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A toxic employee can have far-reaching negative effects on the workplace, impacting not just individual coworkers but the entire organizational culture and overall productivity.

Toxic behaviour may include persistent negativity, manipulation, bullying, gossip, insubordination, or a lack of accountability, all of which could damage the reputation of the business.

“If you’re a company that has high turnover rates, a lot of that often has to do with the environment,” says Stephen Mitchell, President of Innersee Initiatives Inc.,  a Cambridge-based consulting firm that focuses on group and leadership development and organizational transition. “Is it a toxic environment I’m working in? I don’t enjoy coming to work and that can be within what I do at work and within the people I work with. Are they creating the environment that I can’t fit in or assimilate into?”

Quite often, organizations may have employees who are quick to react and as a result, other employees or even those in leadership roles, feel intimidated to make practical suggestions or be more productive because they get drawn down.

“That’s kind of like bullying,” says Stephen, adding it can work the opposite for a more introverted employee. “Maybe you’re not as driven so you don’t work as hard if your work environment allows you to get away things, such as leaving early. You may not intentionally be creating a toxic environment, but other employees may resent it.”

One of the most immediate and visible effects of a toxic employee is the decline in team morale. Their behaviour often creates tension and mistrust among colleagues. 

Erosion of trust in management

For example, if an employee frequently gossips or undermines coworkers, it can lead to a toxic atmosphere where people feel the need to watch their backs instead of collaborating openly. This can reduce team cohesion, increase conflicts, and make it difficult for employees to work together effectively.

Toxic employees can also erode trust in management if their behaviour is allowed to continue unchecked. When coworkers see that bad behaviour is tolerated or ignored—especially if the employee is high-performing—it can lead to feelings of unfairness and resentment.

This perception of favouritism or negligence can further demoralize staff and lead to disengagement.

Stephen says leaders who do not react to situations like these and allow them to simmer could result in further complications.

“Not addressing it is the reason why you’re going to start to see higher turnover,” he says, adding speculation in the workplace can be even more harmful, especially surrounding the roles employees play in the organization. 

Stephen refers to workshops he has facilitated with clients in which employees with different duties are paired with each other to participate in a ‘fun exercise’ in effort to create an open dialogue and create a better understanding of each other’s roles.

Communication key for success

“Communication is key to everything,” he says. “I think that one of the biggest things leaders and managers forget is the importance of communication. It is important to communicate the health of the business and communicate the direction of the business.”

Stephen says the economic pressures many businesses are facing due to the geopolitical climate makes this even more imperative. 

“We have all these questions around what’s going to happen next. What’s going to happen with these tariffs? Are we going to have a job next year? What is our action plan for new markets and looking for new business?” he says, adding how easy it is for gossip to spread. “Make sure that as a leader you’re communicating where the direction of the business is taking everyone.”

Stephen also recommends the need for leaders to acknowledge the work of employees, which can be a boost to their mental health.

“As leaders we get focused on making sure the next job comes in or that paycheques are going to be there at the end of the week,” he says. “But we forget sometimes that recognition goes a long way to retaining associates.”

Organizations must take proactive steps—such as setting clear behavioural expectations, offering support, and being willing to take disciplinary action—to address toxic behaviour before it undermines the entire workplace. Addressing the issue early is essential not just for the health of individual employees, but for the long-term success of the organization.

Tips on how business leaders should handle toxic employees

Recognizing toxic behaviour

Toxicity may manifest in several ways: persistent negativity, gossiping, passive-aggressive communication, bullying, manipulation, resistance to teamwork, or undermining authority. These behaviours not only affect interpersonal dynamics but can also discourage high performers, create division, and reduce overall engagement. Leaders should differentiate between a difficult employee—who may be underperforming or struggling—and a toxic one, whose behaviour actively harms the team. This distinction is important because it determines the course of action: development versus discipline.

Direct and constructive feedback

Avoiding conflict is one of the most common leadership pitfalls when dealing with toxic employees. Instead, leaders should initiate a private, respectful, and direct conversation with the individual. Use specific examples of the toxic behaviour, its impact on the team or company, and explain why it is unacceptable.

Offer support but set boundaries

If the employee is open to change, leaders should provide support through coaching, training, or even professional counselling if appropriate. Sometimes toxic behaviour is a result of unresolved conflict, miscommunication, or a mismatch between job role and skill set. However, support must be balanced with accountability. Make it clear that change is non-negotiable, and that ongoing toxic behaviour will lead to further disciplinary actions.

Involve HR early

Human Resources should be involved as early as possible in handling toxic behaviour, especially if the issues are serious or recurring. HR can offer guidance on legal considerations, help with formal documentation and performance improvement plans (PIPs), and mediate between employees or between employee and leadership.

Take decisive action when needed

If a toxic employee fails to change despite feedback and support, leaders must take decisive action. This may include demotion or role reassignment, probation or a final warning, or t termination of employment.

Build a preventive culture

Beyond individual cases, leaders should foster a culture that discourages toxicity promote open communication and psychological safety and reinforce core values regularly. Also, it’s important to recognize and reward positive behaviours and conduct regular team check-ins and anonymous feedback surveys.

Hiring new immigrants can offer Canadian businesses a rich source of talent and diversity.

However, despite Canada's emphasis on immigration as a cornerstone of its economic strategy with immigration accounting for nearly 100% of our labour force growth, businesses often encounter several challenges when attempting to integrate newcomers into their workforce.

“Immigrants in mid-sized Canadian cities often face challenges in finding employment due to a combination of factors related to their qualifications, experience, and the local job market,” says Nora Whittington, Community Engagement Coordinator at Immigration Partnership. “These include difficulties with foreign credential recognition, a lack of Canadian work experience, limited professional networks, language barriers, and sometimes, even perceived or actual discrimination.”

One of the major challenges is the recognition of foreign credentials and professional experience. Many immigrants arrive in Canada with education and work experience from other countries that are not easily understood or accepted by Canadian regulatory bodies or employers.

This mismatch often leads to underemployment, where highly skilled newcomers are hired for roles well below their qualifications. Businesses may be hesitant to hire individuals if they are unsure whether the person's background aligns with Canadian standards, even if the candidate is capable and qualified.

While some professions in Canada are regulated and require local licensing (such as medicine or law), many others do not. Employers should become more familiar with international education systems and certifications or seek assistance from credential assessment services.

Creating internal systems or hiring HR personnel who understand international qualifications can also help business leaders and managers accurately evaluate candidates’ backgrounds and prevent the undervaluation of their skills.

As well, experts encourage businesses to adjust job postings to clarify what skills and competencies are actually necessary rather than requiring candidates to have prior ‘Canadian experience’, which has become a vague catch-all. They can also provide onboarding or mentorship programs that help immigrants acclimate to workplace norms, reducing any actual gaps in local knowledge.

“Business owners/managers can consider their job postings and that they are created in a way that attracts immigrants and using terms that can be understood, to ensure that they are known as an inclusive and welcoming employer (word of mouth is powerful) and to know that job postings can express a wish list and it can eliminate great talent because they may feel like they don’t have all the qualifications,” says Nora, adding there are many cultures that do not use resumes and cover letters and to be considerate of this difference. “Know that many immigrants are highly educated and to not eliminate them from the hiring process but rather look at their transferrable skills.”

Many job opportunities in Canada are filled through informal networks or referrals, putting immigrants at a disadvantage if they lack established professional connections.

To counter this, businesses should diversify their recruitment strategies by partnering with immigrant-serving organizations, attending job fairs targeted at newcomers, and posting openings on platforms that cater to internationally trained professionals.

“Employers should be engaged with organizations and services in the community who work closely with immigrant talent. There are several organizations in the region who prepare immigrants for employment in the Canadian workplace,” says Nora, noting the work Immigration Partnership does in Waterloo Region, describing the organization as a ‘bridge builder’. “Any topic that we believe will create success for employers and immigrant talent we will present so that the bridges can be built.”

While Canadian immigration policy aims to attract skilled talent from around the world, several structural and practical challenges still hinder businesses from effectively hiring and integrating newcomers. Addressing these issues requires collaboration between employers, government agencies, and community organizations, and some progress has been made. 

“While there can be challenges in integrating immigrants into the labor market, such as overqualification or language barriers, Canada has made efforts to address these issues and ensure that immigrants can fully utilize their skills and talents,” says Nora. 

Why immigration is important for Canada's talent pipeline

• Addressing Labor Shortages:

Immigration helps fill critical gaps in the Canadian labour market, particularly in sectors experiencing shortages of skilled workers. 

• Boosting Innovation and Economic Growth:

Immigrants bring diverse skills, perspectives, and experiences, which can foster innovation and drive economic growth. 

• Supporting Population Growth:

As Canada's population ages, immigration helps to maintain a healthy workforce and support economic development. 

• Enhancing Competitiveness:

Canada competes with other countries for skilled talent, and its immigration system helps it attract top talent from around the world. 

• Building a Diverse Workforce:

Immigration contributes to a more diverse and inclusive workforce, which can be beneficial for businesses and communities. 

• Filling Specific Needs:

Immigration policies are often targeted to address specific labor market needs, such as in healthcare or technology.

Some ways businesses can modify hiring practices 

Rethink the ‘Canadian experience’ requirement

Employers should focus on relevant international experience and transferable skills. They can also provide onboarding or mentorship programs that help immigrants acclimate to workplace norms, reducing any actual gaps in local knowledge.

Implement bias-reduction techniques in screening

Companies should consider using blind recruitment practices, where personal identifiers such as name, nationality, or even educational institutions are removed during the initial screening. Also, standardized interview questions and diverse hiring panels can help reduce individual bias and lead to more objective decision-making.

Promote inclusive workplace culture

For businesses to truly benefit from the skills of new immigrants, they must foster an inclusive and supportive work environment. This includes offering language support if needed, celebrating cultural diversity, and ensuring clear communication practices. Cross-cultural training for both management and staff can improve collaboration and team dynamics. Moreover, mentorship programs that pair newcomers with experienced employees can provide the guidance and networking opportunities that immigrants often lack upon arrival.

To succeed in the unpredictable world of start-ups and business, entrepreneurs need more than just a good idea—they need strong leadership traits. 

Effective leadership is one of the most critical ingredients in an entrepreneur’s success. Without strong leadership, even the best ideas can fail due to lack of direction, poor team performance, or weak organizational culture.

Fortunately, leadership is not an inborn trait; it can be learned and developed, something Frank Newman, founder and CEO of Newman Human Resources Consulting, says can be done by promoting the ‘5Cs’ - connect, clarify, coach, courage and compassion.

“These are the five elements that really make a great leader and they're more important now than ever,” he says.

Connection

“By connection what I mean is building meaningful relationships with your team because without that emotional component, people are not going to follow the leader, they're not going to respect them. And more importantly, they're not going to trust them,” says Frank. “It’s really getting to know them on a more personal level; if we feel our bosses care about us, we will care more about our bosses and then we will care more about the company itself.”

He says leaders must also consider ways to connect with employees who may be working virtually and recommends using various tools, including employee surveys, to understand what people are thinking about. 

“It’s about finding other ways to connect and get information back because the more exchange of information you have, the more powerful that connection is going to be.”

Clarify

“What I have found in my experience is that so much of discomfort or lack of success in the world is because people are not clarifying expectations or goals or missions, so if employees are unclear on where the business is going, particularly right now, they're not going to be as effective,” says Frank, adding employees will make assumptions without clarification. “They'll have different expectations and then, sadly, we will disappoint them because we don't know what they want. It’s about taking time, particularly with all the chaos around us, to verify when it comes to objectives or roles.”

Coaching

“More and more we’re seeing the role of coaching is different from being a manager. A manager tells people what to do, a coach gives them the tools to do it,” says Frank, noting the importance to develop and support employees. “This is something that most people really appreciate when their boss takes the time connect with them. Obviously the more you coach, the more your staff are going to grow and it's going to be easier on the boss.”

Courage

“Leaders need to have the courage to make tough decisions, and decisions to change the team and the courage to ask for feedback. So often in business I see people who are afraid to make tough decisions and that has a lingering effect,” says Frank, adding it can be challenging. “It takes courage to ask for feedback and sadly I don't ask for very much myself because I don't like the story sometimes. I think in this day and age for a leader to be connected with the people to ask for that feedback is going to make a huge difference and sometimes, quite frankly, most people don't like to get feedback.”  He says when it comes to asking for feedback, it must be done in a positive way.

“It’s about creating connections and dialogue and being authentic leaders,” says Frank.  

Compassion

“We’re living in a very anxious and very fragile world these days, so people are naturally on edge. They're upset, they may be worried about their financial futures,” says Frank. “A compassionate leader will create that emotional bond with people and will be able to guide them wisely if they're doing some coaching. I think that's really going to make a difference if you can create a compassionate organization.”

He says for many people, work has become a ‘sanctuary’ away from the stress or pressures of home.  “If you can create a compassionate workplace that has a little bit of a sanctuary feeling so people feel safe there, that's important. I've had people that were having struggles at home, and say ‘I just want to come to work because work is sane’. Work is logical and there's no drama.”

Good leadership is not a fixed trait but a continuous practice. For entrepreneurs, developing strong leadership abilities is essential for building successful businesses, inspiring teams, and achieving long-term goals.

By cultivating self-awareness, improving communication, leading by example, building emotional intelligence, and committing to lifelong learning, entrepreneurs can grow into the leaders their ventures need. With persistence and humility, any entrepreneur can transform into a confident, capable, and ethical leader.

Steps towards developing good leadership traits

Cultivate self-awareness

Entrepreneurs must understand their own strengths, weaknesses, values, and motivations. By reflecting on their behaviours and decision-making patterns, they can identify areas for improvement. Entrepreneurs who know themselves well are better able to regulate their emotions, make authentic decisions, and inspire trust in others. 

Develop clear communication skills

Entrepreneurs must communicate their vision, goals, and expectations clearly to employees, partners, investors, and customers. This includes not only speaking clearly, but also listening actively. Good leaders are able to adapt their communication style to different audiences, making sure everyone understands the mission and their role in it. 

Lead by example

Entrepreneurs should demonstrate a strong work ethic, integrity, accountability, and resilience. If an entrepreneur expects their team to be committed and enthusiastic, they must show that same passion and dedication themselves. By consistently walking the talk, entrepreneurs gain credibility and respect. This inspires employees to follow their lead, creating a strong, values-driven company culture.

Build emotional intelligence

High-EQ leaders can handle interpersonal relationships judiciously and empathetically. They can manage conflict, give constructive feedback, and motivate diverse personalities. Entrepreneurs can develop their emotional intelligence by practicing empathy, becoming better at reading nonverbal cues, managing their stress levels, and reflecting on how their behaviour affects others. Learning to pause before reacting in difficult situations is one practical habit that can boost EQ over time.

Invest in continuous learning

Entrepreneurs face new challenges at every stage of growth — from launching a product to scaling a team to navigating market shifts. A commitment to lifelong learning helps entrepreneurs stay agile and effective. Entrepreneurs should actively seek out knowledge on leadership strategies, industry trends, and management techniques. They should also be open to learning from their own failures and mistakes.

Foster a collaborative mindset

Instead of trying to control every aspect of the business, they build strong teams, delegate effectively, and empower others to contribute their talents. Entrepreneurs can foster a collaborative mindset by hiring people with diverse skills and perspectives, encouraging open dialogue, and creating an environment where innovation and experimentation are welcomed. 

Practice resilience and adaptability

Strong leaders are resilient — they recover from setbacks quickly and use them as opportunities to grow. Entrepreneurs can strengthen resilience by developing a growth mindset, which means viewing challenges as learning experiences rather than failures. Building a support system of peers, mentors, and advisors can also help entrepreneurs navigate tough times with greater strength and perspective.

Focus on ethical leadership

Entrepreneurs must commit to acting with honesty, fairness, and transparency in all their dealings. Ethical leaders build trust with employees, customers, and investors — and that trust becomes a powerful competitive advantage. To develop ethical leadership, entrepreneurs should define their core values, create clear ethical standards for their companies, and hold themselves accountable. When mistakes happen, ethical leaders take responsibility, make amends, and use the experience to improve.

Develop decision-making skills

Good leaders can gather relevant information, weigh options, anticipate risks, and make timely, confident choices. To improve decision-making, entrepreneurs can use techniques like SWOT analysis (strengths, weaknesses, opportunities, threats), seek input from trusted advisors, and practice making decisions with incomplete information. Learning to balance intuition with data is also an important leadership skill.

Seek mentorship and build a network

By building relationships with experienced mentors, peers, and industry leaders, entrepreneurs can gain valuable insights, guidance, and support. Entrepreneurs should actively seek out mentors, join professional associations, attend industry events, and cultivate relationships over time. Learning from the successes and failures of others accelerates leadership growth.

The ongoing U.S. tariffs situation is widely covered in economic and political headlines, but one of its less-discussed casualties is the human resources (HR) department.

Although HR teams are not directly involved in trade negotiations or tariff enforcement, the consequences of tariff changes are creating an unexpected wave of challenges, from workforce disruptions to morale issues and talent management headaches.

It’s a situation, says Brad Ratz, Director of Growth Strategy and Customer Experience at H2R Business Solutions, has not gone unnoticed by companies like his that provide support to small and mid-sized businesses.

“It definitely shifts you from a proactive stance to a reactive stance as an organization,” says Brad, referring to the ongoing impact of tariffs and how businesses have had to adapt. “But I think in the last few weeks there has been some more stability.”

Tariffs, essentially taxes on imported goods, often lead to higher costs for raw materials, components, and finished products. For industries like manufacturing, automotive, electronics, agriculture, and retail, this has created enormous financial pressure. While executives and supply chain managers scramble to adjust pricing, sourcing, and operations, HR departments are left to manage the human side of the fallout.

Companies facing shrinking profit margins often respond with hiring freezes, layoffs, or restructuring. This leaves HR teams tasked with managing reductions in force, handling severance, conducting difficult conversations, and navigating legal risks—all while maintaining morale among the remaining workforce.

Assessment key for businesses

However, Brad says on the other end of the ‘doom and gloom’ side of the situation there has been an uptake in hiring as many companies capitalize on the ‘buy Canadian’ movement.

“As many companies are being impacted and may be modeling out some worst-case scenarios, we've got on the other side clients that say, ‘How do we even keep up with the amount of work that's being directed to us right now?’” says Brad, adding organizations must really start to think strategically when it comes to planning. “How do we navigate this uptick? Because the question then is how long is this sustainable?”

For companies forced to shift their strategies—such as relocating manufacturing out of tariff-affected countries—HR faces the complex task of redeploying talent. This might involve reskilling workers for new roles, managing transfers, or negotiating with unions. Retraining programs, once seen as long-term development initiatives, have become urgent necessities to keep pace with rapidly changing business needs.

Assessment, says Brad, is key when companies are faced with rapid changes.

“Take that pause and ask some questions and assess the landscape and what's happening. Once you've assessed, then it's time to start planning. What's best case scenario and what's worst case scenario?” he says. “I love the assessment piece because you’re acting off of real data and you're kind of eliminating some of that emotional stuff that's going to come in if you don't stop and do the assessment.”

Managers require support

Another hidden cost of the tariffs situation is employee anxiety. News of supply chain disruptions, rising costs, or customer losses spreads quickly through the workforce. Employees fear for their jobs, speculate about layoffs, and worry about the company’s future. Even if no cuts are made, morale can take a hit, leading to drops in productivity and engagement.

HR teams must invest time in internal communication to reassure employees, manage rumours, and maintain trust. They also need to support managers in having transparent conversations with their teams. In some cases, HR may introduce stress management programs or offer additional mental health resources to help employees cope.

“We've had a significant increase from a training and development side trying to equip leaders to help navigate the changes that are coming through this and support their teams,” says Brad, adding some smaller organizations may already have tools in place to assist. “If you do feel like your team is going to be affected in many different ways, what systems or tools do you already have access and available that can support our staff through this?”

Moving forward, companies need to recognize HR’s critical role in times of economic disruption. This means ensuring that HR leaders have a seat at the table during strategic planning, providing resources for employee support programs, and investing in workforce planning and training. Without this, the toll on morale, retention, and performance may far outlast the tariff wars themselves.

Speaking on a personal note, Brad says despite any shifts caused by tariffs, he is optimistic for the what the economic future holds.

“Canada is one of the largest economies in the world. On a global scale, we’re not small and there's lots of opportunity out there,” he says. “Typically, after any time of crisis, and I would classify this as crisis, that's usually when the largest level of innovation happens.”

Challenges faced by HR departments include:

Job security and layoffs

Tariffs can lead to declining demand in certain industries, potentially causing layoffs and hiring freezes. HR must develop strategies for managing workforce reductions while maintaining employee morale.

Reskilling and upskilling

As businesses adapt to changing market conditions, including tariff-related shifts in supply chains, HR may need to focus on reskilling employees for new roles.

Employee morale

The uncertainty surrounding tariff policies and their potential impact on jobs and the economy can negatively affect employee morale, leading to decreased productivity and engagement.

Compensation and benefits

Rising material costs due to tariffs can put pressure on company budgets, potentially requiring HR to adjust compensation structures and benefits packages to remain competitive.

Transparency and communication

HR leaders need to be transparent with employees about how tariffs may impact the business and provide support programs to help them navigate the changes.

Impact on healthcare costs

Tariffs could also lead to rising pharmaceutical costs, adding to the challenges already faced by HR in managing healthcare inflation, according to Businessolver.

An open-door policy is a vital tool for business leaders who want to foster transparency, trust, and effective communication within their organizations. 

When managed correctly, it can boost morale, improve collaboration, and increase productivity. However, it must be implemented thoughtfully to avoid potential pitfalls such as misuse, leader burnout, or undermining formal processes.

“One of the main things that leaders need is information to make decisions. So, an open-door policy is good in terms of acquiring information or getting the knowledge that you need,” says Professor Douglas Brown of the Faculty of Arts Department of Psychology at the University of Waterloo. “But then the downside is if you take the open-door policy too far that it potentially makes your employees less able to engage in problem solving themselves. Potentially, it creates a bottleneck in terms of decision making. If everyone's bringing every decision to you, you become essentially a choke point in getting things done.”

When employees feel that they can approach their leaders at any time for advice, feedback, or to voice concerns, it can lead to a high frequency of meetings or conversations, many of which may be trivial or not urgent.

Leaders may find themselves bogged down with constant disruptions, which can detract from their ability to focus on high-priority tasks. This not only affects their productivity but may lead to burnout, as leaders struggle to juggle management responsibilities with being constantly available.

Micromanaging can derail leaders

“Managers and leaders have their own jobs to do and if they're being inundated constantly with having to make all kinds of decisions in the short run then that's distracting them from doing things that are more strategic that need to get done,” says Professor Brown, adding delegating responsibilities is key for business leaders. “But one of the biggest derailers of managers is being a micromanager and being unable to delegate.” 

When employees are constantly encouraged to approach their leader with every issue or concern, it can lead to dependency and over time, employees may begin to rely on their leader to make decisions for them, rather than fostering independence and critical thinking. This dependency can stifle innovation and initiative, as team members may not feel empowered to solve problems on their own.

Leaders may find themselves spending more time providing solutions to issues that their team should be capable of handling independently, leading to inefficiency and slower decision-making.

“So, is your open-door policy a symptom of something more problematic about your own leadership style?” asks Professor Brown, adding the first thing a leader should ask is if an open-door policy is working for them. “They have to reflect on information that they're getting themselves as well as through observing their teams. Do you feel stretched as an individual? Do you feel stressed out and is this a consequence of these constant interruptions that you're getting because you're being asked to make all kinds of small insignificant decisions?”

He says hybrid work situations can exacerbate the situation.

Clear boundaries needed

“I think in these virtual environments in many ways it's psychologically hard because you don't have control and information and so you have this level of uncertainty of what are people doing which makes it psychologically hard on you,” says Professor Brown, adding leaders must move away from the mentality that leadership isn’t about walking around keeping tabs on employees but creating structures that allow leaders to collect the information they need. “But you also can’t give people free control to do anything they want. It’s kind of a balancing act because you don’t want to completely rob people of their freedom and autonomy.”

To mitigate these risks, leaders should establish clear boundaries, encourage independent problem-solving, and ensure that they are still focusing on long-term strategic goals. With the right balance and structure, an open-door policy can be a powerful tool for fostering a healthy, communicative, and productive work environment.

Professor Brown says structural changes may be required to achieve a more productive environment.

“Maybe I don’t provide enough role clarity for people as a leader? Or maybe I’m very inconsistent in my delegation? Or maybe I have a decision-making process where everything must run through me?” he says. “Those are all structural things I think are easy to change if they accept this may be the source of the problem.”

How a business leader should effectively deal with an open-door policy:

Clearly define the policy

Leaders should communicate the purpose of the policy—encouraging open communication, quick resolution of concerns, and building stronger relationships. It should also include guidelines on what types of issues are appropriate for open-door discussions (e.g., ideas, feedback, ethical concerns) and when more formal channels should be used (e.g., HR complaints or legal issues).

Maintain availability, but set boundaries

Leaders need to strike a balance between being accessible and staying productive. While it’s important to be approachable, setting realistic boundaries around availability helps prevent disruptions. For example, a leader might designate specific times for walk-ins or encourage scheduling brief check-ins to manage time more effectively. This also signals that while the door is open, time and focus are respected on both sides.

Be fully present

When employees do come through the door, leaders must give them their full attention. Listening actively and without judgment builds trust and encourages honest dialogue. It’s important to acknowledge concerns and follow up with appropriate actions. Even if the answer is “no” or change isn't possible, employees will appreciate transparency and sincerity.

Encourage a culture of communication

An open-door policy should complement—not replace—a broader culture of communication. Leaders should regularly engage with employees at all levels, foster team dialogue, and promote peer-to-peer communication. Encouraging open dialogue in meetings, anonymous feedback channels, and regular one-on-ones can support the policy and make employees feel heard beyond just the “open door.”

Avoid micromanagement or bypassing hierarchies

One challenge of an open-door policy is that it can unintentionally bypass middle managers or create confusion around decision-making authority. Leaders must reinforce the importance of chain-of-command and support managers rather than undercutting them. When appropriate, employees should be encouraged to resolve issues at the closest level before escalating them.

Act on feedback

The effectiveness of an open-door policy depends heavily on what happens after the conversation. If employees regularly share concerns or ideas and nothing changes—or worse, there's retaliation—trust erodes quickly. Leaders should document key themes from conversations, follow up, and implement improvements where feasible. Even small changes based on employee input can reinforce the value of the policy.

Model openness and integrity

Finally, leaders should model the values they want to see—honesty, humility, and openness to feedback. If leaders are defensive, dismissive, or inaccessible, the policy becomes symbolic rather than functional. Being authentic and approachable sets the tone for the entire organization.

The political landscape of the United States has always had ripple effects beyond its borders, particularly in Canada. The two countries share not only economic ties but also social, cultural, and psychological interconnections. 

In recent years, particularly during Donald Trump’s first, and now second presidency, Canadians have reported increased levels of stress and anxiety related to the political climate south of the border. From threats of tariffs to talk of annexation and aggressive foreign policies, these developments are more than just headlines—they’re mental health triggers.

“Unfortunately, right now in particular, our world is very unsettled,” says Helen Fishburn, CEO of the Canadian Mental Health Association, Waterloo Wellington Branch. “We’re feeling it in every part of our lives and the ground we're walking on is literally changing day by day.”

Throughout the pandemic, she says the CMHA experienced a 40% increase in call volumes pertaining to mental health issues which have not returned to pre-pandemic levels creating a ‘new normal’ level, which has only been exacerbated by Trump’s talk of tariffs and annexation.

Beyond the economic implications, there is a psychological toll in witnessing long-standing alliances become strained. Canadians often view the U.S. as not only a close neighbour but also a partner in shared democratic and cultural values. When that relationship feels uncertain—especially when threatened by economic aggression or nationalist rhetoric—it can lead to a sense of instability, helplessness, and even identity confusion for some.

People feeling anxious

“We’ve seen another uptick in calls and concerns, but that's not unusual for us when the world is unsettled and things are happening in our community that people feel very anxious and worried about,” says Helen. “It’s a tough world that we're navigating right now.”

She says it’s important for people to take responsibility for their own mental health, which can be difficult when it comes to navigating negative posts on social media.

Paying attention to yourself is key she says.

“Ask yourself, ‘What are the things that I'm doing to cope right now?’, especially if you're in one of those sectors that's really impacted by tariffs like the automotive industry, food, construction, agriculture, forest and mining,” says Helen. “We have to be a little more vigilant about our mental health.”

First and foremost, she says we have a responsibility to try and manage the stress that we're experiencing in our lives in a way that's healthy and productive.

“But there are times that we lose our ground, and we just don't always catch it,” she says.  “However, you can see it sometimes in other people sooner than you can see it in yourself.”

In workplaces, she says it’s important for employers to recognize when an employee may be struggling, looking for various signs such as sudden absenteeism, significant tiredness, or introverted behaviour from someone who has always been more extroverted. She notes that approximately $51 billion annually in Canada is lost due to mental health issues in the workplace.

Connection good for mental health

“First of all, the most important thing is to actually name it and talk about the stress we're under,” says Helen. “Talk about the impact of all the things that are happening in the world, most of which we don't have any control over, and really identify that and create opportunities for employees to talk about it.”

She says setting healthy boundaries is important, ensuring employees can disconnect from their workplace and encouraging them to access EAPs (Employee Assistance Programs), or provide pamphlets and information through email that can benefit them. 

“Continue to regularly encourage people to connect as they need to, and then have managers check in with their staff in a very kind of informal, non-judgmental way,” says Helen, adding employees must also not be made to feel they are being monitored. “But it can go a long way when your manager just says, ‘How are you doing with all this? How are you managing? Is there anything you need?’”

At the CMHA, which has approximately 450 staff members working across nine offices, staff meet several times a year, plus an online forum is used where employees are encouraged to ask questions. 

Supports are available

“You need to find multiple ways to keep your employees engaged because those are the kind of things that keep people feeling connected and grounded,” says Helen, adding how important this can be considering hybrid workplaces. 

For those workplaces that require mental health supports, she says the CMHA has many resources available, including its ‘Here 24 Seven’ service where people can access assistance for themselves or a family member via a toll-free number (1-844-Here-247), or by visiting www.here247.ca.

“Just call us and we'll help you figure out. We're always available to help people and make sure that they get to where they need to get to it,” says Helen, noting the economic impact mental health has on businesses can’t be ignored.  “We continue to be very underfunded across the mental health sector as it relates to healthcare in general. We're struggling to meet the needs that's out there and know the need just continues to rise and be even more intense.”

Methods business leaders can support the mental health of their teams:

Foster an Open and Supportive Culture

By normalizing conversations and showing vulnerability—such as discussing stress or burnout—they help reduce the stigma. Encouraging open dialogue, offering empathy, and actively listening to employee concerns create a safe space where people feel comfortable seeking help.

Provide Access to Mental Health Resources

Organizations should invest in resources that support mental well-being, such as Employee Assistance Programs (EAPs), therapy services, wellness apps, and mental health days. Leaders should ensure employees are aware of these benefits and encourage their use without fear of judgment or career repercussions.

Promote Work-Life Balance

Leaders can model healthy work habits by setting clear boundaries, taking time off, and respecting employees’ personal time. Flexible work schedules and remote options also help employees manage stress and balance responsibilities.

Train Managers to Recognize Signs of Distress

Managers are often the first to notice changes in behaviour or performance. Providing them with mental health training helps them recognize warning signs and approach sensitive conversations with care. Empowered managers can guide team members to appropriate resources and support early intervention.

Create a Culture of Recognition and Purpose

Leaders should regularly acknowledge employee contributions, celebrate successes, and clearly communicate how individual roles support organizational goals. A sense of purpose can be a powerful buffer against stress.

Encourage Breaks and Downtime

Leaders should encourage regular breaks, manageable workloads, and discourage a “grind” culture. Even small gestures, like encouraging walking meetings or designated no-meeting hours, can make a difference.

Lead by Example

When leaders openly prioritize their own mental health—taking time off, using wellness benefits, practicing mindfulness—they give employees permission to do the same. Authentic leadership builds trust and encourages a healthier workplace dynamic.

Continuously Evaluate and Improve

Supporting mental health is an ongoing effort. Leaders should regularly gather feedback through surveys or listening sessions and adjust policies and practices accordingly. What works for one team may not work for another, so flexibility and responsiveness are key.

When an entrepreneur starts a business, they often find themselves wearing many hats, often taking on such jobs as CEO, accountant, marketer, and even the IT technician.

However, trying to do everything yourself can take a toll on your mental and physical health – and, eventually, your business growth, which is why experts recommend outsourcing certain tasks.

“I think a lot of entrepreneurs think they don't have the money for it, or they feel like they can save money by doing it themselves,” says Carrie Thomas, founder, and CEO of Nimbus HR Solutions.  “But all it takes is being tripped up one time over something, like an HR issue, and you realize you should be reaching out.”

One of the primary reasons businesses outsource is to save money since hiring full-time employees for every task can be costly, considering salaries, benefits, training, and office space.

But outsourcing allows businesses to tap into skilled professionals at a fraction of the cost which can lead to significant reductions in operational expenses, enabling companies to allocate resources more effectively.

Streamlined approach

As well, outsourcing non-core activities, businesses can focus on their core competencies, leading to increased efficiency and productivity. This can allow employees to devote more time to strategic initiatives, innovation, and revenue-generating activities rather than administrative or repetitive tasks. This streamlined approach ensures that key business functions run smoothly without unnecessary distractions.

“Having to outsource means you can have subject matter experts available to you for a fraction of the price, who can help you and kind of level up your business,” says Carrie, describing how finding an accountant to help handle finances was one of the first things she did when starting her company. “Maybe you have a bookkeeper do fractional CFO, or maybe you could do the books yourself but with guidance from an accountant?”

Outsourcing provides businesses with access to specialized expertise that may not be available in-house. Many outsourcing firms are dedicated to specific industries, meaning they have the latest knowledge, tools, and best practices.

Whether it's IT support, digital marketing, legal services, or customer service, outsourcing allows companies to leverage the expertise of professionals who excel in their respective fields.

Reach out to other business leaders

But finding the right sources can be difficult, which is why Carrie suggests entrepreneurs reach out to other business leaders for potential contacts and advice.

“For myself, I spoke to other business owners and asked them what accounting service did they us, or didn’t use,” she says. “This can be really valuable.”

Outsourcing, especially when chosen based solely on cost savings, can sometimes lead to subpar quality. Some vendors may cut corners, use less experienced staff, or fail to meet the company's expectations. As a result, quality could suffer and businesses may face customer dissatisfaction, negative brand perception, and even additional costs to correct errors or redo work.

When it comes to finding a potential outsource, Carrie says business leaders should treat the process as a job interview.

Choose reputable partners

“You’re interviewing them to be your partner in a certain component of your business,” she says. “So do the homework and ask those difficult questions. ‘Why did you lose a client?’, ‘What was your worst client situation and how did you handle it?’”

Carrie also recommends trying to stay away from using the services of friends or family when starting out in business.

“It’s so easy to go people we know. I think that’s OK to a point, but I think when you have family or people you know that are involved, it’s business and you don’t want to blur the lines,” she says. “If it becomes a business relationship, you have to be clear on what the expectations are and be clear on what the deliverables are and if they’re not, then you can have another conversation.”

To minimize potential downsides, companies should choose reputable outsourcing partners, establish clear contracts, and continuously monitor performance because a well-balanced approach can help businesses leverage outsourcing while avoiding its pitfalls.

Benefits of outsourcing

Cost Savings

By outsourcing, companies can access skilled professionals at a lower cost, often in countries where labor expenses are significantly reduced. This allows businesses to allocate resources more effectively and invest in core operations.

Access to Global Talent

Outsourcing enables businesses to tap into a global talent pool, ensuring access to highly skilled professionals without geographical limitations

Increased Efficiency and Focus on Core Activities

By outsourcing non-core tasks, businesses can focus on their primary objectives and strategic goals. This leads to improved efficiency and a stronger competitive edge.

Scalability and Flexibility

Outsourcing offers businesses the flexibility to scale operations up or down based on demand. This is especially beneficial for businesses with seasonal fluctuations or those experiencing rapid growth.

Access to Advanced Technology

Many outsourcing providers invest in the latest technology, software, and tools to remain competitive. This is particularly valuable in areas like IT, cybersecurity, and digital marketing, where staying ahead in technology is crucial.

Risk Management and Compliance

Outsourcing can help businesses mitigate risks, particularly in areas such as legal compliance, cybersecurity, and regulatory requirements. This is particularly important for businesses operating in highly regulated sectors like finance and healthcare.

When should a business outsource?

Overworked Employees and Decreased Productivity

If your employees are constantly overburdened with tasks outside their core responsibilities, it may be a sign that outsourcing is needed. Overworked staff can lead to burnout, decreased morale, and lower productivity. 

Rising Operational Costs

Businesses looking to cut costs without compromising quality often turn to outsourcing. Hiring external specialists can reduce the need for in-house infrastructure and long-term employee commitments, leading to substantial savings.

Lack of In-House Expertise

As businesses expand, they may require specialized skills that their existing team doesn’t possess. Outsourcing allows you to access top-tier professionals without the costs of recruitment, training, and salaries.

Declining Customer Satisfaction

If customers are experiencing long wait times, poor service quality, or unresolved issues, it may be time to outsource customer support. Happy customers lead to repeat business and positive brand reputation.

Difficulty Scaling Operations

For businesses experiencing rapid growth, scaling operations efficiently can be challenging. Whether it's manufacturing, logistics, or administrative support, outsourcing provides flexibility, allowing you to expand or downsize without major disruptions.

Falling Behind on Innovation and Strategy

If your leadership team spends too much time managing routine administrative tasks instead of focusing on strategic growth, outsourcing is a logical solution. Non-core functions like bookkeeping, IT maintenance, and HR services can be outsourced, freeing up time for business leaders.

Compliance and Security Concerns

Businesses operating in industries with strict regulatory requirements, such as healthcare and finance, must ensure compliance with laws and data security measures. Outsourcing to specialized firms with expertise in compliance and cybersecurity can help mitigate risks and prevent costly legal issues.

Canadian businesses are grappling with significant challenges stemming from U.S. President Donald Trump's imposition of tariffs.

These measures have introduced economic uncertainty, disrupted supply chains, and strained the historically robust trade relationship between Canada and the United States.

That uncertainty has been compared to what many businesses felt when the pandemic virtually shut down the economy, creating chaos and confusion.

To assist the local business community as they did then, the Cambridge Chamber of Commerce and Greater Kitchener Waterloo Chamber of Commerce have relaunched their Ask the Expert initiative to share information and resources.

Held online every Thursday from 9 a.m. to 10 a.m., Ask the Expert provides business operators the opportunity to discuss their concerns, as well as hear the latest news and insights from a variety of professionals surrounding the issues related to this escalating trade war, including federal aid programs.

Global growth slowdown

Among those who recently shared their knowledge was Automotive Parts Manufacturers’ Association (APMA) CEO Flavio Volpe who discussed, among other things, the impact tariffs will have on auto industry on both sides of the border. 

“It almost feels a little bit like we are in the early days of the pandemic when business owners we’re just trying to understand what was happening,” says Cambridge Chamber President and CEO Greg Durocher, describing the uncertainty currently being felt by business owners.

The Organization for Economic Co-operation and Development (OECD) has highlighted the detrimental impact of these tariffs on the global economy, with particular emphasis on Canada.

The OECD forecasts a slowdown in global growth to 3.1% in 2025 and 3.0% in 2026, attributing this deceleration partly to the trade tensions initiated by the U.S. Specifically, Canada's economic growth is projected to decline to 0.7% in 2025, a significant reduction that underscores the profound effect of the tariffs on the nation's economic trajectory.

Eroded business confidence

The unpredictability associated with the on-again, off-again nature of the tariffs has eroded business confidence.

The latest CEO Confidence Index from Chief Executive magazine indicates a significant drop, reaching the lowest level since November 2012. This decline is attributed to the fluctuating tariff policies between the U.S., Canada, and Mexico, which have made long-term planning and investment decisions increasingly challenging for businesses.

Executives from major financial institutions have voiced concerns about the negative impact of this uncertainty on business operations and economic stability. 

Greg says that uncertainty is clear, noting many of those logging on to Ask the Expert are smaller business owners who may not be directly impacted by tariffs but more from the trickle-down effects of a prolonged trade war.

“Nobody really knows yet what those impacts will be,” he says. “The people joining us really want to know more about timing and when things are going to happen. I think some of the concerns are morphing away from talk of annexation and are now touching on the realization that there is something really wrong in the U.S.”

To join an Ask the Expert conversation, visit www.chambercheck.ca (which offers resources and information to help businesses) and sign up. 

For those who can’t participate live, Ask the Expert videos are posted on  www.chambercheck.ca  and the Cambridge Chamber of Commerce YouTube channel. 

Federal aid package info

In response to U.S. tariff impositions that have disrupted trade and heightened economic uncertainty, the Canadian government has introduced a comprehensive aid package exceeding $6 billion to support affected businesses. The key components of this financial assistance include:

1. Trade Impact Program by Export Development Canada (EDC):

With its newly launched Trade Impact Program, EDC is prepared to facilitate an additional $5 billion over two years in support. This program aims to:

• Market Diversification: Assist exporters in identifying and penetrating new international markets, reducing reliance on the U.S. market.

• Risk Mitigation: Provide solutions to manage challenges such as non-payment risks, currency fluctuations, and cash flow constraints.

• Expansion Support: Offer financial backing to overcome barriers hindering business growth and international expansion.

These measures are designed to help companies navigate the economic challenges posed by the tariffs and adapt to the evolving trade environment. 

Government of Canada.

2. Business Development Bank of Canada (BDC) Financing:

To support businesses directly affected by the tariffs, the BDC is providing $500 million in favorably priced loans. Key features include:

• Loan Amounts: Businesses can access loans ranging from $100,000 to $2 million.

• Flexible Terms: Loans come with favorable interest rates and flexible repayment options, including the possibility of deferring principal payments for up to 12 months.

• Advisory Services: Beyond financing, BDC offers advisory services in areas such as financial management and market diversification to strengthen business resilience.

This initiative aims to provide immediate financial relief and support long-term strategic planning for affected businesses. 

3. Farm Credit Canada (FCC) Support for Agriculture and Food Industry:

Recognizing the unique challenges faced by the agriculture and food sectors, the government has allocated $1 billion in new financing through FCC. This support includes:

• Additional Credit Lines: Access to an additional credit line of up to $500,000 for eligible businesses.

• New Term Loans: Provision of new term loans to address specific financial needs arising from the tariffs.

• Payment Deferrals: Current FCC customers have the option to defer principal payments on existing loans for up to 12 months.

These measures are intended to alleviate cash flow challenges, allowing businesses to adjust to the new operating environment and continue supplying high-quality agricultural and food products. 

4. Enhancements to the Employment Insurance (EI) Work-Sharing Program:

To mitigate layoffs and retain skilled workers, the government has introduced temporary flexibilities to the EI Work-Sharing Program:

• Extended Duration: The maximum duration of work-sharing agreements has been extended from 38 weeks to 76 weeks.

• Increased Access: Adjustments have been made to make the program more accessible to businesses experiencing a downturn due to the tariffs.

This program allows employees to work reduced hours while receiving EI benefits, helping employers retain experienced staff and enabling workers to maintain their employment and skills during periods of reduced business activity. 

5. Strengthening Investment Protections:

To safeguard Canadian businesses from potentially harmful foreign takeovers during this period of economic vulnerability, the government has updated the Investment Canada Act Guidelines. While Canada continues to welcome foreign investment, these updates ensure that any investments posing risks to economic security can be thoroughly reviewed and addressed.

Click here to learn more.

Corporate social responsibility (CSR) has become a critical aspect of modern business strategy, transcending the traditional goal of profit maximization. It represents a company's commitment to ethical practices, environmental stewardship, and positive contributions to society. 

In an increasingly interconnected world, stakeholders—from consumers to investors and employees—are placing higher expectations on businesses to operate responsibly.

“In today’s world, social responsibility continues to play a bigger role in consumers’ decision making of where and who they want to shop from or work with,” says Brittany Silveira, Marketing Manager at Grosche International Inc. “However, for some organizations, social responsibility remains a checkbox rather than a core value.”

For more than a dozen years the Cambridge-based kitchenware company which has operated as a social enterprise not only offers quality products but has provided thousands of people worldwide with clean drinking water through its Safe Water Project. 

“Businesses that integrate social responsibility into their DNA—like Grosche does—see long-term benefits. It's about creating shared value and using your business as a force for good: positively impacting society while fostering brand loyalty and resilience,” says Brittany, who shared some of her insights at our annual Small Business Summit held this past fall at The Tap Room in Tapestry Hall.

Workers seek purpose-driven employment

It’s a mindset that has become more prevalent for many businesses.

Some do it, according to Daniel Waeger, Associate Professor, Canada Research Chair in Corporate Governance at Lazaridis School of Business and Economics Policy, because they are a consumer facing business and realize it’s important to their clientele, and others see it as a way to charge a higher price.

“Often times it’s also just the values of the leadership,” he says, adding employees themselves are also a driving force for many businesses to become more socially responsible.

Today's workforce values purpose-driven employment. Employees, particularly younger generations, prefer to work for organizations that align with their values. CSR initiatives, such as community engagement programs or efforts to promote diversity and inclusion, create a sense of pride and belonging among employees.

Moreover, companies that demonstrate social responsibility often experience higher retention rates, as employees are more likely to stay with employers who contribute to the greater good.

“I would say over the last five to ten years, it has shifted quite a bit more to the employee side,” says Daniel, noting employees are also willing to hold a business accountable when it comes to upholding their CSR commitments even more so than the public. “As you soon as you make commitments towards your employees, they know what’s going on inside the firm, so they are in a better position than the media to hold you to your words and to hold you accountable to a certain extent.”

CSR strategies attract investors

While CSR requires investment, it often leads to long-term financial benefits.

Studies have shown that socially responsible companies tend to perform better financially over time. Ethical practices reduce risks, such as legal issues or reputational damage, which can be costly.

Additionally, CSR initiatives can open new revenue streams, such as eco-friendly product lines or partnerships with like-minded organizations. Investors also favour companies with robust CSR strategies, as these are seen as more sustainable and resilient in the long run.

For the next generation of business leaders, Daniel says he has seen a difference in the attitude among the people he instructs when it comes to putting CSR at the forefront of their business ambitions.

“People used to go to business school to become rich,” he says. “I think the considerations of the public good or of the common good are more central today than they were before. And I do think that it’s overall a good thing if there is a civic attitude.”

Brittany agrees and believes the notion of social responsibility is not a foreign concept anymore, but that its implementation still widely varies.

“The challenge lies in shifting it from an afterthought to a strategic priority,” she says. “I believe this transition is crucial for businesses aiming to stay relevant and meaningful.”

Reflect on company values

In terms of taking that first step to CSR, Brittany says a business must reflect on its values and the values of its consumers.

“Basically, what do you want to stand for beyond profitability? Brainstorm and identify causes that align with your mission and resonate with your team and customers,” she says. “From there it’s about creating a plan, starting small and measuring your efforts. Begin with one or two meaningful projects rather than spreading yourself too thin. Whether it’s reducing waste in your operations, launching a give-back program, or volunteering in your community, ensure your efforts are manageable and measurable.”

From there, Brittany says a company can then embed these values into its business model and share its efforts with the community both internally and externally.

For some businesses, like Grosche, becoming a Certified B Corporation may become the next logical step. Being one signals a business's commitment to balancing purpose and profit. B Corps are companies verified to meet high standards of social and environmental performance, accountability, and transparency.

“This certification assures employees, customers and stakeholders that you’re not just talking the talk. You’re actually making a real difference,” says Brittany. “This credibility and the give back component to your business is a great competitive advantage that can also attract top talent and increase customer loyalty.”

10 ways a business can actively embrace CSR:

Promote Environmental Sustainability

Reduce waste through recycling programs and sustainable packaging.

Transition to renewable energy sources and improve energy efficiency.

Implement water conservation initiatives and reduce carbon emissions.

Practice Ethical Sourcing

Ensure suppliers follow fair labor practices and humane working conditions.

Source raw materials sustainably to avoid environmental degradation.

Partner with vendors who share the company’s ethical standards.

Encourage Diversity and Inclusion

Establish equitable hiring practices to foster a diverse workforce.

Support underrepresented groups through mentorship or leadership programs.

Create a workplace culture that celebrates inclusivity and equity.

Support Community Initiatives

Sponsor local events or donate to community programs.

Encourage employees to volunteer by providing paid time off for service.

Partner with non-profit organizations to address local social issues.

Invest in Employee Well-being

Offer competitive wages, comprehensive benefits, and work-life balance initiatives.

Provide professional development and training opportunities.

Prioritize mental health through access to resources and support systems.

Champion Ethical Business Practices

Adopt anti-corruption policies and ensure transparency in operations.

Uphold consumer rights by delivering honest advertising and high-quality products.

Maintain strict compliance with labor and safety regulations.

Educate and Raise Awareness

Create campaigns to educate employees and customers about social or environmental issues. Collaborate with schools and universities to promote sustainability or ethics education. Use social media to amplify causes aligned with the company’s CSR goals.

Develop Sustainable Products and Services

Innovate products that are environmentally friendly or socially beneficial.

Reduce the environmental impact of production processes. Offer services that address societal challenges, such as renewable energy solutions.

Engage in Fair Trade Practices

Support fair trade-certified products and suppliers. Promote economic growth in developing regions by purchasing goods directly from small-scale producers.

Ensure fair compensation throughout the supply chain.

Measure and Report CSR Impact

Regularly assess the effectiveness of CSR initiatives using KPIs. Share progress and achievements through transparent reports. Use feedback to continuously improve CSR strategies.

While the recent 30-day postponement of U.S. President Donald Trump’s tariffs and Canada’s retaliatory measures came as welcomed news to businesses, the lingering presence of these threats remain prompting the Chamber network to act using a variety of tactics, including advocacy, negotiation, education and promoting partnerships.

Trump’s demand for 25 per cent blanket tariffs on all Canadian goods, with the exception of a 10 per cent tariff on Canadian energy, and Canada’s proposed retaliatory tariffs on $155 billion of U.S. goods, has sent economic shockwaves through both nations prompting calls for action on both sides of the border.

To clearly map out the vital importance of the trading relationship between the two countries and the risks businesses face, the Canadian Chamber of Commerce’s Business Data Lab has introduced the Canada-U.S. Trade Tracker —a new tool designed to illustrate the ties between the two economies. It notes that $3.6 billion in goods crosses the Canada-U.S. border daily, generating a $1.3 trillion annual trade relationship.

"A 30-day delay means more time for Canadian businesses and governments to drive home the point that tariffs make no sense between the two closest allies the world has ever known,” said Candace Laing, President and CEO, Canadian Chamber of Commerce, in a release. “The Canadian Chamber, our network and businesses across the country will spend every day of it fighting hard to secure this historic, robust trading relationship. Raising the cost of living for Americans and Canadians with these taxes is the wrong move. Canada and the U.S. make things together, and we should in fact be building on that.”

Call to dismantle interprovincial trade barriers

It is a sentiment echoed by her colleagues at the Ontario Chamber of Commerce who have rallied their members, which includes the Cambridge Chamber, in a show of unity and strength and targeted actions including supporting a unified call for Canadian premiers to quickly dismantle interprovincial trade barriers and the creation of a business and trade leadership coalition.

Called the Ontario Business & Trade Leadership Coalition (OBTLC), it aims to unit leaders from key trade-dependent sectors to champion business-driven solutions, advocate for effective government policies, and solidify Ontario’s position as a global leader in trade.

“President Trump has claimed the U.S. doesn’t need Canada – but we are here to show just how invaluable we are. Ontario businesses are stepping up to safeguard our economy and reinforce our global competitiveness,” said Daniel Tisch, President and CEO of the Ontario Chamber of Commerce, in a release. “The Ontario Business & Trade Leadership Coalition represents a united response – a coalition of industry leaders committed to resilience, collaboration, and growth.”

BestWR brings business groups together

But the fight to ward off economic turmoil caused by these tariff threats has also been ramped up locally, says Cambridge Chamber of Commerce President and CEO Greg Durocher, through the revival of a unique partnership created during the pandemic to assist businesses.

“We created the Business Economic Support Team of Waterloo Region (BestWR) during COIVD-19 consisting of organizations that are fundamentally engaged in the economic activities through business in the region and have brought it back as a support mechanism for local businesses with respect to trade,” he explains. “It was created during the pandemic, but this is now really about a united force of business organizations helping local businesses navigate these turbulent trade waters.”

Besides the Cambridge and Greater Kitchener Waterloo Chambers, BestWR also includes Waterloo EDC, Communitech and Explore Waterloo Region.

“We are engaged right now with regional municipalities to create opportunities whereby we can offer a support role in helping local businesses find local or Canadian suppliers, or to expose local businesses to the products they currently manufacture or sell and may be able to find Canadian customers for,” says Greg, noting BestWR also has strong federal and provincial connections which they will use to assist businesses.

“We have the insight to be able to tap into key levers within provincial government and within the federal government to have input on what potential supports those governments may need to provide businesses to keep them moving through this turmoil.”

Ask the Expert returns

As a further measure to assist, both the Cambridge and KW Chambers have revived their online tool 'Ask the Expert'.

These weekly Zoom calls - created during the pandemic to provide business leaders with current information – will now provide an opportunity for manufacturers and businesses in the region who export to the U.S. to ask questions.

“We will invite various experts to take part in the one-hour call, and hopefully get some answers to their questions and help them keep their business humming along and doing the things they need to do to support their employees,” says Greg.

'Ask the Expert' will take place every Thursday, between 9-10 a.m.

“This all about businesses,” he says. “And how do we navigate the turbulent challenges ahead and make it a win for Canadian businesses.”

The Chambers have also revamped the chambercheck website (which offered timely resources for businesses during the pandemic) to provide a growing list of trade-related resources to inform and assist businesses.

Reasons for businesses to remain confident and optimistic:

Economic Resilience

Canadian businesses have demonstrated remarkable resilience in the face of past economic challenges. Our diverse economy and strong trade relationships beyond the United States provide a buffer against potential disruptions.

United Response

The Canadian government, provincial leaders, and business organizations like your local Chamber of Commerce are presenting a united front in response to this threat. This co-ordinated approach strengthens our negotiating position and demonstrates our commitment to protecting Canadian interests.

Potential for Internal Growth

For years the Chamber network has been encouraging the government of Canada to remove interprovincial trade barriers and unlock the economic prosperity lying dormant in these archaic policies. This situation presents an opportunity to address long-standing interprovincial trade barriers and by removing them boost Canada's economy by up to $200 billion per year, potentially offsetting the impact of U.S. tariffs.

Mutual Economic Interests

It's important to remember that the proposed tariffs would also significantly harm the U.S. economy. American businesses and consumers would face higher costs and reduced competitiveness, which could lead to pressure on the U.S. administration to reconsider this approach. 

Time for Preparation

With the proposed tariffs not set to take effect until at least March 1, there is time for diplomatic efforts and for businesses to prepare contingency plans as we work our business contacts and channels to influence key stakeholders in the U.S.

Leveraging Canadian Assets

Canada continues to highlight its valuable assets that are strategically important to the U.S., including:

• Energy resources
• Critical minerals
• Nuclear power capabilities
• AI research excellence
• Lumber and building materials
• Automotive
• Agriculture

By emphasizing these assets, Canada is demonstrating that doing business with us is not just beneficial but strategically smarter than alternatives.

Government Support

The Canadian government has a track record of supporting businesses during trade disputes. We can expect measures to be put in place to assist affected industries if the tariffs are implemented.