Although discrimination is never good, it’s become more of a hot topic in recent years. As a result, employees have more rights than ever before and are quick to point out when something goes wrong. Fortunately, most companies don’t see a discrimination case in their entire time running: but many aren’t so lucky.
Customer or employment discrimination cases can destroy a company.
Here’s how.
The Opinion of Your Customers
Your customers want to think highly of you because they’ll partially attach their identity to your brand if they use you enough. This creates brand loyalty and ensures that your product will stay in their life for as long as they need it. Unfortunately, this view can be shattered if they find out that your company has done things that hurt people or have made poor decisions. Although not every lawsuit is incredibly public, if anyone finds out about the case and it becomes public knowledge, you’re going to lose a large part of your customer base.
Turnover and Anger In Employees
Employees can’t help but be tied to the company they work for. If the discrimination was against a customer, that could make almost every employee look bad, and they’ll question whether this is the right place to work for.
If the discrimination is against an employee, it’s even worse. Employee discrimination cases, the moment they’re announced, are quickly followed by high turnover. Good employees will leave the company because they feel disrespected, and the business will see fewer applicants because they don’t want to risk being disrespected.
The Chance At More Lawsuits
The moment you’ve had one discrimination lawsuit, you’re opening yourself up to dozens more. This means you could be risking having to deal with multiple similar cases all at once, which could bankrupt your company. Even if the lawsuits are false or get dropped quickly, the sheer number of them can further damage an already rocky relationship the company has with its customers and employees. This is a lot of risk to place on any business.
The Risk of Shutting Down Entirely
Nobody wants to shut their company down or close its doors forever. But, unfortunately, this is the reality many business owners have to deal with after discrimination cases go public. Between higher layover rates, and fewer customers shopping for your brand, you may notice that there’s no way you can catch up with the overhead costs of your business.
It’s important to stop these cases before they begin.
How To Avoid These Cases
The best way to avoid discrimination cases is to train thoroughly and ensure that every employee’s voice is heard. Let employees know that they’ll be fired if they discriminate or act cruelly towards other employees or customers. Although you can work with them to change that behaviour, it won’t fix your public image once it’s been damaged.
Educate your employees on their rights within the company, and tell them to talk to HR or someone higher-up in the company if they feel that they’re being unjustly judged or looked down upon. Listening to them and stopping the behaviour can save your company from a hefty lawsuit.
