Building your business's cultural capability

First Nations cultural capability

Cultural capability refers to the ability of individuals and organisations to effectively interact and work with people from diverse cultural backgrounds. It covers a range of skills, knowledge, and attitudes that enable individuals and organisations to:

  • understand, respect and appreciate the cultural differences of First Nations peoples
  • adapt their behaviour and practices to better engage with people from different cultures.

Cultural capability includes cultural awareness, cultural competence and cultural safety. It's a continuous learning process—it isn't achieved after a single training session.

Cultural capability is a key factor in creating inclusive and respectful workplaces that value the unique cultures and histories of First Nations peoples. It is essential for promoting diversity, equity and reconciliation in Australia.

Building cultural capability involves developing an awareness of one's own cultural biases, assumptions, and perspectives, and being open to learning about and understanding the cultural perspectives of First Nations peoples.

It also involves developing effective communication skills that can bridge cultural differences, such as active listening, asking clarifying questions, and using appropriate nonverbal cues.

Cultural competence

Cultural competence is the ability to understand, appreciate and effectively interact with people from diverse cultural backgrounds. It involves having knowledge, awareness and skills to navigate and respect cultural differences and promote inclusivity.

Cultural competence requires continuous learning, self-reflection and a commitment to fostering inclusivity. Developing cultural competence can enhance the ability to engage effectively and respectfully with First Nations peoples and employees from all cultural backgrounds.

Cultural safety

Cultural safety is about creating and maintaining an environment where all people are treated in a culturally respectful manner. It requires everyone to be aware of the impact of their own culture, cultural values and biases. Promoting cultural safety helps address historical and ongoing injustices, promote reconciliation and build a more inclusive and equitable workplace.

For First Nations peoples, a culturally safe workplace:

  • is safe, respectful and inclusive
  • values, acknowledges and appreciates their cultural practices, beliefs and traditions
  • does not challenge or deny their identity and experience.

Cultural safety recognises that First Nations employees may have experienced historical and ongoing discrimination, racism and trauma, and that their cultural identities and values may differ from those of non-Indigenous employees.

'Cultural safety means being able to practise your culture free of ridicule or condemnation. It occurs when a workplace acknowledges, respects, and accommodates difference.'

– Gari Yala (Speak the Truth) report

Understanding the perspectives of First Nations peoples

Cultural safety is about creating a workplace culture that supports First Nations employees and provides opportunities for their professional and personal growth. This can involve:

  • offering flexible work arrangements to accommodate cultural obligations (e.g. sorry business)
  • providing access to culturally appropriate health services and support (e.g. employee assistance programs)
  • promoting First Nations leadership and mentoring programs.

Your approach to cultural safety may depend on your industry and the roles your First Nations employees perform.

At a minimum, you should provide opportunities for your employees to undertake cultural awareness training to build an understanding of the history of First Nations peoples and the power imbalances between them and non-Indigenous peoples in Australia. This includes:

  • acknowledging and addressing the ongoing impacts of colonisation and discrimination on Indigenous peoples
  • working to create a safe and supportive workplace culture that empowers First Nations employees.

Key actions to create a culturally safe workplace

Did you know?

Creating a culturally safe workplace and promoting an inclusive workplace can lead to increased engagement, productivity, and job satisfaction for all, as well as improved organisational outcomes.

Cultural safety requires all staff to:

  • understand First Nations cultures, histories and perspectives
  • address any unconscious biases, stereotyping, or microaggressions (everyday subtle instances of racism) that may be present in the workplace
  • recognise that cultural safety is a shared responsibility, and that all employees have a role to play in creating and maintaining a culturally safe workplace.

The following actions can help you to create a culturally safe workplace for your employees.

  • Provide cultural awareness training for all employees to increase understanding and appreciation of First Nations cultures and histories.
  • Develop policies and procedures that reflect First Nations perspectives and values, and are designed to support and empower First Nations employees.
  • Ensure First Nations employees are represented at all levels of the organisation, including in leadership positions. When first engaging with First Nations employees, communicate the career paths available to all employees, in addition to any First Nations specific mentor or support programs.
  • Provide opportunities for First Nations employees to engage in cultural activities and to contribute to the development of cultural programs and initiatives and encourage non-Indigenous employees to attend.
  • Involve First Nations employees in decision-making processes that affect them (such as developing Reconciliation Action Plans, First Nations engagement strategies and/or First Nations employment programs).
  • Create a workplace environment that is free from racism, discrimination, and harassment through the communication of workplace values.

Creating cultural safety requires a collective effort and commitment from everyone within a business. By implementing these actions and embracing a culture of cultural safety, you can create a workplace environment that is welcoming, supportive, and empowering for First Nations employees.

Use our checklist to help you start building a culturally safe workplace.

Benefits of cultural awareness

Cultural awareness is about providing your employees with an understanding of the cultures, values and beliefs of people from diverse cultural backgrounds.

Building cultural awareness in the workplace can have significant benefits for both employee wellbeing and business performance.

Benefits for employee wellbeing

Cultural awareness fosters an inclusive environment where employees from both Aboriginal and Torres Strait Islander and other diverse backgrounds feel valued, respected and included. This sense of belonging can reduce feelings of isolation, promote a supportive network and create a positive work atmosphere.

Building cultural awareness helps combat bias, stereotypes and discriminatory practices in the workplace. When you promote understanding and empathy, it contributes to a work environment where Aboriginal and Torres Strait Islander employees feel safe, appreciated and free from discrimination. This fosters psychological safety and promotes overall wellbeing.

Cultural awareness encourages individuals to understand and manage their own emotions as well as recognise and empathise with the emotions of others. Developing emotional intelligence is important for building strong relationships, resolving conflicts and creating a supportive work culture.

Benefits for business performance

A culturally diverse and aware workplace encourages the inclusion of diverse perspectives in decision-making processes and problem-solving. By considering a wide range of viewpoints, you can foster creativity, innovation and adaptability. This leads to the development of unique ideas, improved products or services and a competitive edge in the market.

Cultural awareness facilitates effective collaboration among teams with diverse cultural backgrounds. Employees with cultural competency can navigate cultural differences, communicate effectively and build strong working relationships. This promotes teamwork, cooperation and synergy, resulting in higher productivity and the successful achievement of business goals.

Cultural awareness enables organisations to understand and connect with their diverse customer base more effectively. When employees are culturally sensitive and can adapt their approach to different cultural contexts, they can build stronger customer relationships, anticipate needs and provide tailored solutions. Positive customer relationships lead to customer loyalty, repeat business, and increased revenue.

Cultural awareness is vital for organisations seeking international expansion or partnerships. By understanding and respecting cultural nuances, organisations can navigate global markets successfully, establish fruitful collaborations and seize international business opportunities.

Businesses that prioritise cultural awareness and promote reconciliation create a positive employer brand that attracts top talent. Potential employees that perceive a company as inclusive, respectful of diversity, and committed to cultural awareness are more likely to choose it as their preferred employer.

Cultural awareness training

Cultural awareness training helps individuals and organisations understand  the cultural differences that exist in Australian society, particularly those that relate to First Nations peoples. It is often used by employers to help employees to work more effectively with colleagues and customers from diverse cultural backgrounds. It helps promote respect, empathy and understanding across cultural boundaries.

Cultural awareness training provides non-Indigenous employees and leaders with the opportunity to understand:

  • the cultural differences of First Nations peoples, including practices, beliefs, values and norms
  • the unique lived experiences and cultural identities of individuals, and families
  • the impact of historical policies on First Nations peoples, identity and their communities
  • the best way to engage or build respect and relationships with First Nations peoples.

Cultural awareness training can take different forms, depending on the specific needs and goals of your business. It can be delivered through in-person workshops, online courses or other forms of interactive learning.

What cultural awareness training covers

Cultural awareness training may cover:

  • the histories and cultures of Aboriginal and Torres Strait Islander peoples
  • stereotypes, biases and cultural misunderstandings that can arise in cross-cultural interactions
  • communication styles, nonverbal cues and other cultural differences that can impact workplace relationships
  • strategies for promoting cultural awareness and inclusion in the workplace.

Additionally, a cultural awareness program may include:

  • why cultural awareness is important
  • details on a Welcome to Country versus an Acknowledgement of Country
  • Indigenous history and heritage
  • cultural customs, values, and beliefs including
    • country/land
    • elders/respect
    • kinship
  • modern impact and effects of past policies
  • key issues affecting Indigenous peoples
  • important dates and historically significant dates
  • the benefits of inclusion for all staff.

Cultural awareness training is a key component of efforts to build more inclusive workplaces for First Nations and non-Indigenous employees and to address issues of racism, discrimination and social inequality.

Implementing cultural awareness training

Building  your business's cultural capability starts with the business leadership. Ensure you provide cultural awareness training  to all levels of the organisation. At a minimum, cultural awareness training should be delivered to:

  • leadership (including board level if your business has one)
  • management, supervisors and front line team leaders
  • all staff.

Your workplace policies, such as your codes of conduct, anti-discrimination and anti-racism policies,  and grievance or complaints procedures should support the training.

Where possible, engage an Indigenous business and/or local First Nations community to help design and deliver your training. This ensures the tone and content of the training is culturally appropriate. There are many First Nations businesses that can assist with designing and delivering training.

Cultural awareness training delivered in person, and on country where possible, is likely to have a greater impact on your employees.

Consider the best way to engage your staff and best approach for their needs. You may need to consider a combination of training styles to meet your business's needs, depending on its size and location.

When considering the type of cultural awareness training that meets the needs of your business and employees, consider your small business culture and where you are on your cultural capability journey, from just beginning to develop cultural awareness or enhancing cultural competence, to developing a culturally and psychological safe workplace.

Consider:

  • the delivery method of your training, such as online, in person, or on country
  • involvement of local First Nations communities in the development and delivery of your training
  • the type of activities that may be needed to support the training, such as events that showcase First Nations cultures (e.g. through art, language or food), policies and other practices
  • the investment required to enable the fullest participation of your employees.

Cultural awareness in induction programs

Consider including cultural awareness in your workforce induction program. This can provide a better understanding of cultural heritage, especially for those organisations working directly with the land, on Country, such as those in the mining, resources and construction industries.

A cultural awareness induction program should include, as a minimum:

  • a Welcome to Country video from a Traditional Owner/Elder or Acknowledgement of Country
  • important information about the local Traditional Owners of the land/country
  • what the Traditional Owners expect from the visitors who are working on their land/country.

First Nations engagement across your business

Improving engagement with First Nations peoples in all aspects of your business, including your supply chain and subcontractors, will help build your organisation's cultural competence.

Developing stronger community relationships and identifying opportunities to undertake meaningful consultation and engagement takes time and is part of building a culturally safe and diverse environment.

Ways to engage with First Nations peoples

Read about how you can engage First Nations peoples across all aspects of your business.

By understanding the perspectives, priorities and needs of First Nations peoples, you can develop strategies and initiatives that align with their values and aspirations.

Consultation should involve open dialogue, active listening and mutual respect.

Consider working with local First Nations communities to help educate your employees about Reconciliation week, NAIDOC week or other culturally significant events.

This can involve subcontracting agreements or supply chain partnerships.

By including First Nations businesses in the value chain, you can:

  • support economic empowerment
  • create employment opportunities
  • promote capacity building within First Nations communities.

Establish targets or preferences for the use of First Nations businesses. These policies can contribute to economic development, job creation, and a more inclusive supply chain. This will help First Nations people and businesses to have equal access to opportunities with your business.

Include your business partners, such as subcontractors and suppliers, in cultural awareness and sensitivity training. This training should focus on fostering understanding, respect and appreciation for Indigenous cultures, histories and protocols.

By enhancing cultural competency of your supply chain, you can create a more inclusive and respectful work environment that values and celebrates the contributions of First Nations peoples.

Community investment and reinvestment practices that benefit First Nations communities can include:

  • financial contributions
  • sponsorships
  • partnerships with community development projects, educational initiatives or cultural preservation programs.

By supporting community development, you can create long-term relationships based on shared values and mutual benefits.

Improving engagement with First Nations peoples involves building relationships and partnerships, promoting inclusion and diversity, and supporting economic empowerment.

You can formalise these activities by developing a First Nations engagement strategy and/or Reconciliation Action Plan.

Developing a First Nations engagement strategy

To demonstrate a commitment to engaging with First Nations people and reconciliation, your organisation may consider developing a First Nations engagement strategy and/or Reconciliation Action Plan (RAP).

An engagement strategy can help ensure First Nations people and community stakeholders have a genuine say in decision-making processes that affect their lives and wellbeing.

First Nations engagement strategies can:

  • build trust and relationships with communities
  • improve the effectiveness of your community engagements and provide a framework for your business to actively engage in the community
  • ensure that First Nations voices are heard and respected.

What to include in a First Nations engagement strategy

A First Nations engagement strategy is a plan for how your business will engage with First Nations communities. It should be tailored to the specific needs and priorities of your business and the communities you work with.

Start with a clear vision for how you want to engage with First Nations communities. It should be based on respect, partnership and self-determination.

Set specific goals for engagement, such as:

  • increasing the employment and participation of First Nations peoples
  • working with First Nations businesses
  • improving outcomes for First Nations communities
  • building trust and relationships with First Nations communities.

Outline the specific engagement approach you'll take. This may include:

  • using culturally appropriate methods
  • building relationships with community leaders
  • developing First Nations employment and/or supply chain programs
  • providing opportunities for First Nations peoples to participate in decision-making.

Include a timeline for implementation and a plan for how you'll allocate resources for engagement. This will help to ensure engagement is a priority and that you have the resources to be successful.

Develop a plan for how you will measure success by monitoring and evaluating your engagement efforts. This will ensure you are meeting your goals and making progress in building trust and relationships with First Nations communities.

As well as these common elements, there are several other factors you should consider when developing a First Nations engagement strategy, such as :

  • cultural context – be sensitive to the cultural context of the First Nations communities that you work with and understand the community's values, traditions and protocols
  • history of engagement – consider the history of engagement between your business and First Nations communities to help you identify any challenges or barriers to address
  • needs and priorities of the community – base your strategy on the needs and priorities of the First Nations communities you work with to ensure your engagement is meaningful and productive.

Reconciliation Action Plan

Reconciliation Australia has developed a reconciliation framework to support businesses wanting to demonstrate a commitment to First Nations peoples and reconciliation. It is based on 5 interrelated dimensions:

  • race relations
  • equality and equity
  • institutional integrity
  • unity
  • historical acceptance.

A Reconciliation Action Plan (RAP) is a strategic document that sets out how your business is committing to contribute to reconciliation with Aboriginal and Torres Strait Islander peoples.

Use a RAP to embed reconciliation into your business's culture, policies and practices. Like a First Nations engagement strategy, tailor your RAP to the specific needs and priorities of your business and your community.

Learn more about reconciliation and how to develop a RAP.

Benefits of developing a RAP

  • Increased awareness of First Nations culture and history: A RAP can help to raise awareness of Aboriginal and Torres Strait Islander culture and history among your employees, customers and stakeholders. This can lead to greater understanding and respect for First Nations peoples.
  • Improved relationships with First Nations communities: A RAP can help to build stronger relationships between your business and Aboriginal and Torres Strait Islander communities. This can lead to more effective partnerships and collaboration.
  • Increased opportunities for First Nations peoples: RAPs can help to increase opportunities for Aboriginal and Torres Strait Islander peoples in employment, education and business. This can help to close the gap between Indigenous and non-Indigenous Australians.
  • Improved outcomes for First Nations peoples: A RAP can help to improve outcomes for Aboriginal and Torres Strait Islander peoples in areas such as health, education and employment. This can help to build a more just and equitable society for all Australians.

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  • Last reviewed: 16 Feb 2024
  • Last updated: 16 Feb 2024