
optimal gender balance within theorganisation.55• 88% of US marketers agreed in asurvey that the use of diverse images
helps a brand’s reputation.56• A survey conducted by Accenture
found that millennials are more
likely to choose one brand overanother if that brand demonstrates
diversity and inclusion in terms of its
promotions and offers, its in-store
experience, its product range and its
environmental awareness.57

28

Open For Business5. Corporate governance

LGBT+ inclusive policies can betaken as an indicator of stronger
corporate governance.
Good corporate governance is essential
for companies seeking to access global
markets, to broaden their investor base,to avoid risks of fraud and corruption,and to generally make good strategic
decisions. Consequently, corporate
governance has been a growing focus
for companies around the world.
Mounting evidence shows that LGBT+
inclusive policies are a signal ofstronger corporate governance. Thishas been picked up by establishedinstitutional investors, which are
increasingly focusing on diversity
and inclusion issues within investee
companies, and particularly at theboard level. Many of the world’s biggest
asset owners and managers arefocusing on board diversity, including
public pension funds and institutional
investors such as BlackRock, Vanguard,
and State Street. BlackRock, the world’s
biggest institutional investor, argues
that “one of the most important meansof improving governance is throughboard diversity”.58 They recognise thatdiverse boards are more effective
than ‘identikit’ teams: in particular,
they deliver better decision-making,and firms with better gender balanceat board and management levels
outperform their peers on a variety offinancial measures.59

A growing body of evidence shows that
corporate governance is improved bydiverse board composition. This applies
in emerging economies too:
• A study of 244 firms listed on six
stock markets in the Arabian Gulf
found that board gender diversity
is positively associated with robust
corporate social responsibility
reporting in Bahrain and Kuwait,
something that is becoming
increasingly valued by institutional
investors.60• This shows that a focus on diversity
and inclusion could set emerging
market companies apart from theircompetitors when it comes toattracting investment.

Open For Business

6. LGBT+ inclusive cities

LGBT+ inclusive cities can provide
a supportive environment to help
boost the competitiveness ofhigh-potential emerging-market
companies.

inclusive and economically competitive
they are. For both the cities and thecompanies they host, LGBT+ inclusion
is mutually reinforcing: this report findsthat companies headquartered in cities
which receive higher Open For Business
City Ratings are more likely to support
LGBT+ inclusion.* This suggests that
there is a virtuous cycle that takes
place in inclusive cities. These cities,
which are already more economicallycompetitive, enable their starcompanies to support LGBT+ inclusion
and tap into global markets, further
building on their competitiveness.

In Open For Business’s 2018 report
Strengthening the Economic Case, theeconomic case for LGBT+ inclusive
cities was introduced. The report foundthat cities which are LGBT+ inclusive
are more economically competitive
because they are more innovative,
have higher concentrations of talented
individuals and have a higher quality oflife. The Open For Business City Ratings
rated 121 cities based on how LGBT+

Hostile / dangerous

14

Tolerant

Inclusive / partly inclusive

0%

17

5

1

14

9

10

6

10%

20%

29

11

30%

40%

50%

60%

70%

80%

90%

100%

Figure 8: Companies headquartered in cities which receive higher OpenFor Business City Ratings are more likely to support LGBT+ inclusion.

*

Note: HQ LGBT+ City attitude data not available for all companies

30

Open For Business

However, while this may be the trend,
it is also true that the high-potential
emerging-market companies canimplement LGBT+ inclusive policies incities that are hostile or dangerous for
the LGBT+ community.

As an example, many of the highpotential emerging-market companies
that explicitly protect LGBT+ employees
against discrimination are basedin India, which only de-criminalised
homosexuality in September 2018:

High-potential emerging-market companies HQ Country

HQ City

Infosys

India

Bangalore

Wipro

India

Bangalore

Dr. Reddy’s

India

Hyderabad

Tech Mahindra Limited

India

Mumbai

Lupin

India

MumbaiSun Pharmaceuticals

India

MumbaiReliance Industries

India

MumbaiGodrej Consumer Products

India

Mumbai

Mahindra & Mahindra

India

MumbaiTable 3: Many of the high-potential emerging-market companies that
explicitly protect LGBT+ employees against discrimination are based inIndia.*
Now that same-sex acts are legal in
India and many transgender inclusive
laws exist, there is a strong interest in
the business community to implement
policies that protect LGBT+ people
from discrimination. However, thesecompanies have already taken the firststeps to get their inclusion initiatives
underway, enabling them to appear
more authentic about their commitment
to LGBT+ inclusion. Additionally, thefact that LGBT+ inclusive Indian
high-potential companies are able toglobalise more effectively and are aided
by supportive city policies provides acompelling case for city and national
governments that want to provide
a competitive environment for theirindigenous companies.
Although the majority of companies
protecting LGBT+ employees in themost challenging cities exist in India,
there are many others that exist in thiscohort.

High-potential emerging-market companies

HQ Country HQ City

Elsewedy

Egypt

Cairo

Safaricom

Kenya

Nairobi

Turkish Airlines

TurkeyIstanbul

LC Waikiki

TurkeyIstanbul

Table 4: Companies outside of India that protect LGBT+ employees in
the most challenging cities.

*

These companies supported LGBT+ inclusion while same-sex acts were still criminalised in India..

Open For Business

31

The important role of cities in emerging markets and how LGBT+ inclusion
enables emerging-market cities to be more competitive.
More than half of the world’s population has been living in urban areas since 2007
and this is projected to rise to 60% by 2030.61 As the engines of economic growth,cities contribute about 60% of global GDP62 and accounted for 67% of global GDP
growth.63 More crucially, emerging-market cities are the main driver of economic
growth, accounting for 80% of the top 60 best-performing metropolitan areasranked by economic performance.64
Emerging-market countries that are looking to maintain their economic prosperity
would need to continually enhance their competitiveness. LGBT+ inclusion canplay an important role in this. In a report published in 2018,65 Open For Business’s
analysis showed that LGBT+ inclusion boosts cities’ competitive edge in three mainareas:
i. Innovation: The capacity to foster innovation is a key driver of a city’scompetitiveness, and evidence shows innovation and LGBT+ inclusion go handin-hand.
ii. Talent and skills: Cities with advanced education and high-level skills are
better able to compete in the global economy, and evidence shows that LGBT+
inclusive cities have higher concentrations of talented individuals.
iii. Quality of living: Providing a good quality of living is essential for cities seeking
to compete in the global economy, and evidence shows that quality of living
goes hand-in-hand with LGBT+ inclusion.

32

Open For BusinessOpen For Business

Section 3
Actions thathigh-potential emerging-market
companies are taking on LGBT+ inclusion

33

34

Open For Business

Actions that high-potential emerging-market
companies are taking on LGBT+ inclusion
The most progressive emerging-market companies are doing more than simply having policies that prohibit discrimination
based on sexual orientation and/or gender identity: they are taking action to make their workplaces, as well as thecommunities they operate in, more inclusive for everyone. Many global companies, including coalition partners of Open For
Business, have been working on these issues for a number of years. Our research finds that high-potential emerging-market
companies are on their own journeys towards LGBT+ inclusion, re-creating many global best practices for their local business
context. This section will identify practices from across these companies that make them more inclusive and competitive.

There are five themes that arise
from actions the high-potential
emerging-market companies havetaken on LGBT+ inclusion.

Interviews with the LGBT+ inclusivecompanies and desk research identified
five key themes that companies employ
to show their commitment to LGBT+
inclusion. These themes range fromhaving strong internal policies andprocesses to taking external actions

to promote LGBT+ inclusion in thecommunities companies operate in.
Companies excelled at specific themes
depending on their geographic andcorporate context, many of them relying
on other core competencies.

1. Company policies and processes

Policies and processes form the basefrom which a company’s workplace andculture is formed, and they can establish
the moral compass that steers theactions of employees in the workplace.
The leaders presented in this report
have examined their corporate policies
and processes to ensure they areinclusive and supportive of the LGBT+
community. This allows companies
to make the case for progressive
initiatives and provides an opportunity
for employees to flag any issues that
contravene policies.

gender-neutral language in all corporatematerials, introducing equitable benefits
for same-sex couples and requestingthat all suppliers and business partners
don’t discriminate based on sexual
orientation or gender identity.

Companies in this report that areleading on LGBT+ inclusion all havenon-discrimination policies that protect
LGBT+ people in the workplace. Manyof these companies have gone further
than this, focusing on implementing

2. Recruitment

Many other leading companies havebegun to refocus their recruitment
efforts to ensure that they are actively
attracting and hiring LGBT+ talent. This
helps to build a diverse workforce andenhances a company’s competitiveness,forming a virtuous cycle in which morediverse talent are attracted to join thecompany.
Companies have begun ensuring allinterviewers have undergone LGBT+sensitisation training and application
forms are using gender-neutral
language. Many have also begun
participating in or holding LGBT+focused recruitment events to bettertarget and engage with the LGBT+
community.

Examples:• Godrej and Natura updated theirpolicies to include anti-discrimination,
equitable benefits for same-sex
couples and gender reassignment
provisions for employees. In addition
to updating its Code of BusinessConduct and Supplier Code of Conduct
to prohibit discrimination based on
sexual orientation, gender identity andexpression, Wipro introduced genderneutral language on restroom signage.

Examples:• Reaching Out MBA (ROMBA), a nonprofit established in 1998 to educate,inspire and connect the LGBT+ MBA
community, held its first international
event in Brazil in 2015.66• WorkForLGBT, a non-profit foundedin 2015 devoted to advocating thewelfare of LGBT+ employees in
China,67 organises the Annual China
LGBT Talent Job Fair in Shanghai.68• Pride Circle, an organisation
established in 2017 to promote LGBT+
inclusion in the workforce in India,
organised the country’s first everLGBT+ job fair in 2019.69• Wipro uses gender-neutral language inapplication forms.

Open For Business

3. Affiliation

Several companies that are leaderson LGBT+ inclusion have also taken
steps to ensure LGBT+ employees feelincluded in the workplace. This affiliation
creates a platform that brings LGBT+
employees together, making them feel
welcomed, supported and connected
within their companies. These networks
can provide formal and informal career
support, professional development andmentorship for LGBT+ employees.
One of the more common initiatives
includes launching an Employee
Resource Group (ERG) that represents
LGBT+ employees and has the support
of a senior executive, as well as
providing it with a budget to organise
events aimed at connecting andsupporting LGBT+ employees. Manyof the best ERGs welcome non-LGBT+
ally employees to join the network todemonstrate firm-wide support for theLGBT+ community.

4. Cultural mindset

While the above initiatives contributetowards a pro-LGBT+ workplaceenvironment, many companies domore to build an overall mindset ofinclusion. Inclusive companies regularly
host LGBT+ sensitisation trainings
and sexual orientation and gender
identity workshops for employees. Morecrucially, senior management plays a bigrole in setting the tone and moulding
their organisation’s culture. The actions
that senior executives could undertake
ranges from engagement with andparticipation in LGBT+ ERG networks,
being role models by being out LGBT+
individuals themselves and making
statements of support for LGBT+
inclusion. There are many companies
who have created a special Diversity
and Inclusion Officer position to focus
full-time on building and maintaining an
inclusive workplace.

35

Examples:• Infosys Gays Lesbians and You (IGLU)
is the firm’s LGBT+ ERG that facilitates
dialogue on processes and policies
that affect LGBT+ employees.70• Wipro has a global LGBT+ network
called “Wipro Pride” which grew from24 initial members to more than 250
within the first year of establishment.
• Tata Steel launched Wings, its LGBT+
ERG, in 2018.71

Examples:• A number of companies, including Dr.
Reddy’s72, Femsa73, Godrej74, Infosys75,
Mahindra & Mahindra76, Mercadolibre77,
MTN78, Natura79, Reliance Industries80,
Sasol81, Tata Steel82, Tech Mahindra83
and Wipro84, have appointed specificemployees focused on diversity andinclusion.
• Keshav Suri, the executive directorof The Lalit Suri Hospitality Group
who identifies as part of the LGBT+
community, is a well-known LGBT+
activist in India. He filed a petition with
the Indian Supreme Court challenging
Section 37785 and he regularly speaks
out on LGBT+ issues.
• Wipro’s management tracks LGBT+
inclusion and trains employees by
including LGBT framed questions intheir monthly unconscious bias quiz.

36Open For Business

5. External engagement• MTN’s former CEO Sifiso Dabengwa
Increasingly, companies have started
responded to the anti-gay rhetoric
to look beyond their four walls toand proposed policies of the Ugandantake external actions that promote
government, setting out a clear
LGBT+ inclusion in the communities
position when he told the media thatthey operate in. These actions can be
the company would respect the laws
challenging and complex, but often
of the countries in which it operates,change the nature of the conversation
but would not discriminate against
surrounding LGBT+ inclusion in society. A
employees on the basis of sexual
handful of companies in this report haveorientation.86
signed the United Nations Standardsof Conduct for Business on tackling• Along with many other multinational
discrimination against LGBT+ people
companies in India, Flipkart, Godrej,
to signal their support to stakeholders.
Infosys, Swiggy and Zomato changed
Additionally, Open For Businesstheir social media handles to Pridepublished a report in March 2019 titledcolours or released public statements“Channels of Influence: How Companies
of support to celebrate the overrulingcan Promote LGBT+ Inclusive Societies”,
of Section 377 in India in 2018.87
which outlines in detail the five channels• In addition to signing on to the United
through which companies can use their
Nations Standards of Conduct for
influence to promote LGBT+ inclusion.
Business on tackling discrimination
against LGBT+ people and inviting
Examples:the United Nations to host a forum
discussion on LGBT+ issues, Natura• Godrej established the India Culture
also launched a training programmeLab, a space to cross-pollinate ideas,
for homeless transgender individuals
encourage dialogue and challenge
to qualify as make-up artists.
the notions of traditional culture,including LGBT+ issues. The company
also collaborated with the United
Nations (UN) to host the India launchof the United Nations Standards ofConduct for Business on tackling
discrimination against LGBT+ people
and they produced a white paperon transgender inclusion at Indiancompanies which serves as a publicresource for other companies to use.

Open For Business37

New Global Champions

Wipro

Wipro staff participating in London Pride 2019

In February 2018, Wipro announced in a
firm-wide email they were adding sexual
orientation and gender identity to theirlong-standing diversity and inclusion
policy.
Alex Beal, who initiated the LGBT+
dialogue at Wipro and is their global
LGBT+ lead, described how theDiversity and Inclusion council, a seniorleadership team that reports directly
to the CEO, supported his suggestion
to introduce an LGBT+ inclusion
programme, and suggested it becamea core pillar of the firm’s diversity
programme.

In Wipro offices around the world,
the company introduced genderneutral restroom signage and genderneutral language in recruitment.
The management is tracking LGBT+
inclusion and training employees by
including LGBT+ framed questions intheir monthly unconscious bias quiz.
The firm has also started to engage
externally, attending Pride parades forthe first time in 2018.
“Overall, the response has been very,
very positive,” Alex stated, giving
examples of employees who havedecided to stay at Wipro due to the new

It began when Wipro was updating theirglobal code of business conduct andsupplier conduct to include protectionof sexual orientation, gender identityand gender expression. Already, theiroperations in the US provided equal
opportunities for same-sex couples,and so next they are working througheach country’s policy.
Simultaneously, they launched a global
ERG, Wipro Pride, which has grownfrom 24 initial members to more than
250 within the first year. Announcing
the launch of Wipro Pride, Sunita
Cherian, Senior Vice-President, Human
Resources, said, “The goal here is tocreate an inclusive workplace where
LGBT+ employees are treated withequal respect and acceptance, and not
subjected to unfair or unintentional
discrimination and bias.”

Wipro staff participating in London Pride 2019

initiatives. He feels Wipro is now able
to confidently respond to clients andrecruitment candidates who enquire
about the company’s LGBT+ initiatives.
He credits the changes to a diverse
employee group who expect inclusion,
the Diversity and Inclusion council, andthe senior leadership.
Sunitha added, “These are just theinitial steps and we still have a long
way to go. We will continuously work
towards making our policies andprogrammes more inclusive.”38

Open For Business

New Global Champions

NaturaWhen the management of Natura
learnt about the high rates of violenceagainst LGBT+ people in Brazil, they
were shocked. Large numbers of theircustomers were LGBT+. Natura isheadquartered in São Paulo, where theannual Pride parade welcomes 5 million
people annually. The company decided
to look at its position on LGBT+ issues.
Natura has had a diversity andinclusion policy since 2014, initially
focusing on women in leadership anddisabilities. Marina Leal, Diversity
Coordinator at Natura, told us that in2018 Natura added LGBT+ inclusion
to it policy, prompted by concern by
the management. However, Brazil
is very religious and there is a lackof information about the LGBT+
community. “If you don’t educate,
discrimination happens,” said Marina.
Natura therefore took the approachof first educating its workforce on
LGBT+. During their annual diversity
week in 2018, each employee received
a “gender cookie” to initiate discussions
on sexual orientation, gender identityand expression. Natura signed up to theUnited Nations Standards of Conduct
for Business on tackling discrimination
against LGBT+ people and invited theUnited Nations to host a forum to
discuss questions on LGBT+. Now, every
employee that joins Natura undergoes
a two-hour training session on diversity.
In parallel, Natura updated their policies
to make sure that same-sex couples
had equitable benefits including, forexample, the use of the on-site nursery
and parental leave.

Natura also focuses on transgenderinclusion – employees can choose to
use their preferred name at work witha new email and name tag, before theirnames have been legally changed.
Changing legal names is a long,arduous process in Brazil that requires
a court judgement. One transgender
Natura employee, who was using their
new name at work, cited workplace
acceptance to support their legal case.

Natura is currently forming an LGBT+
committee to better understandwhat the company can best do tosupport LGBT+ individuals, including
tracking LGBT+ recruitment, retention
and promotion. Natura has also
started to engage with and invest
in the external LGBT+ community bylaunching a training programme forhomeless transgender individuals toqualify as make-up artists – the first

Natura’s new marketing campaign / Natura’s YouTube channel

Transgender employees can also now
choose which bathroom to use. “One of
our employees, who had been working
here for 10 years, decided to open up
about their gender identity and for the
first time, they were able to bring theirauthentic self to work,” Marina said.

cohort graduated in summer 2018.
However, the challenge is to spread theinclusivity across the 1.7 million Natura
consultants who work across a wide
range of geographies, not just in São
Paulo.

Open For Business

39

New Global Champions

GodrejIn 2011, supported by the Godrej
family and the senior leadership team,Godrej Industries Ltd. and AssociatedCompanies (GILAC) funded and housed
the India Culture Lab, a public platform
to foster a wide range of conversations
on contemporary India, including around
LGBT+ people. Parmesh Shahani, theFounder and Head of the India Culture
Lab who is gay himself, emphasisedthat prior to the Section 377 being
overturned, it was not illegal to identify
as LGBT+ in India – it was only illegal
to engage in same-sex acts. He
argues that even when Section 377
was present, there was no reason forcompanies to not support employees
identifying as LGBT+ and companies
used “Section 377 as a reason to justify
not doing anything.” Parmesh hopesthat the overruling of Section 377 would
help companies be “more progressive
and increase momentum.”
In parallel to launching the India Culture
Lab, Godrej updated their policies toinclude anti-discrimination, equitablebenefits for same-sex couples andgender reassignment provisions fortrans employees. They have produced
videos with LGBT+ individuals
discussing Godrej’s anti-discrimination
culture as well as how Godrej has
made external statements of support
for the LGBT+ community, including
branding their logo in Pride colours andsponsoring LGBT+ community events
like the Kashish Mumbai Queer Film
Festival. Also, the firm has collaborated
with the UN to host the India launchof the United Nations Standards ofConduct for Business on tackling
discrimination against LGBT+ people
and Godrej produced a white paperon transgender inclusion at Indiancompanies which serves as a publicresource for other companies to use.

Parmesh Shahani, Author and Founder of Godrej India Culture Lab

Dancing Queens, India’s leading transgender dance group, performing at Godrej India Culture Lab’s Queer
Aesthetics NOW! event

Parmesh attributes the initiatives at
the firm to the Godrej family and thesenior leadership team, coupled with adiverse millennial employee base. “Everycompany wants to be innovative andthe literature suggests diversity leads
to innovation, and money,” said
Parmesh, explaining that the leadershipis not only driven by moral reasons but
also economic reasons. However, thechallenge is to ensure that the genderinclusive policies are rolled out globallyand impact all employees at Godrej
factories and offices around the world.

India launch of the United Nations Standards of Conduct for Business on tackling discrimination against
LGBT+ people at Godrej India Culture Lab

40

Open For BusinessOpen For Business

Appendix & Sources

41

42

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Appendix A:
Results from regression analyses
Revenue CAGR 2016-2018*

Explanatory variable

Coefficient

P value

R2 = 0.14
N = 92**Standard
Error

Intercept

0.21

0.06

0.00Δ Δ

Tier 2

-0.01

0.03

0.87

Tier 1

-0.01

0.04

0.82

IG

-0.06

0.05

0.21

Consumer

-0.09

0.05

0.08Δ

TMT

-0.12

0.06

0.04Δ Δ

Financial
Institutions

-0.10

0.07

0.16

Healthcare

-0.16

0.07

0.02Δ Δ

Insurance

-0.11

0.13

0.39

Asia / Pacific

0.00

0.04

0.93

Latin America
and Caribbean

-0.05

0.04

0.26

Europe

-0.03

0.09

0.72

Company Tier
Industry

RegionΔ

p < 0.1

ΔΔ

p < 0.05

Average EBIT Margin, 2016-2018***

Explanatory variable

Coefficient

P value

R = 0.17
N = 92****Standard
Error

Intercept

0.22

0.06

0.00Δ Δ

Tier 2

-0.04

0.03

0.21

Tier 1

0.00

0.03

0.95

IG

-0.02

0.04

0.63

Consumer

-0.04

0.05

0.36

TMT

-0.02

0.05

0.74

Financial
Institutions

0.15

0.07

0.03Δ Δ

Healthcare

0.01

0.06

0.85

Insurance

-0.07

0.12

0.55

Asia / Pacific

-0.07

0.04

0.07

Latin America
and Caribbean

-0.08

0.04

0.08Δ

Europe

-0.03

0.08

0.72

2

Company Tier
Industry

RegionΔ

p < 0.1

ΔΔ

p < 0.05*	We use different years to calculate CAGR for the following companies due to availability of data: Alpargatas, Grupo Empresarial Antioqueno, Trina Solar, Turkish Airlines, Votorantim andWanxiang use a CAGR from 2013 to 2016. Unionpay uses a CAGR from 2011 to 2016. LC Waikiki uses a CAGR from 2011 to 2015.
**	The following companies were excluded due to lack of data: Xiaomi, Yildiz Holding, Mindray, OPPO.
***	We use different years to calculate CAGR for the following companies due to availability of data: Alpargatas, Unionpay, Xiaomi, Mindray, Trina Solar, Grupo Empresarial Antioqueno,
Votorantim, Wanxiang and Turkish Airlines use an EBIT average from 2013 to 2016.
****	The following companies were excluded due to lack of data: Sabanci Holdings, Yildiz Holding, OPPO, LC Waikiki.

Open For Business

Proportion of Revenue fromInternational Sources, Latest Year
Available*

Explanatory variable

CoefficientStandard
Error

P value

Intercept

0.38

0.15

0.01Δ Δ

R2 = 0.30
N = 86**Company Tier

Tier 2

0.10

0.08

0.18

Tier 10.20

0.08

0.02Δ Δ

IG

-0.02

0.11

0.83

Consumer

-0.09

0.12

0.47

TMT

0.18

0.14

0.19

Financial
Institutions

-0.31

0.16

0.06Δ

Healthcare

0.23

0.15

0.14

Insurance

N/A

N/A

N/A

Asia / Pacific

-0.01

0.08

0.91

Latin America
and Caribbean

0.11

0.10

0.26

Europe0.29

0.19

Industry***

Region0.14
Δ

p < 0.1

ΔΔ

p < 0.05*	All companies use 2018 as the latest year, with a handful of exceptions. Trina Solar and Votorantim use 2015 as the latest year. Alpargatas, S.A OCP, Anonymous, Alfa, Zoomlion,
Indofood, Turkish Airlines, Grupo Empresarial Antioqueno, Wanxiang and LC Waikiki use 2016 as the latest year.
**	The following companies were excluded due to lack of data: China National Chemical Corporation, China UnionPay Co., Ltd., Discovery Limited, Mindray Medical International Limited,
OPPO Electronics Corp, PETRONAS Gas Berhad, PTT Public Company Limited, Safaricom Limited, Xiaomi Inc., Yildiz Holding A.S.
*** The only insurance company in the sample did not have data. Therefore, this categorical variable was excluded in this model.

43

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Open For Business

Appendix B: Corporate policies and annual
reports used to evaluate high-potential
emerging-market companies’ SOGI scoresCompany

SourceAlfa, S. A. B. de C. V.

Alfa, “Our Employees,” available at: http://www.alfa.com.mx/RS/employees.htm

Alpargatas

Alpargatas, “Principles of conduct and ethics,” available at: https://ri.alpargatas.com.br/list.
aspx?idCanal=lPNQ2AUppDuOAqLwdZ7FyQ==

Apollo Tyres Limited

Apollo Tyres, “Code of Conduct for Directors and Senior Management,” available at:https://s3.eu-central-1.amazonaws.com/apolloproducts/3989/code-of-conductfor-directors-and-senior-management_1.pdf

Arca Continental, S. A. B. de C. V.

Arca Continental, “Code of Ethics and Conduct Policies,” available at: http://www.arcacontal.com/media/319602/
codigodeeticayconductaeng.pdf

BRF S.A.

BRF, “We inspire by example transparency guide,” available at: https://www.brf-global.com/wp-content/
uploads/2018/08/transparency_guide-eng.pdf

Cielo S.A. (BOVESPA:CIEL3)

Cielo, “Code of Ethical Conduct,” available at: https://ri.cielo.com.br/wp-content/uploads/sites/71/2019/08/
C%C3%B3digo_de_Conduta_%C3%89tica-ENG.pdf

Dr. Reddy’s Laboratories Limited

Dr. Reddy’s, “Code of Business Conduct & Ethics,” available at:com/media/508807/cobe_booklet.pdf

El Sewedy Electric Company

El Sewedy, “Code of Conduct Policy,” available at: http://www.elsewedyelectric.com/Compliance/El%20
Sewedy%20Electric%20Code%20of%20Conduct%20Policy.pdf

Fomento Económico Mexicano,
S.A.B. de C.V.

Femsa, “Code of Ethics,” available at: https://femsa.gcs-web.com/static-files/997a3d5e-9ac9-478a-b9a88e3f57736699

Gerdau S.A.

Gerdau, “Code of Ethics,” available at: https://www.gerdau.com/en/whoweare/Documents/gerdau_code_of_
ethics.pdf

Godrej Consumer Products
Limitedhttps://www.drreddys.

Godrej, “Diversity,” available at: https://www.godrejcareers.com/diversity.aspx

Gruma, S.A.B. de C.V.

Gruma, “Code of Ethics,” available at: https://www.gruma.com/media/335558/code_of_ethics__english_.pdf

Grupo México, S.A.B. de C.V.

Grupo México, “Code of Ethics,” available at: http://www.gmexico.com/site/images/documentos/en/code/
code%20of%20ethics.pdf

Indorama Ventures PublicCompany Limited

Indorama, “Diversity Policy,” available at: https://www.indoramaventures.com/storage/downloads/governance/
policies/policy-diversity/20190418-ivl-policy-diversity-english.pdf

Infosys Limited

Infosys, “Code of Conduct and Ethics,” available at: https://www.infosys.com/investors/corporate-governance/
Documents/CodeofConduct.pdf

LATAM Airlines Group S.A.

LATAM, “Code of Conduct,” available at: http://www.latamairlinesgroup.net/system/files-encrypted/nasdaq_kms/
assets/2019/07/18/16-56-11/Code%20of%20Conduct%20LATAM.PDF

Lupin Limited

Lupin, “Preparing Lupin employees to demonstrate Corporate Governance and ethical conduct,” available at:https://www.lupin.com/careers/pledge/

Open For Business

45

Mahindra & Mahindra Limited

Mahindra & Mahindra, “Code of Conduct,” available at: https://www.mahindra.com/resources/investor-reports/
FY16/Governance/MM%20Code%20of%20Conduct%20for%20Employees.pdf

Mercadolibre

Mercadolibre, “Business Conduct and Ethics,” available at: http://investor.mercadolibre.com/static-files/4259bb2f9da9-44ce-9cef-7132e19271cd

Mexichem, S.A.B. de C.V.

Mexichem, “Code of Ethics,” available at: http://www.mexichem.com/wp-content/uploads/2015/04/Code_of_
Ethics_eng.pdf

Natura Cosméticos S.A.

Natura, “Code of Conduct,” available at: https://natu.infoinvest.com.br/enu/6686/CodeofConduct_ADM_ENG_
Final.pdf

PTT Public Company Limited

PTT, “Supplier Sustainable Code of Conduct,” available at: http://www.pttplc.com/en/opportunity/procurement/
pages/supplier-code-of-conduct.aspx

Reliance Industries Limited

Reliance Industries, “Code of Conduct,” available at: https://www.ril.com/DownloadFiles/IRStatutory/Code-ofConduct.pdf

S.A.C.I. Falabella

Falabella, “Integrity Code,” available at: https://s22.q4cdn.com/351912490/files/doc_downloads/standard_
policies/en/Integrity-Code-S.A.C.I.-Falabella.pdf

Safaricom Limited

Safaricom, “Annual Report 2016,” available at: https://www.safaricom.co.ke/annualreport_2016/downloads/
Safaricom%20Annual%20Report%202016.pdf

Sun Pharmaceutical Industries
LimitedSun Pharma, “Global Code of Conduct,” available at: https://www.sunpharma.com/Shareholder-Information/
Policies/93092/Global-Code-of-Conduct

Tata Steel Limited

Tata Steel, “Tata Code of Conduct,” available at: https://www.tatasteel.com/media/1864/tcoc.pdf

Tech Mahindra Limited

Tech Mahindra, “Code of Ethical Business Conduct,” available at: https://www.techmahindra.com/sites/
ResourceCenter/brochures/investors/corporategovernence/Code-Of-Ethical-Business-Conduct.pdf

Tema Holding A.S. (Waikiki)Tema, “Code of Conduct,” available at: http://corporate.lcwaikiki.com/CMSFiles/file/LCW%20CODE%20OF%20
CONDUCT-16_08_2016.pdf

Thai Union Group Public Company Thai Union, “Business Ethics and Labor Code of Conduct,” available at: https://www.thaiunion.com/files/
Limitedsustainability/code-of-conduct/20160229-tu-code-of-conduct-en.pdf
Türk Hava Yollari Anonim Ortakligi

Turkish Airlines, “Code of Ethics,” available at: https://investor.turkishairlines.com/documents/
ThyInvestorRelations/download/icerikler/etik_degerler_en.pdf

Viña Concha y Toro S.A.

Concha y Toro, “Código de Ética y Conducta,” available at: https://conchaytoro.com/content/uploads/2018/04/
Codigo-de-Etica-y-Conducta.pdf

Votorantim Participações S.A.

Votorantim, “Code of Conduct,” available at: http://www.votorantim.com.br/assets/public/files/codigo_de_conduta_votorantim_ingles.pdf

WEG S.A.

WEG, “Code of Ethics,” available at: http://static.weg.net/medias/h87/h2d/WEG-code-of-ethics-english.pdf

Wipro Limited

Wipro, “Code of Business Conduct,” available at: https://www.wipro.com/content/dam/nexus/en/investor/
corporate-governance/policies-and-guidelines/ethical-guidelines/code-of-business-conduct-and-ethics.pdf

Note: Two companies, both headquartered in Malaysia, have been anonymised and excluded from the table to protect
employee safety given LGBT+ attitudes in the country.

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Appendix C: List of “emerging markets”
based on the IMF’s classification
Afghanistan

Georgia

Palau

Albania

Ghana

PanamaAlgeria

GrenadaPapua New Guinea

AngolaGuatemalaParaguay

Antigua and Barbuda

GuineaPeru

Argentina

Guinea-Bissau

Philippines

Armenia

GuyanaPoland

Aruba

Haiti

Qatar

Azerbaijan

Honduras

Romania

The Bahamas

Hungary

RussiaBahrainIndia

RwandaBangladeshIndonesia

Samoa

Barbados

IranSão Tomé and Príncipe

Belarus

Iraq

Saudi Arabia

BelizeJamaica

SenegalBenin

JordanSerbiaBhutanKazakhstan

Seychelles

Bolivia

Kenya

Sierra Leone

Bosnia and Herzegovina

Kiribati

Solomon Islands

Botswana

KosovoSomalia

Brazil

KuwaitSouth Africa

Brunei Darussalam

Kyrgyz RepublicSouth Sudan

Bulgaria

Lao P.D.R.

Sri Lanka

Burkina Faso

LebanonSt. Kitts and Nevis

BurundiLesotho

St. Lucia

Cabo Verde

Liberia

St. Vincent and the Grenadines

Cambodia

Libya

Sudan

Cameroon

Madagascar

SurinameCentral African Republic

Malawi

Syria

Chad

Malaysia

Tajikistan

Chile

Maldives

Tanzania

China

Mali

Thailand

Colombia

Marshall Islands

Timor-Leste

Comoros

Mauritania

Togo

Democratic Republic of the Congo

Mauritius

Tonga

Republic of Congo

MexicoTrinidad and Tobago

Costa Rica

Micronesia

Tunisia

Côte d’Ivoire

Moldova

TurkeyCroatia

Mongolia

Turkmenistan

Djibouti

Montenegro

TuvaluDominica

MoroccoUgandaDominican Republic

Mozambique

UkraineEcuador

Myanmar

United Arab Emirates

Egypt

Namibia

Uruguay

El Salvador

Nauru

Uzbekistan

Equatorial Guinea

Nepal

Vanuatu

Eritrea

Nicaragua

Venezuela

Eswatini

Niger

Vietnam

Ethiopia

Nigeria

Yemen

Fiji

North Macedonia

Zambia

Gabon

Oman

Zimbabwe

The Gambia

Pakistan

Open For Business

47

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49

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50Open For Business

Acknowledgements
A special thanks to the following partners without whom this report would not be possible:

This report exists because of thededicated time and support fromindividuals at our coalition partners,
dedicated LGBT+ civil society leaders
around the world, and many others who
dedicate countless hours to making
our work possible. There are certain
individuals and groups who were
essential to the creation of this reportand have our wholehearted thanks:
Boston Consulting Group forsponsoring this report that focuseson advancing LGBT+ inclusion in
emerging markets; the team, led by
Elliot Vaughn and consisting of Pavlos
Papaefstathiou and Joanna Green, foraiding in the analysis and drafting of thisreport; and Lyle Crawford and Rebecca
Cummins for their help on the global andIndia launch of this report.

Individuals in a number of fast-growing
emerging market companies provided
their perspectives for this report. In
particular, we are grateful to Parmesh
Shahani and Shefali Kohli from Godrej;Alex Beal, Sunita Cherian and Vipin
Nair from Wipro; and Marina Leal andNathalie Laureano from Natura fortaking the time to speak with us andprovide first-hand anecdotes of theircompanies’ LGBT+ journeys.
Many from civil society and academicorganisations provided valuable insights
for this report, including Fern Ngai
from Community Business; Rupert
Abbott from GiveOut; Maria Sjödinfrom OutRight Action International;
and Aharon Cohen-Mohliver fromthe London Business School. At theFederation of Indian Chambers ofCommerce & Industry (FICCI), we are
grateful to Gunveena Chadha andSantosh Tiwari for their support andpartnership on this project.
Sharif Rangnekar, human rights
activist, author of “Straight to Normal”
and Festival Director of Rainbow Lit
Fest, provided useful perspectives andstrategic inputs into this project.
We are thankful to Khozem Merchant,
Azhar Khan, Cerith Evans, Diya Nairand Karan Bhirani at the Brunswick
Group for their useful input; and we owe
a special debt to Neal Wolin and HelenJames, Brunswick Group’s CEO and COO
respectively, for their continued support
for the Open For Business coalition.

Open For Business

51

Talking about LGBT+ inclusion
Although mounting evidence shows that LGBT+ inclusion is good for business and economic growth, there remains hesitation
among many in the business community to initiate a discussion, mainly due to a number of perceived risks for supporting
LGBT+ inclusion. This is true in countries all over the world – from Barbados to India to Kenya – which share similar concerns.
Open For Business has encountered many myths and misconceptions in its work around the world, which are listed below,
together with possible responses:

Perceived risk

Open For Business response“Our consumers / customers /clients won’t like it.”Some customers won’t like it – but as the examples above and the experience of OpenFor Business coalition partners all around the world show, most customers and clients
will welcome a more progressive and global brand. Evidence presented in this reportshows that LGBT+ inclusion can be a source of competitive advantage and brandpreference; and inclusion can lead to improved “customer orientation” and better client
service.

“We don’t have any gays.”

Many LGBT+ people feel the need to hide their sexual orientation or gender identity,
particularly in an environment where social attitudes do not feel safe or accepting. Thisphenomenon is known as “covering”, and studies show that this still occurs even in highly
LGBT+ inclusive countries. If there is nobody in an organisation identifying as LGBT+, themost likely explanation is that people are concealing their identities.

“We don’t know our employees’
sexual orientations or gender
identities, so it’s impossible for
us to discriminate against LGBT+
people.”Similar to the above response, just because LGBT+ people are not open in theworkplace does not mean that they do not exist. There are many documented cases of
discrimination against LGBT+ people in the workplace – and brands should proactively
ensure that those cases do not occur in their offices and suffer hits to their brand or
reputation.

“We don’t get involved inpolitics.”

This isn’t a political issue, this is a business issue. Looking after the welfare of employees
is a business issue; creating an inclusive culture that can foster performance andinnovation is a business issue; operating in an open, globally connected economy is abusiness issue.

“We are too busy focusing on
creating an inclusive workplace
for women, different ethnicities,
and people with disabilities tofocus on LGBT+ people too.”

While time and resources are necessary for companies to become world-class at
LGBT+ inclusion, the initial steps of signalling that your company is LGBT+ inclusive canbe achieved by updating non-discrimination and other HR policies to include sexual
orientation and gender identity. This does not take away from any of the other minority
groups but reinforces that the workplace is truly inclusive of everyone, no matter who
they are. Additionally, a focus on LGBT+ inclusion can differentiate companies in a market
where many companies are focusing on gender, ethnic and disability inclusion.

“It’s not safe to encourage
people to come out.”

In many countries, coming out is always a risk. The question isn’t whether to encourage
employees to come out or not, but how to provide a safe and supportive environment
for LGBT+ people – whether they have decided to come out or not. This begins witha clear statement that LGBT+ people are welcome in the workplace and fostering aculture of inclusion; it can also include measures such as giving people the ability toconnect anonymously to online employee LGBT+ networks or working with local LGBT+
community groups. Finally, it can include working in the public sphere to put the economic
and business case for LGBT+ inclusive societies.

CONTACT: info@open-for-business.org
FIND OUT MORE: open-for-business.org
FOLLOW US: @OFB_LGBT

Business Action for LGBT+ Inclusive Societies