These Companies Say They Support Pride — But Do They Really?

megaphone with pride flag

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Target and other corporations have been accused of “rainbow washing” — here’s what that means. 

Like clockwork, every time June rolls around, hundreds of companies — ranging from retailers like Target to airlines like Southwest — bust out their rainbow flag, incorporating it into promotional materials like mugs, T-shirts, and corporate logos. But then July hits and boom: everything seems to go back to business as usual. 

While the move is clearly to show their support for the queer community, is simply waving a Pride flag from the top of your corporation’s metaphorical tower enough? Is there actual effort behind those actions? Dozens of corporations that’ve donated to anti-gay politicians, all while touting their Pride-themed products and ads. This act of slapping rainbow colors on corporate branding and merchandising is what’s known as “rainbow washing” and it could have far-reaching effects on the queer community as a whole.

As the nation celebrates LGBTQI+ Americans everywhere, here’s what you should know about this seemingly ubiquitous practice, and why it may not be such an innocent sign of support. 

What is rainbow capitalism?

The term “rainbow washing,” also known as “rainbow capitalism,” was first coined by the LGBTQI+ community to call out companies who publicly show Pride support by using the signature rainbow colors — without actually putting internal policies and practices in place that back up equity or inclusion.

While it can happen year-round, rainbow washing is especially widespread during Pride Month in June. Come summer, your favorite company might adopt a rainbow version of its logo online. You’ve also probably walked into stores and come across an entire section of Pride merch filled with rainbow-colored hats, T-shirts, mugs, and other paraphernalia. 

The problem obviously isn’t the display of Pride support, but rather the potential lack of authenticity, begging the question of whether the brand is actually empowering LGBTQ people through its corporate practices and policies. “Rainbow washing is especially harmful because it means that you’re making money off of a marginalized community without ever supporting or helping them,” says GLAAD president and CEO Sarah Kate Ellis.

So how can you tell whether a company’s display of Pride support is genuine? One telltale sign is that this rainbow imagery isn’t attached to a commitment to the LGBTQI+ community. “Rainbow washing companies try to avoid attaching any actual statements, and this failure to pair the rainbow imagery with textual or verbal communications can be a strong indicator that the firm lacks much real commitment,” says Catherine Lamberton, who’s a professor of marketing at the University of Pennsylvania’s Wharton School.

But discerning whether or not a company is signaling authentic support isn’t always so clear-cut. Take Target, which has backed LGBTQI+ rights over the years. While the brand has publicly supported transgender employees and customers using the bathroom of their choice, they’ve also donated to anti-gay politicians like Minnesota, Rep. Tom Emmer, who has ties to the Christian rock band, You Can Run But You Cannot Hide, which has called for gays and lesbians to be murdered. You also may have heard the recent news that Target has cut back its Pride promotion over threats from customers and right-wing groups.

What’s wrong with rainbow washing?

On the surface, rainbow washing may look innocuous — superficial support is better than no support at all, right? Not exactly. Experts say it can be damaging because it undermines both people within the queer community and allies. 

“A consumer who sees a rainbow-washed product thinks that by purchasing it, they’re effectively ‘voting’ for a way of seeing the world — they’re both expressing their own beliefs and supporting brands that are working toward the kind of society they want to live in,” says Lamberton. “But because the brand is misleading them, the consumer isn’t actually able to reach these goals at all.”

What’s worse is that these public displays of support often offer a distraction from some businesses’ shady internal practices. In 2022, the independent newsletter Popular Information looked at 25 corporations, including AT&T and Walmart, that celebrated Pride Month and found they had collectively given more than $13.2 million to lawmakers who helped advance some form of anti-LGBTQIA+ legislation. Ellis says these actions are especially detrimental now, given how the community is being targeted at an unprecedented rate. In fact, since the start of 2023, more than 480 anti-LGBTQ bills have been introduced (in most states) across the country, according to the ACLU.

“We’re in a moment where our community is severely under attack in ways that we haven’t ever seen before,” Ellis told Katie Couric Media. “Some states are going after our youth, and censoring our lives, so it’s important for businesses with large platforms and incredible power to help LGBTQ people.”

Why do companies fall into this practice?

The LGBTQI+ community is not only the fastest-growing minority segment in the country, but they’ve also got what’s known as “pink money”: the cash to spend. “The LBGTQIA+ community is both large and growing and has considerable buying power,” says Lamberton. According to market research agency The Pride Co-op, LGBTQI+ spending jumped from $917 billion in 2016 to $1.4 trillion in 2021, rivaling the disposable income of other American minority groups, so it’s no surprise that companies want to capitalize on on this demographic. 

Those numbers will likely continue to grow: People who identify as LGBTQI+ could make up as much as 15 percent of the total adult population in the “not too distant future,” according to Gallup. “For some brands, [rainbow washing] may be a way to try to connect with a market segment among whom they are otherwise overlooked,” says Lamberton.

Companies may also utilize rainbow washing as a way to get credit with progressive groups and the queer community at large. “Many people see the harm done by a failure to embrace diverse viewpoints, the losses created by exclusion, and the pain created by stigmatization,” Lamberton tells us. “Rainbow designs have become a type of shorthand for inclusion and dignity affirmation.”

What should companies be doing for Pride Month?

Lamberton says companies should be more intentional about their approach to Pride Month, especially when it comes to crafting a statement and company policies. “If a company can’t articulate the reason for the rainbow, they shouldn’t use it,” she says. 

Another important step is to listen to those within the gay community and stop making assumptions about how to best represent them. This includes companies taking a hard look at the kinds of media where they choose to promote their products, the events they sponsor, the mentorship programs they have in place internally, and even the politicians they support. 

But ultimately, Lamberton says it’s understandable for corporations to be a work-in-progress in terms of creating authentic inclusion. “It’s OK to be aspirational,” she says. “Many businesses still have a long way to go, but transparency is better than pretending.”