How Should Businesses Address Customer or Supplier Discrimination Against LGBTQ+ Individuals?

 Workplace inclusivity extends beyond internal policies—it also involves interactions with customers, suppliers, and external partners. Businesses that are committed to LGBTQ+ inclusion must have strategies to address discrimination not only within their workforce but also in their broader business relationships.

What happens when a customer refuses to work with an LGBTQ+ employee?
How should a company respond if a supplier discriminates against LGBTQ+ individuals?

These situations can put businesses in a difficult position, balancing ethical responsibility, legal obligations, and customer relationships. However, remaining silent or passive is not an option for companies that prioritize inclusivity. This article explores practical steps for handling customer or supplier discrimination against LGBTQ+ individuals while maintaining strong business values.

Understanding the Scope of the Issue

1. Types of Discrimination LGBTQ+ Employees May Face

LGBTQ+ employees may experience discrimination from customers or suppliers in various forms, including:

• Refusal of service – A customer refuses to be served by an LGBTQ+ employee.
• Hostile behavior – Insults, slurs, or derogatory comments toward LGBTQ+ individuals.
• Unequal treatment – A supplier providing lower-quality service or different pricing to LGBTQ+ businesses or employees.
• Religious or cultural objections – Claims that LGBTQ+ inclusion conflicts with personal or business beliefs.

2. Legal Considerations

Depending on the country or state, there may be legal protections for LGBTQ+ employees against discrimination from customers and suppliers. Businesses should be familiar with anti-discrimination laws and their own corporate policies to ensure compliance.

For instance, in many countries, businesses are legally required to provide a discrimination-free workplace, which includes ensuring that customers or suppliers do not create a hostile work environment for employees.

Steps Businesses Should Take to Address Discrimination

1. Establish Clear Anti-Discrimination Policies

A strong non-discrimination policy should explicitly state that the company does not tolerate discrimination from or toward customers, suppliers, and external partners. This policy should:

• Cover all stakeholders (employees, customers, suppliers, contractors).
• Define what constitutes discrimination.
• Outline steps the company will take if discrimination occurs.
• Communicate expectations for ethical conduct in contracts and service agreements with suppliers and partners.

Companies should also train employees and managers on how to handle these situations in real time.

2. Support LGBTQ+ Employees When Discrimination Occurs

When an LGBTQ+ employee faces discrimination from a customer or supplier, the company must respond promptly and prioritize the well-being of the employee. Recommended actions include:

• Listening to the employee’s experience and documenting the incident.
• Ensuring the employee is supported (offering HR resources, counseling, or mediation).
• Reinforcing the company’s policies with the offending party.
• Taking appropriate action (e.g., refusing service to discriminatory customers, cutting ties with biased suppliers).

The company’s response must make it clear that discrimination is unacceptable without putting the burden on the LGBTQ+ employee to handle the situation alone.

3. Responding to Discriminatory Customers

Businesses should be prepared to handle customers who discriminate against LGBTQ+ employees. Here’s how:

a) If a Customer Refuses Service from an LGBTQ+ Employee

• Do not reassign the employee to accommodate the customer’s prejudice. This validates discrimination.
• Politely inform the customer that all employees are treated equally and that discrimination is against company policy.
• Offer an alternative solution that does not reinforce bias, such as continuing the transaction as normal.

Example response:
"At [Company Name], we value diversity and respect all employees. We do not accommodate requests that discriminate against our staff. If you’d like to continue receiving service, [Employee Name] will be happy to assist you."

b) If a Customer Harasses an LGBTQ+ Employee

• Intervene immediately to stop harassment.
• Ask the customer to leave if necessary and reinforce the company’s zero-tolerance policy.
• Document the incident and support the employee.

c) If a Customer Complains About LGBTQ+ Inclusion Efforts

• Acknowledge their perspective professionally, but stand firm on company values.
• Reiterate the importance of inclusion and why the company supports LGBTQ+ rights.
• Avoid engaging in debates—instead, focus on company policies and ethical commitments.

4. Holding Suppliers and Business Partners Accountable

Suppliers and vendors should be held to the same inclusivity standards as employees and customers. Businesses can:

• Include non-discrimination clauses in contracts with suppliers.
• Conduct diversity and inclusion audits before partnering with vendors.
• Terminate relationships with suppliers that repeatedly discriminate against LGBTQ+ individuals.

If a supplier is found to be discriminatory, companies should:

• Raise concerns privately and professionally and request corrective action.
• Offer education and resources to help them align with inclusion policies.
• End contracts with those unwilling to comply with anti-discrimination policies.

5. Publicly Reinforce Commitment to Inclusion

Companies that take a stand against discrimination should communicate their position clearly to customers and suppliers through:

• Official statements outlining their commitment to LGBTQ+ rights.
• Inclusion policies on websites and contracts.
• Marketing materials and social media showing support for diversity.

This helps set expectations with all business partners and discourages discrimination before it happens.

Overcoming Challenges

1. Balancing Customer Service with Inclusivity

Some businesses fear losing customers over LGBTQ+ inclusion. However, research shows that consumers prefer brands with strong ethical values. Companies should:

• Educate their customer base on the importance of inclusivity.
• Prioritize long-term brand reputation over appeasing discriminatory customers.
• Find new markets and customers who align with their values.

2. Addressing Resistance from Suppliers in Conservative Regions

For businesses working in areas where LGBTQ+ rights are not widely accepted:

• Focus on universal values like respect and fairness.
• Highlight the business benefits of diversity, such as better innovation and teamwork.
• Work with alternative suppliers that align with inclusion policies.

3. Handling Public Backlash

If a business faces backlash for standing up against LGBTQ+ discrimination, they should:

• Stay consistent—waffling on values can harm brand credibility.
• Communicate clearly that inclusion is a core business principle.
• Engage in respectful dialogue rather than reacting emotionally.

Conclusion

LGBTQ+ inclusion doesn’t stop at internal policies—it must extend to customer and supplier interactions. Businesses have a responsibility to create discrimination-free environments not only within their teams but across their entire network.

By setting clear policies, supporting LGBTQ+ employees, holding suppliers accountable, and standing firm in their values, companies can build inclusive, ethical, and successful business relationships.

Taking a stand against discrimination may be challenging, but it is essential for fostering a workplace and market where everyone is treated with dignity and respect.