Diversity
Is Good for Business -
Advantages and Challenges of Cultural Diversity in the
Workplace
“I first of all think immigrants come to this country
to belong to this country. I also think that the Canadian
approach to this-which is a mixture of integration and
accommodation, for a lack of a better term-is the right
approach”
-The Hon. Prime Minister Stephen Harper, 2007 year-end
interview, Canadian Press.
Diversity is generally defined as the condition of
having distinct or unlike elements. In the workplace,
this means we employ a variety of people in terms of
gender, race, age, ethnic and cultural background, faith,
education and training, and socio-economic status among
others.
Diversity, however, is not only about differences among
groups, but also about differences among individuals.
Each individual is unique and does not represent or
speak for a particular group.
For companies conducting business in our multicultural
society and as part of a global economy, maximizing
and capitalizing on workplace diversity has become imperative.
And although most local employers recognize that there
are significant advantages to diversifying their workforce,
they may not be fully aware of the importance and challenges
of workplace diversity.
Diversity is both a business competitiveness issue
and a customer service issue.
A diverse workforce can provide a company with a competitive
advantage for success in today’s marketplace by opening
up new business opportunities and markets, by widening
its customer base and by being able to better address
specific consumer’s needs in our multicultural society.
Valuing diversity means recognizing that there are
other view points, experiences and ways of working together
and solving problems in areas like customer service,
allocation of resources, opening of new markets, business
strategies and growth and development.
Companies that embrace diversity in the workplace encourage
their employees to participate in business decision-making
and to perform to their highest potential, resulting
in higher productivity, better results and higher profits.
Among the advantages of diversity in the workplace
are increased creativity, productivity, attitudes, new
language skills, global understanding, approaches and
solutions to the business’ problems.
However, taking advantage of all the benefits of a
diverse workforce does not come without challenges.
Language and Cultural Barriers need to be overcome
for a diverse workforce to perform to the full benefit
of a company.
At the same time, a more open minded and positive outlook
is needed to overcome stereotypes, misconceptions and
prejudice.
Rather than focusing solely on the level of English
language proficiency, or even worse on “the accent”
of Internationally Trained Professionals (ITP), employers
should realize and take advantage of the fact that they
bring at least another language and a whole world of
cultural, professional and business experiences to the
workplace.
The undeniable difficulties that employers face in
understanding, assessing, and comparing international
educational and professional credentials, can be easily
resolved by asking applicants to obtain and produce
a certificate of evaluation and equivalence of credentials
and experience from organizations like World Educational
Services (WES) or the University of Toronto.
And when it comes to the valid proposition that the
ITP “does not have Canadian experience”, the focus should
be rather on the fact that they bring a variety of different
international experiences to the business
Managing a diverse workforce
Managing a diverse workforce requires promoting inclusion
and creating a work environment where differences are
accepted and valued, and everyone can contribute to
her/his full potential to increase productivity and
overall business success.
At the core of managing a multicultural workforce is
being aware of cultural differences in the workplace.
It means being aware of other cultural practices but
also of Canadian cultural norms, business practices
and etiquette.
Accommodation and Integration
It is imperative for managers, HR professionals and
all employees to make an objective, open, and permanent
commitment to accommodate newly hired culturally diverse
employees and to help them become full functioning members
of the team.
But at the same time, it is required and expected from
the new employees (ITP), to learn about “Canadian Business
Culture”, “Canadian Business Etiquette”, “Canadian Customer
Service Principles and Practices”, and to make a firm
commitment to fit in into the specific Corporate Culture
of the company.
In summary, workplace diversity can make companies
more productive and profitable, but diversifying brings
differences into the company that must be understood
and embraced for those benefits to be realized.
Simply put, diversity is good for business.
Dr. Yamil H. Alonso is Program Coordinator with The
Brampton Board of Trade, Skills Without Borders. For
more information, visit www.skillswithoutborders.com
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The U.S.
subprime mortgage crisis
You’ve likely seen the doom and-gloom headlines about
the growing subprime mortgage mess in the U.S. A few
months ago, most people had probably never heard of
“subprime” - an industry term used to describe mortgages
that are written for clients with less-than-ideal credit
histories.
So what just happened and why? And how is it affecting
Canadian homeowners? What happened, in short, is that
in the past year, massive waves of U.S. borrowers began
to default on their mortgages leaving lenders and their
investors bruised or even bankrupt. It’s a complex situation
but there are some key underlying factors.
Firstly, there was some unrealistic optimism in the
U.S. that house prices would continually rise. And secondly,
there were too many mortgages that should not have been
written without a more realistic look at the risks involved.
The popular 2/28 Adjustable Rate Mortgage (ARM), for
example, offered cash-strapped homebuyers a very low
teaser rate for two years, which was then re-set into
a much higher long-term rate. Thousands of borrowers
– completely unable to make payments at the higher rate
or even refinance – were pushed into foreclosure and
lost their homes.
Here in Canada, subprime mortgages represent a very
small portion of our overall mortgage business. And
mortgage brokers – the main sellers of subprime mortgages
– have done an excellent and diligent job here in both
protecting lenders from undue risk, and helping homebuyers
avoid credit and payment pitfalls. We’re just not experiencing
the same wave of foreclosures as they are in the U.S.
Our mortgage portfolios continue to exhibit strong credit
performance with relatively low levels of arrears and
losses, which is different from U.S. portfolios.
Still, we should expect to feel the economic rumblings
of the mortgage mess in the U.S. There could be an economic
slowdown in the U.S. that we could feel here in Canada.
And some Canadian subprime lenders have temporarily
pulled out of subprime lending while others have raised
rates to justify the risk for these kinds of mortgages.
This of course doesn’t apply to conventional “A” mortgages
that are available at the best rates to the typical
or standard borrower.
As we’ve seen before, financial bubbles do occur that
can shake the financial system for a short period of
time. You likely remember the 1987 stock market crash,
the Long-Term Capital Management / Russian debt crisis
of 1998 and even the tech bubble. This particular situation
could result in downward pressure on interest rates
in both Canada and the U.S. in order to keep the 2008
economy healthy, which is good news for those renewing
or looking to refinance.
Carol Kollar of Mortgage Architects Inc. is a mortgage
specialist. She can be reached at (905)789-8198 x 202
or by email at carol.kollar@mtgarc.ca.
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Business
succession planning
Many business owners tend to procrastinate on implementing
a business succession plan since running and growing
their business is their priority. According to the Canadian
Federation of Independent Business (CFIB), one of the
main reasons for failed successions is the lack of adequate
time to plan and execute the succession of the business.
Therefore, it is never too early to start planning.
There are many elements in a successful plan, but some
of the most important and often overlooked components
are;
> Financial plan. A financial plan for a business
owner is a critical component of a business succession
plan and will determine if the business owner has adequate
resources to support your retirement lifestyle and highlight
which, if any, additional retirement saving strategies
(e.g. an Individual Pension Plan) are required.
> Estate freeze. An estate freeze using a family
trust is a common business succession and income-splitting
strategy that transfers some or all of the future growth
of the business to the next generation, helping to minimize
and defer tax. Ensure that the estate freeze is flexible
enough so that you can possibly reverse the freeze if
necessary.
> Shareholder’s agreement. A well-drafted shareholder’s
agreement provides a framework for the smooth operation
of a business and addresses business ownership issues
when certain triggering events occur, such as death,
disability, retirement, or marriage breakdown.
> Insurance. Appropriate disability and life insurance
are imperative to ensure that the business can continue
and your family is able to maintain their lifestyle
should death or disability occur prematurely. Insurance
is also a low-cost solution for funding taxes at death
and funding buy/sell agreements.
Success doesn’t happen by accident. Just as you need
a solid investment plan to succeed in investing, you
need a solid business plan to succeed in business.
An expanded version of this article appears in the
RBC Dominion Securities guidebook, Family Wealth Management
– Ten Strategies to Build and Protect Your Family’s
Wealth. Please contact us at (905) 450-5946 or visit
our web page at www.steverobinson.ca for a complimentary
copy.
Steve Robinson is Vice President & Director, and
Investment Advisor with RBC Dominion Securities Inc
in Brampton. Member CIPF. This article is for information
purposes only. Please consult with a professional advisor
before taking any action based on information in this
article.
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Health Spring
cleanse
As Spring rolls around the corner, you wake up one
morning and something feels different. You’re groggy
because you had to set your clock ahead one hour and
lost the extra hour of sleep you needed to make up for
all the other hours you’ve missed. You’re hungry, but
instead of craving the usual coffee and bagel, you want
a glass of water and some fresh fruit? Well, you are
not alone. The coming of spring has signaled your mind
and body with the instinctual urge and biological impulse
for a Spring Cleaning.
During the winter months, it is common to eat more
meat and high fat foods to help us keep warm. Consumption
of sugar also tends to be high. Coming off the holiday
season, the addiction gets stronger, and the effects
of the dark cold weather often have one seek comfort
in sweets. Among other problems, this sort of diet has
a tendency to create sluggishness in the liver. The
liver is responsible for cleansing the blood and eliminating
toxins from the body. When not able to do its job fully,
toxins accumulate and a breeding ground for disease
is the result.
In order to restore balance, it’s necessary to detoxify
and heal the body through a variety of food and lifestyle
changes. So let’s start with some simple yet effective
recommendations for detoxification. First is water.
Drinking filtered or spring water will help remove pollutants
from the liver and kidney, and will keep your skin clear
and beautiful. Have a minimum of 6 cups per day. Try
to cut down on the coffee too, and perhaps replace the
morning latte with a cup of green tea, which stimulates
the immune system.
Next, choose natural (organic) foods free from pesticides
and herbicides. Green leafy vegetables like kale, broccoli,
mixed greens, dandelion greens, bok choy and collard
greens are rich in phytonutrients, fiber and vitamins,
and help cleans the blood of toxins. Have them with
garlic for added benefit. Fiber helps to keep the toxins
bound together in the body so that they are more easily
excreted in the bowels and aren’t absorbed into the
blood. Additionally, colourful fruits and vegetables
of the red, orange, yellow and purple variety are very
helpful in the cleansing process, since they contain
powerful antioxidants that help repair much of the damage
done to the body.
Stress is a major toxin too, and a good cleansing plan
must include stress reduction. Techniques like getting
outside for some exercise for a daily dose of vitamin
D. stretching, exercises, deep breathing, yoga and meditation
will all be extremely beneficial in healing the body
and calming the mind.
Finally, keep things simple. You don’t have to make
radical changes overnight, but do try to focus on nice
meals consisting of whole, unprocessed foods. Get plenty
of sleep, and finally stay away from too much alcohol,
sugar and nicotine, you will feel and see the benefits
well into summer and fall.
Karima Mawji is a certified Holistic Health Councillor
and educator in Brampton. She can be reached at 905-794-9796
or by email at integrative.nutrisense@gmail.com
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