More than 20 years ago, before LGBTQ+ individuals could openly serve in the U.S. military and before same-sex marriages were legalized, the Human Rights Campaign introduced the Corporate Equality Index to evaluate corporations on their workplace policies. Initially focusing on preventing discrimination against LGBTQ+ employees, the report card has evolved over the years. In 2002, only 13 companies scored perfectly, but by 2021, 545 businesses achieved the same feat, meeting expanded criteria.
Opponents of diversity initiatives have recently targeted the Corporate Equality Index, leading companies like Ford, Harley Davidson, and Lowe’s to discontinue their participation. Conservative activists have broadened their objections to various workplace programs aimed at historically marginalized communities, including those concerning gender identity and sexual orientation, following a Supreme Court decision on affirmative action.
The Corporate Equality Index has played a significant role in improving workplace benefits for LGBTQ+ individuals, prompting companies to establish employee resource groups and enhancing inclusivity. Companies like Brown-Forman and Molson Coors have opted out of the index, citing concerns over various diversity and inclusion programs that prioritize specific groups and potential legal backlash.
Legal threats against employers regarding DEI initiatives have increased, with cases filed against hiring practices and mentorship programs that plaintiffs argue are exclusionary. Companies, facing pressure from conservative groups and employees with differing beliefs, are reevaluating their participation in external culture surveys and diversity programs to mitigate legal risks and avoid potential boycotts.
Despite the growing LGBTQ+ customer base, companies distancing themselves from the Corporate Equality Index risk losing these consumers. Recent polls indicate a significant increase in LGBTQ+ identification among adults and Generation Z. An overwhelming majority of LGBTQ+ customers have expressed willingness to boycott companies retracting inclusion initiatives, potentially leading to talent and consumer loss for these businesses in the long run.
