The Economic Case for LGBTIQ Inclusion in Slovakia
What does Slovakia miss as an LGBTIQ non-inclusive country? How much does it cost Slovakia and what are the main drivers behind the economic costs of exclusion?
East meets West is one of the proud supporters and contributors to the recent Open for Business research which spotlights The Economic Case for LGBTQ+ Inclusion in Slovakia. What we like about Open for Business work is the structure? The 27 clear propositions grouped in Economic, Business and Individual performance, which makes it easy for anyone to follow a clear business case for LGBTIQ inclusion.
This research was published at a press conference hosted by Henkel Slovakia. We were proud and glad that both Dominic Arnall, the Chief Executive Officer at Open For Business (OfB), together with Liz Jacobs who leads at OfB Global Programs made the trip to Bratislava and joined in person the many journalists and business professionals from over 30 companies operating in Slovakia. Watch recordings: (1) (2).
The Economic Case for LGBTIQ Inclusion in Slovakia: Key Insights
From an economic and business perspective, Slovakia is in a relatively stable position, yet there are worrying trends that the country will not meet its ambitious growth goals for this decade (to reach 92% of EU average per capita GDP). The current situation LGBTIQ people in the country are facing is extremely challenging.
This level of anti-LGBTIQ activity comes at a cost. It affects the health outcomes and the wages and employment of LGBTIQ people, foreign investment, tourism, and Slovakia’s long-term issue with brain drain. This presents an opportunity for Slovakia.
Just a 10% increase in LGBTIQ rights in Slovakia would lead to an approximate €3,000 per capita GDP increase. This could happen by passing legislation allowing for same- sex partnerships, putting Slovakia on equal ground with the majority of European Union nations.
Bratislava trails the other Visegrad Group capitals in overall openness. Data from the Open For Business 2022 Cities Ratings report finds that Bratislava trails its neighbours on key economic metrics as well as LGBTQ+ acceptance metrics.
Skilled Slovak workers are leaving to work in more open societies. An impressive 62% of university students intend to leave Slovakia! Data also shows that more Slovak workers in “jobs of the future” are leaving the country while Western European countries are gaining these workers.
LGBTIQ spending power is a significant contributor to economies. A review of third-party analyses shows that both global LGBTIQ spending power and local Slovak LGBTIQ spending power is significant and worth attracting. Estimated to 4,2 billion EUR in 2021, this represent ± 5 % HDP of Slovakia that given year.
More economically successful countries have better records on LGBTIQ rights. Analyses demonstrate high correlation between LGBTQ+ rights and: Gross Domestic Product (GDP), The World Economic Forum’s Competitive Index, The Global Innovation Index (GII) from the World Intellectual Property Organization (WIPO).
LGBTIQ friendly companies outperform their rivals. Local and global data concur that companies that do more to openly welcome LGBTQ+ workers are more successful financially.
Our appeal one year ago
Some of you might recall our important "asks" to the Slovak Business community.
One year ago, we all stood still and could not believe the terrible news from Bratislava, but referring to the theme of our 2022 Bratislava conference, we thought it was time to pick-up the thread, again. We tagged in our LinkedIn post 13 businesses and their CEOs: Vacuumlabs, U. S. Steel Košice, Volkswagen Slovakia, Slovnaft, IKEA Slovakia, VÚB banka, Tatra banka, Accenture Slovakia, IBM, ESET, Slovak Telekom and Orange. That time only 3 had the courage to respond. Our “ask” was and still is simple and comes down to 3+1 positive actions:
Guarantee for all your LGBTIQ employees that your company is for them a safe space where they do not have to look over their shoulders but feel free of discrimination and any form of violence.
Move the LGBTIQ topics out of the “coffee corners” into the standard conversations in your company and by doing this, really consider it as business as usual. There is an economic cost of not doing so.
Use your economic importance in Slovakia through your public affairs. Add the LGBTIQ Diversity & Inclusion as key topic when working with key policy makers.
+ you want to go the extra mile? Launch a Supplier Diversity & Inclusion program and make your corporate spend more inclusive. Use Supplier Diversity as a tool to become a relevant social influencer.
Now success
Within weeks after the attack, over 30,000 citizens signed a petition calling for equal rights, demanding more supportive policies for LGBTQ+ people across the nation.
At the same time handful of business professionals got together and discussed how best to use the economic importance of businesses in Slovakia towards the needed social change. We from East meets West had the privilege to be part of it and advise in its early days a group, which grew to a strong coalition of companies operating in Slovakia.
The first public appearance of this coalition was back in May 2023. At the occasion of the IDAHOBIT (International Day Against Homophobia and Transphobia) the first 25 companies stood out and signed a business appeal "Firemna Vyzva" (www.firemnavyzva.sk).
Now, one year later, this appeal and the demands towards Slovak country leadership was signed by almost 60 companies operating in Slovakia. According to our estimates, these companies together employ in Slovakia over 36.000 people! Impressive!... though many of important Slovak business players still did not stand up.
A word of praise: Most people who are active in Diversity & Inclusion are very passionate about this topic, regardless of the fact of their personal or professional activities. Some work for an NGO, others are activists or work in a business environment. To find and keep their motivation going is not always easy but without their passion we would not see all the great ideas and initiatives they drive. We have to mention here someone whom we met and who very soon convinced us with an endless amount of motivation and drive to mobilise others to take action. And this all as a “side job” next to the main work in international corporate environment and next to the family life (a rainbow family life). This amazing success would not be possible without Martina (Tina) Bednar, who devoted her last twelve months to this business appeal.
More on Slovakia
Our good friend, German economist and writer Jens Schadendorf recently published a Slovak edition of the GaYmeChanger - the book on how the LGBTIQ community and their allies are changing the global economy now reached also Central and Eastern Europe. It is the very first CEE edition!
It includes a new, exclusive and long chapter on the challenging situation of LGBTIQ people and their allies in Slovakia's communities, public arena and companies, unfortunately with a lot of hate-speech by politicians and the church, and even horrific events such as the murder of tow young queer people in Bratislava in October 2022.
The new chapter also features some encouraging developments, driven by individuals, companies, and civil society organizations. As Jens says: "In fact, we should not forget that companies, in their own interest, can and should play a important role for advancing LGBTIQ equality smartly and courageously, since its good for business and the society and the right thing to do."
Publishing this Slovak edition would not be possible without Matej Ftacnik and Vacuumlabs.
PS: you want to get your copy of the Slovak edition? Reach out to us at East meets West: info@eastmeetswest.eu
