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A growing body of business ethics research has shown that firms are beginning to embrace the lesbian, gay, bisexual, and transgender (LGBT) community with internal organizational policies and temporary activism activities. Despite these positive developments, little research has examined firms' LGBT-inclusion strategy at the product level and whether adding LGBT representation to products helps, hurts, or has no impact on corporate products' market performance. Prior studies have examined LGBT-themed and LGBT-vague representations and identified limitations of both. The current research presents an alternative LGBT-inclusive representation in which heterosexual and LGBT imagery are both presented, with the former receiving more exposure than the latter. A secondary analysis of 4,216 movies and a controlled experiment reveal converging evidence: movies with LGBT-inclusive representation outperform those with no LGBT representation or with LGBT-themed representation. The superiority ofLGBT-inclusive representation comes from its ability to appeal to consumer segments holding favorable and unfavorable LGBT attitudes. While cultural and entertainment products often play profound roles in changing society's ethical standards and moral attitudes, they are rarely studied in the business ethics literature. Our findings fill this gap while answering a multimillion-dollar question for the entertainment industry.

Building on recent developments in optimal distinctiveness (OD) research, we identify two dimensions of corporate social responsibility (CSR) practices – CSR scope conformity and CSR emphasis differentiation – and examine the antecedents of both. We theorize that private ownership and enhanced media coverage may increase scope conformity and emphasis differentiation, while such effects may be contingent on industrial context. In socially contested industries, the impact of private ownership on scope conformity will be mitigated, and the impact of media coverage on scope conformity will be amplified. Meanwhile, in highly competitive industries, the impact of private ownership and media coverage on emphasis differentiation will be mitigated. We test our predictions using a database of 942 Chinese publicly listed firms between 2008 and 2016. Our findings imply that the choice of optimal CSR strategy has to be made in accordance with the embedding context. The multidimensionality view of OD enables firms to better orchestrate firms’ strategic positioning along different dimensions of complex practices, which leads to better customization of societal expectations and the industrial competitive landscape.