The historically conservative country of Ireland took the world by surprise when it legalized same-sex marriage through a nationwide referendum on May 23. With 62% of the votes cast in favor of the proposal, Ireland became the first-ever country in the world to legalize same-sex marriage based on popular vote.
Although several other countries have previously walked the extra mile to legalize such marriages and some others are likely to follow the same footsteps in the future, these developments mark a significant shift from the archaic socio-economic paradigm across the world. Same-sex marriages are also legal in 36 U.S. states and it's widely believed that it is just a matter of time before it is widely acknowledged throughout the country.
Prominent Gay Personalities
Various celebrities from different aspects of life have won acceptance from the society when they made public revelations regarding their sexual orientation. These include multiple Grammy-winning legend Sir Elton John; Puerto Rican singer Ricky Martin; 18 Grand Slam singles title-holder Martina Navratilova; and Academy Award winning actress Jodie Foster.
Mirroring such sweeping societal changes in the corporate world, various organizations have come out in the open to support LGBT (lesbian, gay, bi-sexual and transgender) rights. Human resource policies are being redefined, and marketing programs are reworked to accommodate gay culture and make it more mainstream. These initiatives have led more employees to come out of the closet to create harmony and a sense of well being, leading to improved productivity.
Let us take a closer look at some of these companies that have defied the odds and rose above social stigma from religious bigots to mix profits with gay-friendly policies.
3 Companies That Advocate LGBT Rights
Apple Inc. AAPL: Tim Cook, the CEO of the iPhone and iPad manufacturer, was the first CEO of a Fortune 500 company who openly revealed his sexual preference. Cook has long been an active supporter of LGBT rights and has raised his voice against the ban on same-sex marriage in his home state of Alabama.
By his own submission, "If hearing that the CEO of Apple is gay can help someone struggling to come to terms with who he or she is, or bring comfort to anyone who feels alone, or inspire people to insist on their equality, then it's worth the trade-off with my own privacy." Cook was the third CEO of publicly listed U.S. companies to announce his same-sex preference after Trevor Burgess of C1 Financial, Inc. BNK and Jason Grenfell-Gardner of IGI, Laboratories, Inc. IG.
Apple is widely considered to be relatively liberal in terms of sexual orientation and has advocated several measures to encourage same-sex marriage as a means to propagate equal rights to its employees and the fundamental right to marry a person of choice.
With such liberal HR policies, this Zacks Rank #2 (Buy) stock surely knows how to boost employee morale and improve workforce productivity. This technology firm is currently trading at a forward PE of 14.8x with long-term earnings growth expectation of 14.0%.
Target Corp. TGT: This general merchandise retailer has been an ardent supporter of LGBT rights and even donated a fair chunk of its sales proceeds to the pro-LGBT Family Equality Council that represents about 3 million LGBT parents in the U.S. and their 6 million children.
In an open letter, the executive vice president and human resources chief Jodee Kozlak explained: “It is our belief that everyone should be treated equally under the law, and that includes rights we believe individuals should have related to marriage… At Target, we have long offered comprehensive, competitive benefits to our LGBT team members and their families, often above what is legally required…. We believe that everyone – all of our team members and our guests – deserve to be treated equally. And at Target we are proud to support the LGBT community.”
This Zacks Rank #2 (Buy) stock is currently trading at a forward PE of 17.2x and appears to be a solid pick with long-term earnings growth expectation of 11.2%. Target combines an attractive Zacks Rank with the highly desirable Zacks Value Style Score of ‘A.’
The Zacks Style Score for value takes into account all valuation metrics to give us an actionable metric that helps identify stocks truly trading at a discount to intrinsic value. Back-tested results show that stocks with Style Scores of ‘A’ or ‘B’ when combined Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) handily beat all other stocks.
The Home Depot, Inc. HD: The home improvement retailer has been widely known as an LGBT-rights promoter with its involvement in various gay pride parades, including the San Francisco Gay Pride parade in June 2011, where it rolled out a company truck with a large rainbow sign.
In a public statement, Home Depot clearly stated that its policies would "raise internal awareness and understanding of the gay, lesbian, bi-sexual and transgender customer segment and promote inclusion and respect for all associates."
This Zacks Rank #2 (Buy) stock is currently trading at a forward PE of 22.3x with long-term earnings growth expectation of 14.1%. Home Dept combines the positive Zacks Rank with the highly desirable Zacks Growth Style Score of ‘A.’
While growth is typically associated with revenue or EPS growth, the Growth Style Score goes beyond these obvious measures to incorporate elements from the company’s financial statements to get a true sense of the quality and sustainability of its growth. Our research shows that stocks with Growth Style Scores of ‘A’ or ‘B’ when combined with Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) offer the best investment opportunities in the growth investing space.
Moving Forward
Several corporate organizations in the U.S. have signed a brief to the Supreme Court seeking to strike down a ban on same-sex marriages. Even not-so-popular small business groups have worked silently behind the scenes to promote a workplace that supports LGBT rights. It seems the U.S. corporate culture has come of age and is likely to support all workers, irrespective of their sexual preferences.
Tim Cook, CEO of Apple — one of the most respected and admired companies in the world — perfectly summed up: "Let me be clear: I'm proud to be gay, and I consider being gay among the greatest gifts God has given me."
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