A new study from FIU Business examines how employees react to shifts of power towards different minority groups. Initiatives and laws designed to promote equal opportunity and social justice have had a positive effect on the inclusion and career advancement of members of minority groups. Yet not all groups are perceived similarly. The study, forthcoming in the Journal of International Management, finds that employees are more likely to trust their coworkers when they perceive that power shifts towards women than when such power shifts to individuals who are lesbian or gay (LG).
William Newburry, professor of international business at FIU Business, and his co-authors surveyed 841 employees across 10 countries in Latin America to investigate how demographic perceptions influence coworker trust, a critical factor for team cohesion and -ultimately- business performance.
“We focused on two highly visible and timely demographic groups because these are both at the forefront of corporate inclusion efforts, but they are rarely studied side-by-side,” said Newburry. “Each group carries very different societal perceptions, especially across cultures, and that shapes how people relate to them and their possible advancement in the workplace.”
The research draws a distinction between surface-level diversity, such as gender, and deep-level diversity, like sexual orientation. According to Newburry, gender is a more widely accepted category for corporate inclusion and is even embedded in international standards, such as the United Nation’s Sustainable Development Goals. In contrast, LG identity remains less visible and more stigmatized in many societies, particularly in parts of Latin America.
The study revealed that perceived increases in power for women coworkers are associated with higher levels of trust in the workplace. However, when employees perceive a rise in influence among LG colleagues, the results indicate a decline in trust, highlighting a deeper, social discomfort.
“While gender equity has become a broadly accepted objective across firms and countries, the same can’t be said yet for sexual orientation,” said Newburry. “The stigma around LG identities tends to run deeper and is harder to change, especially because the traits are less visible.”
The study also explored how international proactiveness- how globally oriented a company is- affects these dynamics. Firms that are more internationally engaged tend to foster more trust overall, especially when advancing gender inclusion. However, global orientation did not significantly offset the trust gap tied to perceptions of LG empowerment, possibly due to lack of strong, consistent international norms in that area.
Newburry suggests that multinational firms should recognize their potential as agents of change by modeling inclusive policies and practices, ranging from inclusive benefits and non-discrimination policies to public support for underrepresented groups.
“Multinational corporations have tremendous influence,” he said. “They’re in a position to drive change, not just respond to it.”
Looking ahead, Newburry hopes to expand the research with follow-up surveys that track evolving attitudes, particularly as social norms continue to shift across Latin America.
“Our goal is to provide insights that help organizations create workplaces where all employees can thrive and trust each other,” he said.
Newburry conducted the research with Marcelo J. Alvarado-Vargas from the University of Toledo, and Michel Hermans, from the IAE Business School of Austral University in Argentina.