How Do We React When Power Shifts to Women or LGBT+ Individuals?

In Latin America, gender equality and LGBT+ rights have advanced in recent years, but societies do not always transform at the same pace. This contradiction is evident in the workplace: while legal frameworks and corporate policies create space for women and LGBT+ individuals, social stereotypes and prejudices still influence how these groups are perceived.

This phenomenon intensifies when members of these groups reach leadership positions or increase their power within an organization. Stereotypes associated with roles such as CEO, director, or manager shape what employees expect regarding who should lead and who should have access to resources. In this sense, when power shifts toward minority groups, these expectations may clash with reality and reduce trust among colleagues.

In a recent study, “When power shifts towards women or lesbian and gay coworkers: Effects on trust in coworkers and the role of firm international proactiveness” (Journal of International Management, 2025), conducted together with William Newburry (FIU Business School) and Marcelo J. Alvarado-Vargas (University of Toledo), we asked whether the increase in power of women and LGBT+ individuals has different consequences for coworker trust. Good relationships among colleagues—whether bosses, peers, or subordinates—are important for both people and organizations. They are an indicator of inclusion and are associated with greater job satisfaction, openness to ideas, and team effectiveness.

Our research is based on a sample of 841 people from ten Latin American countries, a region historically shaped by machismo and traditional gender roles.

Surface Diversity vs. Deep Diversity

Our study distinguishes between two types of diversity: surface diversity, which is visible and easily recognizable, such as gender; and deep diversity, which is less evident, such as sexual orientation, which often remains hidden and is more subject to stigmatization. Differences in the visibility of minority groups are important because they determine the extent to which people base their behaviors and attitudes on social norms—such as fair treatment and equal opportunities—alongside stereotypical reactions.

Based on intergroup threat theory –the idea that groups react negatively when they feel another group's power is rising—, we show that power shifts toward women tend to increase trust in colleagues, because gender equality is supported by global social norms and international goals, such as the UN’s Sustainable Development Goal 5.

In contrast, power shifts toward lesbian and gay individuals tend to decrease that trust, because sexual orientation is less visible and remains surrounded by negative stereotypes, ranging from the historic notion of “deviant behavior” to the perception that it represents a “social taboo.”

Thus, social norms on equality and equity operate differently depending on the minority group: people tend to apply norms of fairness and justice more readily to visible groups such as women than to less visible and more stigmatized groups like the LGBT+ community, thereby sustaining negative perceptions.

Nevertheless, our study highlights that cognitive processes can regulate stereotype-based attitudes, which explains why power shifts toward women foster trust rather than distrust. This broadens intergroup threat theory by demonstrating that perceived threats do not always generate negative reactions, but can be modulated by social norms, opening the door to potential attitude changes toward LGBT+ people as well.

The Effect of International Exposure

Managing diversity is especially complex in the context of international business, where participation in global virtual teams, business travel, and international assignments entail interaction with people from other countries and different attitudes toward minority groups. Without sharing local stereotypes, people in international teams tend to be guided by supranational frameworks of interaction that emphasize fairness and equal opportunity. 

Thus, in companies with greater international orientation, employees are expected to adhere more to these global norms than in companies with a local orientation.

The results of our study confirmed this hypothesis. Organizations that act with a global vision—exporting, adopting international practices, integrating multicultural teams—create greater exposure to diversity and tend to shape a more open culture. In this sense, for women, international orientation reinforces the positive effect of power shifts on trust, while for lesbian and gay individuals, it only partially mitigates the negative effect, especially in countries with greater acceptance of LGBT+ communities.

DEI Lessons for Organizations

The message of this study is clear: not all minority groups are treated the same in terms of trust and equity. While gender equality has become consolidated as a global standard, LGBT+ inclusion still faces deep cultural barriers.

Our findings suggest that organizations can strengthen coworker trust if they raise awareness of the challenges faced by less visible minority groups and, at the same time, emphasize social norms such as equal opportunity, fairness, and fair treatment.

To move forward in building truly inclusive work environments, organizations could:

• Identify and openly discuss the challenges of less visible minoritiy groups, such as LGBT+ people, and address their specific needs.
• Reinforce and model social norms of equal opportunity, fairness, and justice, beyond merely complying with local regulations.
• Use internationalization not only for markets but also to promote more open and inclusive workplace cultures.

Power shifts in the workplace are not neutral; however, the internationalization of companies can become a driver for reducing gaps, bringing Latin American work cultures closer to global standards of inclusion and respect. Only then can diversity truly become a driver of trust and collaboration within teams.