Pride Pays: LGBT-Friendly Businesses Are More Profitable, Research Shows Pride
Against this backdrop, their research was motivated by a desire to determine whether the risk of alienating certain stakeholders by, for example, supporting same-sex marriage, outweighs the benefits of doing so.
The report should foment an already well-documented economic incentive for creating workplaces that proudly reflect the demographic makeup of the broader communities in which they operate.based on analysis that found that in 2019, companies in the top quartile of gender diversity on executive teams were 25 percent more likely to experience above-average profitability than peer companies in the fourth quartile. That number was up from 21 percent in 2017 and 15 percent in 2014.
One explanation for both these findings and the correlation determined by the Finnish researchers from Aalto University School of Business and the University of Vaasa, is that employee retention and satisfaction tends to be higher in businesses where diversity is explicitly promoted, regardless of whether that relates to gender, race, sexuality or another identifying characteristic.
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