Corporate decisions on LGBT friendliness: a multi-level approach

PurposeThis research investigates how and why firms adopt inclusive diversity activities, identifying the mechanisms behind firms involved in lesbian, gay, bisexual and transgender (LGBT)–friendly pursuits. By integrating resource dependence theory, institutional theory and stakeholder theory, the a...

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Bibliographic Details
Published in:Management decision 2023-04, Vol.61 (4), p.996-1012
Main Authors: Choi, Seong-jin, Shin, Jiyoung, Kuper, Paul, Zhang, Lu-Yao
Format: Article
Language:English
Subjects:
Decision making
Employees
Equality
Inclusion
Marketing
Multiculturalism & pluralism
Social responsibility
Stakeholders
Strategic management
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Description
Summary:PurposeThis research investigates how and why firms adopt inclusive diversity activities, identifying the mechanisms behind firms involved in lesbian, gay, bisexual and transgender (LGBT)–friendly pursuits. By integrating resource dependence theory, institutional theory and stakeholder theory, the authors argue that a firm's LGBT friendliness is affected by marketing orientation and the external political environment.Design/methodology/approachThis study uses the Corporate Equality Index, as reported by the Human Rights Campaign, of 460 (1,540 firm-year observations) firms in the United States between 2006 and 2019.FindingsThis study finds a significant, positive relationship between a firm's marketing orientation and LGBT-friendly activities. This research also determines that this relationship is weakened by state-level diversity policies and country-level political uncertainty.Originality/valueThe study results provide unique theoretical and practical implications for the debate on inclusive corporate policy in similar global markets.
ISSN:0025-1747
1758-6070
DOI:10.1108/MD-08-2022-1055