ExxonMobil Corp. (NYSE:XOM) will not allow the LGBTQ-rights rainbow flag to be flown outside of its corporate offices during June’s Pride Month observances, although corporate leadership insisted this was not a reflection of a lack of support for its LGBTQ workforce.
What Happened: According to a Bloomberg report, Exxon Mobil’s decision is not based solely on the rainbow flag, but on the display of what it described as “external position flags.” The members of the company’s PRIDE Houston Chapter complained in an email that it was “informed the justification was centered on the need for the corporation to maintain ‘neutrality.’”
The PRIDE Houston Chapter at ExxonMobil added that it will not represent the company at the June 25 Pride events being held in the city, citing the flag ban for its decision.
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What Else Happened: However, the company insisted the PRIDE Houston Chapter is misunderstanding its intentions.
“The updated flag protocol is intended to clarify the use of the ExxonMobil branded company flag and not intended to diminish our commitment to diversity and support for employee resource groups,” said Tracey Gunnlaugsson, vice president of human resources, in a statement to Bloomberg. “We’re committed to keeping an open, honest, and inclusive workplace for all of our employees, and we’re saddened that any employee would think otherwise.”
Gunnlaugsson added, ExxonMobil encourages the display of banners and flags with logos of its employee resource groups (ERGs) during months designated for specific celebrations.
“The flags are directly related to our business and company support of our ERGs, including PRIDE for LGBTQ+ employees,” Gunnlaugsson said.
But the PRIDE Houston Chapter at ExxonMobil was not convinced, noting in its email, “It is difficult to reconcile how ExxonMobil recognizes the value of promoting our corporation as supportive of the LGBTQ+ community externally (e.g. advertisements, Pride parades, social media posts) but now believes it inappropriate to visibly show support for our LGBTQ+ employees at the workplace.”
Why It Matters: While LGBTQ employee groups at the entertainment industry titans Walt Disney Co. (NYSE:DIS) and Netflix (NASDAQ:NFLX) have recently used social and traditional media platforms to question their respective employers’ commitment to supporting the LGBTQ community, the case of ExxonMobil marks the first time that a major U.S. energy company has found its executive leadership at odds with its workforce on this issue.
The Human Rights Campaign, a nonprofit focused on LGBTQ issues, graded ExxonMobil with an 85 out of 100 points for its commitment to its LGBTQ workforce. The company received 30 out of 30 points for workforce protections, but scored 25 out of 30 for inclusive benefits (it was considered lacking in the equivalency of same- and different-sex domestic partner medical and soft benefits) and 35 out of 40 points for supporting an inclusive culture and corporate social responsibility (the absence of LGBTQ rights in its CSR focus caused the points deduction).
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