(NewsNation) — It’s that time of year when major corporations show their support for the LGBTQ+ community through sponsored Pride events, rainbow merchandise and colorful advertising.
Recently, however, some of those efforts have also drawn backlash — both from people opposed to the campaigns and LGBTQ+ allies disappointed by what they see as corporate backpedaling.
Last month, Target removed some of its Pride merchandise after the company said employees had faced threats. That decision was criticized by many LGBTQ+ groups who viewed it as a capitulation to “extremists.”
More than 200 organizations signed a statement calling on Target to put all of its Pride merchandise back on the floor and online.
“Doubling down on your values is not only the right thing to do, it’s good for business,” the statement read.
Erik Carnell, a transgender designer whose products were pulled, said the retailer’s decision underscored the problem with “rainbow capitalism.”
“If you’re going to take a stance and say that you care about the LGBT community, you need to stand by that regardless,” Carnell told Reuters.
Authenticity is key to successful campaigns
As social attitudes around the LGBTQ+ community have evolved, businesses have embraced Pride Month as a way to show their support. Experts say it’s a marked shift from just a few decades ago.
“Over time, companies have seen that this is a successful way to target an important sub-population — a population that in the United States represents about a trillion dollars of spending a year,” said Joanna Schwartz, a professor at Georgia College and State University who teaches a course on LGBTQ+ marketing.
But as Pride has become more mainstream, and lucrative, questions about corporate sincerity have emerged.
Some companies have been accused of “rainbow washing” — using Pride imagery to signal support that boosts sales without implementing policies or donating to causes that advance the interests of the community.
Schwartz said oftentimes it’s not the campaigns themselves that get corporations in hot water with LGBTQ+ allies, but rather when they don’t stand by them.
The real challenge, she said, is authenticity and accepting the fact that the promotion could be unpopular with some people.
Roughly 70% of non-LGBTQ+ Americans agree that companies should publicly support the community, according to a recent poll from GLAAD — an LGBTQ+ media watchdog.
For businesses that choose to embrace LGBTQ+ campaigns, Schwartz said they “have to own it” and pointed to the recent Bud Light controversy as an example of what not to do when critics push back.
In April, Anheuser-Bush faced conservative ire after partnering with transgender influencer Dylan Mulvaney. Several prominent right-wing commentators called for a boycott and sales of Bud Light have plummeted in recent months.
Rather than defend the partnership, executives attempted to distance themselves from Mulvaney. That stance sparked outrage from LGBTQ+ advocates who felt betrayed by the company.
A number of LGBTQ+ bars in Chicago recently announced they would stop serving Anheuser-Busch products due to the perceived lack of support.
The market will decide
The question is whether businesses will change their messaging moving forward. Some expect them to.
“I think we’re in a position now where there is a sort of retrenchment and more big companies and brands are looking for a kind of return to neutral,” said Richard Morrison, a senior fellow at the Competitive Enterprise Institute — a libertarian think tank.
That doesn’t mean corporations will stop celebrating Pride. Morrison said he’s skeptical of the long-term impact of consumer boycotts and expects companies to refine — not abandon — their LGBTQ+ campaigns.
In a capitalist economy, businesses respond to consumer preferences, and Morrison thinks the marketplace is actually the preferred venue for cultural debates to play out.
“It’s much easier for private entities to calibrate and recalibrate their reactions to this than if we try and do this through politics,” Morrison said.
Schwartz thinks brands will be more direct with their advertising but continue to support Pride in the long run.
“I think companies are going to be a lot more intentional,” she said. “There are ways to [support Pride] that aren’t going to completely tank your brand, but stepping away from that I don’t feel will really be successful.”
Despite the recent pushback, Target and Bud Light haven’t backed away from their Pride commitments. Target is a platinum sponsor of NYC Pride, which requires a $175,000 donation. Anheuser-Busch is sponsoring Pride celebrations in Chicago and San Francisco, among other cities.