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Management of diversity in Peruvian companies: The cases of IBM, Atento and Scotiabank1
Gestión de la diversidad en empresas peruanas: los casos de
IBM, Atento y Scotiabank
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Isabel Gastelú Ledesma
Grupo de Investigación en Gestión de la Diversidad (PUCP)
igastelu@pucp.pe
Paloma Martinez - Hague
Departamento Académico de Ciencias de la Gestión (PUCP)
pmartinezh@pucp.pe
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The management of diversity is important today, as proven by the varied research
available on this topic. However, when we wanted to understand the management
of LGBT diversity, we found little research worldwide, let alone in Latin America.
We found a measurement model in the region developed by the Ethos Institute
of Brazil which allowed us to understand the current situation of LGBT diversity
management in three companies in Peru. Since Peru and Brazil are both Latin
American countries, one could think that the model is international and transversal
to both realities. However, our research proposed an adaptation of the model to
simplify it because elements found in Brazil were not yet present in Peruvian
companies. This qualitative investigation applies the adapted and contextualized
instrument to three large companies in Peru and presents a rather unique and
interesting view of LGBT diversity management.
Palabras clave: Diversity management, LGBT, measurement model
Actualmente somos conscientes de la importancia de gestionar la diversidad en las
empresas, y encontramos variedad de investigaciones al respecto. Sin embargo,
cuando quisimos comprender la gestión de la diversidad LGBT, encontramos poca
investigación en todo el mundo, y mucho menos en América Latina. Encontramos un
modelo de medición en la región desarrollado por el Instituto Ethos de Brasil, que nos
permitió comprender la situación actual de la gestión de la diversidad LGBT en tres
empresas del Perú. Al ser dos países latinoamericanos, se puede pensar que el modelo
es internacional y transversal a ambas realidades. Sin embargo, nuestra investigación
propuso una adaptación del modelo para simplificarlo porque los elementos en Brasil
aún no estaban presentes en las empresas peruanas. Esta investigación cualitativa
aplica el instrumento adaptado y contextualizado a tres grandes empresas en Perú y
presenta una visión bastante singular e interesante de la gestión de la diversidad LGBT.
Keywords: Gestión de la diversidad, LGBT, modelo de medición
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1. Introduction
To be more competitive in a very changing and vertiginous context, companies must
ensure diversity. Diversity is the collection of many individual differences and similarities
that exist between people. In business, it is an essential component for growth, innovation,
job satisfaction, commitment, better performance and sustainability. This is why the
management that deals with including diversity and capitalizing on it, better known as
diversity management, has become more prominent in recent years (Badgett et al., 2013;
Kreitner & Knicki, 2001; Instituto Ethos, 2014; Hunt et al., 2015; Mor Barak et al., 2016;
REDI, 2016; Turek, 2017).
The range of types of diversity to be managed by companies is vast, so not all of
them are managed in the same way. One example of this is the management of diversity by
sexual orientation and gender identity, which is still under development (Bailinson et al., 2020;
Carcedo Cabañas et al., 2016; Instituto Ethos, 2014). One of the most vulnerable diversities
not only in society but in the workplace is the group consisting of lesbians1, gays2, bisexuals3,
and transgender people4 (LGBT) (Köllen, 2016; Ozeren, 2014). There is data from the United
States reporting that at least “one in five LGBT people experience discrimination because of
their sexuality or gender identity when applying for jobs (20 %), when being paid equally or
considered for promotion (22 %)” (Dwyer, 2017). However, in Latin America and specifically
in Peru, there is no apparent data about the subject (Gómez, 2019).
In Peru, LGBTs are one of the social groups that have least political representation
(Jurado Nacional de Elecciones, 2016). These groups, being vulnerable in society, are
also vulnerable in the workplace (Defensoría del Pueblo, 2016). However, there is little
official, specific, and detailed information that allows us to know the situation of the LGBT
population, and much less in the workplace. A reflection of this situation is the reduced
number of academic publications related to the subject.
Motivated by this situation, we searched for models that could allow the
understanding of LGBT diversity management in Peruvian companies. According to one of
the experts interviewed and research, the latent vulnerability of this human group causes a
lack of models for its study (Gómez, 2019). However, the Ethos Institute5 has presented its
diagnostic model called the “Business Commitment to LGBT Human Rights - Guidance to
the Business World in Actions Aimed at Lesbian, Gay, Bisexual, Transvestite and Transgender
People”, in which they establish 10 commitments for the promotion of rights of LGBTs in
companies, becoming one of the few models found and developed for the Latin American
reality (Forbes, 2016; OIT, 2015).
The general objective of the research was to describe the current status of
LGBT diversity management in companies in Lima, Peru recognized as people oriented
by national rankings such as Aequales6, Great Place to Work (GPTW)7 and Merco Talento8
between 2014 and 2016.
One of the most relevant findings was that five of the Ethos Institute (2014)
commitments were not relevant to study, according to the validation of experts, because
the management of LGBT diversity in Peru is not yet prepared to measure them. Another
finding was that the participating companies that met the required profile were all
international and received guidelines regarding the management of diversity from their
parent companies in the United States, Canada and Spain. In the research process two
variables not contemplated by the Ethos diagnostic model emerged; these are the impact
of national culture and the organizational value of respect on LGBT diversity management.
The structure of this article is as follows. First, we review the literature related to
the subject of study in the next section. Then, the variables to be analysed are identified,
followed by their description. The article culminates with a discussion about our findings
and conclusions about the research.
2. Literature review
2.1. Diversity management and LGBT
Diversity management not only adds value to a company. Most importantly it applies a
justice approach aimed at reducing systemic injustice and economic exploitation in order
to transform the workplace into an environment of healthy and productive relationships
(Cross, 2010). A definition which integrates these views is that proposed by the Ethos
Institute (2014), recognizing diversity management as the consideration of singularities and
the promotion of respect for human rights. Within this definition, managing diversity means
managing people, because where there are people, there is diversity; and the objective
of this management is to convert the richness of human diversity into an added value for
people, businesses and society. It also promotes interactions, meetings, exchanging of
perspectives, expectations and knowledge in an environment full of cooperation and good
performance. This definition will guide the research.
The European Institute for Diversity Management (IEGD, n.d.) divides diversity
into visible and invisible. Likewise, it considers that non-visible diversities such as sexual
diversity are the ones that generate the most conflicts in organizations, resulting in the
deterioration of efficiency and responsible for an increase in operational and structural costs.
Besides, if not appropriately managed, it results in increased conflict, lack of cooperation
which converts into a lack of retention, reduces innovation and creativity, could generate
loss of revenue, and could even jeopardize the sustainability of the company (IEGD, n.d.;Mor Barak et al., 2016).
The term “sexual diversity” refers to the different orientations that each person
may have concerning their sexual identity and affectivity (Fundación CEPAIM, 2016).
Therefore, the Ethos Institute (2014) considers that the term “sexual diversity” is too
broad since it refers to different sexual orientations and gender identities. That is why the
use of the term “sexual diversity” should be contextualized with a focus on the LGBT
segment, thus allowing the delimitation and a better understanding of the issues and rights
addressed. (Instituto Ethos, 2014).
Unlike the others, this type of diversity is a hidden stigma, and because of this,
individuals often decide to hide or not reveal their orientation or identity (Badgett et al.,
2013; Bailinson et al., 2020; O’ Mahoney, 2014; OIT, 2015). Therefore, LGBT diversity
management is understood as a set of processes focused on the company committing
to the management of the sexual diversity variable through the implementation and
improvement of action plans. It implies considering that people have the right to develop
their identity in freedom, to build their world of affections, and to be able to enjoy it
(Fundación CEPAIM, 2016; OIT, 2015). It is not enough to “include” and “allow” the
expression of LGBT people; it is also necessary to promote respectful and potentially
creative and innovative interactions around the essence of the company, its purpose, and
its strategies (Instituto Ethos, 2014).
2.2. Ethos diagnostic model
In their meta-analysis of workplace policies for the LGBT community, Badgett et al.
(2013) identify as a limitation the fact that most studies used “convenience samples of
predominantly white, well-educated, self-identified sexual minorities recruited through
connections with the LGBT community” (p. 23) that were obtained mainly in the United
States. As mentioned before, the 10 Business Commitments for the Promotion of LGBTI
Rights designed by Txai Consulting & Education in association with the Ethos Institute
provide a rare opportunity to use a diagnostic model developed within a Latin American
approach and recognized by the United Nations (OIT, 2015). Even more, the model has been
used to evaluate companies from the Business and Rights Forum LGBT9 in Brazil.
According to OIT (2015),
- These commitments are the result of the actions of the movements social issues and their
demands on the world of work, especially those expressed in the country’s government
plans [...] and in the Reports on Homophobic Violence in Brazil [...] They are based on
Convention 111 of the ILO (Discrimination in Matters of Employment and Occupation) (pp.
72-73).
These commitments intend to create an agenda of practical actions that express
legitimate social claims, international human rights standards, expectations of the corporate
social responsibility movement, and discussions about current practices in some companies
in Brazil. Also, they offer parameters, indicators of actions, and indicators of depth, which
allow the company to make a diagnosis of the situation and the actions in order to maintain,
improve or create practices to promote LGBT rights. We used the indicators of actions to
measure the Ethos model commitments (Instituto Ethos, 2014).
The 10 Commitments are:
- Commit –CEO and executives– to respecting and promoting LGBT rights.
- Promote equal opportunities and fair treatment for LGBT people.
- Promote a respectful, safe, and healthy environment for LGBT people.
- Sensitize to and educate on LGBT rights.
- Encourage and support the creation of LGBT affinity groups.
- Promote respect for LGBT rights in communication and marketing.
- Promote respect for LGBT rights in planning products, services, and customer
service.
- Promote professional development actions for people of the LGBT segment.
- Promote the economic and social development of LGBT people in the value
chain.
- Promote and support actions aimed at LGBT rights in the community (Instituto
Ethos, 2014, p. 48).
3. Methodology
The qualitative approach provides depth, dispersion, interpretative richness,
contextualization of the environment or surroundings, details and unique experiences to
the data. It also provides a fresh, natural and complete point of view of the phenomena,
as well as flexibility (Hernandez et al., 2010). This approach is the most appropriate for this
study, since the topic of LGBT diversity management in Peru and Latin America is scarce
and we do not intend to generalize the findings in a probabilistic way, but understand, in
depth, the commitment and actions of the companies in relation to said topic. In order
to know about LGBT diversity management in Peru, and the similarities and differences
in the policies and practices applied there, this investigation focuses on companies
found in said country. Also, we used case study as a general research strategy; this is
a single, embedded case study (Stake, 2000). We collected the data in 2017 and carried
out a methodological triangulation of information among the professionals responsible
for LGBT diversity management in the case studies, LGBT and non-LGBT collaborators in
the case studies, and secondary information from the companies (Jack & Raturi, 2006).
Figure 1 shows the design of the methodology.
1 shows the design of the methodology.
The first step of the research was to validate and adapt the Ethos Institute
diagnostic instrument to the reality of companies in Peru in order to identify the variables
to study. Because this is a relatively new topic, it was necessary to collect perspectives
from experts on the topic. The objective was to obtain a more significant approximation to
the subject in the Peruvian context, which allowed improving the problem’s approach and
validating the defined methodological tools, as well as selecting the research variables. For
the sampling, we used a mixed strategy: convenience sampling and chain sampling. First,
we developed a list of people with extensive experience and recognized issues related
to LGBT rights in the workplace. Then, we invited those to whom we had access to an
indepth interview. After the interview, the experts suggested other experts on the subject.
We conducted four in-depth interviews with experts recognized as opinion leaders on the
subject, after which we found saturation:
- The former president of the MHOL (Homosexual Movement of Lima) and
researcher of an interdisciplinary research centre on sexuality, AIDS and society.
- The director of the NGO Presente, an activist for LGBT rights and business
consultant on LGBT diversity issues for companies in Peru.
- A professional from the Peruvian ombudsman organization, within the human
rights and people with disabilities office, collaborator of reports on the reality
of the LGBT population in Peru.
- A specialized lawyer on gender issues, former coordinator of the Aequales
ranking in Peru.
In the next step, we identified the companies that became the case studies. The
case studies had to meet the following characteristics:
- Be located in Lima, the capital of the country.
- Have more than 100 workers.
- Have specific policies and positions on diversity.
- Have a presence in the rankings of diversity and human resources
management from 2014 to 2016, such as the Gender Equity in Organization’s
ranking, promoted by Aequales; the International Organization of Women in
Business (OWIT); the Great Place to Work (GPTW); or Merco Talent.
The three companies chosen were IBM10, Atento11 and Scotiabank12, because they
met all the criteria and are referents of diversity management. Notwithstanding the choice
of a qualitative study in order to draw inferences from similarities or differences between
these chosen companies (Stake, 2000), each of them is in a different sector. As a result, the
profile of their employees is not similar. The three companies gave their consent to
participate and be identified for the study.
The third step of the research process was to measure the LGBT diversity
management in the three companies with the adapted diagnostic model of the Ethos
Institute. We did this by reviewing secondary information from the companies, interviews
with those responsible for managing LGBT diversity and both LGBT and non-LGBT
collaborators. Before beginning with the interviews, we tested the interview guides as a
pilot study with a human resources manager from a company in Peru, as well as a human
resources and diversity consultant; with their feedback, we improved the guide. However,
as Hernandez et al. (2010) propose, qualitative research is a spiral process between
collecting and analysing information, as it was in the study.
The secondary information reviewed were internal (internal regulations, code of
ethics) and external business documents (annual report, Sustainability Report or Social
Responsibility); as well as the official web pages and social networks; and news related
to the management of LGBT diversity. Based on this information, it was possible to have
a knowledge base about the policies and practices the company applied. It allowed us to
attend the interviews with specific information on the subject.
In the interviews with the managers and collaborators, we sought to know about
the policies and practices related to LGBT diversity management that they perceive in the
company in order to subsequently assess the current state of diversity management using
as a basis the adapted Ethos Institute diagnostic model. Subsequently, we interviewed
LGBT and non-LGBT collaborators from the case studies.
This is how we were able to use methodological triangulation. For this research,
we used more than one qualitative data source; we interviewed seven people in charge
of LGBT diversity management, 16 collaborators of the companies studied, and reviewed
documents about the three studied companies (Jick, 1979; Jack & Raturi, 2006).
We organized the qualitative information according to the collection tool used and the
information source. We worked with a two-level manual coding process in which the variables
were established a priori based on the research objectives and adapted from the Ethos Institute
diagnostic model based on the experts’ criteria.
However, in the first level coding process, some new variables emerged. To ensure
objectivity in the process, the person in charge of the codification was different from the
one who conducted the interview. In the second level of coding, all of the variables were
grouped by theme. Finally, with the data organized in matrices, we proceeded to compare
the case studies in regard to each specific variable, including the new ones identified for
this study, looking for similarities and differences between them (Aurini et al., 2016; Given,
2008; Hernandez et al., 2010).
3.1. The Ethos diagnostic model adapted to the Peruvian reality
Through interviews and using a measurement scale, we asked experts to assign a degree
of importance from 1 (unimportant) to 3 (very important) to each of the 10 commitments
presented by the Ethos diagnostic model (Appendix A), considering its use in the Peruvian
context, resulting in a diagnostic model that includes the five most relevant variables
presented below (Appendix B).
This external validation of the variables to be studied in this research by the experts
makes it possible for us to design the interviews with those responsible for managing LGBT
diversity and with LGBT and non-LGBT collaborators. We based the interview questions
upon the indicator actions for each commitment (Yin, 2018).
- The commitment of the CEO and executives to respect and promote LGBT
rights: The literature on diversity management cites leadership, more frequently
than any other, as an element of an effective diversity strategy (Marquis et al.,
2008), evidencing that it is critical in LGBT diversity management. In line with
this, the Ethos Institute (2014) decided to establish as the first commitment
that the presidency and executives (senior management) respect and
promote LGBT rights. It also suggests that senior management must behave
in a certain way to ensure compliance with this commitment. The actions to
be measured are the following (Instituto Ethos, 2014, pp. 49-50):
- Address the topic in the company’s oral statements, documents, and
policies.
- Not connive at discrimination.
- Guide decisions based on organizational identity.
- Rejecting homotransphobia in business and activities with stakeholders.
- Publicize commitments and practices.
- Building alliances with other organizations.
- Promote equal opportunities and fair treatment to LGBT people: The policies
and practices suggested by the Ethos Institute (2014) to promote equal
opportunities and fair treatment for LGBT people focus on guaranteeing
job opportunities and fair treatment in the recruitment, selection and job
training processes of companies towards their LGBT employees; and in
reviewing or implementing benefit policies for LGBT people. The actions for
their measurement are (Instituto Ethos, 2014, pp. 50-51):
- Policy on and practice of non-discrimination of LGBT persons in recruiting
and selection.
- Set targets for the inclusion of transvestites and transgender persons.
- Revise recruiting and selection tools and procedures.
- Build capacity of recruiting and selection professionals.
- Revise the tools and procedures used in the assessment and identification
of potentials.
- Include the topic of sexual orientation and gender identity in censuses
and surveys.
- Carry out affirmative actions for the career development of transvestite and transgender professionals.
- Include a commitment to managers’ performance appraisal.
- Revise or implement policies for benefits to promote equality.
- Establish benefits and favourable conditions to the LGBT segment.
- Promote a respectful, safe and healthy environment for LGBT people: The
requirements to promote a respectful, safe and healthy environment for LGBT
people in the company are the developing of relationships between team
members, the existence of complaint routes, the planning and dissemination
of policies, and the identification and dissemination of the good practices that
help to develop this commitment (Instituto Ethos, 2014, p. 51).
- Build the capacity of managers and teams.
- Implement or improve complaint channels.
- Define non-discrimination policies and anti-discrimination measures.
- Define non-discrimination policies for people living with HIV/AIDS.
- Identify and encourage proper management and relationship practices.
- Sensitize to and educate on LGBT rights: The inclusion of dates related to the
LGBT community must be considered to sensitize and educate about LGBT
rights and promote the issue in internal communication (Instituto Ethos,
2014, p. 52).
- Define a calendar for internal communication.
- Hold events.
- Addressing the topic in the company’s education agenda.
- Positively include the topic in internal communications.
- Promote respect for LGBT rights in communication and marketing: The
objective of the actions that the Ethos Institute (2014) suggests implementing
is to avoid discriminatory content and the inclusion of positive messages of
respect and appreciation to the LGBT community through communication
and marketing (Instituto Ethos, 2014, p. 52).
- Formally monitor campaigns to avoid the risk of discrimination.
- Insert positive messages in the company’s communication and marketing
- Devise or support campaigns that promote the rights of LGBT people and
people living with HIV/AIDS.
4. Results
We applied the adapted model consisting of five commitments in the three cases presented.
Next, we will describe the policies and practices we found.
4.1. The commitment of the CEO and executives to respect and promote LGBT rights
The commitment of the companies, studied through their practices, is evident. Table 1
shows the existence of the actions related to this commitment in the three case studies.
- Address the topic in the company’s oral statements, documents, and policies:
The case studies have the purpose of communicating their commitment
to LGBT rights. In line with this objective, they use various mechanisms to
address their stakeholders, with particular emphasis on their collaborators.
The three companies have included the issue in business documents, but
only senior management at IBM and Scotiabank have addressed the issue
through oral statements.
- Corporate diversity policies: The three companies have a corporate policy of
diversity or inclusion, which comes from their parent international company.
In IBM and Scotiabank, policies are adapted to Peru. The corporate policy
governs Atento, and instead of considering the Peruvian context, international
leaders decide what actions and initiatives to execute. From the interviews
carried out, we identified that in Peru, IBM and Atento have been implementing
these policies for years, while in Scotiabank, the adapted inclusion policy was
prepared and presented just in December 2017.
- Participation of company leaders in internal and corporate LGBT initiatives: In
IBM and Scotiabank, we found indications that demonstrate the participation
of their leaders in LGBT initiatives promoted by various areas of the company.
However, in Atento, no evidence was found. According to the Human
Resources manager of IBM Peru, Ecuador, and Bolivia, the objective of the
leaders’ participation is to sensitize, inform employees, and join allies.
- Alliances with organizations that promote the rights of LGBT people in the
workplace: The three companies have demonstrated their willingness to build
this type of alliance, albeit from a different approach. IBM and Scotiabank have
been promoters of the recently formed Pride Connection network. Atento
is not part of this network yet, but there has been coordination between
them. However, Atento has an agreement with the MHOL, a Peruvian NGO
that promotes the rights of LGBT people, to execute recruitment campaigns
through it.
4.2. Promote equal opportunities and fair treatment for LGBT people
Through interviews, the review of employment portals, and business documents of the
case studies, we deepened the research on the processes presented in Table 2.
- Recruitment and selection: Regarding recruitment, IBM and Atento have
recruitment programs focused on bringing together the best candidates for
the position, leaving aside their sexual orientation and gender identity. In the
case of Atento, the Responsible Recruitment Program fosters diversity due
to the support they provide to vulnerable groups or minorities to get formal
employment, and they have made an agreement with MHOL for the next six
years. However, Scotiabank does not give details in its internal and external
documents about the recruitment process. Concerning the publications,
the three companies studied present features of the egalitarian and diverse
environment of their companies, seeking to attract staff interested in that
culture.
- Regarding selection, the three companies select the staff according to their
talent. IBM focuses on talent and skills. Therefore, it leaves aside gender
or sexual orientation when selecting people. However, they do not have an
established quota of LGBT personnel that must work in the company. At the
same time, IBM and Scotiabank offer courses for those responsible for human
resources management, such as Unconscious Bias, which aims to prepare
recruiters to avoid biases when evaluating candidates (IBMBLOGJOB, 2017).
Scotiabank offers workshops on Unconscious Bias to leaders to help them
know the biases they have on gender, sexuality, and religion. To contrast the
information collected from those responsible for LGBT diversity and business
documents, we consulted with collaborators, LGBT or not, if they identified
any discrimination in the selection process. The interviewees mentioned
they do not perceived discrimination, in this process, by sexual orientation
or gender identity.
- Development process: The three study companies are concerned with
the training of their staff for professional growth through direct training. In
the three case studies, self-identified LGBT interviewed persons occupy
senior and middle management positions. Besides, IBM seeks to empower
managers as they are responsible for the professional growth of their team.
Employees perceive that the company allows LGBT employees to have
training without distinction, thanks to which they have reached high positions,
which is evidenced by having two people who are openly LGBT, a lesbian
Human Resources Manager, and a gay Human Resources Professional. In
Scotiabank, although the employees interviewed commented that they have
not identified LGBT staff in the executive team, the director of Integrated
Marketing and Corporate Social Responsibility identified himself as gay
during the interview. So, it follows that this company, regardless of their
collaborators’ sexual orientation and gender identity, offers the opportunity
for professional growth.
- Policies to promote equality: IBM Peru is the only company of the three that
has these policies. On the other hand, Atento and Scotiabank have inclusive
policies and practices, but they do not provide any exclusive benefits to their
LGBT employees. In the case of IBM, they provide insurance for same-sex
couples, life insurance, and maternity leave. IBM’s life insurance allows LGBT
people to leave their goods, money, among others, to the people they want,
within which they can find their same-sex partner. Likewise, the IBM Human
Resources manager comments that it is feasible to provide maternity leave
to same-sex couples who have children since there can be no differences
compared to the couples that the law supports, although legally, it does not
apply in Peru.
4.3. Healthy work environment
We evaluated the healthy work environment by using the three factors (WHO, 2010) shown in Table 3.
- Social Environment: IBM Peru has policies that address the phobia and
encourage respect for LGBT people. However, despite these policies and the
various practices, there are only two staff members who are openly LGBT.
Atento showed more significant progress in this aspect, as mentioned in the
responsibility report, and in the interviews, the environment was characterized
as comfortable, diverse, equitable, and committed to promoting well-being
and efficiency (Atento, 2015). Scotiabank’s code of conduct (2016) states that
the company is against any act of discrimination concerning human rights.
- Complaint channels: The three case studies have up to three means of
channelling complaints regarding acts of discrimination by people who suffer
or detect them. These are communication with the area manager, a direct
line, and anonymous communication. The manager or person in charge of the
area should be the first to find out about the problem, because they could
solve it in a faster and more direct way. The company trains them in these
types of situations in order to respond in the most appropriate way possible.
The second most popular means of communication is the Hotline, which is a
telephone number to report acts of discrimination. This medium provides the
ease of being available at all times and the possibility of contacting a person
in the human resources area. Within IBM, there is a separate area that is
responsible for independently managing these types of cases and providing
psychological advice with specialists to those affected. Also, they do an
investigation to prevent this type of activity from happening again. In Atento,
this direct line is called “Atento a ti” or “Atento listen”. The interviewees
commented that it is a telephone number to which all employees have
access. In case they do not have a phone line, Atento facilitates the use of
telephone booths in the campus, which have a direct line with “Atento a ti”;
it communicates directly to human resources. In Scotiabank, the OMBUDS,
an area responsible for receiving all types of complaints and solving them,
manages this process (Scotiabank, 2014). Finally, the three companies offer
the possibility of sending an anonymous email as a means to report a problem.
This mechanism supports those who want more confidentiality. Also, to
provide greater impartiality, these complaints are transferred to the parent
company for assessment. Both management and employees recognize that
this is one of the most efficient ways to report a discrimination problem.
- Communication of LGBT rights: There is evidence of the company’s respect
for LGBT rights within their documents. First, in IBM’s internal regulations,
there is an article that indicates people should not be discriminated against
for reasons of sexual orientation (2016). Similarly, the Social Responsibility
Report of Atento (2015) states the company does not discriminate in the
case of sex, belonging to minorities or any other indicator of diversity. Finally,
Scotiabank’s code of conduct (2016) makes it clear that discrimination based
on sexual orientation is prohibited.
4.4. Sensitize and educate employees to respect the rights of LGBT people
The case studies carry out up to three actions to strengthen education and awareness on LGBT issues, as shown in Table 4.
- Training on the LGBT topic: In the three companies, the training is mandatory
for managers and optional for other members of staff. However, each
company has different models. In the same way, there are courses aimed at
the families of workers for raising awareness and being able to address the
issue. For example, IBM has a virtual platform with various courses to train
their workers. In Atento, the training is not focused exclusively on managing
LGBT diversity, but on raising awareness and educating about the issue of
respect. The company believes the topic of diversity must be general, and
there should not be specific training on LGBT topics as they would have a
negative effect by stigmatizing something that is taken naturally within the
organization. Finally, Scotiabank offers unconscious bias and leadership
workshops. The objective is to train managers on day-to-day work issues
so they can recognize their biases and allow their teams to develop a more
empathic climate.
- Conversations: Within the case studies, only IBM has conversations on the
LGBT issue because they invest more resources in this initiative. These
activities are for all collaborators, either LGBT or not. In IBM Peru, in order to
meet the business objectives and talent requirements of the company, there
are Business Resource Groups (BRG). The members of this group not only
seek the well-being of LGBTs in their company but also in other companies.
IBM has a BRG that focuses on all LGBT-related issues.
- Activities for the LGBT month: The three case studies perform activities on
June 28 (LGBT World Pride Day), and, in some cases, throughout June,
naming it the month of diversity. These celebrations have the objective of
integrating LGBT people, allies, and people who are not educated on the
subject. In this way, they seek to recognize the contribution that these
minorities provide to the organization and raise awareness about the
importance of educating themselves as part of the daily routine of the company.
Furthermore, during the central LGBT pride day, the three companies showed
their support for the LGBT community by changing the logo of their company
on their social media, including the colours of the LGBT flag.
4.5. Promote respect for LGBT rights in communication and marketing
When analysing the communication and marketing of the companies, we identified they do
not have the objective of promoting respect for LGBT rights in their clients. This is shown
in Table 5.
- Promotion of respect for LGBT rights in the communication of the company:
The three companies deal mainly with internal communications through
various channels. However, in external communications, it was found that
IBM and Atento included complimentary messages that promote the respect
and appreciation of the LGBT community on the international LGBT pride day.
- Promotion of respect for LGBT rights in company marketing: We identified
none in the case studies.
4.6. National culture and the value of respect
As mentioned, after applying the adapted diagnostic model, two variables emerged in the
analysis. These were national culture and the value of respect as part of the organizational
culture, influencing LGBT diversity management.
4.6.1. National culture
Hofstede et al. (2010) define national culture as “the collective programming of the mind
that distinguishes members of a group or category of people from others” (p. 1). These
authors established six dimensions of national culture that serve as a framework whose
objective is to help evaluate culture. This must be considered because some factors that
influence the start of LGBT diversity management are related to the culture of the country
in which the company operates (Hidalgo & Campos, 2017). According to Withoos (2013),
the dimensions of power distance and individualism are probably useful for research in
the topic, as differences in sexuality are “probably expressed more verbally and loudly
in individualistic cultures, as these focus on personal expression. The power distance
dimension is concerned with how societies deal with inequality” (p. 15). The level of
development of the diversity management of the companies studied in Peru is not as
advanced as in other countries of the region and the world possibly due to this difference
in its cultural context (Figure 2).
Figure 2 compares Hofstede’s six dimensions between Peru and the parent
companies’ countries (Canada for Scotiabank, Spain for Atento, and the United States for
IBM) (Hofstede, 2020). This comparison could explain some of the differences between the
company’s policies and programs and the reality in their Peruvian subsidiaries.
In the first dimension, power distance, Peru has a high score of 64, the highest
among the four countries (Hofstede, 2020). This dimension expresses the degree to which
the less powerful members of a society accept and expect power to be distributed unevenly.
The fundamental problem here is how society handles inequalities between people. The
power distance dimension in Peru indicates that in this society, individuals are not equal.
This could explain the attitude towards LGBT people, since discrimination is a characteristic
of cultures with a high score in this dimension (Hofstede, 2018b). It could also hint why the
three companies have much more advanced policies and programs in place in their home
countries as compared to those in Peru.
According to the results of the measurement of cultural dimensions, Peruvian
culture is collectivist, with a score of 16. This result is in line with most other Latin American
countries and different to the parent companies’ countries, which punctuate as individualists
(Hofstede, 2020). Collectivism represents a preference for a very unified framework in
society in which individuals can expect their relatives or members of a particular group to
take care of them in exchange for unquestionable loyalty (Hofstede, 2018b).
The third dimension, masculinity, is related to trends, but it is not an identifiable
reality in individuals. The feminine side implies a preference for cooperation, modesty, care
for the weak, and quality of life (Hofstede, 2018b). By having a low score (42), Peruvian
society is considered feminine because it prefers human contact and family over recognition
or wealth (Hofstede, 2020). It is interesting to see that there are no significant differences
between the four countries in this dimension.
The dimension with the highest score in Peru is that of uncertainty avoidance (87)
(Hofstede, 2020). This dimension expresses the degree to which members of a society
feel uncomfortable with uncertainty and ambiguity. Countries that exhibit a strong aversion
to uncertainty maintain rigid codes of belief and behaviour and are intolerant of heterodox
behaviour and ideas (Hofstede, 2018b). For this investigation, it is necessary to highlight this
dimension because one of the factors that raise its score is the repression of minorities, such
as LGBT people. In Peru, this population lives in a context of exclusion and discrimination,
being victims of physical and verbal aggressions, murders, among others, and they do not
have a developed national regulatory framework that ensures their protection (Defensoría del
Pueblo, 2016; Red Peruana de Trans, Lesbianas, Gays y Bisexuales & Centro de Promoción
y Defensa de los Derechos Sexuales y Reproductivos, 2016). This high score is shared with
Spain; however, both Canada and the United States have much lower scores. Nevertheless,
the three case studies have more progressive policies and practices towards people with
disabilities and women, who are recognized as vulnerable groups in our society and have
a more developed regulatory framework for protection than that of LGBTs. The three case
studies have developed various areas of diversity management before implementing LGBT
diversity management at their headquarters in Peru. For example, IBM manages a total
of 13 types of diversity in 45 countries (IBM, 2016) and only four in Peru: gender diversity,
culture, people with disabilities, and LGBT. When we compared the studied companies, we
found a strong relationship between the previously implemented initiatives and the context
in which they find themselves.
In the long-term orientation dimension, Peru scores low (25), which may mean
that Peruvian culture has short-term normative guidance. In other words, Peruvians prefer
to maintain traditions and care to establish the absolute “truth” (Hofstede, 2018a). The
most significant difference in this dimension is with Spain, but the other two countries
show similar results. Peru’s case shows a more traditional and conservative society not
open to sexual diversity and the LGBT community.
Finally, indulgence represents a culture that is lenient when it allows the relatively
free gratification of raw and natural human impulses related to enjoying life and having fun.
Peru has an average score, below that of Canada and the United States (Hofstede, 2018b,
2020).
4.6.2. Respect as a shared value in the case studies
When comparing the organizational values of the three companies, we noticed they share
the value of respect in relationships with employees. They intend these values, together
with the principles, to serve as a guide for the behaviour of their workers. Currently, IBM
values are three: dedication to the success of each client, innovation that matters for their
company and the world, and trust and personal responsibility in all relationships. These
values are visible through aspects such as inclusive internal communication, photo checks
and merchandising (backpacks, holsters) with colours alluding to LGBT pride, and observing
that its leadership positions the topic in internal and external communication.
Atento’s values are commitment, passion, integrity, and trust. The latter, according
to their Sustainability Report (Atento, 2015), refers to guaranteeing trust, transparency, and
respect in relations with all its stakeholders (customers, employees, suppliers, society,
and shareholders). In the case of Atento, the interviewees affirmed that the value of respect
promotes a culture where employees are encouraged, in general, to present themselves
as they are. In this sense, whatever the gender13, gender identity14 or sexual orientation15
of the collaborator, they can be who they are. Atento’s orientation for diversity was born
with the company. It transmits these values through visible aspects such as inclusive
internal communication; the large, juvenile, inclusive labour campus; and recreational
activities such as championships and talent competitions where the same collaborators
even choose transgender people as sponsors of some teams.
Finally, Scotiabank’s values are four: respect, integrity, passion, and responsibility.
The basis of Scotiabank’s culture is respect and meritocracy. Employees perceive that to
enter or ascend in the company, sexual orientation is no impediment or argument against;
rather, it depends on the person’s ability to perform well. A Scotiabank collaborator for 22
years commented on how the bank’s culture has evolved from the time it was Banco de
Lima to when it became Scotiabank, deploying the culture of the Canadian bank at the Lima
branch.
5. Conclusions
This paper is a pioneer in the study of LGBT diversity management in Peru and allows us to
know how the leading companies in diversity are handling the issue, identifying standards
applicable to the Peruvian context. Therefore, we recommend that those companies
interested in managing LGBT diversity in this country use this adapted Ethos Institute
diagnostic model to identify the key aspects they should develop. We also encourage them
to take this list of good practices from leading companies in diversity management in Peru
as a reference.
In principle, we were able to identify that the diagnostic model for LGBT diversity
management proposed by the Ethos Institute of Brazil is very useful for diagnosing the
level of development of this management in companies. However, experts on the subject
adapted this model to the Peruvian environment, because, even if they are both South
American countries, they do not share the same context concerning LGBT people. The
experts interviewed did not consider evaluating five of the variables of the diagnostic
model, as it was likely that we would not find evidence of them in the companies studied.
This conclusion demonstrates the long way companies in Peru still need to work to manage
LGBT diversity appropriately.
We found that this model did not contemplate one aspect that literature and
case studies consider essential when addressing the management of sexual diversity
in companies: the role of national culture. The national culture has been considered by
those responsible for managing LGBT diversity in the case studies as a limiting factor that
influences the level of progress on the issue in companies. The high uncertainty avoidance
in Peruvian culture could be the reason why the development and implementation of these
policies are limited. Therefore, IBM and Scotiabank have set out as short-term objectives
to sensitize employees and develop allies who sympathize with this type of diversity, while
Atento has set itself the goal of maintaining and continuing to promote diversity in the
company. It is fundamental for international management to understand the impact of
national culture in the management of a company.
Regarding the application of the model adapted from the Ethos Institute to
the case studies, we can conclude that, in the first place, the practices implemented
by the case studies are backed by a sustainable strategy because they commit senior
management to them. Second, the three studied companies are committed to promoting
equal opportunities and fair treatment for LGBT people through policies and practices in the
processes of recruitment, selection, professional development, and benefits to promote
equality. Third, the companies try to ensure a respectful, safe, and healthy environment
through an adequate social environment among employees, ensuring ways of claiming
to respond to the needs of the workers, and the definition and dissemination of company
policies. Finally, when analysing the communication and marketing of the company, we
identified that the companies do not have the objective of promoting respect for LGBT
rights with their clients yet. Their focus is on achieving this inside the company first,
although specific initiatives in external communication by IBM and Atento contribute to
raising the level of respect for this community.
On the other hand, it is interesting to find that the three companies are international,
which shows more significant interest in this type of company for diversity management.
As mentioned before, the parent company gives them the guidelines by which they should
manage and the minimum notions that they must provide to all their stakeholders.
Another important finding to highlight is that although the three companies
develop adequate management of LGBT diversity and are leaders in the subject in the
country, it has not been possible to identify several openly LGBT people within them. For
example, we only mapped two LGBT collaborators in IBM Peru.
Atento, unlike the other two case studies, does not aim to develop policies
and practices focused on LGBT people, since this company believes in providing equal
treatment to all its workers without making differences for any diversity.
We recognize that the present study has some limitations in the number of case
studies, bibliographic sources and LGBT workers. First, it only has three case studies to
assess the management of LGBT diversity in Peru, because the number of companies that
develop this management in this country is low. In the second place, there was no access
to several investigations on the management of LGBT diversity in Latin American countries,
nor in Peru, since there are no studies on the subject from the workplace. This fact was
confirmed by the experts interviewed. Finally, a higher number of LGBT collaborators could
not be accessed because the case studies do not monitor or identify the official number
of LGBT collaborators within their company. In the same way, many LGBT workers do
not share their sexual orientation openly; therefore, to access them, we had to turn to
references from acquaintances.
Through this research, we confirm that the workforce is increasingly diverse, and
it is important for companies to include this diversity as it is beneficial for results. The case
studies recognize the importance of their human resources, so inclusion is a necessity.
Even more, they are committed to develop LGBT diversity management to provide a better
working environment for all their workers. Not only have they focused on carrying out
this management within the company, but they have participated in external activities as
well. They have published posts on their social networks that allow society to perceive
the support, respect, and commitment they provide to LGBT people, a population in a
vulnerable situation in Peru.
For future research, the present study provides direction to develop a diagnostic
model for LGBT diversity management applicable to companies with operations in Peru.
Also, action plans could be established for companies to implement policies and practices
related to the 10 Business Commitments for the promotion of LGBT rights according to
the Ethos Institute of Brazil. We believe future research could be carried out on the five
commitments that we did not evaluate. These are:
- Encourage and support the creation of LGBT affinity groups.
- Promote respect for LGBT rights in planning products, services, and customer
service.
- Promote professional development actions for people of the LGBT segment.
- Promote economic and social development of LGBT people in the value chain.
- Promote and support actions aimed at LGBT rights in the community.
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