Every June, the 'Pride Month' that has colored major cities around the world in rainbow hues is expected to face a distinctly different landscape this year.
Corporations that previously expressed active support for LGBTQ+ have withdrawn from related marketing and sponsorships this year. This is due to increased political pressures and societal backlash against DEI (Diversity, Equity, and Inclusion) policies.
According to USA Today on the 7th (local time), global corporations such as Mastercard, PepsiCo, and Nissan have drastically reduced or completely withdrawn their sponsorship for Pride events held in major U.S. cities like New York and San Francisco.
Mastercard has decided to step back from its position as a platinum sponsor of the New York Pride Parade, a role it has held for over 10 years.
The analysis suggests that pride marketing, once seen as a 'goose that lays golden eggs' for improving corporate image, has now deteriorated into a 'ticking time bomb' whose consequences are unpredictable.
Pride marketing gained momentum in the early 2010s as corporations began to emphasize ESG (Environmental, Social, and Governance) management and respect for diversity as core values. Following the federal court's legalization of same-sex marriage in 2015, sponsoring the LGBTQ+ community became a fundamental ESG activity in the U.S.
Amid changing social atmospheres, last year's New York Pride event grew to become the largest LGBTQ+ related event in the world, attracting about 1 million attendees.
However, circumstances began to change as severe political polarization in the U.S. and a significant fatigue towards DEI policies arose, particularly from conservative factions.
According to a recent survey conducted by the corporate consulting firm Gravity Research targeting the Fortune 1000 companies, 39% of responding corporations indicated plans to scale back their pride-related activities this year. Among them, 61% cited 'political pressure and negative public opinion towards DEI policies' as the main reasons.
The Wall Street Journal (WSJ) recently noted, 'Deepening political polarization and resentments towards DEI policies that have persisted since the Trump administration are making corporations extremely cautious.'
The 'Bud Light incident' that arose last year is seen as a critical reason why corporations have begun to become more cautious. Anheuser-Busch InBev, the world's largest beer manufacturer, employed transgender influencer Dylan Mulvaney for promoting its Bud Light brand last year.
However, it soon faced intense boycotts from conservative consumers. As a result, AB InBev's stock price plummeted at one point. Bud Light lost its position as the best-selling beer in the U.S. Serious damage to brand image also followed.
CNN reported, 'The Bud Light case serves as a cautionary tale showing how much risk is associated with DEI marketing for corporations,' adding, 'Especially for consumer goods corporations, the fear is spreading that taking a stance on specific political and social issues could severely impact sales.'
As corporations that once played a significant role pull out of sponsorship lists, the organizers of Pride events are facing direct hits.
For this year's June New York Pride Festival, major financial and consulting firms like Citigroup and PwC, along with Mastercard, PepsiCo, and Nissan, have also dropped from the sponsor list. The funding that disappeared just a month before the event amounts to approximately $200,000 (about 270 million won).
The San Francisco Pride Festival is also facing a financial deficit of about $300,000 (about 400 million won) as AB InBev, Nissan, and Comcast have halted their sponsorship.
NBC quoted an expert stating, 'Corporate sponsorship is the largest funding source for Pride events,' and 'a sharp decline in sponsorship funds could lead to a reduction in the scale of events and a halt to support programs for the LGBTQ+ community.'
Nonetheless, despite a nationwide trend of 'de-Pride,' the Los Angeles (LA) Pride Festival has retained most of its major sponsors.
According to The Hollywood Reporter, the LA Pride Festival organizers have secured a budget similar to last year. Major sponsors from last year, including Delta Air Lines, Coca-Cola, the NFL (National Football League), Honda, Google, and Amazon Studios, have decided to continue their sponsorship this year.
LA and the surrounding Hollywood area implement some of the strongest LGBTQ+ rights protections in the U.S. The LA Times reported, 'The entertainment industry has long prioritized diversity as a core value and has built a longstanding trust with corporations and the community.'
Bloomberg quoted an expert analyzing, 'Regional political differences, the symbolic value of Pride marketing that New York holds, its high visibility shared with many, and LA's relatively moderate and LGBTQ+-friendly political and cultural environment are influencing corporations' strategic calculations.'