Analysis of the Impact of the LGBTI Community on Business

Violations to the rights of Lesbians Gays Bisexual and Transsexual community has been witnessed all over the state. The majority of the LGBT community have not had the pleasure of living their lives free from oppression. There fundamental rights have been disregarded and affected many individuals .In our case study we observed the true nature of how society has gained from the LGBTI community. Showing how the margin of business profits can be obtained if we embrace the community. There is a norm that LGBT community are spenders and will do anything to live a good life. The annual estimate shows that the buying power of the community is significantly high. In terms of figures the community spends roughly $800 billion in spending.

Companies have realized the benefit of the minority community. Changing market trends to get share of the enormous market. The impact of gay and lesbian consumers has been significant is Multinational Corporations such as apple, google Microsoft who have embraced the community (Howell, 2003). This has increased profit margins because no one would like to be associated with an unruly company. Sales are better and without the community they have survived. This might be true but going against the rights of LGBT some communities have suffered such as ExxonMobil.

Microsoft is an example of an MNC that has taken liberty to gain on the market. In the past Microsoft was under pressure from anti LGBT activities pertaining to a bill. The bill was to outlaw discrimination against homosexuals in work places in state of Washington. Due to pressure they withdrew from supporting it but later rejoined the quest to achieve it. The 2005 bill was rejected by a single vote in which Microsoft gave a press release on the Issue. It made significant claim that promoting diversity was a significant test to reduce administrative burdens and costs. Microsoft became the first company to expand its nondiscrimination policy to include sexual orientation, insurance and benefits to same sex domestic partners and health coverage to partially cover for transgender surgery. Due to their support there was a positive impact on employee satisfaction and in turn increased productivity and creativity.

The equality in workplace equality rights made employees comfortable and it generated enough talent from the most diverse pool of candidates. Microsoft ultimately influenced corporate behavior and this increased their stock performance because of the companies pro LGBT policies. It was observed that about 40% of gay shopping habits payoff for brands. Microsoft acknowledged that same sex households make more shopping trips than average U.S households. Gays and lesbians spend more frequently shopping on packaged goods and this was beneficially to Microsoft needs. Meaning that Microsoft had an upper hand to reach LGBT consumers and this influenced purchase behaviors and brand preference (David, 2006).

Profit soared to a higher level when the company initiated a group for gays and lesbians at Microsoft. It was noted that more consumers were Pro LGBT and this increased the market audience. LGBT consumers have less debt, and have more equity in their homes which means they are better financially set for retirement. The community has a higher national median according to an annually survey that was conducted (David, 2006).

Anti LGBT companies such as Exxon have a history for fighting against LGBT rights. Exxon a big oil company is known for their discrimination amongst the community. They had a big scandal about their employee selection when a capable individual who was gay was rejected because of his belief. The market was flooded with the story and this reduced their stock price and profits. Their fight against nondiscrimination protection and equal benefit coverage for employees impacted negatively on them. Mobil was acquired by ExxonMobil although it protected gay rights but eventually all rights were scrapped off. Upon acquiring Mobil a law suit was handed to them for discriminating LGBT employees as part of its hiring process. They were given a below zero score on its corporate equality index.

During a past decree by the president who signed an executive order barring federal contractors from transacting with anti LGBT discrimination. This dealt a significant blow to Exon-Mobil because it relied on contracts from the federal government. The US government declared that it would not do business with anti LGBT corporates and ExxonMobil was one of the companies that would be affected. The Oil Company had to redefine their policy In order to do business with the government. ExxonMobil witnessed its drop in profit margin due to reduced tender allocations. Annually they received an approximate of $1 billion in federal contracts and now they are losing the contracts. In simple terms Exxon would lose out on business which would lead to declining profits. NC corporate such as ExxonMobil would have a limited market to work with, they would be subjected to a lot of criticism from nations worldwide. Although in some nations the norm for same sex is never recognized it would seem they had a limited supply in regards to the big eight nations.

Pro LGBT policies are essential in growing a company’s productivity .They are better in creating a diverse environment to assist workers in nurturing the best talent. Target market is essential in increasing sales and being diverse is the best way forward.Anti LGBT policies are subject to discrimination reducing productivity in a company (Howell, 2003). To achieve growth one has to get the best employees to facilitate the increase in profits.In some countries such as Poland Singapore and others antigay laws are put in place to promote culture (David, 2006). In the USA the homophobic culture should be eliminated for the benefit of the whole nation. Taxes should be paid and benefits should be received to foster productivity. It is not true that pro LGBT will certainly give profits but it’s the sense of satisfaction that builds the growth. Employees should coexist to create a better future for the company as well as the nation.


Howell, M. (2003). Predators and Profits: 100 Ways for Investors to Protect Their Nest Eggs (pp. 127-156). Prentice Hall Professional.

David, J. (2006, January 26). Friends or foes. Advocate, 35-40.