>This seems like the right decision (and I'm saying this as an LGBT person). The problem is, it just doesn't seem like legislation is the right instrument for promoting diversity in boardrooms.

Oh for sure it's the right decision. If even the legislation's intention was successful, forcing this matter will only go to create more radicalization and make the situation worse.

>I anecdotally recall studies that found organizations with greater diversity deliver better financial results, and that public companies have a responsibility to their shareholders.

Regardless of the issue you wish to prop up. There is always a study that says it will work.

>It's important to state this because businesses exist primarily to create profits, not promote social movements. There's a legitimate business justification to diversity policies.

Businesses should not even consider diversity. There is a problem in some businesses in that they do discriminate. They discriminate against and that's the ideal goal of what should be fixed. Or should it? If we are in a free market and Business 1 refuses to hire LGBT. Business 2 hires those and will eventually pick up good people that give them a competitive advantage.

Government coming in and using force to make Business 1 take LGBT on the board... That's not going to work out.