Countering Legislative Hostility: Corporate Equality Index as a Response to Anti-LGBT State Laws in the Early Trump Era

Kinga Siuta

Gospodarka Narodowa. The Polish Journal of Economics, 2025, issue 1, 20-36

Abstract: This study investigates the impact of state-level anti-LGBTQ+ legislation on changes in the Corporate Equality Index (CEI) among large U. S. corporations during the early years of the first Trump administration, – a period of significant political uncertainty and legislative shifts affecting LGBTQ+ rights. Employing regression analysis, this research examines how varying degrees of state-level legislative hostility influence corporate inclusivity policies, with a specific focus on the role of corporate headquarters’ location in shaping these responses. The findings reveal a nuanced relationship, where firms in states with a moderate number of anti-LGBTQ+ bills exhibit significant improve in their CEI scores, suggesting a strategic countermeasure to the negative socio-political climate. Conversely, corporations in a states with an extreme number of such bills, specifically Texas, show no changes beyond the ones observed in firms headquartered in non-hostile states, potentially reflecting entrenched socio-political stances or stakeholder preferences that aligned with conservative views. This study contributes to the discourse on the interplay between political uncertainty, legislative environments, and corporate inclusivity strategies, highlighting the importance role of contextual factors in shaping corporate decision-making making regarding on LGBTQ+ inclusivity.

Keywords: CSR; Corporate Equality Index; anti-LGBT legislation; Trump administration; corporate inclusivity policies (search for similar items in EconPapers)
JEL-codes: D22 L21 M14 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sgh:gosnar:y:2025:i:1:p:20-36

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