Non-discrimination in employment means that employees are selected on the basis of their ability to do the job and that there is no distinction, exclusion or preference made on other grounds. Employees who experience discrimination at work are denied opportunities and have their basic human rights infringed. This affects the individual concerned and negatively influences the greater contribution that they might make to society. Discriminatory practices in employment and occupation restricts the available pool of workers and skills and therefore the opportunities for the development of skills and infrastructure to strengthen competitiveness in the global economy. Discriminatory practices on the part of an employer can damage a company's reputation, as well as place them at risk of legal action.Businesses are at risk of complicity either if they actively discriminate against certain groups or if they do not take steps to address prevalent societal discrimination that translates into disadvantages in hiring patterns, compensation, training and promotions.

Minority groups experience discrimination both as a result of societal behaviour and in some cases, government action or policy. Both these forms of discrimination can affect minorities in the workplace. Therefore it is important that companies mitigate this risk in their own operations as well as within their value chain. Discrimination in the workplace may take the form of restricted language rights, either through government or company policy, as well as limited employment or promotion opportunities and unequal remuneration patterns. Some minorities are also subject to harassment and attack in areas where anti-minority sentiment is high, putting those employees at risk inside and outside the workplace. Implications external to the workplace may also exist. Minority groups in a number of countries also claim rights to a share in economic income from natural resources in areas where they live. However, some governments have taken the opportunity to promote economic opportunity over minority rights in such areas. This could render investors at risk of being complicit in violations of minority rights.

The following examples were identified through background research:

• In September 2008, Human Rights Watch (HRW) denounced the “state-sponsored and officially tolerated discrimination against the Ismailis of Najran” in Saudi Arabia. The Ismailis, estimated at between several thousand and 1 million of Saudi Arabia’s total population of 28 million, are part of the country’s Shia minority. HRW notes a pattern of discrimination against the Ismails in the areas of government employment, education, religious freedom, and in the justice system.
• Minority Rights Group International reported that in the weeks before the 2008 Olympics, the Chinese government was “quietly cracking down on the minority Mongol population of Inner Mongolia”, including through arrest and increased surveillance of dissident as well as restricting their travel to Beijing.

How does a company respect the right to non-discrimination of minorities in its value chain when it operates or has business partners or suppliers in a country where minorities experience discrimination, harassment and occasional violence?

The following have been identified as possible components of this dilemma:

• Discriminatory laws
• Absence of laws that protect minorities
• Societal discrimination
• Discrimination by authorities
• Cultural acceptance of discrimination
• Many minorities fail to complete an education
• Harassment and violence against minorities
• Lack of equal opportunities for minorities
• Product misuse