A new study from the Human Rights Campaign Foundation found that LGBTQ consumers are decreasing their support for and shifting their spending away from companies that publicly backtrack on diversity, equity and inclusion efforts in response to pressure from the Trump administration and conservative activists.
Target faced significant backlash over its Pride-themed products in 2023 and subsequently scaled back its LGBTQ-related marketing efforts. Amazon has also come under fire for allowing anti-LGBTQ organizations to participate in its previous Amazon Smile charitable giving program.
According to the survey, 71.5% of LGBTQ consumers reported purchasing fewer products from companies deemed to be reducing their commitment to inclusion, and 69.4% said they would at least sometimes refuse to purchase products from those companies.
As a result, 69.5% of LGBTQ consumers reported increasing their spending with companies perceived to be supportive, and 65% said they intentionally purchased products from brands perceived to be pro-LGBTQ or committed to diversity.
Nearly 8 in 10 LGBTQ adults, or 79.3%, reported having a favorable opinion of DEI initiatives, compared to just 53.4% of non-LGBTQ adults.
LGBTQ consumers are almost twice as likely as non-LGBTQ consumers to intentionally support and spend more on companies they see as being committed to inclusion.
The HRC Foundation noted that the findings are rooted in consumers’ perceptions of companies, rather than companies’ complete records, history of LGBTQ support, or internal policies. Therefore, companies may have an opportunity to bridge the gap between internal practices and public perception regarding LGBTQ inclusion.
For example, Chick-fil-A was perceived by survey respondents as hostile to LGBTQ inclusion, even though it softened its previous anti-LGBTQ image and drew criticism from some conservatives for being “too woke.”
In contrast, Costco, Apple, Ben & Jerry’s, Delta, and Kroger were among the companies most closely associated with supporting LGBTQ causes and DEI. Starbucks, Subaru, Levi’s, and Coca-Cola also ranked among the top 10 companies recognized for offering “genuine” support for LGBTQ inclusion.
These positive perceptions persist despite reports that some Starbucks stores have removed their Pride decorations. Similarly, CEO Tim Cook’s $1 million donation to President Donald Trump’s inauguration doesn’t seem to have significantly hurt public perception of Apple.
According to CNBCThe National LGBT Chamber of Commerce estimates that LGBTQ consumers contribute more than $1.7 trillion to the U.S. economy.
The HRC Foundation noted that LGBTQ consumers account for more than $3.9 trillion in global spending and emphasized the importance of companies clearly communicating their commitment to LGBTQ inclusion.
“Consumers are watching and rewarding companies that stand up to their values and stand up to those who exit under pressure,” HRC President Kelly Robinson said in a statement following the study’s findings. “This report is not a warning to companies; it is an opportunity and a reminder that LGBTQ+ consumers and our allies are ready to spend with you, work for you, and grow with you for decades to come.”
“The data is clear: authenticity and consistency build community trust in your brand,” Robinson added. “Companies that adopt that strategy earn lasting loyalty, a better reputation, and better long-term business performance.”
Source: Metro Weekly – www.metroweekly.com
