Gay, lesbian, bisexual and transgender issues have been advanced in corporate America, thanks in part to efforts in the financial-services industry.
The Human Rights Campaign Foundation's annual Corporate Equality Index showed that the financial-services industry's had 32 employers receive a perfect score of 100 percent, the most of any other industry. As a whole, the sector had an average score of 91, tied for third along with the apparel, fashion, textiles, and department stores industry and behind hotel, restaurant and casinos sector (98 percent), and consulting services (95 percent). Daryl Herrschaft, director of HRC's sixth annual project, says benchmarking corporate polices is important because of limited government workplace protections.
The financial-services industry ranked so well because of altruistic and business reasons. "The GLBT community is estimated to have $680 billion in purchasing power," he says. "Not only does being good on these issues allow companies to tap into that market; it also creates a more productive workplace and improves recruitment and retention."
The financial and IT industries have long been at the forefront of adopting domestic-partner benefits and protecting their employees from discrimination, Herrschaft says. "Companies like JPMorgan Chase and Citigroup have been historic leaders in corporate America and ... played a key role in 'incentivising' other companies to provide greater benefits," he says.
Of 51 financial employers evaluated, all but three-Fifth Third Bancorp, National City Corp. and BB&T Corp.-offered domestic-partner health insurance. Fifth Third and BB&T were the only employers that offered no domestic-partner benefits.
JPMorgan Chase is the only bank to earn a 100 on all six yearly indices. Ray Flautt, vp of corporate diversity, applauded the efforts of the bank's employee group, Pride. "Pride has really taken the lead in encouraging the company to continue to push the needle for [its] constituency," he says.
JPMorgan Chase has been at the head of the class concerning domestic-partner benefits, adding non-discrimination and non-harassment policies to sexual-orientation and gender-identity issues as protected. It also created a transgender guideline.
Competition plays a major part in banks remaining active on equality issues. Like dominos falling, when one bank improves its offerings, others follow. "Financial services are so competitive at bringing in the best and the brightest talent," Flautt says. "So it behooves them to get involved in this for the sake of being able to recruit the broadest talent."
Linda McConley, diversity manager for Wells Fargo, which also received a perfect score this year, agrees competition has paved the way for improvements. Financial services have an advantage over other sectors because of diverse consumer options. "On the customer front, this is an industry that can tailor products and services to the GLBT community," McConley says. "A lot of industries don't have that same opportunity. ...Same-sex couples have very different banking needs than the general market."
Capitol One Financial Corp., Deutsche Bank and Lehman Brothers Holding each earned a score of 100 percent for each of the last five years.
Rob Keeling, vp of diversity for Capitol One, says banks know wide and diverse communities. "With banking, it's all about relationships and knowing that people have different financial needs," he says. "One of the ways to meet those needs is by having a diverse workforce. If we have GLBT members in our marketplace, then it would be great to have GLBT members in our workplace."
