As Pride month comes to a close, the corporate world’s approach this year has been noticeably more cautious.
June typically sees a surge in rainbow-themed merchandise, affirming ads, and social media posts from retailers and consumer brands, aligning with parades and events celebrating the LGBTQ+ community.
However, with the presidential election approaching, some companies have become quieter about diversity, equity, and inclusion efforts to avoid getting caught in culture wars or facing backlash from conservative customers, as seen last year with Target and Bud Light.
The most notable example emerged late Thursday: Tractor Supply, a retailer of animal feed, cowboy boots, and lawn supplies in rural areas, announced it would cease all spending on diversity and environmental causes, including sponsoring Pride festivals.
While this move is extreme, it highlights a trend of companies that previously committed to inclusion now treading carefully.
Tracking how many companies shared supportive messages, donated to LGBTQ+ causes, or sold rainbow-themed merchandise this June compared to previous years is challenging. According to Gravity Research, a reputational research firm based in Washington, D.C., 45% of Fortune 100 companies had at least one Pride-related social media post on LinkedIn or X by June 21 this year, down from 51% last June.
Gravity Research President Luke Hartig noted that the volatility of the presidential election and the candidates’ willingness to call out companies have made businesses more hesitant to publicly state their positions.
“There’s a sense of ‘let’s keep our heads down during the election,’” Hartig said.
Tim Bennett, cofounder of Tribury Productions, a marketing company specializing in reaching LGBTQ+ Americans, works with Fortune 500 companies, including recent projects with Procter & Gamble. He observed that more clients are taking a “wait-and-see” approach to marketing to LGBTQ+ consumers or spreading their efforts throughout the year instead of focusing on a single month.
“June this year has not been like the last five or six,” Bennett said.
This shift may not be detrimental to LGBTQ+ initiatives and charities. Sarah Kate Ellis, CEO of nonprofit advocacy group GLAAD, noted that more companies are engaging in meaningful year-round philanthropy and activism.
She also referenced a Gravity Research survey indicating that 78% of companies did not plan to change their Pride strategy this year. Thirteen percent were uncertain about changes, and 9% intended to revise their strategy. Gravity Research surveyed 45 corporate executives and Fortune 500 leaders across industries in April.
“The visibility of companies displaying flags and having products to celebrate our Pride and mark a significant month for our community is crucial, and I don’t want to devalue that,” Ellis said. “However, companies must also ensure that their internal policies and HR practices align with their outward marketing.”
Major companies continue to support LGBTQ+ causes financially. A GLAAD spokesperson stated that the organization has not seen a decline in donations or corporate support this Pride month, though a total tally is not yet available.
The business community also backed the opening of the Stonewall National Monument Visitor Center on Friday, commemorating the New York City bar that played a pivotal role in the LGBTQ+ rights movement. Supporters included Google, Amazon, JPMorgan Chase, and Booking.com. President Joe Biden also attended and made remarks at the event.
The Bud Light and Target effect
Consumer staples brands were most likely to adjust their Pride month strategy this year, possibly due to conservative boycotts of Target and Bud Light last year.
Target has carried a Pride collection for over a decade but removed some items and moved displays last year after employees faced threats. Boycotters targeted items for transgender shoppers and criticized separate Pride merchandise for kids.
This year, Target only carried Pride merchandise in stores accounting for 90% of total Pride sales in 2022 and 2023, and stopped selling any Pride apparel for kids. On the company’s website and in select stores, shoppers can still find a variety of Pride-themed items.
A Target spokesperson noted that the volume of negative feedback about the Pride collection, both externally and internally, is significantly lower this year than in 2023.
Target stated it is “committed to supporting the LGBTQIA+ community during Pride Month and year-round” and would participate in Pride events nationwide, support LGBTQ+ groups, and offer Pride products.
Anheuser-Busch InBev and other large beer brands have pulled back from public support of the LGBTQ+ community. Conservatives like singer Kid Rock and Florida Gov. Ron DeSantis called for a boycott of Bud Light after it sent personalized cans to transgender influencer Dylan Mulvaney. The marketing campaign coincided with the March Madness college basketball tournament.
Bud Light sales dropped by around 25%, and the brand lost its position as the best-selling beer in the U.S. to Constellation Brands’ Modelo. AB InBev distanced itself from Mulvaney and fired Bud Light’s vice president of marketing. In October, AB InBev CEO Michel Doukeris said the brand would focus its marketing on events like sports games and concerts and returned as the official UFC sponsor.
In recent months, some consumers have returned to Bud Light, with RBC Europe analysts estimating the brand’s U.S. volume is down only about 10%. Bud Light has not posted support for Pride month on its Instagram or X pages this year.
The boycott’s persistence can be attributed to several factors, according to Neil Reid, a geography professor at the University of Toledo who researches the beer industry. Studies show that consumer loyalty to top-selling beers is often more tied to the brand than the taste. Right-wing news outlets like Fox News devoted extensive coverage to the controversy, prolonging its impact and potentially reaching new consumers. Additionally, as Bud Light sales fell, retailers allocated more shelf space to its competitors.
“You can view this issue from a moral, ethical perspective or a pure business perspective, and those often don’t align,” Reid said.
Doubling down on diversity
While some companies have become more cautious about promoting diversity efforts, others have intensified their inclusion initiatives. E.l.f. Beauty, for example, launched a provocative advertising campaign in mid-May called “So Many Dicks,” highlighting that there are more men named Dick (including Richards, Richs, and Ricks) than entire groups of underrepresented people. The campaign featured video spots with athlete and social rights activist Billie Jean King.
E.l.f. Beauty is one of only four U.S. publicly traded companies with a board comprising two-thirds women and one-third ethnically diverse members.
E.l.f. Beauty CEO Tarang Amin stated that customers, especially its core Generation Z audience, want brands to stand up for causes they support. He noted that corporate leaders have become more hesitant to speak up than before.
“Our values are what really differentiate E.l.f. and what our community expects,” Amin said. “If you don’t stand up for what you believe and only act out of fear of objections, you miss the opportunity to make a real difference.”
Amin added that the company’s stock performance demonstrates that its diverse board and inclusive messaging benefit its bottom line. Shares of E.l.f. are up about 46% this year, outperforming the S&P 500’s approximately 15% gain.
Pride initiatives continue in the business world. Skittles sold a limited-edition Pride pack of its rainbow-colored candies, donating $1 for each pack sold to GLAAD, up to $100,000, and matching donations up to $25,000.
Macy’s highlighted LGBTQ+-owned, founded, and designed brands on the websites of Bloomingdale’s, Bluemercury, and its namesake brand in June. Over the past five years, Macy’s has raised more than $6.2 million for the Trevor Project, a nonprofit supporting suicide prevention for LGBTQ+ youth.
GLAAD’s Ellis expressed optimism about companies’ continued support, stating they “will be on the right side of history.” However, she emphasized the need to support the transgender community, as politicians propose bills restricting gender-affirming care and transgender rights.
Gravity Research’s Hartig noted that companies have shied away from including transgender people in marketing due to conservative targeting during political campaigns and last year’s Pride month.
Not all backlash against corporate diversity, equity, and inclusion efforts has gained the traction activists hoped for. The number of shareholder proposals opposing environmental, social, and governance (ESG) initiatives has surged, according to ISS-Corporate, a data and analytics provider. Anti-ESG proposals at Russell 3000 companies’ meetings from Jan. 1 to June 30 this year rose to 83, up from 55 in the same period in 2023 and 37 in 2022. Yet, voter support has decreased each year, with a median support rate of 1.5% in 2024, down from 1.7% in 2023 and 2.9% in 2022.
