Corporations that ditch queer consumers will lose big money, new study suggests

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A growing number of companies have been folding to right wing boycotts and ditching DEI programs, particularly those that support LGBTQ+ employees. But by appeasing a vocal fringe, those companies are poised to lose significant revenue from the communities they've abandoned, a new study suggests.

The data comes from the HRC Foundation's 2024 LGBTQ+ Climate Survey, conducted in partnership with LGBTQ+ research firm Community Marketing & Insights. Between August 8 and 18, nearly 2,500 LGBTQ+ adults completed the survey, and the results detail stark implications for corporations who have turned their back on DEI.

80% respondents said they would boycott a company that rolled back DEI programs, and over half would urge others to boycott, including making negative reviews and social media posts. Overall, 75% said they would look negatively on said companies.

For LGBTQ+ employees, 19% said they would quit or start looking for a new job in the event their company dropped DEI initiatives. 72% said they would feel less accepted at work and one-third said their productivity would suffer.

Recently, LGBTQ+ consumers have been estimated to command more than $1.4 trillion in spending power. That number seems only poised to grow in the future as younger generations continue to overwhelmingly identify with the LGBTQ+ community.

And LGBTQ+ consumers care about where they are spending their money, taking note of signals of support. 87% of survey respondents said that sponsoring a Pride event indicates support. 93% agreed that donating to LGBTQ+ causes earning a 100% score on the HRC's Consumer Equality Index, which rates corporations for LGBTQ+ inclusive policies, indicates some support. As part of cutting DEI programs, many corporations have opted out of the HRC's CEI.

Thus far, the corporations that have rolled back DEI programs include Molson--Coors, Harley Davidson, Lowe's, Ford, Tractor Supply and Jack Daniel's. The recent backlash has come at the behest of right wing provocateur Robby Starbuck, who targets companies with DEI programs and incites followers to boycott.

"The LGBTQ+ community is an economic powerhouse, and we want to work for and support companies who support us," Orlando Gonzales, HRC Senior Vice President, Programs, Research, and Training summed up.

"Attacks on DEI initiatives are shortsighted and make our workplaces less safe and less inclusive for hard-working Americans of all demographics and backgrounds. This new data confirms that companies like Molson Coors, Ford, and others that abandon their values and backtrack from commitments to diversity, equity, and inclusion risk losing both top employee talent and consumer dollars."