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Topline
A recent survey conducted by Gravity Research reveals a notable trend: nearly 40% of corporations plan to reduce their engagement during LGBTQ Pride Month this June. This marks an increase from the previous year’s figures, where a smaller portion showed intentions to scale back. Additionally, around 40% of the executives surveyed expressed that their support would remain consistent, as several LGBTQ Pride organizations across the country have reported a decline in corporate sponsorships compared to prior years.
Reports indicate that several Pride organizations have experienced a decline in corporate donations this year. (Photo … More by Roy Rochlin/Getty Images)
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Key Facts
Among the 49 executives surveyed from Fortune 1000 companies, those indicating a withdrawal of support for Pride highlighted pressures stemming from conservative activists and actions taken by the Trump administration, which had implemented executive orders that undermined diversity, equity, and inclusion initiatives targeting the transgender community.
Out of the 39% of companies that reported plans to decrease their Pride Month activities, 43% indicated they would cut back on external displays of support. This includes participation in or sponsorship of Pride parades, updates to social media branding, and collaborations with influencers focused on Pride-themed initiatives.
Conversely, a smaller group of respondents, 19%, expressed that their reductions in engagement would take place internally, which encompasses internal communications regarding commitments to equality and the operation of employee resource groups.
Approximately 41% of the surveyed firms stated that their support for Pride would not change this year, while the remaining executives either did not know or had yet to make a decision.
In contrast, only 9% of companies reported altering their Pride Month engagement last year, showcasing the recent evolution in corporate attitudes toward LGBTQ support.
Crucial Quote
Luke Hartig, president of Gravity Research, commented to Forbes that the survey “highlights the significant shift in cultural and political dynamics,” noting that the notion of two-fifths of companies reducing their Pride support would have seemed impossible just five years ago. Nonetheless, Hartig remarked that “most companies are still committed to supporting LGBTQ+ employees and allies through internal initiatives, events, and partnerships.”
Corporate Leaders’ Perspectives on Reduced Pride Engagement
One corporate leader indicated that their company would limit recognition of Pride Month on social media to “reduce public visibility that might stir controversy.” Another executive from a Fortune 500 company mentioned that they have “mitigated risk across all heritage month events” by concentrating on internal dialogues and ensuring they prioritize their workforce without the need for public acknowledgment. Some executives have even prepared responses for HR to address inquiries from employees about their company’s stance on Pride Month, with one financial executive highlighting a shift towards a “more conservative approach” in their social media acknowledgement of Pride.
Surprising Fact
According to Gravity Research, 71% of business-to-consumer companies are more attuned to potential backlash related to Pride Month compared to 53% of business-to-business companies. This trend underscores the heightened public scrutiny and the perceived risk of consumer backlash faced by corporations.
Pride Organizations Facing Corporate Sponsorship Losses
Major Pride organizations in the United States have reported that several corporate sponsors have retracted their financial support this year. Anheuser-Busch, a notable player in the beverage industry, chose not to support St. Louis Pride after over three decades of partnership, reportedly in response to conservative backlash following their connection with transgender influencer Dylan Mulvaney. Reports also indicate that San Francisco Pride observed a similar withdrawal of support, losing sponsors like Comcast and Diageo, which amounted to a significant loss of around $200,000 in corporate donations. Pride Houston’s board revealed that some sponsors decreased their contributions by nearly 75%, totaling a loss of $100,000. NYC Pride’s media director mentioned a general trend of corporate sponsors tightening their financial commitments, although he refrained from specifying which companies were involved. As a result of funding shortfalls, several organizations have turned to platforms such as crowdfunding, including St. Louis Pride and Twin Cities Pride in Minnesota, which severed ties with Target following the company’s rollback of its diversity and inclusion initiatives in January.
Key Background
In recent years, various companies have encountered backlash from conservative groups for their pro-LGBTQ positions, particularly Bud Light, which saw a significant drop in sales—26% year-over-year—following a boycott triggered by its collaboration with Mulvaney. Additional firms that experienced consumer backlash include Nike and Target, both linked to Mulvaney in different capacities. Target’s decision to haul back some of its LGBTQ merchandise following consumer discontent also drew considerable ire, which has continued as the company moved away from long-cherished diversity standards. Notably, Target’s in-store visitor numbers have consistently declined year-over-year for over 11 weeks, a trend that began shortly after their reduction of DEI commitments in January, as reported by Retail Brew.
Further Reading
St. Louis Pride Says Anheuser-Busch Ended Sponsorship—As Corporate Support For LGBTQ Pride Celebrations Dwindles (Forbes)
Source
www.forbes.com