The fifth installment in a series authored by Memorial University faculty members on the value and importance of diversity, equity and inclusion policies to build a more just society. Check back next Thursday for Dr. Ashley Balsom’s op-ed.

Basic human rights of people of alternate sexual orientation are under threat in the United States.

In his first three months in office, U.S. President Donald Trump issued a number of executive orders that affect LGBTQ+ Americans’ lives, including protection from discrimination, legal recognition and health care.

On Jan. 20, Trump issued an executive order titled Defending Women from Gender Ideology Extremism, announcing that the federal government will only recognize male and female sexes.

On Jan. 28, he signed an additional order Protecting Children from Chemical and Surgical Mutilation, that prohibits financing and promoting gender-affirming care for anybody younger than 19.

This list goes on and on, including using his executive power to force corporations to abolish diversity, equity and inclusion (DEI) programs.

So, it is not far off to say that LGBTQ+ rights within corporate America will be gone soon. It may start from discontinuation of gender-neutral washrooms and run all the way to declining benefits (health care, pensions, etc.) for non-binary workers.

Corporate LGBTQ+ support adds to triple bottom line

In business, the three Ps — people, planet and profit — are at the centre of the triple bottom line, or what’s also known as a sustainability framework. Organizations are more likely to improve their financial success and have a beneficial influence on the world if they maximize all three bottom lines.

Corporations benefit in multiple ways by providing equal rights to workers who identify as LGBTQ+.

“Promoting an inclusive corporate culture . . . is helpful for the company, the group and society as a whole.”

For example, Shan et al. (2017) found that corporations that support LGBTQ+ employees are more profitable (i.e. have better financial performance).

Researchers have found that investors demand a lower premium when LGBTQ+-friendly corporations want to raise external equity in the stock market. In other words, they face a lower cost of raising equity capital.

In a recent study, Hossain et al. (2024) found that LGBTQ+ employee-friendly corporations are more socially responsible, as they emit less greenhouse gas.

Fair and equal treatment of corporate LGBTQ+ employees improves employee morale, improves their productivity and lengthens their tenure at the corporation where they work (see Ragins et al. 2007 and Hewlett and Sears 2024).

In summary, promoting an inclusive corporate culture — specifically focusing on providing equal benefits to LGBTQ+ employees — is helpful for the company, the group and society as a whole.

Money talks

In the face of actions undertaken by Trump and fuelled by the radical right conservative movement, we should rely on facts rather than misinformation.

The research outlined above clearly show that corporate fairness to their own LGBTQ+ employees in terms of investing in LGBTQ+-supportive initiatives are profitable for them; good for the environment; good for those employees; and good for society.

Corporate America understands money and the evidence is robust: DEI policies boost their bottom line.

“If they look at the evidence and data, companies that invest in LGBTQ+ initiatives will be profitable.”

With many businesses increasingly incorporating sexual orientation and gender identity into their non-discrimination policies and providing inclusive perks, corporate America has, in fact, greatly increased LGBTQ+ rights and inclusion.

However, some businesses are coming under fire from conservative organizations.

A small but growing number of marquee-name corporations have stepped back.

Some have reduced internal initiatives designed to support LGBTQ+ employees.

The latest examples include companies like Comcast and Anheuser-Busch — chief sponsors of the San Francisco Pride event — pulling back under Trump’s dismantling of EDI initiatives.

This is the Trump-era effect on LGBTQ+ rights.

So, what should they do?

If they look at the evidence and data, companies that invest in LGBTQ+ initiatives will be profitable.

On the other hand, if they do not want to be on Trump’s bad side, they will most likely roll back inclusive policies — as some have already done.

It is evident that Trump targets people and corporations and that he can put a large dent in their bottom line if they do not comply.

What can Canada do?

Canadians must fund more research in this area.

As a financial economist, I think we should provide tax benefits to corporations who promote LGBTQ+ rights within their organizations.

We should firewall ourselves from the rhetoric and noise coming from our neighbours to the south.