As ally behavior policies, or policies that aim to create inclusive organizations and elicit engagement from all employees within the organization, become more common in workplaces, there seems to be little consensus on the best way to implement these policies. In this paper, we examine one type of ally behavior policy in an organization—a pronoun policy—to better understand how organizations should implement policies to increase organizational inclusivity. Across a series of studies, we examine how cisgender (cis) and transgender and gender nonconforming (TGNC) people react to pronoun policies that vary in how controlling the organizational environment is. Specifically, we examine the perceived inclusivity of an organization that implements a pronoun policy (i.e., instructions to displayone’s pronouns) as optional, encouraged, or mandatory. We find that while everyone perceives mandatory policies to be the least inclusive, cis and TGNC people differ in their preferences for optional and encouraged policies. Specifically, cis people view optional policies as the most inclusive, and this is explained by increased perceptions of autonomy over their decision to engage in the policy. While TGNC people also care about autonomy, they also value building norms of engagement, leading TGNC people to view both optional and encouraged policies as inclusive. We contribute to the theory on organizational inclusivity by showing the importance of autonomy and building norms in the conceptualization of inclusion, and we provide practical recommendations for organizations to implement ally behavior policies more effectively.