LGBTQ+ Inclusion and ESG Performance in Indian Startups: A Mixed-Method Analysis of Sustainability Outcomes
Abstract
Environmental, Social, and Governance (ESG) practices have become increasingly important for organizational sustainability and responsible entrepreneurship. While diversity, equity, and inclusion (DEI) are widely recognized as drivers of innovation and employee wellbeing, limited research has examined the relationship between LGBTQ+ inclusion and ESG performance within startup ecosystems, particularly in emerging economies such as India. This study investigates the role of LGBTQ+ inclusion in enhancing ESG and sustainability performance among Indian startups using a mixed-methods research design. Quantitative data were collected through surveys administered to startup employees, founders, HR managers, and ESG officers, while qualitative insights were obtained through semi structured interviews. The findings reveal that LGBTQ+ inclusive workplace practices positively influence employee wellbeing, organizational commitment, innovation capability, ethical governance, and sustainability outcomes. Regression analysis further demonstrates a significant positive relationship between LGBTQ+ inclusion and ESG performance indicators. Qualitative findings highlight the importance of inclusive leadership, psychological safety, and diversity-oriented organizational culture in strengthening sustainable entrepreneurial development. The study contributes to ESG and sustainability literature by extending the discussion of workplace inclusion to startup ecosystems in developing economies. The findings also provide practical implications for entrepreneurs, policymakers, investors, and organizational leaders seeking to improve sustainability performance through inclusive and socially responsible workplace practices.
Keywords: LGBTQ+ inclusion; ESG performance; sustainability; Indian startups; diversity and inclusion; sustainable entrepreneurship; inclusive leadership
References
- Angeloni, S. (2026). Toward a universal framework for gender equality certification. Sustainability, 18(8), 3699. https://doi.org/10.3390/su18083699
- Bala, H., Al Naim, A., & Alomair, A. (2025). Demystifying the influence of board gender diversity on the nexus between ESG performance and carbon emissions. Humanities and Social Sciences Communications, 12, 1499. https://doi.org/10.1057/s41599-025-05733-8
- Białas, S., & Wróbel, P. (2025). Diversity and inclusion in HR processes in financial sector. In K. Gdowska, M. T. Gómez-López, & J. R. Rehse (Eds.), Business Process Management Workshops: BPM 2024 (Vol. 534). Springer. https://doi.org/10.1007/978-3-031-78666-2_13
- Birindelli, G., Capozza, C., & Iannuzzi, A. P. (2026). Does a gender diversity investment lens matter for investors? Empirical evidence from U.S. SRI mutual funds. In T. Walker & D. Gramlich (Eds.), The Palgrave handbook of sustainable finance. Palgrave Macmillan. https://doi.org/10.1007/978-3-031-98736-6_24
- Chindasombatcharoen, P., Chatjuthamard, P., Denlertchaikul, N., Jiraporn, P., & Korphaibool, V. (2025). LGBTQ-supportive corporate policies: A contemporary analysis of impacts, challenges, and global practices. Journal of Economic Surveys. https://doi.org/10.1111/joes.70046
- Cho, Y., Kim, S., You, J., Moon, H., & Sung, H. (2021). Application of ESG measures for gender diversity and equality at the organizational level in a Korean context. European Journal of Training and Development, 45(4–5), 346–365. https://doi.org/10.1108/EJTD-05-2020-0090
- Choudhary, P., Jain, N. K., & Yadav, P. (2025). Advancing green business expansion through strategic mergers and acquisitions leveraging sustainability and government policy for enhanced innovation and resilience. Discover Environment, 3, 287. https://doi.org/10.1007/s44274-025-00480-8
- Clasen, A., & Conrad, H. (2026). Rainbows and ratings: Assessing indices of LGBTQ+ inclusivity in the Japanese workplace. Contemporary Japan, 38(1), 3–29. https://doi.org/10.1080/18692729.2024.2346363
- Corsalini, M. (2023). ESG capitalism from a law and religion perspective. Religions, 14(3), 418. https://doi.org/10.3390/rel14030418
- Crews, C. (2023). The far right culture war on ESG. Religions, 14(10), 1257. https://doi.org/10.3390/rel14101257
- Demiralay, S., Kilincarslan, E., & Li, Z. (2025). LGBTQ+ workplace inclusion and corporate environmental performance. Business Strategy and the Environment, 34(8), 10785–10802. https://doi.org/10.1002/bse.70134
- Díaz-Leyva, C., & Cascón-Pereira, R. (2026). Diversity and social sustainability: A systematic review and integrative framework for advancing socially sustainable diversity management. Corporate Social Responsibility and Environmental Management, 33(2), 2949–2970. https://doi.org/10.1002/csr.70321
- Federo, R., & Aguilera, R. V. (2025). How does the visibility of LGBTQ+ directors influence firm value? The mediating role of environmental, social, and governance performance. Human Resource Management, 64, 731–752. https://doi.org/10.1002/hrm.22283
- Foster, B. P., Fu, X., Mattingly, E. S., & Manikas, A. S. (2025). Did investments in LGBTQ diversity help improve relative corporate performance during the COVID-19 crisis? Journal of Accounting, Ethics & Public Policy, 26(1), 94. https://doi.org/10.60154/jaepp.2025.v26n1p94
- Gidage, M. (2025). Exploring the impact of diversity, equity and inclusion on ESG performance: Evidence from Indian organizations. Benchmarking: An International Journal. https://doi.org/10.1108/BIJ-11-2024-1009
- Hossain, A., Masum, A. A., & Saadi, S. (2026). Rewarding ethical leadership: Corporate LGBTQ+ friendliness and CEO compensation. Journal of Business Ethics. https://doi.org/10.1007/s10551-026-06250-7
- Jung, J., Ko, H., & Kim, Y. J. (2025). How do startups drive innovations towards sustainability? Sustainability, 17(4), 1693. https://doi.org/10.3390/su17041693
- Korngold, A. (2023b). Corporate governance for an inclusive, sustainable, and prosperous future. In A better world, Inc. Palgrave Macmillan. https://doi.org/10.1007/978-3-031-31553-4_7
- Kotiloglu, S. (2023). Exploring how organizational performance feedback influences corporate social responsibility (CSR): The moderating role of LGBT inclusion. Journal of Strategy and Management, 16(2), 378–394. https://doi.org/10.1108/JSMA-09-2022-0170
- Kumar, A., & Santra, S. (2025). Sustainability reporting: An instrument of corporate accountability and transparency. Environment, Social and Governance Insights, 1(1), 60–66. https://doi.org/10.64006/esgi/1105
- Kumar, M., Kumar, P., & Agarwal, P. K. (2025). Innovation and impact: Tracing the footprints of social entrepreneurship research. Environment, Social and Governance Insights, 1(1), 14–28. https://doi.org/10.64006/esgi/1102
- Li, Y., Zhang, Y., Appolloni, A., & Liu, J. (2025). Linking top management commitment and circular practice through human resource perspective: Do diversity, equity, and inclusion (DEI) make a difference in sustainability? Corporate Social Responsibility and Environmental Management, 32, 2746–2768. https://doi.org/10.1002/csr.3099
- Mormile, S., Piscopo, G., & Adinolfi, P. (2026). Leveraging unique resources and capabilities to address ESG challenges: A qualitative study of high-growth Italian start-ups. Sustainability Accounting, Management and Policy Journal, 17(1), 151–178. https://doi.org/10.1108/SAMPJ-10-2023-0770
- Paolone, F., & Bitbol-Saba, N. (2025). Identifying thematic clusters of ESG in contemporary accounting studies through systematic literature review. Measuring Business Excellence. https://doi.org/10.1108/MBE-09-2024-0157
- Pichler, S., Blazovich, J. L., Cook, K. A., Huston, J. M., & Strawser, W. R. (2018). Do LGBT-supportive corporate policies enhance firm performance? Human Resource Management, 57, 263–278. https://doi.org/10.1002/hrm.21831
- Pinheiro, A. B., do Prado, N. B., Moraes, G. H. S. M. D., & Carraro, W. B. W. H. (2024). Organizational factors determining LGBT disclosure: An analysis of the Brazilian context. Employee Relations: The International Journal, 46(1), 212–227. https://doi.org/10.1108/ER-12-2022-0555
- Prakash, A., & Tiwari, A. K. (2025). The role of institutional factors in achieving SDG 16: A thematic review of drivers of corporate anti-corruption action. Environment, Social and Governance Insights, 1(1), 29-44. https://doi.org/10.64006/esgi/1103
- Shivani, S., Sharma, S., & Singh, S. (2025). Linking green entrepreneurial orientation to sustainable firm performance: Insights from a mixed method study. Business Strategy and the Environment, 34(8), 10313–10348. https://doi.org/10.1002/bse.70111
- Son, B., De Menezes, L., Kim, S., Leiras, A., & Ruel, S. (2026). On sustainable operations and supply chain management: Has the debate on diversity, equity and inclusion been settled. International Journal of Operations & Production Management, 46(3), 341–366. https://doi.org/10.1108/IJOPM-09-2025-0883
- Torelli, R. (2021). Sustainability, responsibility and ethics: Different concepts for a single path. Social Responsibility Journal, 17(5), 719–739. https://doi.org/10.1108/SRJ-03-2020-0081
- van Rijswijk, J., Curseu, P. L., Maathuis, C., & Mertens, G. (2025). Diversity washing: A systematic literature review and future research agenda. Corporate Governance, 25(8), 196–215. https://doi.org/10.1108/CG-11-2024-0600
- Webster, J. R., Adams, G. A., Maranto, C. L., et al. (2018). Workplace contextual supports for LGBT employees: A review, meta-analysis, and agenda for future research. Human Resource Management, 57(1), 193–210. https://doi.org/10.1002/hrm.21873
- Xuan, H., Albishri, N., Xue, K., Kalisz, D., Cuomo, M. T., & Del Giudice, M. (2025). ESG initiative-led corporate reporting practices: A legitimate move towards combating climate change. Business Strategy and the Environment, 1–21. https://doi.org/10.1002/bse.70485
- Yang, Y., & Chi, Y. (2023). Path selection for enterprises’ green transition: Green innovation and green mergers and acquisitions. Journal of Cleaner Production, 412, 137397. https://doi.org/10.1016/j.jclepro.2023.137397
- Zeng, Y., Katsumata, S., Zhang, Q., & Li, X. (2024). Organizational inclusion and sustainable development: An empirical evidence from the context of Eastern culture. Sustainable Development, 32(5), 4916–4930. https://doi.org/10.1002/sd.2942
- Zheng, J., Khurram, M. U., & Chen, L. (2022). Can green innovation affect ESG ratings and financial performance? Evidence from Chinese GEM listed companies. Sustainability, 14(14), 1–32. https://doi.org/10.3390/su14148677
