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The economic argument for equal opportunities

The economic argument for equal opportunities

I recently posted an article in relation to the importance of tackling discrimination in the workplace. Following this, I was reading an interesting piece in the Harvard Business Review which looked at research into the economic impact of federal states in the US (and companies) adopting Employment Non-Discrimination Acts (ENDAs). There was a significant push for the ENDAs particularly in relation to gender and sexual orientation discrimination more than 20 years ago. Academics have looked at the impact on corporate patent firms who introduce such policies between 1996 and 2008. The research shows that companies that adopted ENDAs which promoted and respected the rights and interests of LGBT employees saw an 8% increase in the number of patents produced and a 11% increase in the number of patent citations vis à vis those that failed to implement ENDAs in relation to LGBT issues. The academics found that policies took some two years to have an impact but clearly there was an economic benefit in introducing such policies.

The research may seem, on first reading, to suggest that LGBT employees are more creative which in many ways is stereotypical in itself. However, the important point was that LGBT employees felt respected, accepted and acknowledged in the workplace and therefore this enabled the development of a work-place culture which allowed innovation and creativity to take place. For a number of years business commentators have spoken of the importance of the “psychological contract” to maintain the relationship of trust and respect between work providers and work deliverers. For me, having a fully functioning equal opportunities policies which is implemented and monitored is essential to this “contract”. The moral argument for equal opportunities is of prime importance in creating an open workplace and allowing work deliverers to feel comfortable in who they are and respected within the workplace to enable them to feel free to contribute to the development of the organisation. However, from the evidence in the HBR article there would also seem to be a strong economic argument that such policies reduce and indeed destroy barriers to growth and productivity.

Many companies spend a great deal of its marketing budgets on recruitment, trade fairs, internal development and training. Providing a fresh focus on equal opportunities issues could support and enhance the process of attracting and enhancing talent. If the proof of the pudding is in the eating, then this article seems to suggest that equal opportunities policies are indeed a way forward to ensure that the workplace is an environment which all people can contribute to and prosper in. The result - economic and moral (and indeed morale) benefits for all.

David Gibson is a Partner at Short Richardson and Forth. Please feel free to contact him at dg@srflegal.co.uk

This was posted in Bdaily's Members' News section by david gibson .