TheCorporateCounsel.net

Despite the current focus on diversity at the board level and throughout organizations, “sexual orientation” isn’t captured by EEO-1 reports and the anti-discrimination laws of many states don’t extend employment protections to LGBTQ individuals. Now, this dimension of diversity is starting to get more attention.

Recent bills, including the “ESG Disclosure & Simplification Act” that was passed by the House earlier this summer would require SEC disclosure about workforce and/or board composition, including self-reported sexual orientation. Several big pension funds also include LGBTQ in their policy definitions of diversity. This Diligent memo explores the current stats for representation:

– The Human Rights Campaign Foundation’s 2018 report ”A Workplace Divided: Understanding the Climate for LGBTQ Workers Nationwide“ found that nearly half (46%) of LGBTQ workers in the United States were closeted in the workplace.

– Fewer than 0.3% of Fortune 500 board directors were openly LGBTI (the I being ‘intersex’) in 2020. LGBTQ+ workers are woefully underrepresented within corporate boards and executive committees; further, 358 Fortune 500 companies do not have a board diversity policy in place.

The memo outlines the typical benefits that having a diverse & inclusive group of decision-makers and employees can bring – including lower turnover and customer loyalty. Like other dimensions of diversity, boards can be intentional about adding LGBTQ individuals to their candidate lists and celebrating LGBTQ inclusivity. The memo recommends giving directors the benefit of D&I training versus “opting out” – so that they’re well-informed to consider strategic challenges & opportunities, and how the company’s policies affect outcomes. Also check out this KPMG podcast on the “rising interest in LGBTQ+ diversity in the boardroom.”

– Liz Dunshee