LGBTQ+ Workplace Inclusion and Corporate Environmental Performance
Open Access
- 20 August 2025
- journal article
- Published by Wiley in Business Strategy and the Environment
- Vol. 34 (8) , 10785-10802
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.Keywords
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