Cultural Diversity

Paper Summary:

This paper discusses how the current business environment is one of extreme competition and how cultural diversity is one area that is often described as a method of achieving competitive advantage especially with reduced trade barriers within the international market. It examines how having employees of different cultural backgrounds is an effective way of building these social and business networks since employees from different cultural backgrounds have an understanding of the other culture. It also shows how a culturally diverse workplace gives all employees the skills to communicate with any individual regardless of individual differences which increases the flexibility of the organization and enhances creativity within the organization.

From the Paper:

"With business becoming more international, organizations need to consider other countries and cultures. This could be simply to serve customers in other countries, to purchase supplies from other countries or to set up operations in other countries. A multicultural workforce means that employees are available that may represent the other culture. One article argues that cultural barriers are a major reason that companies do not pursue opportunities in other countries. The author argues that business and social networks that operate across national borders can overcome these barriers (Rauch 2001). Having employees of different cultural backgrounds is an effective way of building these social and business networks."

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