Submission to the Department of Enterprise, Trade and Innovation Strategy Statement 2011 2013 GLEN - Gay and Lesbian Equality Network August 2010 Introduction ....................................................................................... 1 1. The Contribution of Equality/Diversity to Economic Competitiveness ....................................................................... 2 2. 1.1 Diversity and Equality as Competitive Advantages ....................... 2 1.2 Civil Partnership as a Competitiveness Factor .............................. 4 1.3 Recommendation for Statement of Strategy 2011-2013 ............... 5 The Importance of Diversity in the Workplace ........................ 5 2.1 Supporting Diversity in the Workplace .......................................... 5 2.2 Recommendation for Strategy Statement 2011-2013 ................... 7 Introduction “The Government recognises that diversity and equality can be key competitive advantages for Ireland in developing, attracting and retaining investment, enterprises, key skilled workers and visitors”. Tánaiste Mary Coughlan TD in her foreword to the GLEN publication Lesbian, Gay and Bisexual Diversity in the Workplace 2010. GLEN very much appreciates the opportunity to make a submission to the Statement of Strategy being developed by the Department of Enterprise, Trade and Innovation 2011-2013. GLEN has been working with a wide range of employers and business organisations to support their work in attracting, nurturing and retaining the diverse workers and skills on which some of the most advanced sectors of the economy depend. These include IBM Ireland, Google, Microsoft, Accenture, Citi, IBEC and Business in the Community. GLEN’s support work has included the preparation and publication of a Guide for Employers, which was funded by IBM and supported by IBEC, Business in the Community, Irish congress of Trade Unions and the Equality Authority and launched by Mary Coughlan TD, then Minister for Enterprise Trade and Employment in 2010 (see attached). GLEN also has also responded to a growing number of requests from major companies to look at the implications of the Civil Partnership for their HR policy and provision. GLEN has also produced a Paper on International Competitiveness and the New Economy: The Role of Diversity and Equality as a submission to Dublin City Council’s Economic Strategy an Action Plan in 2009 (see attached). A critical issue identified in the Paper is the growing evidence of the contribution of tolerance and diversity to innovation and creativity. Actions to explore and develop the links between diversity and economic competitiveness are now part of policy in the Economic Development Plan for the Dublin City Region produced by Dublin City Council1. Such actions have also been recommended in the report of the Dublin Lord Mayors’ Commission on Employment2. 1 Dublin City Council (2009). Economic Development Action Plan for the Dublin City Region. Dublin Author. 2 Lord Mayor’s Commission on Employment. Dublin: A City That Works. Dublin: Author. Submission to Department of Enterprise, Trade and Innovation The Strategy Statement 2011-2013 for the Department of Enterprise, Trade and Innovation provides an opportunity to further explore and support the synergies between diversity, equality, innovation and competitiveness. In particular, we suggest the inclusion of the following themes: 1. Highlighting the evidence for equality/diversity as an additional competitiveness edge in attracting and retaining investment and skilled workers and in further supporting the conditions under which innovation can flourish. 2. Facilitating linkages between the Department of Enterprise, Trade and Innovation and key agencies under its aegis (including IDA Ireland, Enterprise Ireland) and organisations such as GLEN to support those aspects of equality and diversity that aid enterprises in their work of developing and retaining the skills and the conditions for innovation on which their business depends. These are outlined in more detail in the following sections. 1. The Contribution of Equality/Diversity to Economic Competitiveness and Innovation 1.1 Diversity and Equality as Competitive Advantages There is, as noted, a growing body of evidence of a strong link between equality, diversity and the growth of the advanced sectors of the economy critical to economic recovery, competitiveness and innovation. Many of the leading companies based in Ireland which are at the heart of the knowledge economy (for example Microsoft, Google, IBM and Accenture) have strong equality and diversity policies very proactively inclusive of LGB people. These policies are considered essential not only for recruitment and retention, but also for creating the conditions under which innovation can thrive. US economist Richard Florida Richard Florida has identified the broad impact of what he describes as ‘tolerance of difference,’ namely that tolerance and acceptance of diversity are seen by companies and people as an indicator of an underlying eco- 2 Submission to Department of Enterprise, Trade and Innovation system that is conducive to creativity, a key quality driving new industrial sectors. Florida states: “Economic growth in the Creative Economy is driven by three T’s: Technology, Talent and Tolerance. But technology and talent have mainly been seen as stocks that accumulate in regions or nations. In reality both technology and talent are flows. The ability to capture these flows requires an understanding of the third T, tolerance, the openness of a place to new ideas and new people. Places increase their ability to capture these flows by being open to the widest range of people across categories of ethnicity, race, national origin, age, social class and sexual orientation”. The importance of diversity in this respect was highlighted at the Global Irish Forum in 2009. For example, building connections with what was described as the “affinity diaspora” or foreign nationals who have lived in Ireland was identified in the report of the Forum as a critical opportunity for Ireland3 Diversity and tolerance have also been highlighted by the National Competitiveness Council when it stated: “Diversity provides a richer cultural experience for citizens and visitors bringing with it openness to new ideas and wider markets and customers. As highlighted by Richard Florida, diverse and tolerant cities are more likely to attract the skilled workers who possess the “creative capital” required to power knowledge economies” National Competitiveness Council, 20084 Professor Florida has described lesbian and gay people as the ‘canaries in the coalmine’ of diversity, with openness to and acceptance of lesbian and gay people often indicating a wider culture of tolerance and acceptance. This was raised by former Taoiseach Bertie Ahern TD when he stated: “The most successful cities in the world are those that foster cultural diversity. This success manifests itself economically as well as socially. A touchstone of this diversity is the manner in which lesbian and gay rights are respected”. Taoiseach Bertie Ahern TD, 20065. 3 4 Department of Foreign Affairs. Report of the Global Irish Forum 18-20 September 2009. National Competitiveness Council (2000). Our Cities: Drivers National Competitiveness. 3 Submission to Department of Enterprise, Trade and Innovation The importance of responding to diversity has also been highlighted in the Report of the Innovation Taskforce (2010)6. For example, the Taskforce notes that considerable progress has been made in simplifying immigration and work permit requirements for overseas students and researchers in HEI’s and industry. The attraction to Ireland of such students and researchers from outside the EU has been identified as an important part of our innovation eco-system. 1.2 Civil Partnership as a Competitiveness Factor The enactment of the Civil Partnership Act 2010, together with the equality legislation (that includes sexual orientation as a protected ground) has created one of the most supportive legislative environments for lesbian and gay people in the world. There has been considerable interest from companies based in Ireland in the new Civil Partnership Act 2010. GLEN has worked on seminars on civil partnership organised by companies such as Citi and Microsoft and attended by HR personnel from Google, Ernst and Young, IBM and a number of large Irish employers such as An Garda Síochána. In a paper on Irish people in same-sex partnerships in the United States, US demographer Dr. Gary Gates notes that same-sex partner recognition, such as civil partnership, has very practical economic consequences for countries like Ireland where global corporations play an important role in the nation’s economy. In particular, it makes it easier for global companies to move lesbian and gay employees, their partners and families from one country to another to another without risking the economic penalties and logistic challenges associated with nonrecognition of their relationships.7 The recognition of de facto same-sex couples in Irish immigration regulations and the commitment by the Irish Government to equal treatment between same-sex civil partners and married spouses in immigration law is a critical factor in this respect. In line with economist Richard Florida, Gates also notes that recognition of same-sex couples offers a strong signal to gay and non-gay people alike that a country welcomes diversity. This welcoming attitude he notes, gives Ireland an additional 5 Taoiseach Bertie Ahern speaking at opening of the Office of GLEN, 2006. Department of the Taoiseach 2010. Innovation Ireland: Report of the Innovation Taskforce. 7 Gary J. Gates Irish Men and Women in Same-Sex Partnerships in the United States. Los Angeles: The Williams Institute, UCLA School of Law. 6 4 Submission to Department of Enterprise, Trade and Innovation edge in attracting firms and internationally mobile workers in the advanced industrial sectors that are vital to Ireland’s economic future. 1.3 Recommendation for Statement of Strategy 2011-2013 The Department of Enterprise, Trade and Innovation should take a lead in highlighting the important linkages between equality/diversity and innovation, productivity and competitiveness. 2. The Importance of Diversity in the Workplace 2.1 Supporting Diversity in the Workplace Diversity in the labour force in terms of age, gender, ethnic origin, disability and sexual orientation has grown substantially over recent decades. An analysis of the Quarterly National Household Survey shows that a majority of the labour force come from one or more of these diverse groups. Recognising and supporting diversity in the workplace has been identified by many leading employers as an important component of successful companies’ policy, culture and practice. Lesbian, gay and bisexual people are more and more visible in society generally. GLEN estimates there are 130,000 LGB people in the Irish workforce. The introduction of Civil Partnership for same sex couples will increase this visibility even further. Civil partners will be entitled to occupational pension and other workplace benefits on the same basis as married couples. Employers and employer organisations are already seeking information about their compliance obligations arising from Civil Partnership. Major employers such as IBM, University College Cork, an Garda Síochána and Accenture have identified four key benefits of creating a workforce culture that embraces diversity and equality. Reputation – Organisational reputation is hugely important and becomes more so as the world becomes more competitive and consumers and service users more demanding. In the past, brand association with sexual orientation was sometimes seen as a liability. Now it is frequently perceived as an asset. Addressing issues of sexual orientation and gender identity can demonstrate 5 Submission to Department of Enterprise, Trade and Innovation that an organisation is courageous and forward-thinking. It can also furnish an ideal platform to communicate a commitment to a key human rights issue of our times that is also good for business. In the private sector, robust diversity policies and practices seen to encompass LGB people can play an important part in attracting the ‘pink pound’. While not all LGB people have high disposable income, statistical evidence suggests it is a lucrative market for many businesses. According to Out Now Consulting the annual income of gay and lesbian people in Ireland in 2007 was €8.75 billion per annum (Out Now Consulting 2007). Productivity – Retaining a motivated workforce is critical because it is the discretionary effort that employees make that is a key difference between an organisation and its competition. The values an organisation espouses and its reputation play an increasingly important part in its ability to attract, retain and enhance talent. One of those core values can be fair treatment of all staff. A recent survey of 1,110 LGB people in Ireland showed that 57% of lesbian and gay staff surveyed concealed their sexual orientation from some or all of their colleagues for fear of the negative implications disclosure may have on their career8. This fear creates stress and tension for many staff but it has consequences for employers too. People perform better when they can be themselves. Research in America has found that employees who felt able to be ‘out’ as gay or lesbian in safe environments earn 50 per cent more than their ‘closeted peers’, indicating the added value they were creating in their workplace. Conversely, more than half of gay or lesbian employees facing discrimination report a direct negative work impact (Stonewall 2008). Recruitment and retention – In a recent Irish survey workplace equality was the single most important issue for over 1,000 LGB respondents.9. Australian research found that almost two in five lesbian and gay staff facing discrimination will change careers if the discrimination continues. 8Mayock 9 et al 2009: LGBT Lives. Dublin: Children’s Research Centre. Denyer et al 2009. Burning Issues: Dublin: NLGF 6 Submission to Department of Enterprise, Trade and Innovation With skills at a premium irrespective of the economic climate, holding on to expensively trained, nurtured and motivated staff is a key priority in terms of human resources and company reputation. Risk mitigation – Prejudice has human costs for staff and employers. The largest sum awarded by the Equality Tribunal for discrimination in employment is €189,000. There are also significant ancillary costs for employers including legal fees, recruitment, inducted and training new staff, and regaining the trust of key stakeholders. 2.2 Recommendation for Strategy Statement 2011-2013 The Department of Enterprise, Trade and Innovation should play a leading role in working with a range of stakeholders (including agencies under its aegis such as IDA Ireland and Enterprise Ireland and organisations such as GLEN) to support those aspects of equality and diversity that aid enterprises in their work of developing and retaining the skills and the conditions for innovation on which future growth depends. GLEN – Gay and Lesbian Equality Network 2 Exchange Street Upper Dublin 8 t: +353 1 6728650 e: info@glen.ie w: www.glen.ie 7