In recent years the U.S. has seen a massive spike in legislative action against queer folk, reflecting a significant backlash against the progress made towards equality and inclusion for LGBTQ individuals.
According to the American Civil Liberties Union, more than 500 state bills targeting the LGBTQ community have been introduced, with 75 of them becoming law in 2023.
These laws, which range from restrictions on gender-affirming health care to limitations on LGBTQ representation in education, threaten to roll back the hard-won rights and protections that have been established over decades of advocacy.
However, as right-wing circles stoke anti-LGBTQ sentiment, corporations have collectively decided to show their support and dedication to making the lives of LGBTQ individuals safer—by putting a rainbow on their logo.
Facetiousness aside, corporate recognition of Pride Month—an annual celebration of the contributions and existence of the LGBTQ community—often contributes to a trend aptly named “rainbow capitalism.”
Rainbow capitalism involves companies selling LGBTQ-branded merchandise under the guise of support for the community, but with the true motivation of financial gain. While it may seem cynical to think of these companies as purely acting upon the prospect of profits, recent product withdrawals from corporations under the threat of an “anti-woke” boycott should remind LGBTQ folk that companies do not see them as people, but as walking wallets.
Corporations that operate under the banner of “progressivism” can, and will, flip the switch almost immediately, given sufficient backlash. Pressure from critics will spur an entire reshaping of how they look at marginalized groups and how they expect marginalized groups to look at them. The ostensibly innocuous support corporations offer during Pride month allows them to appear progressive while still pursuing their mandate of doing what is financially best for shareholders.
At the start of 2020, when various states saw a surge in the number of lawmakers drafting anti-LGBTQ bills, companies were quick to sign on to a Human Rights Campaign petition to register their opposition. But many of them also contributed to the political campaigns of the state legislators responsible for those same bills. AT&T, for example, signed the petition but also donated nearly $223,000 to state officials in Florida, Indiana, and elsewhere, who responsible for passing laws that banned transgender athletes from sports, restricted access to vital gender-affirming care, and prohibited discussions about gender and sexuality in schools.
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However, it is important to note that while corporations have historically donated more to conservative politicians—considering that die-hard capitalists are more inclined to give them massive tax cuts—the meekness of the Democratic Party in failing to address the unregulated wealth disparity corporations and their shareholders enjoy has led to many such corporations backing Democratic politicians who mostly approve wholeheartedly of their business model.
Some will argue that despite the obvious greed associated with rainbow capitalism, it is not entirely pernicious in its outcome. Considering that just several decades ago it was considered extremely taboo (and most likely financially ruinous) for businesses to openly advertise to LGBTQ individuals, most major businesses’ openness to showing support indicates that at least on the scale of public opinion, progress has been made.
There is also the fact that in addition to merchandise, many corporations also show their support through charitable donations to LGBTQ causes. The American retail giant Target is known for spending a considerable amount of money on the LGBTQ community for the entirety of Pride Month. Back in 2021, it donated $100,000 to GLSEN—an organization dedicated to providing education on LGBTQ issues in K-12 schools within the United States. The corporation’s total donations to GLSEN have surpassed $2 million.
However, the fact some corporations do “put their money where their mouth is” doesn’t change the fact that they also donate to politicians who actively try to pass legislation that harms the LGBTQ community. Target, the same corporation that donated $100,000 to GLSEN, also donated approximately $350,000 to Republican candidates in 2022.
In fact, in 2023 a report by Popular Information found that 25 companies had donated at least $13.5 million to anti-LGBTQ politicians since January 2022. Many of these funds come from corporations such as Amazon and Walmart—which donated a combined amount of over $850,000 to Republicans who voted against the Equality Act—that are perfectly content to sell LGBTQ-themed merchandise for Pride.
This is what truly puts the capitalism in “rainbow capitalism”—considering the purchasing power of queer folks and their allies is nearly $ 4 trillion dollars globally. Since there is a clear likelihood of generating a profit by tapping into these markets, corporations will continue their shallow form of “progressiveness.”
Sadly, like the system of capitalism itself, rainbow capitalism does not seem to be going away so long as there is a way to make a profit. Those in the LGBTQ community, and their allies who partake in the purchasing of Pride Month products, either are unaware of these adverse ulterior motives or are simply apathetic and do not care. Seeing how boldly pandering these companies’ efforts are, it would make sense that more people are falling into the latter category. But this should not dissuade anyone—LGBTQ or not—from celebrating Pride for what it is meant to be, honoring the sacrifices, and recognizing the difficulties LGBTQ people have faced, do face, and will face.
Riley Singh is a freelance journalist focusing on social justice, economic, and political issues.
The views expressed in this article are the writer’s own.