How Pride Drives Growth Amid DEI Backlash
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how-pride-drives-growth-amid-dei-backlash

  Jul 8 2025 | theoutcastcollective

It’s June again, and across the globe, rainbow flags are fluttering from office buildings, shop windows, and brand logos. But this year, the usual vibrancy of Pride Month comes with a tinge of hesitation. DEI backlash is real, and the cultural conversation has become more polarized. While some organizations pull back for fear of criticism, others are standing firm—or even stepping up.

So, the question isn’t just: Should we show up for Pride?

The real question is: What does standing up for LGBTQ+ inclusion say about who we are as a business—and where we’re going?

At The Outcast Collective, we’ve been working with organizations navigating this very terrain. And here’s what we know: Pride still drives growth. In fact, it may be one of the strongest business differentiators in today’s fragmented marketplace.

The Backlash: A Cultural Tightrope

In 2024 and 2025, we saw a surge in anti-DEI narratives, particularly in the U.S., but echoed in several countries. Some politicians and media voices questioned the value of diversity training, employee resource groups, or even Pride campaigns—framing them as performative or divisive. The term “woke capitalism” became a weapon.

As a result, some major companies—including Target and Anheuser-Busch—found themselves in the crosshairs. Faced with boycotts or media backlash, they toned down their Pride marketing or pulled back partnerships. According to a May 2025 survey by Axios, nearly 39% of U.S. retailers plan to reduce Pride visibility this year.

But that’s only one part of the story.

The Data Is Clear: Consumers Still Want Inclusive Brands

A GlobeScan survey released earlier this year found that 72% of consumers believe companies should continue DEI and inclusion efforts, regardless of political pushback. Even more compelling, 80% of LGBTQ+ consumers said they are less likely to purchase from brands that withdraw visible support for their communities.

This is a market signal. And it aligns with long-standing data:

– $3.9 trillion: Estimated global spending power of LGBTQ+ consumers.

– 65% of Gen Z say they expect brands to support queer rights and representation.

– 84% of employees say they are more loyal to inclusive employers.

When companies hesitate to celebrate Pride or cut back on internal support structures like ERGs, LGBTQ+ employees—and their allies—notice. The result? Disengagement, lower morale, and attrition.

Inclusion = Innovation + Retention

The workplace case is even stronger.

McKinsey’s 2024 report on inclusive growth found that companies with strong LGBTQ+ inclusion policies saw:

– 33% higher employee engagement scores.

– 19% lower turnover rates among underrepresented groups.

– 34% better team innovation ratings.

In other words, Pride isn’t a party—it’s a strategy. It’s about employee wellbeing, customer relevance, and long-term business sustainability.

How Companies Are Getting Smarter About Pride

What we’re seeing in 2025 isn’t less Pride. It’s more thoughtful Pride.

Brands that continue to thrive through backlash are:

– Reframing the Narrative

– Backing with Action

– Measuring Impact

The Indian Lens: Pride in a Complex Landscape

While India has made legal strides, corporate India’s engagement with Pride remains uneven. However, some cities are emerging as bright spots.

The City Ratings 2025 report by Open For Business rated five Indian metros—Mumbai, Delhi, Bengaluru, Chennai, and Hyderabad—as “Partially Open for Business” on LGBTQ+ inclusion.

Examples include Flipkart’s LGBTQ-run hub, Tata Steel’s inclusive benefits, and growing Pride events.

Pride Is Not a Month. It’s a Metric.

Organizations that weather DEI backlash do so by embedding inclusion into their culture—not just their calendars.

That means:

– Creating year-round storytelling platforms

– Moving from performative allyship to policy-level change

– Setting KPIs for inclusive leadership

What We Recommend

Start here:

  1. Audit Before You Act
  2. Elevate Internal Voices
  3. Back Words with Resources
  4. Partner Locally
  5. Communicate Strategically

Final Word: Inclusion Has Always Required Courage

Pride was never about safety. It was—and still is—about visibility, solidarity, and justice. In today’s climate, showing up for LGBTQ+ communities isn’t just morally right—it’s economically smart.

Let’s stop pretending inclusion is risky. The real risk? Becoming irrelevant in a world that’s increasingly demanding authenticity.

To the brands that are still walking the talk: You’re not just part of Pride. You’re part of progress.

*Need help navigating your organization’s next step in LGBTQ+ inclusion? Reach out to us at The Outcast Collective. Our team offers diagnostics, allyship training, ERG strategy, and intersectional DEI advisory designed for impact—not optics.

Take the first step today. Schedule an exploratory consultation via WhatsApp at +91-9372177748 or email lakshmi@theoutcastcollective.com with our DEI experts and start building a workplace where everyone belongs.

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