Despite an increase in corporate silence during Pride, funds for LGBTQ+ causes continue to pour in.

• This Pride month, companies have been cautious, anticipating a divisive presidential election and the potential backlash from conservative audiences against Target and Bud Light.
• On Thursday, Tractor Supply announced that it would cease all expenditures related to diversity and environmental initiatives, including discontinuing its sponsorship of Pride events.
• Sarah Kate Ellis, CEO of the nonprofit advocacy group GLAAD, stated that she observes an increasing number of companies engaging in year-round philanthropy and activism rather than merely displaying rainbow flags during Pride month.

This year, the corporate world was more cautious during Pride month.

Retailers and consumers brands typically release rainbow-themed merchandise and promotional materials in June, coinciding with parades and other events celebrating the LGBTQ+ community.

As the presidential election nears, some companies have become more cautious about their diversity, equity, and inclusion initiatives to avoid getting involved in cultural conflicts or facing backlash from conservative consumers, similar to what happened to Bud Light a year ago.

A retailer that sells animal feed, cowboy boots, and lawn supplies in rural areas announced it is halting all spending related to diversity and environmental causes. This includes discontinuing sponsorship of Pride festivals, the statement stated.

Despite being an exception in its scale, the move of certain companies that recently made inclusion pledges highlights their hesitancy to fully commit to these promises.

In June 2021, 45% of Fortune 100 companies had at least one social media post on LinkedIn or X explicitly related to Pride, compared to 51% in June 2020, according to Gravity Research.

The presidential election's volatility and the candidates' practice of calling out companies publicly have decreased companies' willingness to disclose their positions.

He said, "We should keep our heads down during the election."

Bennett, cofounder of Tribury Productions, a marketing company that targets LGBTQ+ Americans, collaborates with Fortune 500 companies, including recent projects with them. He stated that more clients have adopted a "wait-and-see" approach to marketing to this demographic or opted to spread their efforts across the year instead of making a significant impact in a single month.

Bennett stated that this June has differed from the previous five to six.

GLAAD CEO Sarah Kate Ellis has observed an increase in companies engaging in year-round philanthropy and activism in a more significant manner, which may benefit LGBTQ+ initiatives and charities.

Gravity Research surveyed 45 corporate executives and Fortune 500 leaders across industries in April and found that 78% of companies did not plan to change their Pride strategy this year. Thirteen percent were unsure whether they'd make changes and 9% said they planned to revise their strategy.

"Ellis emphasized the importance of companies displaying flags and celebrating Pride, stating that it is significant and important for the community. However, she also pointed out that companies must ensure their policies and HR practices align with their outward marketing."

Despite the ongoing controversy surrounding LGBTQ+ rights, major corporations continue to support LGBTQ+ causes by writing checks. A GLAAD spokesperson stated on Friday that the organization has not observed a decline in donations or corporate support during Pride month, although they have not yet calculated the total amount received.

The Stonewall National Monument Visitor Center's official opening on Friday was backed by major businesses such as Google, Amazon, JPMorgan Chase, and Booking.com.

At the monument's opening, President Joe Biden gave remarks.

The Bud Light and Target effect

According to Gravity Research's survey, consumer staples brands were the most likely to change their Pride month strategy this year due to the conservative boycotts of Target and Bud Light last year.

Over the past decade, Target has featured a Pride collection. However, last year, the retailer removed certain items and rearranged displays following threats from employees. Protesters targeted specific items for transgender customers, including "tuck-friendly" swimsuits, and also criticized separate Pride merchandise for children.

In 2022 and 2023, Target only sold Pride merchandise in stores that accounted for 90% of total Pride sales, and stopped selling any Pride apparel for kids.

In select stores and on the company's website, a wide variety of Pride-themed items are available for shoppers.

According to a Target spokesperson, the volume of negative feedback to the Pride collection externally and internally is "significantly lower" this year compared to 2023.

Target is dedicated to supporting the LGBTQIA+ community throughout the year and will participate in Pride events nationwide, while also offering Pride products.

On the other hand, Anheuser-Busch InBev and other large beer brands have distanced themselves from public support of the LGBTQ+ community.

Anheuser-Busch InBev faced criticism from conservatives, including singer Kid Rock and Florida Gov. Ron DeSantis, who called for a boycott of Bud Light after the company sent personalized cans of its beer to transgender influencer Dylan Mulvaney during the March Madness college basketball tournament.

In the U.S., Modelo surpassed Bud Light as the top-selling beer brand after Bud Light's sales dropped by approximately 25%.

AB InBev distanced itself from Mulvaney and fired Bud Light's vice president of marketing. In October, AB InBev CEO Michel Doukeris announced that the brand would focus its marketing more on events like sports games and concerts. The company also renewed its sponsorship of the UFC.

Despite a 10% decrease in U.S. volume, some consumers have recently returned to Bud Light. Meanwhile, the brand has not posted in support of Pride month on its Instagram or X pages this year.

According to Neil Reid, a geography professor at the University of Toledo, the boycott was sticky for a few reasons. Studies have shown that consumers' loyalty to top-selling beers may be more tied to the brand than the taste, Reid said.

Fox News and other right-wing news outlets extensively covered the controversy, prolonging its duration and exposing it to new audiences who may have initially missed the reaction. Additionally, after Bud Light's sales declined, retailers increased the visibility of its competitors on their shelves.

Reid stated that considering a problem from a moral or ethical standpoint or a purely business perspective often leads to different strategies.

Doubling down on diversity

Some companies have become more cautious about promoting diversity efforts, while others have increased their inclusion initiatives. For instance, a company launched a provocative advertising campaign in mid-May called "So Many Dicks." The ads, which were on billboards in prominent places in New York City, emphasized that there are more men named Dick (including Richards, Richs, and Ricks) than entire groups of underrepresented people. Additionally, the campaign included video spots featuring athlete and social rights activist Billie Jean King.

One of only four U.S. publicly traded companies has a board consisting of two-thirds women and one-third ethnic diversity.

Tarang Amin, CEO of E.l.f. Beauty, stated that customers, particularly Generation Z shoppers, expect brands to advocate for the causes they support. He observed that corporate leaders have become more hesitant to speak out than in the past.

"What sets E.l.f. apart from our community's expectations are our values," he stated.

If you don't stand up for what you truly believe and are only concerned with avoiding criticism, you miss the chance to make a significant impact on the world.

E.l.f.'s diverse board and inclusive messaging are contributing to its strong financial performance, with its stock up 46% this year, compared to the S&P 500's 15% gain.

GLAAD will receive a donation from Mars Wrigley for every limited-edition Pride pack of Skittles sold this year.

Bloomingdale's, Bluemercury, and its namesake brand have been featuring LGBTQ+-owned, founded, and designed brands on their websites since June. Over the past five years, the department store operator has raised more than $6.2 million for the Trevor Project, a nonprofit that supports suicide prevention for LGBTQ+ young people.

GLAAD's Ellis expressed optimism about companies' ongoing support and stated that they will be on the right side of history with this issue.

Politicians across the country have proposed bills that restrict gender-affirming care and transgender rights, but she said there's work to do, especially to support the transgender community.

Companies have stopped marketing to transgender people due to conservative political campaigns and attacks during Pride month, according to Gravity Research's Hartig.

Despite the backlash against corporate diversity, equity, and inclusion efforts, not all of the opposition has garnered the support activists had hoped for.

The number of shareholder proposals opposing environmental, social, and governance initiatives has increased, according to ISS-Corporate, a Rockville, Maryland-based provider of data and analytics to corporations. Anti-ESG proposals were voted on at meetings of Russell 3000 companies between January 1 and June 30 this year, rising to 83 from 55 in the same period in 2023 and 37 in 2022.

In 2024, voter support reached a median rate of 1.5%, down from 1.7% in 2023 and 2.9% in 2022.

— CNBC's Amelia Lucas contributed to this report

The Stonewall National Monument Visitors Center is sponsored by Comcast NBCUniversal, which also owns CNBC.