This report points to recent social, economic, and technological changes in Canadian society that have produced significant challenges to higher education, and provides recommendations for improving the educational climate of higher education institutions and classrooms. It presents background information on positive learning environments and suggests ways educational administrators and faculty can create climates based on mutual respect. To promote positive learning environments, institutions need to form committees that include people from all sectors of the institution, analyze the culture of the organization, examine the literature and evaluate existing policies, decide what would work best within the budget, determine timelines, and create a plan of action. Faculty should promote a positive learning climate in the classroom by getting to know students, celebrating student diversity, distributing and following well-organized syllabi, building student self-esteem, creating team spirit, and paying attention to the dynamics of class discussions. (Contains 32 references.) (MDM)