Introduction
This document intends to provide first line advice and information to
businesspersons that plan to do business in Canada in the near future. It has
been designed from a communications perspective (because that’s our business) in
the sense that it aims to highlight key overall characteristics and elements
that any new player on the Canadian business scene should be aware of in order
to prevent mistakes or mishaps when communicating to various publics and target
audiences in this country. It must not be perceived as an all-inclusive guide or
be interpreted as a formal and legal document. Potential candidates for business
in our country should consult the required legal and financial advisors and
consultants. As public relations professionals intimately involved in he
Canadian business community, we thought it could be interesting and enlightening
for foreign business persons to hear about doing business in our country from a
communications perspective, thus complementing the advice and avenues provided
by other consultants.
Canada: key socio-demographic highlights
The second biggest country in the world geographically, Canada has a population
of 30 million, which means consumers and audiences are generally spread out
and less concentrated that in many other countries around the world.
It takes as much time to fly from coast to coast in Canada than to fly from
Montreal and/or Toronto to Europe. Demographic concentration is on average 3
inhabitants per km2, which is one of the lowest concentrations in the Western
World. However, the population is generally present on an East-West axis close
to the most southern part of the country aligned with the US border, for obvious
climatic reasons. 80 % of the Canadian population is concentrated along this
imaginary line along the US border.
The major business centres are Toronto, Montreal, Vancouver and Calgary as
the most populated provinces are Ontario, Quebec, British Columbia and Alberta.
The population of the 11 provinces can vary greatly from 25 000 in newly created
Nunavut to 10 million in Ontario.
Officially created in 1867 as a British influenced Parliamentary Democracy,
Canada has a Federal Government and Parliament as well as 11 Provincial governments
with their own Provincial legislatures. Each level of government has specific
powers in the constitution and, in some instances, it could be useful for business
persons to know about each level’s area of responsibility in order to
better identify which level of government they have to inform and entertain
relations with on some of their business or corporate issues.
The democratic process is therefore quite sophisticated and any new player
must be aware of the multiple layers of constituents and stakeholders that they
must interact with on various issues.
A country built from a reunion of citizens from British and French ancestry
and heritage, Canada has two official languages, French and English. The federal
government and its institutions aim to communicate with citizens in each community’s
original language across the country (when the number justifies it in a particular
region), but French is massively spoken in the Province of Quebec (See particular
section on Quebec later in document), where it is the official language, while
English is massively spoken in the other provinces. In spite of this general
rule, an important English community has been and is still present in Quebec
and French speaking citizens are also present in the predominantly anglophone
provinces of the country and particularly in the province of New Brunswick.
In fact, there are approximately 750 000 English speaking citizens/consumers
in Quebec or 10 % and approximately 650 000 predominantly French speaking citizens
in the predominately anglophone provinces or 2,8 %. This is particularly important
for communication purposes since communicating in the consumer’s language
is critical to attain business success and goals. Any business should be aware
of the linguistic components of the demographic situation of Canada before engaging
in communication and/or marketing activities. For example, product labels must
be in both official languages in Canada.
In spite of certain existing political and linguistic tensions between the
French speaking community, mostly concentrated in Quebec and the English speaking
community, mostly concentrated in the other provinces, Canada, when compared
to many other countries around the world, is unanimously viewed by international
observers as a very democratic and stable society, where differences can be
publicly and openly discussed.
Economic overview
Canada is ruled by a free enterprise business system and is one of the world’s
most open countries to free trade amongst nations. An active member of the WTO,
6 years ago Canada entered into a major free trade agreement with its most important
business partner: the United Sates of America. This agreement is generally referred
to as the North American Free Trade Agreement between Canada, the US and Mexico.
Any company or business coming into Canada to do business should seek to better
understand the possibilities this free trade agreement creates for them. The
US accounts for 70 % of Canada’s total exports.
Part of the G7 countries (now G8 if we include Russia), Canada has been declared
by the United Nations as one of the best countries to live in for the three
last consecutive years. Canadians enjoy an interesting standard of living with
an average GDP of 936 billion dollars and an average annual income of $ 24 763.00.
Traditionally known as a resource based economy because of its incomparable
array of natural resources (wood and forestry, mining and metallurgy, petroleum
products, hydroelectric energy etc.), Canada has however evolved into one of
the most technically developed countries in the world. Today it is considered
as one of the world leaders in telecommunications, transportation, aeronautics,
engineering, biotechnology, financial services, information technology management
and consulting etc. with world leaders such as BCE, Nortel Networks, Teleglobe,
Bombardier, CN, Air Canada, Biochem Pharma, Power Corporation, Onex, the major
Canadian Banks, CGI etc.
Financial institutions are strong and backed by a very well managed, ethical
and sophisticated securities industry. Canada has two of the twenty most important
stock exchanges in the world, the Toronto Stock Exchange (TSE) being viewed
by the international financial community as a very important market. It specialises
in stocks, while the Montreal Exchange specialises in derivatives and futures
and western Canada’s exchange concentrate’s mostly on venture capital
and small caps.
Today, Canada has a quite diversified economy, with a well-balanced mix of
traditional natural resources strengths and of new economy components. This
diversity and balance is not necessarily spread out equally and should be nuanced
on a geographic and regional basis.
Culture and values
Canadians are definitely North Americans in style and substance. Most of their
values and beliefs are very close to those of their fellow neighbours from the
USA. However, Canadians continue to perceive themselves as different than US
citizens in some important areas and do not generally agree to be considered
as exact replicas of their US friends by business who consider Canada as a "domestic
market". They take pride in being different, even though they generally
consider their fellow American colleagues as the best business partners and
friends in the world.
While Canadians strongly believe in the free enterprise system and in an economy
being run and fuelled by private sector business, they also strongly support
public sector involvement in key areas of human activity such as education,
healthcare and welfare. Canadians see the public healthcare system in this country,
providing totally equal access to first rate healthcare services to each citizen
without exception, whatever his or her financial situation may be, as a key
component of this cultural difference between Canadians and Americans.
The same difference applies for the education system where Canadians can have
access to higher education at a very reasonable cost compared to their US counterparts,
and benefit from quite generous governmental assistance to help pay for their
education.
The attitude towards the ownership of guns and accessibility to firearms is
also a key difference between the two countries, Canadians being very favourable
to stringent rules concerning gun control.
The attachment to these values and beliefs which place collective concerns
and issues at centerstage constitute for Canadians a key differentiation point
with their fellow Americans. They generally view themselves as more open to
collective values and concerns rather than continuously and totally abiding
by the primary rule of individualism. In these areas, they feel sometimes closer
to certain European cultures.
The strong desire of Canadians to respect the language and cultural values
of all the different groups composing the Canadian mosaic (Native People, French
speaking Canadians and Quebecers, the new Canadians originating from all over
the world as recent or long time immigrants) and not automatically adopt the
melting pot strategy is also viewed as a key cultural trait.
For all these reasons, Canadians therefore generally accept and view some government
involvement in key areas of human activity as acceptable if not necessary and
welcome, even in the economy.
If you add to these key social differences, which are common to all Canadians,
the fact that the French language and culture are vibrant and significant in
some parts of the country, you increase Canadians’ perceptions that they
are different from many other countries who have only one official language
and dominant community. The influence of the French culture adds to this notion
of distinction and of being half-American and half-European.
For all these reasons, foreign companies or organisations who want to do business
in Canada should not automatically think they can implement communications and
marketing programs and/or public relations initiatives exactly the same way
they would if they were doing it in the United States. Being advised by Canadian
communications professionals would be a very sound move if you want your intervention
to be pertinent and efficient.
The media
As in many other western world economies, Canada enjoys a very sophisticated
media industry. There are 107 dailies for 30 million people, 35 television networks
who operate 193 stations, 910 Radio stations. Information flow and circulation
is therefore constant and enormous.
The electronic media (Radio and TV) is a two tiered system where a public and
private intervention coexist and prosper.
The most influential national dailies in Canada are The Globe & Mail
and the National Post for English Canada and Le Devoir and La
Presse for Quebec, but the mostly read newspapers in the country are the
Toronto Star for English Canada and Le Journal de Montréal
for Quebec. This linguistic duality imposes certain constraints and conditions
that must be taken into account when communicating with various consumer or
citizen groups in this country.
Recently, 24-hour news networks have appeared, greatly increasing information
availability to a country that was already very news intensive.
In Canada, as in the US, the media are confronted with a major audience segmentation
or fragmentation of audiences and the creation of a multitude of specialised
media and TV channels (Health & fitness, Nature, sports only, news only,
Science, Home improvement & renovation etc.)
With the exception of the US, there is no other country in the world with such
an important media segmentation. This is an important consideration for any
business coming into Canada, even more which such a fragmentation going on in
a small population basin. A well thought out media relations strategy must take
this new and almost unique situation into consideration and approaching media
relations the exact same way as in the initial home country could represent
a costly mistake in some situations. Obtaining strategic advice from well-reputed
public relations advisors could constitute a very sound investment before embarking
on a media relations strategy to sell your products or promote your views, ideas
and businesses.
Quebec
Quebec (The Province) is home to the first European settlements in Canada. It
is the cultural heart of the Francophone community in America also located elsewhere
in Canada as well as in some regions of the United States. With approximately
7 million people, is it the second most populous province in the country, after
Ontario, with 23% of Canada’s total population.
Of the four major European languages that immigrated to America (English, French,
Spanish and Portuguese), three are overwhelmingly spoken in America as compared
to Europe. French, however, is an exception: a minority in relationship to Europe
and the rest of the world, a minority within Canada.
Linguistic demographics are as follows: only 37.8% of Quebeckers are bilingual,
speaking both French and English (49.7% in the Montreal area) which means that
62.2% speak French, English or another language only. The English-speaking minority
in Quebec represents 11% of the population, mostly located in the Montreal area.
Mass market communications in Quebec must therefore be conducted in French
and English, because of common sense, and by law. All product labels and documentation
have to be available in French in Quebec, as well as software, DVD’s and
other types of products and services. The notion of "domestic market"
that Canada enjoys form a US business perspective can lead to serious image
and reputation problems if it neglects the French factor.
English media are numerous, in disproportion to the demographic weight of Anglophones,
as many Francophones enjoy the diversity of media in both languages.
All companies and organisations must be aware of the distinctiveness of the
Quebec society, not only for linguistic reasons but also for its culture and
values: European savoir-vivre, American savoir-faire and Latin laissez-faire!
Its social values are more liberal than in the rest of Canada. For example,
tolerance towards common law relationships, homosexuality or sexually-provocative
advertising is significantly higher than in the rest of Canada; Quebec leads
the way in the consumption of imported cheese, red wine and Port in North America;
Quebeckers are more loyal to brands than other Canadians; spend more on lottery
than other Canadians; they buy more life insurance and less prescription drugs.
Public relations activities in Quebec must take into account the need to address
the public’s interest for local creation and local celebrities in show
business, culture and sports. Quebec has its own entertainment industry and
its loyalty to locally produced prime time fiction and non-fiction television,
is unique in the world.
Western Canada
Western Canada is a diverse, vibrant, and growing region, whose population is
approaching one-third of the national population. The West is made up of the
coastal province of British Columbia (separated from the rest of the country
by the Rocky Mountains, and frequently considered a region in its own right),
and the three Prairie Provinces of Alberta, Saskatchewan and Manitoba. British
Columbia and Alberta are the dominant provinces in terms of population and economic
influence. (This section will not address considerations specific to the three
sparsely populated northern territories -- Nunavut, the Northwest Territories,
and Yukon).
The West, generally speaking, has a shorter history of non-aboriginal settlement
and economic development than does Central and Eastern Canada. The region continues
to have a relatively high level of dependence on resource extraction. A sense
of ‘western alienation’ – characterised by the view that the
region is not equitably treated by the federal government, and other institutions
dominated by Central Canada – has frequently been expressed. This is likely
to be a less potent force in the future, as the region’s population, and
corresponding economic and political clout, continue to grow.
Nevertheless, it will remain important for companies doing business in the
West to be mindful of regional sensitivities. Westerners often identify particularly
strongly with regional or provincial interests and ways of life. Relatively
high degrees of social conservatism, and a strong commitment to self-reliance
and free enterprise, are frequently evident in this region. Social and business
relations also tend to be conducted on a somewhat less formal basis than in
other parts of Canada.
Politically, Western Canada has been the birthplace of populist political movements
on both sides of the political spectrum. This includes the New Democratic Party
(a moderate social democratic party, which currently forms the provincial government
in three of the four western provinces), and the right-wing Reform Party (currently
the official opposition in the federal parliament). The region has tended to
favour federal parties which have been in opposition, further fuelling a sense
of alienation from national institutions.
English is the dominant language throughout the region, although a wide diversity
of ethnic backgrounds is represented within the population. A number of cities
in the Prairie Provinces have large and growing percentages of aboriginal (‘First
Nation’) residents.
The high degree of segmentation that characterises the national media in Canada
is also evident in the West. The degree of influence of the national English-language
dailies (the Globe & Mail and the National Post) is somewhat less here than
in other parts of Canada. A number of public relations firms, whose operations
are national in scope, are able to serve client needs in this region, typically
from offices in Vancouver and Calgary.
British Columbia
British Columbia has a population of some 4 million, spread over a landmass
of 950,000 km2. Vancouver (BC’s largest and Canada’s third largest
city) is located on the Southwest coast and is an important Pacific port, with
strong Asian economic links and cultural influences.
The provincial economy is dominated by resource industries (forestry foremost
among them), tourism, and growing high tech and TV and film production industries.
The province has been heavily impacted by the Asian economic crisis and other
factors, and its recent economic performance has been poor. Current projections
indicate the B.C. economy will be aided by gradual revival in East Asian demand.
Provincial politics are characterised by high degrees of polarisation. Debates
over land use and environmental protection have frequently been intense, and
ongoing efforts to resolve outstanding aboriginal land claims are one of the
most significant public policy issues. Since 1991, the province has been governed
by the New Democratic Party. The government has a thin majority in the provincial
legislature, and an election must be called no later than 2001.
Alberta
The second most populous province in the West (2.7 million people, and a landmass
of 660,000 km2), Alberta is widely considered to be the most economically vibrant
part of the region at this time.
The province is noted for an especially strong commitment to free enterprise,
and cohesive politics. Oil and gas is an important part of the provincial economy,
with agriculture and other natural resource sectors also making important contributions.
Diversification is occurring, with growth in manufacturing and telecommunications.
Calgary is a particularly important economic centre, with a high concentration
of major corporate head offices. The provincial economy has performed well in
recent years, and is expected to benefit further from recent rises in world
oil prices. The Progressive Conservative Party has been in government since
1971, and has recently taken a particularly aggressive approach to tax and government
debt reduction.
Saskatchewan and Manitoba
Significantly smaller than the other two western provinces (with populations
of 1 million and 1.1 million, respectively), Saskatchewan and Manitoba are less
significant players on the national political and economic scene. Agriculture
remains central to both provincial economies. Transportation, manufacturing
and mining are significant in Manitoba; while mining and forestry are important
sectors in Saskatchewan. Recent provincial elections saw the New Democratic
Party returned to power in Saskatchewan, and elected in Manitoba.
Ontario
Approximately one-third of Canada’s population (more than 11 million people)
lives in the province of Ontario, with a high concentration in southern Ontario,
namely Toronto and its surrounding regions of Peel, York, Halton, and Durham.
This area is called the "Greater Toronto Area" or "GTA".
Half of Ontario's population lives along the western end of Lake Ontario between
St. Catharines and Oshawa. This agricultural, commercial, and industrial belt
is called the 'Golden Horseshoe' and more than 100 million Americans live within
one day's drive.
Over 7.6 million Ontarians speak English as their first language, while another
464,000 claim French as their mother tongue. In fact, Ontario's French speaking
community is the biggest in Canada outside Quebec.
Immigration has been a major factor in Ontario's population growth. In 1998,
over 210,000 newcomers arrived in Canada – and almost 54 per cent of them
settled in Ontario. This massive immigration has changed Ontario into a multicultural
centre and the effect is seen everywhere, from the languages heard on the street,
to the foods in stores and restaurants, to the political issues of the day.
The major language groups (based on the 1991 census) include Chinese, Italian,
German, Portuguese, Indo-Iranian, Greek, Polish, Spanish, Dutch, and Ukrainian.
The provincial economy is dominated by manufacturing, agriculture and service
industries such as banking, insurance, accounting, investment, law, education,
hospitality, computers, health care, tourism, and recreation. The province is
the third largest trading partner of the U.S., which accounts for 89 per cent
of Ontario's international exports. The province has benefited from an economic
boom over the past few years and this trend is expected to continue.
Toronto is the country’s financial centre and largest city, and home
to more corporate head offices than anywhere else in Canada. With the only national
daily newspapers (Globe and Mail and National Post) and television networks
(Canadian Broadcasting Corporation and CTV) based in Toronto, the city is also
considered the media capital of the country.
The Progressive Conservative Party and its Premier, Mike Harris, have been
in power since 1995. While health care reform, tax cuts and labour issues dominate
the government agenda, the province is generally pro-business and enjoys political
stability.
The public relations industry in Canada
The public relations industry in Canada is quite developed in spite of the fact
that the critical mass is much smaller than our next door neighbour’s.
A maximum of a half a dozen firms can serve major global clients from coast
to coast in both official languages. Apart from a few exceptions, this top ten
list is dominated by the major US public relations multinationals, but major
Canadian independent PR firms are in the top positions. This general picture
hides important regional nuances and differences. Potential clients should be
aware of these differences before making the choice of a public relations partner.
Canada also has a considerable number of small and medium sized PR firms of
local, regional and provincial importance. A consolidation process is currently
going on.
How to choose and identify the right public relations
partners and/ or advisors
Choosing the right public relations counsel is an important task for any foreign
business coming into the country for business.
What can you do to increase your chances of choosing the right partner for
you? Here are a few tips:
Some provinces have associations of PR firms (Quebec for example) that can
constitute a first guide to consult.
Major recruitment firms (Head Hunters) in Canada can also provide you with
pertinent advice on who are the most serious and reputable PR firms in Canada.
Professional associations of PR professionals such as CPRS (Canadian
Public Relations Society), IABC Canada (International Association of
Business Communicators) or SRQ (Société des relationnistes
du Québec) an also be a source of information to help you make
your choice of an agency although their purpose is to represent PR practitioners
as professionals and not necessarily PR firms
Talking to the Editors of major trade publications in the communications
and marketing area such as Marketing Magazine, Strategy, Le
30 (publication of Quebec’s Professional Journalists Association),
and Infopresse will also provide you with pertinent insights on the
current situation of the public relations industry in this country and help
you identify the key players.
Obtaining advice from major Chambers of Commerce or Boards of Trade in major
cities or Employer organisations can also help.
Finally referring to major PR Networks such as PROI is a very good source
to identify the right partners for you in a particular country, city or region.
If you are specifically looking for a lobbyist firm, there are currently two
different systems in Canada; one for the federal level of government where lobbyists
must be officially and publicly registered and another at the Provincial level,
where there is no compulsory registration and where you must go through the
same kind of procedure as with the PR firms.
Once you have found a few firms that could be interesting for your mandate,
what are the things you should ask each of them to provide in order for you
to make your final decision?
Their client list with information on the number of years they have been
serving each client;
Three formal references from clients that you can contact directly;
Billings and fees for each firm’s last three fiscals;
The number of years they have been in business;
The number of full time employees on their staff;
Their specialities or key strengths;
Their location of their office in Canada;
How well can they assist you in Canada’s both official languages (French
& English)
Conclusion
Doing business in Canada could and should be a very positive experience for
foreign businesspersons. Business conditions are generally similar to those
of the G7 and OECD countries and of Western World economies.
Taking a closer look at the Canadian consumer’s particularities and being
advised by reputed communications specialists from this country, who are deeply
involved with the business community and have a profound knowledge of the key
stakeholder groups, would provide new players with the right assistance to approach
their future business involvement here with confidence and determination. We
would be glad to help.
For more information on doing business in Canada, please consult the following
web sites:
