[Congressional Record (Bound Edition), Volume 161 (2015), Part 4]
[Extensions of Remarks]
[Pages 4978-4979]
[From the U.S. Government Publishing Office, www.gpo.gov]




     EQUALITY MEANS BUSINESS' REPORT ON THE LINK BETWEEN ECONOMIC 
        COMPETITIVENESS & WORKPLACE EQUAL OPPORTUNITY IN FLORIDA

                                 ______
                                 

                         HON. ALCEE L. HASTINGS

                               of florida

                    in the house of representatives

                        Tuesday, April 14, 2015

  Mr. HASTINGS. Mr. Speaker, I would like to submit the executive 
summary of a report conducted by Equality Means Business, a project of 
Equality Florida and the Equality Florida Institute, organizations 
dedicated to ending discrimination based on sexual orientation and 
gender identity. The report demonstrates what we already know to be 
true--that LGBT discrimination in the workplace is corrosive to both 
the domestic and global marketplace. We must continue to work 
diligently to ensure that all citizens are guaranteed equal rights and 
equal protection under the law.
  The full report is available online at http://www.eqfl.org/emb/
economic_impact_study.

       Florida State laws are negatively impacting business 
     operations and profits to a much higher level than previously 
     suspected. A groundbreaking study, released by Thinkspot Inc. 
     in March 2015, demonstrates the costly negative impact on 
     Florida's employers from lesbian, gay, bisexual and 
     transgender (LGBT) discrimination.
       Equality Means Business, formed to spotlight major 
     employers in Florida that have adopted comprehensive 
     nondiscrimination policies, commissioned Thinkspot to conduct 
     research addressing the economic case for ending 
     discrimination against LGBT people in the Sunshine State.
       The study details extensive analysis of published research 
     and findings from in-depth interviews with C-level business 
     leaders. It reveals negative costs realized by individual 
     employees, employers, and Florida's business community. Study 
     findings also illuminate areas of erosion for Florida's 
     competitive position in the global marketplace. This summary 
     provides highlights of the study's findings.


                               the costs

       The costs resulting from lost productivity and employee 
     turnover alone are estimated conservatively to exceed $362 
     million annually. Other costs recognized by the state's 
     business community include forgone new business 
     opportunities, product quality degradation, customer loyalty 
     erosion, safety incidents, corporate reputation damage, and 
     lost opportunities to attract talent--particularly among the 
     Millennial generation.
       The cost of LGBT discrimination is not isolated to the 
     individual. Discrimination in the workplace negatively 
     impacts the host company, its customers, its industry (e.g., 
     supply chain), and the geo-political areas (i.e., city, 
     county, state) those employers call home. Research 
     demonstrates that the link from employee engagement to 
     profits and competitiveness is direct.


                       diminished competitiveness

       For many companies, a culture of non-discrimination 
     fostered and maintained through policies is a prerequisite 
     for daily operations. Global corporate peers demand their 
     vendors demonstrate ``cultural intelligence.'' Global 
     business opportunities (i.e., revenues) are lost in the 
     absence of workforce discrimination protection.
       Responses from business executives reveal that 
     representative companies have interests far beyond the 
     ability to attract and retain the best talent, as well as 
     responding to global customers' demands for inclusion 
     policies as a prerequisite for doing business.
       The currently unrealized effort to pass federal legislation 
     providing non-discrimination intensifies the competition 
     between states in realizing the benefits of protection in the 
     workplace. Florida ranks in the middle of the national pack 
     at 25. Florida businesses are at a competitive disadvantage 
     created by the collective perception as being hostile to the 
     LGBT community.
       The lack of protections available to LGBT people in a state 
     like Florida stands in stark contrast to the protections 
     available in high-equality states, where state law eliminates 
     these differential costs.


                 inconsistent policies within the state

       In researching for the report, the authors discovered 
     employers that made significant effort to implement internal 
     policies that protect members of the LGBT community within 
     the office, but felt those efforts were ``undercut'' by 
     inaction or regressive action of government at the local and 
     state levels. The interviews also revealed a perception that 
     some governments appear to be actively working against 
     companies' ability to create a ``safe'' and ``inclusive'' 
     environment and fail to demonstrate critical ``cultural 
     intelligence'' to industry peers and global partners.
       An employer pointed out that the workplace is only one part 
     of the factor--an employee would also need to go home and may 
     have a partner working at a different location without 
     protections and could face any number of other 
     discriminations. One CEO noted where a highly-sought after C-
     level candidate turned down a very attractive job offer 
     because, although the company was a great fit and provided 
     partner benefits and other protections, the candidate did not 
     feel he would be welcomed in the state and in the community. 
     Potential employees considering work in Florida carefully 
     examine the environment created by the host communities and 
     state.


                interviews with florida business leaders

       In-depth interviews were conducted with participants 
     representing organizations of varying sizes and sectors, from 
     manufacturing and medical services to Florida's emerging tech 
     sector. They spanned in size of workforce from 18 to 400,000. 
     The interview findings document an overall theme that broad 
     and consistent discrimination protection is a matter of state 
     competitiveness.

[[Page 4979]]

     This is especially evident for critical industries such as 
     technology, tourism, and medical services, and for companies 
     operating or headquartered out of the state while competing 
     within a global market.
       For many companies, a culture of non-discrimination 
     fostered and maintained through formal policies is a 
     prerequisite consideration for daily operations and for 
     promoting their own relevancy among global corporate peers 
     who demand their supply chain partners and vendors 
     demonstrate ``cultural intelligence''.


                        damaged state reputation

       Leaders provided continual reference to concerns over 
     Florida's negative reputation, especially related to 
     diversity, inclusion, and discrimination at the state-level. 
     Executives link this reputation issue to the loss of highly 
     sought-after candidates, the direct loss of high-potential 
     incumbent talent, and hesitancy of large global partners 
     considering acquisitions or including Florida companies as 
     supply chain partners, often in a global arena.
       Executives noted that when identifying their companies as 
     operating within or headquartered in Florida, responses of 
     industry peers, potential partners, or clients will often be 
     negative and even express doubt about the value and validity 
     of the company itself. Executives linked these responses 
     directly to negative perceptions of Florida's brand as 
     ``backwards'' and not promoting diversity of ideas and 
     cultures.
       Participants repeatedly noted that they had to exert 
     deliberate effort to ``overcome'' negative reputational 
     issues related with being headquartered or having major 
     operations within Florida. On one account, a company 
     headquartered in a major metropolitan area in Florida noted 
     that their largest competitor (based out of California) had 
     raised questions about how ``good your talent could actually 
     be'' because they are living and working in Florida ``where 
     basic human protections are either not provided or fought 
     against.''


                   an economic development imperative

       Seventy-five percent (75%) of the participants noted plans 
     to expand in the coming 36 months. Several reported that 
     relocation or expansion decisions were made in favor of a 
     location with a public policy climate that promoted diversity 
     and non-discrimination for the LGBT community.


                        millennial expectations

       The executives suggest that Millennials are flocking to 
     workplaces where they believe their values are reflected, and 
     suggest they want a company culture that ``treats all people 
     fairly.'' Meanwhile, leaders report hearing frequent 
     expressions of frustration and confusion by highly-sought 
     younger workers at why ``some older people'' make a ``big 
     deal'' out of non-discrimination (in and outside of the 
     workplace) or speak actively about LGBT issues in negative, 
     cautionary, or bigoted tones. Competing for talent, 
     particularly for members of the Millennial generation now 
     entering the workforce, makes inclusion and diversity a 
     requisite.


           supporting discrimination protection is status quo

       Executives suggest that the ``battle is over'' in corporate 
     America and the boardroom. Supporting discrimination 
     protection is status quo for large companies and for most 
     medium-sized firms, and a requirement for competition in many 
     cases. Business leaders felt their competitive positioning 
     efforts were ``undercut'' by negative or absent external 
     public policies in local markets and inaction at the state 
     level to support business needs. Some suggested the need for 
     state action to address these issues and eradicate both the 
     negative perceptions of the state and cultural landscape.


                  compliance throughout supply chains

       Failing to represent the presence and authentic 
     implementation of a non-discrimination policy can result in 
     real, hard loss of revenue from global clients and partners 
     as well as significant damage to brand reputation.


                      a prerequisite for business

       For companies to compete for business, they must both have 
     and evidence non-discrimination policies and culture. Another 
     element relates to softer aspects of brand reputation and 
     acceptance among industry peer groups. Leaders express 
     ``reputation'' as extremely delicate and important, 
     especially in the early stages of competitive opportunities.


              public support and legislative effectiveness

       Public opinion in Florida supports the passage of legal 
     protections from workplace discrimination for LGBT people. 
     Survey results found that 73% of respondents supported 
     passage of this legislation that would have added protections 
     from sexual orientation and gender identity discrimination to 
     existing state law. Three sources of public opinion data 
     indicate that 80% of Florida residents think that LGBT people 
     experience a moderate amount to a lot of discrimination in 
     the state.
       The study also shows evidence of the effectiveness of state 
     legislation. Evidence from states with sexual orientation 
     non-discrimination laws indicates that the likelihood of a 
     gay or lesbian employee in those areas even filing a legal 
     complaint is estimated at only 0.01 to 0.08 percent annually.

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