SF Pride caught in fallout of anti-DEI backlash
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As part of diversity, equity and inclusion walk-backs, many companies are no longer participating in "external events" or pledges, namely Pride parades that will take place across the country in June.
Why it matters: This is a major pivot for the once proud corporate America.
State of play: Suzanne Ford, executive director of San Francisco Pride, said in March that several longtime corporate sponsors have pulled out of sponsoring this year's event.
- They include Anheuser-Busch, Comcast and Diageo, amounting to a loss of $300,000 for a $3.2 million event that relies on corporate sponsorships for $2.3 million.
Zoom out: Mastercard, Citi, Pepsi, Nissan and PwC similarly withdrew sponsorship of NYC Pride, while Booz Allen Hamilton and Deloitte pulled out of WorldPride Washington, D.C.
By the numbers: 39% of corporations are scaling back external Pride Month engagements this year, according to Gravity Research data.
- This is a sharp increase from last year, when only 9% said they were changing their external Pride engagement.
- 57% of companies that are federal contractors plan to reduce external engagement, highlighting the risk of federal investigations.
Friction point: The risk for engaging around LGBTQ+ issues has increased 42% since this time last year, per GravityResearch's insights.
- Roughly 6 in 10 companies cite the Trump administration as the top reason for this change, while conservative activists and conservative policy makers come in second and third.
- As a result, companies with government contracts are more likely to retreat, says Fabrice Houdart, founder and executive director of the Association of LGBTQ+ Corporate Directors.
- That's especially true for those in the financial industry, consulting, manufacturing or other "heavy industries that don't really have that pressure to talk to the LGBTQ+ consumer," Houdart said. "You see it with companies like Deloitte, or companies like Goldman Sachs, which are kind of leaving the LGBTQ+ agenda behind."
Yes, but: Ford told NPR that individual donations have gone up since the loss of corporate sponsors was announced.
What's next: SF Pride is still forging ahead and plans to take over the streets during the last weekend of June.
- This year's community grand marshals include activist and artist Kenan Arun, San Francisco Community Health Center associate director of trans services Jahnell Butler, transgender and immigrant rights advocate Jessy Ruiz and San Francisco AIDS Foundation CEO Tyler TerMeer.
- Tita Aida, a pioneering advocate for HIV/AIDS awareness and AAPI visibility within the LGBTQ+ community, will be honored as the lifetime achievement community grand marshal.