How queer inclusion can benefit Nepal’s businesses

The fight for LGBTIQA+ rights has taken root globally. A number of countries have witnessed major public movements for marriage equality and legal recognition of the queer community. While same-sex marriage and homosexuality still remain illegal in many nations, there is increasing pressure on governments to acknowledge the issues faced by LGBTIQA+ individuals. 

Nepal has set itself apart in providing legal recognition to the community, thanks to progressive court rulings that have upheld the rights of queer individuals. While this has earned the country international recognition, the community still has a long way ahead of itself. As these challenges persist, new perspectives are emerging on how LGBTIQA+ rights are viewed. Queer rights are generally associated with human rights, but with increasing data on the economic impacts of LGBTIQA+ inclusion, there is a growing case for businesses to embrace inclusivity and reap the benefits it offers. 

Monetary gains

Corporations around the world have supported the cause for LGBTIQA+ rights (excluding countries where homosexuality is illegal). In the West, small businesses and multinational companies have embraced the rainbow and have emerged as important advocates for the community. The fight for justice and equality has driven corporations to join this movement and build pressure on their respective governments. But beyond the ideals of social justice, there are tangible economic benefits that businesses stand to gain from inclusive policies in the workplace. 

Research shows that LGBTIQA+ inclusive policies lead to enhanced productivity, higher innovation, and better financial performance of businesses. More inclusive firms report up to 35 percent higher profits compared to their non-inclusive counterparts. Inclusive workplaces also attract the top talents in the market given the increasing preference of workers for safer and diverse workplaces. 

Zooming out to a macro level, LGBTIQA+ inclusion delivers benefits across the economic landscape. Inclusive policies not only boost economic growth and productivity levels but also positively impact human development indicators. The resulting benefits on human capital outcomes drive profitability for firms, as they can take advantage of better labor market conditions and attract diverse talents. 

Performance gains

Besides monetary gains, firms also benefit in broader organizational metrics like employee engagement, motivation, and retention. When employees feel valued and respected, they are better able to deliver on their work. Feeling confident about one’s identity naturally increases the productivity and motivation levels of workers, allowing them to connect better with fellow colleagues. 

It is no surprise that an inclusive workplace attracts the best talent and witnesses lower turnover rates. Everyone prefers a workplace where they can bring their full selves to work and don’t have to worry about their looks, preferences, and backgrounds. Fostering an inclusive workplace also has the advantage of the reduced legal burden of dealing with complaints of discrimination and harassment. 

Research from McKinsey shows that companies embracing Diversity, Equity, and Inclusion are 21 percent more likely to outperform on profitability and face fewer legal issues related to discrimination. Hence, beyond the monetary gains that LGBTIQA+ inclusion offers, businesses stand to benefit from the wider impacts inclusive policies have on their organizational functioning.  

Opportunities for businesses

The global corporate world has actively embraced queer inclusivity but Nepali businesses are yet to show the same level of enthusiasm. Nepal has a relatively strong legal recognition of the queer community, which puts domestic businesses in an advantageous position to leverage the talents of queer workers and bring fresh perspectives to their organization. They have the opportunity of hiring queer folks and bringing vibrancy to their firms, while also significantly increasing their problem-solving and innovative capacity. All of these potential benefits are supported by solid research. LGBTIQA+ inclusion, and by extension, all forms of inclusion, will be the competitive advantage that organizations can bank on for their future success. 

Though Nepal’s corporate ecosystem is still in its infancy, the existing large businesses need to lead the way in prioritizing DEI and leveraging the benefits it offers. The banking industry can play an especially important role in this area given its impressive performance with female labor employment in the sector. Extending this achievement to other gender identities and sexual orientations can give the industry a further boost in its performance and profitability, not to mention the international recognition that will come with it. 

With the legal rights of the queer community increasingly being recognized in Nepal, large domestic firms can take the lead in writing the next chapter of LGBTIQA+ equality. Beyond serving their own interests, LGBTIQA+ inclusion can change the lives of thousands of Nepalis, while also significantly contributing to the country’s economic and social development. Inclusion in the workplace is a win-win situation—for firms, for employees, and for the country—and it’s time the stakeholders gave the issue its due attention.