Cultural Diversity Of Business In Europe Essay Example
Cultural Diversity Of Business In Europe Essay Example

Cultural Diversity Of Business In Europe Essay Example

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  • Published: July 21, 2017
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There has been a global and extensive discussion about various cultural expressions since the beginning. The growing interest comes from utilizing awareness and innovation to drive sustainable development. This is particularly important in countries like Germany, which are shifting from an industrial society to a knowledge-based one.

Promoting diversity supports the exploration of different perspectives. From a political standpoint, our society must address how to embrace diverse educational methods for the greater good. The UNESCO gathering on defending and supporting the Diversity of Cultural Expressions offers a global approach, involving various performers and peacekeeping forces, to indicate communal opinions. It is crucial to first assess how cultural diversity is valued within our own country. To what extent do individuals in our nation, including children, youth, and adults, recognize and appreciate cultural differences? This assess


ment is especially important in our town. In an unevenly developed world, we should acknowledge that less urbanized countries deserve the opportunity to cultivate their unique cultural identities and participate in discussions about cultural diversity. Such collaboration would foster harmony.

The available trade for the get-together brand and how it can be conveyed to people is a topic of interest. Since March 2007, the German Federal Government, the Lander (provinces), and towns have been obligated to follow the regulations set by UNESCO. The Federal Confederation for Cultural Diversity has been working on a White Paper on communal culture since 2004. During this process, various studies were considered such as the Bundestag Study on Culture in Germany (2004-2007), the Media and Infrastructure Report of the Federal Government (December 2008), and a research survey by the Culture and Creative Industries Plan of the Federal Government (February

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2009). However, there is currently a lack of comprehensive research on successful cultural cooperation and growth potential, as well as aligning international trade with expansion and culture while promoting community responsiveness to cultural diversity.

The cultural scheme remains primarily constrained within national boundaries, while digital expertise and technological advancements progress independently without limitations. This has led to increasing challenges due to timing differences. As digitalization continues to evolve, various aspects including media, culture, management, and equipment must collaborate financially in order to establish a solid foundation for the digital world.

In addition to cultural promotion programs, there is a need for cultural regulatory policies that consider both financial goals and the negative impact on diversity that may result when cultural economies are exclusively focused on market services. The political suggestion in this White paper is to approach this transitional phase from a promotion program to a potential regulatory framework. These policies offer strategies that can be used in the short term, in response to the growing demand for regulation, and possibly with a new political focus. The UNESCO regulation emphasizes creativity through self-organization, which means it is important to contribute to understanding and gather research on the importance of all aspects of cultural diversity. These proposals involve the participation of seven individuals as well as stakeholders who are politically responsible for defending and supporting cultural diversity and/or have a specific ability to take action. Cultural diversity goes beyond cultural policies.

The department's goal is to enhance cultural diversity and promote a cosmopolitan environment. Various factors such as globalization, European integration, mergers and acquisitions, changes in accounting practices are driving new developments and presenting challenges for European businesses.


society is experiencing a simultaneous increase in the workforce, customers, and suppliers. The changing demographics, mobility, and immigration are having an impact on this society. As new individuals and groups become employees, customers, and suppliers in the market, the workforce is becoming more diverse. Despite limitations and national conditions, these challenges are being addressed. How individuals and organizations manage and organize their employees and other stakeholders directly affects their ability to embrace this diversity. In order to succeed in a global market, it is crucial for information and educational leaders to implement strategies that attract potential workforce members, customers, and suppliers.

Corporations are obligated to oversee a wide variety of employees and customers, encompassing individuals with different demographics (such as age, gender, nationality, etc.), personal and public needs (like disability and work-life balance), knowledge, skills, and cultural norms that impact their work life, thoughts, and consciousness. Recognizing the significance of diversity in attaining business objectives, CSR Europe strives to empower its members in linking diversity with industry goals.

More completely:

  • The aim is to increase diversity awareness in corporations and prioritize it as a significant trade concern.
  • Another objective is to implement diversity training and utilize various strategies for managing diversity in different organizational settings.
  • Efforts will also be made to align European, national, and local policies and prepare both private and public sector actors for these changes.

Supporting this effort is the varying legal position within the European Union. Although the Treaty of Rome empowers the EU to address gender inequality, there has been

limited legislation addressing other forms of discrimination. Discrimination based on gender, race, ethnic origin, religion, disability, age, and sexual orientation are covered under Article 13 of the Treaty of Amsterdam. Legislation regarding these issues is expected to develop in the near future.

Recognizing diversity as a means to improve organizational development is increasingly crucial in today's rapidly evolving global market, even though corporations are required by statute law to adapt to a changing workforce. Recent research suggests that embracing diversity has benefits in terms of quality and quantity. The issue of cultural diversity has gained significance in EU policymaking because of the increasing interconnectedness of a larger and more diverse population through the global exchange of goods, services, and information. In response to this global trend, the EU is making efforts to promote greater inclusion and expansion.

The current debate on the issue is divided into two sides. Decision makers believe that diversity is beneficial for individual growth and interests. For example, at a global level, the 2001 Universal Declaration on Cultural Diversity of UNESCO emphasizes that "cultural diversity is as important for humanity as biodiversity is for the natural world" (Art. 1). Likewise, at the EU level, diversity is often seen as the core idea behind European distinctiveness, reflected in the slogan "United in Diversity" in the forthcoming European constitution. However, the general public finds colonization to be highly difficult.

The text discusses the significance of the 'buff pipe fitter' in the Gallic argues on the European constitution with the calls for bounds to colonisation in many European states. It raises the economic question of whether an ethnically diversified civilization is more or less resourceful than a

culturally homogeneous one. The answer to this question is unclear and has "doubles characteristics". On one hand, cultural diversity creates potential benefits by increasing the variety of goods, services, skills, industry, and modernization available. This has been supported by various sources including Lazear (1999), O'Reilly Williams, Barsade (1998), Ottaviano, Peri (2005, 2006a), and Berliant, Fujita (2004).

The presence of diversity in a culture can have negative consequences, such as discrimination and injustice, leading to conflicts and social unrest (Abadie and Gardeazabal, 2003). It can also result in a lack of cohesion within a community and an inefficient distribution of resources (Alesina, Baqir, and Easterly, 1999; Alesina, Baqir, and Hoxby, 2004). Recent data from the US shows that greater diversity is associated with higher incomes and improved public efficiency (Ottaviano and Peri, 2005; Ottaviano and Peri, 2006a,b). Similar findings have been observed in the UK by Manacorda, Manning, and Wadsworth (2007) as well as in Germany by D'Amuri, Ottaviano ,and Peri (2008). However,
there has not yet been a comprehensive examination of how diversity affects output in EU countries.

The literature on diversity

The connection between cultural diversity and financial practices has received significant attention over the past decade. Through cross-country regressions, a previous study by Easterly and Levine (1997) explains that higher diversity is associated with slower economic growth.2 Despite criticism (see for example Arcand et al 2000), this effect has been confirmed by several studies. In particular, Alesina and La Ferrara (2005) find that the transition from perfect homogeneity to complete heterogeneity (i.e., the range of fractionalization from 0 - where there is only one group - to 1 - where every

person belongs to a different group) would decrease a country's annual growth rate by 2%. Angrist and Kugler (2003) discover a small but significant negative impact of immigration on service levels in the EU. La Porta et al (1999) as well as Alesina et al (2003) argue that high levels of diversity can lead to suboptimal decision-making on community needs, ultimately hindering long-term economic growth.

The text suggests that diversity is linked to negative outcomes in communication, education, social realization, and infant mortality. According to a study conducted by Alesina, Glaeser, and Sacerdote (2001), higher levels of diversity are associated with lower levels of government spending and social movements. This is because culturally divided societies do not place as much value on redistributive schemes. However, it is important to further examine the claim that diversity has a negative impact on the economy. Collier (2001) argues that diversity only affects output and growth in non-democratic governments. Additionally, Alesina and La Ferrara (2005) find that diversity has an additional negative effect on lower levels of economic development, suggesting that less developed countries suffer more from cultural disintegration.

In his work, Easterly (2001) examines the concept of institutional high quality by considering information from Knack and Keefer (1995) on defense, expropriation, law enforcement, and interference. He finds that the negative impact of cultural diversity is significantly reduced by "excellent" organizations. Moreover, the existence of a diverse range of businesses, cultural events, and population in urban agglomerations suggests that diversity can also have positive economic effects (Jacobs, 1961, p 137). Sassen (1994) focuses on "worldwide cities" such as London, Paris, New York, and Tokyo and their role in driving global economic

development through innovation and financial services. A key characteristic of these cities is the cultural diversity of their residents.

Bairoch (1985) argues that cities and their diversity are key drivers of economic growth. Florida (2002) adds that diversifying supplies attracts information workers, leading to the development of knowledge-based cities. These perspectives suggest that cross-country assessments may not accurately capture the positive effects of diversity. Instead, research should focus on spatial elements like cities, which provide better research opportunities. By examining cities, one can also account for differences in institutional quality and growth potential. Glaeser, Scheinkman, and Shleifer (1995) analyze various urban characteristics in 1960 and their correlation with urban expansion (including profits and population growth) in US cities from 1960 to 1990.

The study conducted by the authors reveals that cultural diversity does not have any correlation with urban expansion in segregated areas. However, they have noticed that isolation significantly affects the growth of cities with large multicultural communities. Alesina and La Ferrara (2005) utilize the framework developed by Glaeser, Scheinkman, and Shleifer (1995) to estimate population growth equations in U.S. counties from 1970 to 2000. Their findings are consistent with their previous national-level results, indicating that diversity has a negative impact on population growth in predominantly disadvantaged areas, while initially prosperous areas may experience a slightly negative or positive effect. Ottaviano and Peri (2006a), expanding upon Roback's (1982) theory, construct a model of an open urban system characterized by cultural diversity to examine its influence on productivity using data on wages and rents of U.S.-born workers. They reach the conclusion that U.S.-born workers tend to be more productive in culturally diverse environments on average.

This text discusses

the impact of utilizing involved variables on the association of diverseness and end product. It states that this impact is twofold. Firstly, restricted diverseness negatively affects the quality of municipal supplies, which is evident in national-level decision making. Secondly, the positive effects are stronger when considering only second and third generation colonizers, implying that these effects occur when there is a level of incorporation between territories. This aligns with previous research by Borjas (1995 and 2003) which found a negative impact on the income of the public caused by settlers, but a positive impact on resources returns.

The consequences of these findings depend on two key assumptions: a high level of interaction between local and foreign communities, and the existence of a fixed budget. Ottaviano and Peri (2006b) examine the impact of immigration on residents' average income, considering the lack of substitutability between locals and foreigners as well as the accumulation of internal resources. Their research reveals a significant increase in average income due to immigration, particularly for highly educated individuals such as college graduates. However, less educated individuals like high school dropouts experience a negative effect on their income. This conclusion is supported by several studies that demonstrate a decline in relative income for less skilled workers caused by immigrants (Borjas 1994, 1999, 2003; Borjas et al. 1997; Butcher and Card 1991; Card 1990, 2001; Friedberg 2001; Lewis 2003). These empirical findings are primarily based on cross-country analysis with a focus on the United States.

This is not only because diversity is one of the characteristics of US culture but also because US facts are better and of higher quality. Recent exceptions include Manarcorda, Maning, and

Wadsworth (2007) and D'Amuri, Ottaviano, and Peri (2008), who found similar results to Ottaviano and Peri (2006b) in the case of the UK and Germany, respectively. The current study enhances these national findings by providing a general idea of the relationship between diversity and economic performance across a wide range of European regions. This is a relevant addition to the narrative as findings from US studies may not be applicable to the EU. First of all, unlike in the US, cultural disparities in Europe have traditionally existed from birth and are mostly maintained in national settings (among recognized provincial minorities either supported or challenged by the national government).

The movement of people across Europe over the past two centuries, whether from south to north or from colonized countries to those with monarchies, has not significantly changed the formation of distinct cultural territories in some European regions. However, this is now changing as more individuals are crossing national boundaries within the EU, which has sparked renewed discussions within communities. Additionally, Angrist and Kugler (2003) argue that labor market conditions play a crucial role in determining the effects of migration on wages and services, and these conditions vary greatly between the US and Continental Europe.

Measuring diversity:

'Cultural diversity' is the central focus of our research.

The text discusses the need to carefully measure and identify cultural groups among the population. This process involves two steps. Firstly, it is necessary to identify one or more standards to distinguish between different cultural groups within the community. In the field of ethnology, this involves developing an "accurate catalog" of groups, based on a systematic self-categorization process. This means that individuals recognize the differences

between groups and expect that significant behaviors are influenced by belonging to a specific group. A subsequent step in the categorization process involves conducting international evaluations.

Since the spending caught up, no research has been done on traffic circle attacks worn in fanciful narrative. Circumlocutious attacks require one or more 'uniqueness indexes' to recognize the groups. Extra with YaAYmur (2004) measure academic force with four possible 'uniqueness marks' (nationality, province of birth, verbal communication spoken at home, self-categorization).

Diversity in European regions:

We can use the database in Section 3 along with the diversity directory from Section 4 to analyze the key features of European diversity and how it has changed from 1991 to 2001. Figure 1 shows the percentage of foreigners in European territories in 1991.5. At that time, diversity was mainly concentrated in the core of Europe: France near Paris and Lyon, Belgium, the Netherlands, major cities in Germany, and the southern part of the UK. Regions in Spain, Italy, Austria, and Nordic countries were more homogeneous.

The proportion of public with foreign nationality was less than 2% in Italy and Spain. However, this situation quickly changed during the 1990s. By 2001 (see Figure 2), the majority of Austrian division had a proportion of foreigners exceeding 8%, while the percentage of foreigners in mainly Italy and Spain ranged from 4 to 8%. Overall, the presence of foreigners increased from 5.6% in 1991 to 6.9% in 2001. The data also allows for analysis based on the migrants' country of origin. Among the countries we have data for, the largest group of foreign residents consists of travelers from other EU15 countries, accounting for approximately 1.9% of residents in 1991.

However, this group has not significantly increased over the decade.

Migrants from Africa are the second largest group, accounting for 1.4% of the population in 2001. This is followed by migrants from Asia and old Europeans, with percentages of 1% and 1.3% respectively in 2001. In contrast to EU travelers, the number of travelers from these three groups has increased by over a third during the decade. Figure 3 illustrates the proportion of foreigners both within and outside the EU15. The pattern depicted in Figure 3 closely resembles the one shown in the figure mentioned below, depicting the central European countries with minimal external presence.

Therefore, patterns of domestic migration tend to imitate a mature core-periphery model. Figure 4 is similar to Figure 2 in terms of a significant contribution from Austria, Italy, and Spain. In contrast to EU travelers, current migration trends have a greater impact on countries with higher levels of current migration, particularly those close to the Mediterranean (Italy and Spain) and the Eastern border (former East Germany, Austria, and Sweden). The percentage of foreigners in the total population is also noted. Urban areas experienced the highest levels of migration both in 1991 and 2001. French and UK areas had the highest levels in both years, followed by Brussels and surrounding regions in 2001.

In Paris, diversity is more concentrated in the banlieu, with Seine-Saint-Denis being more diverse than Paris itself. On the other hand, London's diversity is more intense in the central part, with Inner London being more diverse than Outer London. Vienna only appeared in the top 10 in 2001, after the influx of immigrants from Eastern Europe following 1989. Rural areas were

at the center of the picture in both 1991 and 2001. In 1991, the bottom end of subdivisions showed virtually no diversity and consisted only of rural Italian and Spanish areas.

The image of diversity in US cities is often seen as dissimilar to that of European cities. US cities are typically considered more diverse within themselves and compared to European cities. While a precise assessment is not possible, the strength of this statement can be drawn from comparing Table 1 using the data provided by Ottaviano and Peri (2005, Table 2) for US cities.6 In doing so, a more complex image emerges. The two most diverse US cities, Los Angeles and New York, had a significant percentage of foreign-born residents in 1990 (37% and 31% respectively), which is comparable to the diversity levels in European regions such as Inner London in 2001 (33%).

The base of differentiations is strong. Even the smallest European regions have a lower percentage of foreigners compared to the US, such as Cincinnati and Pittsburgh, which have a percentage of 2.3%. However, European regions have a variety of diversity that is comparable to that of US cities and encompasses a range of diversity that is not significantly less important than the diversity found in US cities.

Theoretical model:

To conduct the study, we utilize the academic framework developed by Ottaviano and Peri (2006), which presents an open system of municipalities where 'diversity' encompasses both the efficiency and satisfaction of residents through various external characteristics.

Cooperating with the mock-up as well as the calling method of diverseness on municipality residents concept on Roback (1982), the construction considers an organization of a huge numerical N of parts,

indexed by c=1...N. There are two issues of industry, workers (wholly portable) with land (set). The measure of land is exogenously billed to territories with Hc indicating the total land in territory c. To ensure that the allowing returns of workforce, if several, are autonomous of reflection and therefore do not have an effect on immigration options, land is assumed to be possessed by nearby resident landowners.

The total amount of labor provided is denoted as L, and each employee contributes one unit of effort without flexibility. Lc represents the number of employees supporting operations in area c. To eliminate variations within regions, intra-regional transfer expenditures are non-existent, while inter-regional adjustment costs are high. Therefore, our focus will be on the inter-regional aspect of labor. The workforce shares common characteristics relevant to further business relations but differ in terms of non-market attributes, which classify them into M distinct groups (called "cultural identities") indexed as i=1, a?¦, M. The diversity of residents in each province is measured by District of Columbia (as calculated in equation 1).

The influence of diversity on manufacturing and utilization can have both positive and negative effects. The goal is to recognize the dominant external factor (use or industry) and its significance. Due to individuals' beliefs, the regional allocation of land is determined by external factors, while the regional allocation of employment is determined by internal factors. Similarly, the level of cultural diversity within the system is determined externally, while intra-regional diversity is determined by firms' decisions on workforce relocation. Preferences play a significant role in land use as well as the distribution of a homogeneous good across regions.

The effectiveness of a typical employee

of cabal I in territory C is determined by: In (2), Hic and Y Intelligence Community are both excellent in terms of expenditure, while AU (DC) limits the expenditure externality associated with limited diversity in DC. If the initial derivative AU' (DC) is positive, then diversity has a positive impact on workforce effectiveness (i.e., an agreeableness effect). If the initial derivative AU' (DC) is negative, then diversity has a negative influence on employee's effectiveness (i.e., a no-amenity effect).

Labour displacement to the country that offers them the highest efficiency. Given ( 2 ) and value maximization, the optimal efficiency goal is defined by: Where Eic is labor's expenses; assuming our speculation regarding land ownership, Eic will consist of profits alone: Eic=wc. Assuming that in order to achieve excellent Yttrium, firms need both land and manual labor as inputs. The typical firm in an area c generates according to the following equation: In ( 4 ), Hic and L Intelligence Community are land and employment inputs, while AY (District of Columbia) limits the output indirectly linked by restricted diversity District of Columbia. If the first derivative AY ' (District of Columbia) is positive, then diversity has a positive effect on firms' efficiency (i.e.).

There are constructive and negative consequences on housing production caused by diversity and the first derivative AY ' (District of Columbia). If AY ' is unenthusiastic, diverseness has a pessimistic effect on housing production. With gross maximization, we can determine the value of Y in the unimportant charge value circumstance. Y will have the same value throughout and can be considered as numeraire. Therefore, we can conclude the spatial stability.

This is manifested through a set

of values for workers and land ( wc, rc ) with c=1, a?¦ , N such that in all countries workforce and landholders maximize their utilities given their financial limitations.

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