The rainbow flag waves proudly in June, but behind the colorful parades and special product collections, like rainbow-themed apparel, launched by brands lies a pressing question: is Pride still a protest, or primarily a profitable party? Pride is so much more than just an annual celebration; it's a deeply rooted movement originating from the furious protests of the Stonewall riots in 1969 against oppression and police brutality, which paved the way for global LGBTQIA+ pride recognition (1).

Imagine this: as a young queer person, you see one of your favorite brands suddenly launching a dazzling rainbow collection. You feel a wave of pride and connection, a sign that the world sees and accepts you. But that joy turns to disappointment when you discover that this same company, elsewhere, quietly donates to politicians who actively fight against your community's rights. This article will delve into the complex paradox of 'rainbow capitalism,' where corporate support for Pride often coexists with actions that undermine LGBTQIA+ equality. While this visibility can, in principle, be positive, criticism is growing: is Pride becoming an opportunistic marketing moment?

The alluring trap of 'rainbow capitalism'

Unfortunately, the increased visibility and the mainstream acceptance of Pride have opened the door for what we call 'rainbow capitalism,' also known as 'pinkwashing' or 'rainbow washing' (2, 3). It refers to companies that visibly promote themselves during Pride Month—for example, by adorning their logos in rainbow colors—but simultaneously fail to contribute structurally to the rights and well-being of the LGBTQIA+ community. This 'performative allyship' is problematic (4).

Consider fast fashion brands that produce rainbow T-shirts under dubious conditions in countries where homosexuality is still punishable, such as Bangladesh and Turkey. For instance, brands like H&M, while selling Pride collections globally, operate factories in these very nations (5). How sincere can a message of pride and acceptance be, when the products carrying this message are made in countries where the LGBTQIA+ community still faces severe oppression?

The shadow side of commercial pride

The problematic nature of 'rainbow capitalism' lies in the fact that it distracts from the true essence of Pride. What began as a courageous resistance against oppression (1), now risks becoming a commercial spectacle. By focusing on profit and parties, the deep political and activist roots of the movement fade, which can create the false impression that discrimination has been overcome (6).

This performative allyship creates a facade of visibility without the necessary backing of inclusive policies or safe environments. A rainbow logo without deeper commitment is not only misleading but also harmful (7). It gives the impression of progress while allowing structural inequality to persist unchallenged.

Furthermore, when companies profit at the expense of the community without giving anything back, it constitutes exploitation. Rather than uplifting the LGBTQIA+ community, such behavior commodifies their identity and struggle for marketing gain (3).

Contradictions in corporate donations

This type of opportunistic behavior, where companies profit from Pride without genuine commitment, becomes painfully clear when multinationals in western countries run full rainbow campaigns, but remain silent elsewhere when LGBTQIA+ rights are under pressure. Research shows over 25 large American companies that sponsored Pride events simultaneously donated millions to politicians supporting anti-LGBTQIA+ legislation (8, 9, 10). While tech giants like Meta adapt their logo for Pride, they are simultaneously criticized for two reasons: allegedly removing explicit content about trans rights more often than other political content, and easing their "Hateful Conduct" policy (11).

This behavior is not unique; other companies like AT&T donate to anti-LGBTQIA+ politicians while supporting Pride (12). Dutch companies such as Tony's Chocolonely and Zeeman faced criticism for their "rainbow products" without direct support for the community (12, 13). Finally, tech giant YouTube was criticized for failing to act against hate speech targeting LGBTQIA+ creators while promoting Pride (14).

The impact of superficial support: beyond flag-waving

The consequences of 'pinkwashing' extend beyond mere deception. It creates a false sense of security and progress, thereby undermining the urgent need for continued activism and structural change. When consumers get the impression that "the battle has been won" thanks to company logos, this can lead to less active involvement in actual activism (6) and make the community vulnerable to backlash (14).

At the same time, this dissonance fosters frustration and disillusionment within the community itself. Many LGBTQIA+ individuals feel used by brands that capitalize on their identity for profit, yet fail to share in the risks or actively support their rights. This perceived betrayal deepens distrust and reinforces the view that corporate allyship is often more about image than impact (3).

A new reality: retreating companies and internal focus

Recent drops in advertising budgets during Pride Month—especially from brands once eager to display rainbow branding—have had a noticeable impact on LGBTQIA+ creators. This pullback underscores just how superficial some corporate support has always been (15).

A 2025 survey by Gravity Research, involving over 200 American business leaders, revealed that 39% intend to reduce their Pride-related efforts, from sponsorships and merchandise to social media content.This shift is largely driven by fear of backlash from conservative customers and political figures in an increasingly polarized environment (16).

Internal focus replaces public visibility

Interestingly, while external visibility is shrinking, many companies are redirecting efforts inward. Data shows a 43% reduction in public-facing Pride campaigns, but a 14% increase in internal ERG (Employee Resource Group) engagement (19). This suggests a strategic shift: corporate Pride now occurs behind closed doors.

However, this inward shift often serves as a protective strategy. By focusing internally, companies can present themselves as progressive while avoiding public advocacy. In today's polarized climate, this silence can be harmful. When corporations choose internal optics over external action, they risk eroding the very visibility that fuels social progress.

Take Ericsson, for instance. The Swedish telecom giant recently scaled back references to diversity and inclusion in its annual report, minimizing language related to equity (17). Contrast that with EuroPride, which actively chooses to host events in countries where LGBTQIA+ rights are under threat—using visibility as a tool for change. The difference is striking: one retreats for reputational safety; the other leans in to challenge injustice (18).

A path forward: beyond symbolic gestures

True support for the LGBTQIA+ community goes beyond waving a rainbow flag. It requires meaningful, year-round action rooted in solidarity. Companies can start by directing a portion of their Pride-related profits to grassroots organizations such as Trans United, COC, Black Pride NL, or ILGA Europe (20, 21).

MAC Cosmetics exemplifies this approach by donating 100% of the proceeds from a special Pride lip gloss to charity (22). Nivea also participates meaningfully; they launch "Proud in Your Skin" campaigns and contributed $50,000 in 2025 to PFLAG National for virtual community support meetings (23). Additionally, Levi's launches an annual Pride collection and sponsors Pride parades during Pride Month. More importantly, they contribute $100,000 annually to Outright International and support other LGBTQIA+ nonprofits, while maintaining inclusive internal policies (24).

These examples show that visibility during Pride Month is only a starting point. Real impact comes from ongoing financial contributions, public advocacy, and inclusive workplace cultures that prioritize anti-discrimination policies and tangible support for LGBTQIA+ employees. Beyond financial support, it is essential to create a safe and inclusive work culture internally, with an active anti-discrimination policy and concrete support for queer employees – all year round (25, 26).

In fact, 67% of LGBTQIA+-friendly companies report making a positive impact on their employees (27). Among 1,556 American companies reviewed by the Human Rights Campaign, 98% have adopted non-discrimination policies specifically for gender identity (28, 29).

Above all, companies must be willing to take public stands—even in regions where LGBTQIA+ rights are under threat (30). That includes halting political donations to figures who promote discriminatory legislation (10).

Turning visibility into responsibility

Pride is about visibility and struggle. Commercial involvement is not necessarily wrong; it increases visibility and can have a positive impact, but only if it is accompanied by actual, sustainable solidarity. As consumers and citizens, we have the power to question companies, make conscious choices, and continue to defend the core message of Pride. Let's demand that companies not only wear a rainbow but also stand for what the rainbow represents: being proud of who you are, without commercial conditions. The true impact lies in unconditional support, every single day. This requires companies to move beyond their performative gestures and embed LGBTQIA+ equality into their core values and operations, ensuring they are allies 365 days a year. But the responsibility also lies with us as individual allies to look beyond merely wearing a rainbow T-shirt in June. True solidarity means informing ourselves, actively listening to voices within the community, and speaking out, not just when it's easy, but precisely when it matters, all year round. Shall we?

This article is part of The Outside World, ftrprf’s very own research center.

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