Corporations Face New Fears For How To Handle Pride Month

Here is an edited excerpt from this week’s CxO newsletter. To get this to your inbox, sign up here.

The plot line sounds almost too scary to be a classic Disney tale: A leader works for years to help create a community and company that fully embraces those who identify as lesbian, gay, bisexual, transgender or queer (LGBTQ+), only to find themselves cast as a villain in a culture war. Rainbow-colored merchandise suddenly become targeted as symbols of moral decay instead of cheerful reminders that everyone should feel free to choose who they love and how they live. Important debates about gender-affirming care for minors or the impact of transgender athletes in competition can’t happen as there’s no middle where people can meet.

And so Target pulls some of its Pride merchandise from stores and displays because of a backlash in one corner, sparking a backlash in another. Bud Light enlists transgender influencer Dylan Mulvaney for a social media campaign, only to backtrack and distance itself when that results in calls for a boycott. And lest we assume boycotts are the tool of choice for only Republicans, there’s Democratic Governor Gavin Newsom, who tweeted that the state would cut ties with Walgreens after it announced it would not distribute abortion pills in other states where attorneys general have told it not to. Newsom backed down.

And then, of course, there’s Disney. Bob Iger stepped down as CEO in early 2020 after a successful 15-year run, only to return to the role 20 months later as the entertainment and media giant had faltered on several fronts—most notably through a high-stakes feud with Florida Governor Ron DeSantis as he was about to sign what’s been called the ‘Don’t Say Gay’ bill into law. While then-CEO Bob Chapek initially tried to steer clear of the controversial bill, Iger tweeted that it would put “young LGBTQ people in jeopardy.” Desantis passed the law, and stripped Disney of its decades-old tax status and self-governing privileges. Earlier this month, Iger canceled plans for a $1 billion office complex in Florida, prompting a defiant response from DeSantis, and more heated rhetoric on both sides.

This kaiju-like battle of the behemoths has now moved to the courts, where it continues to be bloody for both sides. The conflict almost overshadowed the governor’s official announcement last week that he’s running for president. Meanwhile, new polls suggest consumers increasingly view Disney as a polarizing brand, which is rarely great for business.

It's also an unwelcome distraction as Iger is trying to cut 7,000 jobs and billions in costs while trying to stanch the outflow of Disney+ subscribers and reinvigorate its film franchise with bets like a live-action remake of The Little Mermaid. [Check out Suzanne Kelleher’s great piece on the high-flying death of Disney’s $2,500-a-night Star Wars Hotel.]

Ultimately, I think DeSantis will prove to be no match for Mickey Mouse— especially if it comes at a cost to jobs and investment in Florida under his watch. His law is less about protecting parental rights than censoring content and vilifying vulnerable groups. The Pride movement and all the merchandise it spawns are intended to embrace differences and promote acceptance. Companies can’t be held hostage to ill-informed protesters who fear what they don’t know.

With the wrath of extremists now moving on to Kohl's and other brands, what's a business leader to do? Stress inclusivity as a core value. Don't play the culture wars as a marketing tactic to drive sales. (I'm talking to you, M&Ms) And link those values to wider commitments to the community, from financial inclusion (Here's an interview with Operation Hope’s John Hope Bryant) to employee benefits.

If your support for LGBTQ+ rights only comes out once a year in the form of multicolored products that you'll put away at the first sign of protest, perhaps this is a good month to reflect on the culture you need to build.