Young men and women, dressed in costumes and colourful gear, are marching through the high streets in central London. Amongst the red buses, balloons and sky-high headdresses there are also white flags spelling “GAP” through a rainbow. These are not a statement of protest against some sort of discrimination, but a “Pride” version of a clothing brand’s logo. And GAP is just one of many brands showing up at Pride parades these days in Western Europe and America.
Pride parades have historically served as a moment of congregation for LGBT communities and allies to protest their lack of civil rights and celebrate diversity. To the benefit and joy of some but not all, companies are increasingly joining in the march, seeking to parade their equality credentials alongside nonprofits, alliance groups and parade-goers in general.
There are several reasons. Most obviously, the corporate presence reflects a significant change in the culture of many leading firms, which now promote diversity as a key element of a successful business strategy. As with a growing number of LGBT people, at least in America and Europe, coming out as a corporate has become less traumatic in recent years. According to Lucien Spee, CEO of Amsterdam Gay Pride, for many years companies were afraid that they would lose sales if they publicly supported LGBT rights. But now the tide has changed and, whether looking to reach new customers or generate greater employee engagement, companies have more incentive than ever to fly the rainbow flag. “There is an increased awareness that profit grows when diversity is embraced,” he says.
The partnership presents a mutual benefit for event organisers and sponsors. In London alone, the annual Pride parade costs £750,000 to organise, and the organisers say they rely on corporate sponsorships to keep the parade free for its go-ers. “About 60% of our income comes from corporate donations,” says Polly Shute, sponsorship and fundraising director at Pride in London.
Chipotle, a multinational fast-food chain, supports Pride parades both in America and in Europe. In London, the company paraded on the day, but also ran a campaign wherein they promised to donate 50% of the purchase price of a burrito (starting at around $9) for each person who quoted “Pride” when placing their orders on June 21st. “As a company we welcome people from all walks of life. We’ve enjoyed working with the Pride in London team as their ethos of equality and diversity very much fits with our own,” explains Jacob Sumner, UK managing director for Chipotle. The company says it will be donating £1000 ($1,320) as a result of the fundraising effort (a tiny sum, but symbolically significant).
Yet some Pride traditionalists are suspicious of what they see as creeping commercialization. Are companies more interested in “pink-washing” by associating their brand with LGBT consumers and employees and their supporters than in fighting for the rights of their communities directly. The #NotOurPride hashtag was launched in the Los Angeles area in May to protest against the local Pride event’s rebranding itself as a music festival and charging higher ticket prices. Alternative, commerce free, events to the mainstream parade have also started springing up in cities such as London and Berlin.
“Prominent corporate supporters of the new, commercialised Pride parades cater to a mostly affluent, white, [non-transgendered], liberal, and middle-class clientele,” explains Christian Eichert, a researcher studying LGBT markets and minority consumers at City University’s Cass Business School in London. For those whose identities are based around ideas of transgression and political non-conformism – a revolt against the establishment – corporate sponsorships can be seen as an attempt by society to domesticate the movement.
But companies insist they are not just in it for the money. Their participation in these parades isn’t always driven by the marketing department, nor the corporate social responsibility plan, but also by the employees themselves. A spokesperson from Stonewall, an LGBT lobbying group in the UK, confirms that almost all of Pride in London 2016’s sponsors work closely with the organisation and are a part of Pride’s Diversity Champions programme, a forum for sponsors to share their best practices in employee engagement. “Our ongoing relationship with Pride, both in London and across the UK, is just one of the ways in which we show our commitment to the LGBT community,” says Mike Roemer, global LGBT lead (and head of compliance) at Barclays, the main sponsor of this year Pride in London. “We want our colleagues, customers and clients to feel free to express who they are at all times.” This ambition is still some way from being fulfilled. Research commissioned by Pride in London found that 74% of LGBT people still feel a need to lie about their sexuality or gender identity.
Organisers of the parade in various cities vet all corporates looking to sponsor the event to ensure they are supporting diversity internally before they agree to them being sponsors. “For most of our corporates, Pride in London is part of a programme of supporting diversity, so this is a strategic partnership, not a case of pinkwashing,” says Ms Shute. “We will continue to say no to those who don’t have internal diversity policies.”
Companies often form a long-term commitment to the Pride parades they support. For instance, Ms Shute says the renewal rate of sponsorship for the Pride in London is as high as 75%. Other Pride organisers, like Dario Davanzo in Milan, say that existing sponsors often encourage other companies to participate the following year.
Companies sponsoring Pride events can also create a domino effect of support through their supply chains and industry peers. FloraHolland, an international flower seller, is sponsoring Amsterdam Pride for the first time this year. This is significant because “there is still a lot to do in their sector”, says Mr Spee, referring to the many flower growers in FloraHolland’s supply chain who live in a religious area of the Netherlands, the so-called “Bible belt,” where acceptance of the LGBT community lags behind the rest of the country.
Taking too commercial an approach can get companies into contentious areas. According to Mr Spee, one year a sponsor of Amsterdam Pride supported the parade through its cider brand rather than its beer, as this was deemed more “women and gay-friendly”. That left a bitter taste in the mouths of some paraders.
This post was produced in collaboration with Pro Journo, a business journalism incubator.