The Economic Case for LGBT+ Inclusion in Central & Eastern Europe (CEE): Hungary, Poland, Romania and Ukraine
Open, inclusive and diverse societies are better for business and better for economic growth. This is true for companies and economies all around the world, including Central and Eastern Europe (CEE). This report presents the evidence base that supports this: it demonstrates discrimination costs these economies and that openness and inclusion can aid them in reaching their ambitious economic goals. It also shows that companies that address LGBT+ inclusion can attract better talent and have better financial results.
THE ECONOMIC CASE FOR LGBT+ INCLUSION IN Central and Eastern Europe
(English)
The report uses a variety of economic research, data analyses, aspirational case studies and a proprietary survey of businesses as evidence for the economic and business case for greater LGBT+ inclusion in the region. It includes summaries of the key issues facing the LGBT+ communities in each of the focus countries as well as the economic goals the countries are striving to achieve. The report correlates a number of economic and other indices against the F&M Global Barometer of Gay Rights (GBGRⓇ), which indexes human rights for gay people globally, and the Global Barometer of Transgender Rights (GBTR™), which similarly indexes human rights for transgender people.
THE ECONOMIC CASE FOR LGBT+ INCLUSION IN Central and Eastern Europe
(Romanian)
THE ECONOMIC CASE FOR LGBT+ INCLUSION IN Central and Eastern Europe
(Hungarian)
THE ECONOMIC CASE FOR LGBT+ INCLUSION IN Central and Eastern Europe
(Polish)
THE ECONOMIC CASE FOR LGBT+ INCLUSION IN Central and Eastern Europe
(Ukrainian)
The Evidence Base for LGBT+ Inclusion in CEE Countries
Twelve propositions have been identified that apply most strongly in our focus countries, based on a literature review, key expert interviews, and a short survey through Open For Business corporate and civil society networks in each country.
Economic Performance
The evidence shows that open, inclusive and diverse economies improve prospects for economic growth, and that discrimination based on sexual orientation or gender identity can damage long-term economic prospects.
(i) Competitiveness
A number of analyses using LGBT+ human rights data and economic indicators show that countries that are more open are also more competitive
(ii) Corruption
Higher levels of corruption in these countries hinder greater investment.
(iii) Direct Investment
Analysis of FDI levels demonstrates that these focus countries have an opportunity for greater investment growth.
(iv) Brain Drain
New data from the World Bank and LinkedIn show that these target countries are losing skilled workers, especially those employed in “jobs of the future.”
(v) Public Health
Depression and HIV, more prevalent in the LGBT+ community, have a negative economic impact.
(vi) National Reputation
Over anti-LGBT legislation, actions and violence in the region is swaying public sentiment, often in countries with deep investments in the region.
(vii) National Productivity
The wage gap among LGBT+ workers lowers productivity in the focus countries.
(viii) National Economic Growth
While these focus countries have large growth goals, their GDP growth is being surpassed by more inclusive societies.
Business Performance
Stronger financial performance flows from the increased ability of LGBT+ inclusive companies to attract and retain talent, innovate, and build customer loyalty and brand strength.
(ix) Attracting and Retaining Talent
Companies in the region realize that the promise of working for a diverse and inclusive company is an important attribute that workers, especially younger workers, are increasingly demanding.
(x) Innovation
Correlating the Global Innovation Index with LGBT+ human rights data demonstrates that more open countries are more innovative. The case study companies highlighted are prime examples of how companies innovate and grow.
(xi) LGBT+ Consumers
New data show that globally and locally LGBT+ consumers are a major spending force in local businesses and economies.
(xii) Financial Performance
At both the international and local level, there are advantages for companies that promote and invest in LGBT+ inclusion.