LGBTQ+ workplace inclusion and corporate environmental performance

Demiralay, S ORCID logoORCID: https://orcid.org/0000-0003-2543-7914, Kilincarslan, E and Li, Z, 2025. LGBTQ+ workplace inclusion and corporate environmental performance. Business Strategy and the Environment. ISSN 0964-4733

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Abstract

This study examines the impact of LGBTQ+ workplace inclusion on corporate environmental performance, with a focus on the mediating role of environmental innovation. Drawing on 6419 firm-year observations from 898 US firms between 2010 and 2023, we measure LGBTQ+ workplace inclusion using the Human Rights Campaign's Corporate Equality Index. Our findings show that firms with stronger LGBTQ+ inclusion exhibit higher environmental performance scores and greater renewable energy consumption. We further find that this relationship is partially mediated by environmental innovation, indicating that LGBTQ+-inclusive workplace practices enhance environmental outcomes by fostering innovation. To strengthen causal inference, we implement a quasi-natural experiment based on the staggered legalization of same-sex marriage across states. Results reveal that firms headquartered in states that recognized same-sex marriage prior to the Obergefell v. Hodges ruling demonstrate superior environmental performance. These findings are robust across various identification strategies and estimation methods.

Item Type: Journal article
Publication Title: Business Strategy and the Environment
Creators: Demiralay, S., Kilincarslan, E. and Li, Z.
Publisher: Wiley
Date: 20 August 2025
ISSN: 0964-4733
Identifiers:
Number
Type
10.1002/bse.70134
DOI
2488823
Other
Rights: This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Divisions: Schools > Nottingham Business School
Record created by: Jonathan Gallacher
Date Added: 27 Aug 2025 09:15
Last Modified: 27 Aug 2025 09:15
URI: https://irep.ntu.ac.uk/id/eprint/54264

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