Corporate support for Pride Month is shrinking, and it’s exposing deeper issues. 39% of companies reduced Pride engagements in 2025, compared to 9% in 2024. Pride organizations face massive funding gaps: NYC Pride lost $750,000, San Francisco Pride is down $200,000, and Twin Cities Pride lost $50,000 after losing major sponsors like Target, Comcast, and Anheuser-Busch. 61% of companies blame political pressure, with federal contractors scaling back diversity, equity, and inclusion efforts to avoid government backlash. Younger consumers, especially Gen Z, demand year-round commitment and are quick to call out performative gestures. Brands are now navigating a tough balance between avoiding backlash and maintaining trust. The key takeaway? Companies that show genuine, consistent support will retain credibility, while those retreating risk losing both customers and employees. The Problem: Fewer Brands Participating in Pride Month The financial repercussions of reduced corporate participation in Pride Month are becoming increasingly apparent. Across the country, Pride organizations are grappling with funding shortfalls as brands scale back their support under mounting political and social pressures. Numbers Behind the Decline A recent Gravity Research survey revealed a sharp decline in corporate engagement with Pride events. From 2023 to 2024, Pride participation dropped by 60%, and nearly 40% of companies plan to reduce their involvement even further by 2025 - a dramatic increase from just 9% the year prior [ 2 ][ 7 ]. This retreat is hitting Pride organizations hard. Cities are reporting severe budget deficits: Salt Lake City Pride is short $400,000, which accounts for half its funding; Washington, D.C. Pride is down $260,000; Kansas City Pride is experiencing a $200,000 shortfall; St. Louis Pride is missing $150,000; and Houston Pride is $100,000 in the red [ 2 ]. Once-committed corporate sponsors are pulling back. Companies like Amtrak, Boeing, Citi, Goldman Sachs, Lowe's, Mastercard, Meta, Target, Visa, and Walmart have all reduced or eliminated their Pride sponsorships and donations for 2025 [ 2 ]. Even in Toronto, Google and Home Depot canceled their Pride support just weeks before scheduled events [ 5 ]. The ripple effects extend beyond large festivals to individual creators who depend on Pride-related collaborations. For example, lesbian influencers Ashley and Malori Anthony saw their Instagram sponsorship earnings drop from $14,000 in 2023 to just $1,500 in 2025, with only a single deal from Big Fig [ 7 ]. Similarly, queer influencer Alysse Dalessandro went from three Pride partnerships in 2024 to just one in 2025, earning the same $1,500 [ 7 ]. Trans creator Christopher Rhodes experienced an even steeper decline, securing 20 partnerships in 2023, 10 in 2024, and only one so far in 2025, none of which were Pride-specific [ 7 ]. "Normally this time of year, our company and others are always working on Pride campaigns. Last year there was almost nothing. This year is the same. I think it's going to be a ghost town when it comes to Pride promotions at the start of June." These numbers highlight how political and social dynamics are reshaping corporate behavior. How Political and Social Pressures Affect Corporate Decisions The current political climate has created a wave of corporate anxiety, particularly surrounding Diversity, Equity, and Inclusion (DEI) initiatives. Reports show that 61% of companies attribute their reduced Pride engagement to pressure from the administration, while 39% cite fears of conservative backlash [ 2 ]. This concern is especially acute for federal contractors who worry that openly supporting LGBTQ+ causes could jeopardize their government contracts. "We were already seeing kind of a downward trend. Now, I think that has been accelerated because of the current administration's crackdown on DEI, its broader movement against LGBTQ rights and its seeming willingness to go after companies that might be opposed to some of its policies." The fear of backlash is pervasive: 65% of executives surveyed said they are bracing for criticism related to their Pride campaigns [ 3 ]. This cautious approach marks a stark contrast to the period of bold corporate activism seen between 2016 and 2022. Many companies are still haunted by the financial fallout Target endured after backlash over its LGBTQ-themed merchandise in 2023 and Bud Light’s sales slump following its collaboration with transgender influencer Dylan Mulvaney. Some companies are scaling back their Pride involvement in subtle but significant ways. For instance, 37% of respondents plan to reduce sponsorships for external Pride events like festivals [ 7 ]. Retailers such as Target have shifted from prominently featuring Pride merchandise in all locations to offering smaller collections in select stores with less visible placement. In 2024, Kohl’s launched a Pride capsule collection and donated $100,000 to The Trevor Project, but in 2025, it opted to remain silent on Pride Month. Macy’s continues to support Pride events but has also scaled back on publicizing its efforts. The corporate mindset has shifted dramatically. What was once seen as a valuable marketing opportunity is now viewed as a potential risk. This is particularly striking given that nearly one in ten U.S. adults identifies as LGBTQ+, and almost a quarter of Generation Z identifies as part of the LGBTQ+ community [ 3 ]. With $1.4 trillion in annual purchasing power, the LGBTQ+ community represents a significant economic force. Yet, many companies are willing to risk alienating this customer base in an effort to avoid political controversy. What This Reveals: Measuring Brand Commitment to Diversity, Equity, and Inclusion The recent scaling back of corporate Pride Month initiatives has highlighted a critical truth: how companies react under pressure reveals their true priorities. This shift exposes which brands see diversity, equity, and inclusion (DEI) as an essential part of their identity - and which treat it as a fleeting marketing opportunity. Real Support vs. Marketing Tactics True support for diversity, equity, and inclusion isn’t about seasonal campaigns or trendy gestures. It’s about ongoing, meaningful action. "It separates brands that invest with intention from those that merely chase optics." - Tristan Pineiro, Grindr's Senior Vice President of Brand Marketing and Communications Brands that are truly committed to equity initiatives go beyond surface-level efforts. They maintain year-round partnerships with LGBTQ+ creators, vendors, and agencies, regardless of the time of year or political climate. Internally, they adopt policies that protect and support diverse employees, ensuring their workplace reflects the values they promote externally. On the other hand, some companies reduce public displays of diversity, equity, and inclusion while quietly continuing internal efforts. This approach suggests a calculated, strategic view of DEI, treating it as an asset rather than a core principle. Even more discreet are "silent partnerships", where companies provide financial support to DEI initiatives without public acknowledgment [ 4 ][ 8 ]. While these efforts may have merit, they highlight a divide between principled action and risk-averse strategy. These differences in approach set the stage for real-world examples that reveal how consistent diversity, equity, and inclusion efforts can build credibility and trust. Case Studies: Brands That Stayed Consistent vs. Those That Pulled Back The contrast between brands that uphold their diversity, equity, and inclusion commitments and those that retreat under pressure is stark. Take Costco, for example. In January 2025, the company’s shareholders overwhelmingly rejected a proposal claiming diversity, equity, and inclusion programs were illegal, with 98% voting to support the initiatives [ 9 ]. This decisive outcome shows how a genuine commitment to diversity, equity, and inclusion can foster strong stakeholder backing. On the flip side, 57% of federal contractors have indicated plans to scale back external efforts due to political risks [ 3 ]. This retreat suggests that, for some organizations, diversity, equity, and inclusion support is more about optics than a deeply held value. "Authentic support for the LGBTQ+ community begins with action, not optics. In today's climate, especially for trans individuals, allyship is not a seasonal gesture but a year-round responsibility." - Stacy Lentz, CEO of The Stonewall Inn Gives Back Initiative The takeaway here is clear: brands that remain steadfast in their diversity, equity, and inclusion commitments, even when it’s challenging, are more likely to earn lasting trust. Those that pull back under pressure risk exposing their efforts as superficial, prioritizing appearance over meaningful action. Consumer Response: Growing Skepticism and Backlash As companies pull back their public support for LGBTQ+ initiatives, they've sparked a wave of criticism, particularly from LGBTQ+ consumers and allies. This shift has not gone unnoticed; people are paying closer attention to how brands behave, especially when it comes to honoring their commitments. For younger generations, this heightened awareness has translated into a demand for long-term, authentic support rather than fleeting gestures. Recent data highlights this growing scrutiny. Many consumers now see these retreats as performative allyship - actions that lack genuine support. Social media amplifies this disappointment, spreading it far and wide. For example, NYC Pride faced a $750,000 funding gap after major sponsors like Garnier, Mastercard, and Target withdrew their public support. Other sponsors, including PepsiCo, Nissan, and Citi, opted not to return at all this year [ 3 ][ 4 ]. Target, in particular, faced backlash after scaling back its DEI programs in 2025, which led to the end of its partnership with Twin Cities Pride [ 1 ][ 3 ]. How Gen Z and Millennials Demand Year-Round Commitment Younger generations, especially Gen Z and millennials, are transforming how corporate authenticity is judged. With 21% of Gen Z and over 10% of millennials identifying as LGBTQ+ [ 11 ], these groups represent a substantial and influential segment of the consumer base. They expect more than surface-level support - they want to see brands take meaningful, year-round action. These consumers are skilled at spotting shallow "rainbow marketing", which refers to token gestures like slapping a rainbow on a product without backing it up with real community support [ 12 ]. They demand more: consistent representation, leadership diversity, and genuine partnerships with LGBTQ+ organizations. "Too often, we see brands say they support a marginalized group [without] doing the work within its four walls to build diverse and inclusive teams. Authentic support starts with making sure the LGBTQ+ community is represented on the teams of marketers who are building your brand. They should be there all year round, not just during Pride." - Jeff Levick, Chief Executive of Marketing Consultancy We Are Rosie [ 11 ] This generation’s expectations go beyond marketing campaigns. They want to see LGBTQ+ individuals in leadership roles and evidence of sustained financial and policy support. With nearly one-third of Gen Z identifying within the LGBTQ+ spectrum [ 13 ], brands that fail to meet these standards face swift backlash, often amplified through social media. "Leaning into moments like Pride needs to be really thoughtful and really aligned with an understanding of what that brand's values are and what they stand for. Because if they are not representing an authentic, true commitment, in the way in which they choose to support the LGBTQ+ community all year, as well as within Pride Month, you are going to be hit with pressure from the community saying, 'I don't care you put a rainbow on, don't try to act like you're supportive when you're not.'" - Phil Schraeder, CEO of GumGum [ 13 ] Financial Cost of Insincere Rainbow Marketing The stakes are high. The LGBTQ+ community wields $3.9 trillion in global purchasing power [ 11 ][ 12 ], making their loyalty a critical factor for businesses. Research reveals that 77% of LGBTQ+ consumers actively avoid brands with insensitive advertising [ 12 ]. When brands fail to meet expectations, boycotts often follow, directly impacting revenue. Bud Light’s 2023 partnership with transgender influencer Dylan Mulvaney is a cautionary tale. The collaboration led to anti-trans backlash and widespread boycotts, causing a significant drop in sales [ 1 ][ 8 ]. This incident highlights how superficial gestures can result in lasting financial and reputational damage. The costs of inauthenticity don’t end with immediate sales losses. Brands engaging in shallow support risk long-term harm to their reputations, which can take years to repair. As marketing professor Tyler Milfeld from Villanova University put it: "When brands retreat, they lose on all fronts. They alienate both supporters and critics." - Tyler Milfeld, Marketing Professor at Villanova University [ 6 ] Recognizing these risks, 65% of businesses are now preparing strategies to navigate potential backlash tied to Pride Month campaigns [ 1 ]. But consumers aren’t looking for crisis management - they want brands to demonstrate genuine, year-round dedication to the values they claim to uphold. For companies, the message is clear: investing in sustained diversity, equity, and inclusion efforts throughout the year is not only the right thing to do but also a smarter financial decision. The growing demand for authenticity is reshaping the way brands approach their role in supporting the LGBTQ+ community, making it essential to align their practices with their promises. Solutions: How to Build Genuine Diversity, Equity, and Inclusion Brand Practices With consumer skepticism on the rise, brands need to rethink how they approach Diversity, Equity, and Inclusion (DEI). It’s about moving beyond surface-level gestures and creating meaningful, year-round programs supported by measurable actions and consistent internal practices. Year-Round Programs That Extend Beyond Pride Month Diversity, equity, and inclusion isn’t something to spotlight during specific months like Pride Month - it requires ongoing commitment. Companies with diverse executive teams are 36% more likely to outperform their peers in profitability, making diversity, equity, and inclusion an investment that’s both ethically responsible and financially smart [ 17 ]. To make diversity, equity, and inclusion a year-round priority, businesses need to weave diversity into every part of their operations. This starts with updating HR policies to include gender-neutral language, offering paid family leave, and creating flexible job descriptions that appeal to a broader range of candidates [ 14 ]. Building partnerships with colleges and universities that serve underrepresented communities can also help establish a steady pipeline of diverse talent [ 14 ]. Employee Resource Groups (ERGs) are another key element. These groups not only build a sense of community but also provide essential feedback on company policies. Empowering ERGs to lead initiatives, organize events, and influence decisions ensures their voices are heard throughout the year [ 14 ]. Training and education must also be ongoing. This means offering regular sessions on unconscious bias, cultural awareness, and inclusive leadership. Companies should integrate diversity, equity, and inclusion-focused questions into their interview processes and provide managers with specific training on fostering inclusivity [ 14 ]. Community involvement is equally important. Brands can collaborate with local leaders, host workshops on inclusion, and participate in events that emphasize diversity, equity, and inclusion throughout the year. This kind of consistent engagement demonstrates a genuine commitment, rather than opportunistic marketing [ 14 ]. But how do you ensure these efforts are making a difference? The answer lies in data. Using Data to Track and Improve Brand Commitment Data transforms diversity, equity, and inclusion from well-meaning initiatives into actionable progress. Companies that effectively track DEI metrics can pinpoint gaps, evaluate the impact of their programs, and drive meaningful change [ 20 ][ 23 ]. Without this data, it’s impossible to fully understand the effectiveness of these efforts [ 19 ]. "When done right, DEI metrics are a powerful way to track progress, measure impact, and prioritize initiatives. Instead of only focusing on the numbers, look at the story that the data tells in relation to where you are spending DEI efforts." - Marna van der Merwe, Subject Matter Expert at AIHR [ 18 ] The process starts with setting clear goals and identifying metrics that align with the company’s values. These should include both quantitative data - like hiring trends, promotion rates, and attrition statistics - and qualitative insights, such as employee satisfaction surveys and assessments of belonging [ 21 ][ 23 ]. Together, these provide a complete picture of diversity, equity, and inclusion progress. Regular audits of employee data are essential to understanding the current landscape. These audits should analyze demographic information, pay equity, and promotion patterns to uncover hidden biases [ 23 ]. Broader metrics, such as engagement scores and exit interview feedback, can also reveal how diversity, equity, and inclusion initiatives impact workplace culture. Predictive analytics can even help tackle potential diversity, equity, and inclusion challenges before they escalate. For instance, the British Transport Police used diversity recruiting software to eliminate bias and doubled the number of successful female and minority applicants [ 22 ]. Transparency in reporting is another critical component. Companies like Microsoft, Deloitte, and Google share annual diversity, equity, and inclusion reports detailing workforce composition, progress, and investments in diversity initiatives. This openness builds trust with both employees and external stakeholders [ 25 ]. Of course, these efforts need to be more than data-driven - they must align with the company’s culture and public messaging. Aligning Company Culture with Public Messaging A gap between internal diversity, equity, and inclusion practices and external messaging can undermine trust. With 75% of American adults believing companies haven’t followed through on DEI promises made during the pandemic, alignment is more crucial than ever [ 15 ]. Leadership plays a vital role here. Executives must consistently model inclusive behaviors, from using inclusive language to ensuring diverse representation at all levels of the organization [ 24 ]. "If a business says something is important, align yourself to that goal and make your work relevant to it. Doing so helps people understand your work as critical to what the business is focusing on. Since businesses are always looking at the numbers, aligning yourself to what the business wants means thinking about the data." - Karen Wilkins-Mickey, VP, Diversity, Equity, and Inclusion, Seattle Seahawks [ 15 ] Policy alignment is just as important. Regularly reviewing company procedures ensures they reflect diversity, equity, and inclusion principles in action, not just in theory [ 24 ]. Internal communication should foster inclusion by amplifying diverse voices, sharing stories, and making diversity, equity, and inclusion messaging accessible across all departments. Training on unconscious bias and inclusive behaviors helps embed these values into daily routines. Authentic storytelling is the final piece of the puzzle. Public messaging should reflect the company’s actual culture and ongoing efforts, rather than creating a separate narrative. "The story must be told that we're doing this work. Otherwise, we're just doing it in a vacuum." - Charles Sumpter, Senior Director of DEI, World Wildlife Fund [ 15 ] True authenticity also means avoiding tokenism. Representation must go beyond marketing materials to include leadership roles and decision-making positions. Building diverse talent pipelines and creating advancement opportunities for underrepresented groups requires a long-term commitment [ 16 ]. Establishing genuine diversity, equity, and inclusion practices isn’t just about good intentions - it’s about systemic change, consistent measurement, and aligning values with actions. Brands that embrace this approach can build trust, drive innovation, and create a more inclusive future. Conclusion: Building Long-Term Brand Trust Through Consistent DEI Commitment This year's retreat from Pride campaigns highlights an important truth: Diversity, Equity, and Inclusion (DEI) isn't a seasonal trend. When brands treat it as such, they expose themselves as opportunistic rather than genuinely inclusive. The numbers tell the story. Companies with diverse executive teams are 27% more likely to achieve strong financial performance, while those lagging in diversity are 66% less likely to succeed [ 28 ]. These aren't just feel-good initiatives - they're directly tied to business outcomes. "DEI isn't a PR play - it's a performance driver. When it's sidelined into workshops and pledges, it feels tokenistic. When it shapes who gets hired, promoted, and heard, it builds cultures where talent thrives. Inclusion isn't charity - it's strategy", says an expert [ 10 ]. The workforce is paying attention. A staggering 78% of employees want to work for companies that prioritize diversity and inclusion, with 58% rating it as 'very important' [ 29 ]. For job seekers, 67% consider workplace diversity a key factor when choosing where to work [ 26 ]. Brands that fail to integrate DEI into their core values will struggle to attract and retain top talent. Adobe's approach in 2020 offers a powerful example of meaningful diversity, equity, and inclusion action. Following conversations with Black employees after George Floyd's murder, CEO Shantanu Narayen and Chief People Officer Gloria Chen wove DEI into every aspect of the company - hiring, growth, advocacy, and community initiatives. The results? A Glassdoor score of 4.5 out of 5 and a Just Capital score of 114, far exceeding the industry average of 47 [ 27 ]. "Diversity helps us to question our assumptions and open our minds. When you are continuously open to new ideas, you are more adept at change. It becomes like a well-developed muscle", explains Gloria Chen [ 27 ]. For diversity, equity, and inclusion to make an impact, it must be embedded into every layer of a company - from hiring practices and leadership decisions to product design and daily operations. This alignment not only ensures authenticity between internal culture and external messaging but also sparks innovation. Research shows that diverse teams are five times more likely to innovate and experience a 20% boost in creativity [ 27 ][ 26 ]. The takeaway is clear: Brands that treat diversity, equity, and inclusion as a fundamental business strategy will not only build trust and attract top talent but also drive better performance. On the flip side, companies that reduce diversity, equity, and inclusion to a fleeting marketing tactic risk fading into irrelevance in a marketplace that values authenticity and long-term commitment. Investing in diversity, equity, and inclusion isn't just about social impact - it's about creating a sustainable competitive edge in an increasingly diverse world.