(Originally published on 10/16/2015)

There are many challenges for LGBT employees in China and globally, where the culture has traditionally not encouraged people to be open about their sexual orientation or gender identity in the workplace. However, there are possible forces for change.

On Friday October 16^th, the United Nations Development Programme’s (UNDP) regional “Being LGBTI in Asia” initiative, in partnership with The Economist Events, co-hosted a policy roundtable discussion titled “Executive Dialogue: The business of LGBT inclusion in Asia”.

The event brought together representatives from business, government-affiliated research institutes and civil society to learn how local and multinational corporations deal with LGBTI inclusion in the workplace.

Evidence from a number of countries shows that the inclusion of sexual and gender minorities in the workplace can be good for business as it can promote creativity and innovation, allow companies to attract and retain talent and create more engaged and loyal employees. The dialogue looked at different ways to assess as well as promote the business case for LGBTI inclusion in the workplace in Mainland China.

At the event, international companies recognized for their leadership in LGBTI inclusion - including IBM, Goldman Sachs and McKinsey - presented their internal policies on human resources and talent development, detailing their commitment to work-place diversity. Evidence shows that promoting diversity within the workplace goes beyond inclusive HR programmes and requires creative leadership, internal diversity structures (such as LGBTI groups or diversity committees) and a corporate focus training and sensitization.

However, even international companies who have global policies on diversity and inclusion, often do not implement or promote such policies in China. For the few who have done so, the impact has been limited as the large majority of employees choose not to take part in diversity activities. Social and family pressures still force the majority of LGBTI people to remain in the shadows at work.

A generational change and the growth in the Chinese ‘Pink’ market were identified during the dialogue as possible forces for change. Specifically, younger employees are more open and supportive of a diverse working environment and are starting to demand action from senior managers. At the same time, more companies are paying attention to the growing LGBTI market in China, which recent research estimates at around 70 million people, most of whom possess higher levels of disposable income and a propensity to remain loyal to brands who are supportive of LGBTI issues.

Contributing to the discussion were The International Labour Organization and the Ministry of Labour’s National Labour Research Institute, who discussed the need to update national policies related to employment or work-place discrimination and include sexual orientation and gender identity issues. Aibai Culture & Education Centre, a civil society organization dedicated to workplace inclusion work in China, provided an overview of the available data on employment-based discrimination and facilitated discussions on human resources management and innovative tools for inclusion.

Amongst the conclusions from the dialogue it was highlighted that just as any Western company entering the Asian market needs to learn to adapt to local market cultures, Asian companies seeking to expand abroad also need to contend with unfamiliar legislative regimes, hiring practices and cultural expectations related to LGBTI people. This was the basis for a practical dialogue with Chinese companies on promoting diversity policies in China and abroad.

This policy dialogue is part of a series of discussions to be held in Beijing, Bangkok and Jakarta that will shape the direction of The Economist’s global event “Pride and Prejudice”, which will be held in New York, London and Hong Kong in March 2016.