Corporate Equality and Competitive Advantage: Correlations Between LGBTQ+ Inclusivity and Tobin’s Q in B2C Versus B2B Companies

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Published: Nov 27, 2025
DOI: https://doi.org/10.33119/JMFS.2025.57.4
Keywords:
Inclusivity Policies, Market Differentiation, Corporate Equality Index, CSR, Tobin's Q

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Kinga Siuta
SGH Warsaw School of Economics

Abstract

This study examines the relationship between LGBTQ+ inclusivity, as measured by the Corporate Equality Index (CEI) from the Human Rights Campaign, and market value measured by Tobin's Q, with a focus on differentiating between B2C and B2B companies. The analysis highlights the distinct impact of achieving a perfect CEI score on market valuation, revealing that B2C companies may experience a significant, non-linear boost in market value with high inclusivity scores, particularly when achieving a perfect score. This enhancement in market valuation is probably driven by improved customer perceptions and decision-making processes, emphasizing the crucial role of visibility in these consumer-facing companies. Conversely, B2B companies do not exhibit significant changes in market valuation from the inclusivity index overall, suggesting that the benefits of inclusivity are less pronounced in the absence of direct consumer interactions. The study further explores how the local political leanings of a company's headquarters influence these effects, uncovering that B2C companies in politically liberal regions gain more from perfect CEI scores due to heightened consumer awareness and expectations. In contrast, B2B companies, even in liberal regions, see little to no relationship with Tobin's Q, reinforcing the importance of aligning inclusivity strategies with the specific business model and regional political context. This research underscores the strategic value of a perfect CEI score in B2C companies, particularly in politically liberal areas, and highlights the nuanced role of local political climates in shaping the financial benefits of LGBTQ+ inclusivity.

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How to Cite
Siuta, K. (2025). Corporate Equality and Competitive Advantage: Correlations Between LGBTQ+ Inclusivity and Tobin’s Q in B2C Versus B2B Companies. Journal of Management and Financial Sciences, (57), 67–87. https://doi.org/10.33119/JMFS.2025.57.4
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No. 57 (2025): Journal of Management and Financial Sciences
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Articles
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This work is licensed under a Creative Commons Attribution 4.0 International License.

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