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11
Intercultural	
  Rela,ons	
  Class	
  
Westwood	
  College	
  
Instructor:	
  Sonara	
  Carter-­‐Barber,	
  MS,	
  ATMB,	
  PhD	
  Candidate	
  
scarterbarber@westwood.edu	
  
	
  
	
  
	
  
Bronwen	
  E.	
  Madden	
  
Guest	
  Presenter	
  
April	
  27,	
  2013	
  
hKp://www.LACITD.org	
  
22
Source:	
  hKp://wws.peacecorps.gov/wws/mul,media/videos/culturalgaffes/	
  
Introductory	
  Video:	
  Cultural	
  Gaffes	
  
3
¢ Group/community	
  
¢ Common	
  experiences	
  
¢ Heritage	
  
¢ Par,cipatory	
  inclusion	
  
¢ Socially	
  accepted	
  behaviors,	
  values,	
  
beliefs,	
  and	
  standards 3
What	
  is	
  Culture?	
  
4
“Culture	
  refers	
  to	
  the	
  socially	
  transmiKed	
  values,	
  beliefs	
  and	
  
symbols	
  that	
  are	
  more	
  or	
  less	
  shared	
  by	
  members	
  of	
  a	
  social	
  
group.”	
  	
  
Kevin	
  Avruch,	
  Culture	
  as	
  Context	
  	
  
	
  
“Culture	
  is	
  a	
  common	
  system	
  of	
  knowledge	
  and	
  experiences	
  
that	
  result	
  in	
  a	
  set	
  of	
  rules	
  or	
  standards;	
  these	
  rules	
  and	
  
standards	
  in	
  turn	
  result	
  in	
  behavior	
  and	
  beliefs	
  that	
  the	
  group	
  
considers	
  acceptable.”	
  	
  
Pat	
  K.	
  Chew,	
  The	
  Pervasiveness	
  of	
  Culture	
  in	
  Conflict	
  	
  
4
5
• Beliefs (superstitions)
• Corporate (“the Toyota way”)
• Country / Region
• Economic
• Education
• Ethnicity
• Faith
• Food
• Generation
• Interests (i.e., music, art…)
• Language
• Political
• Social
Culture	
  Defined	
  
It is what makes us unique and interesting and at times, causes misunderstanding
Culture	
  is	
  important	
  in	
  business	
  so	
  we	
  understand	
  how	
  to	
  effec,vely	
  communicate	
  and	
  
produce	
  produc,ve	
  rela,onships.	
  	
  
	
  
First	
  –	
  Understand	
  your	
  own	
  culture.	
  Know	
  your	
  history	
  and	
  your	
  business	
  style.	
  	
  
Generally	
  most	
  of	
  us	
  do	
  this	
  naturally	
  without	
  thought;	
  become	
  aware	
  of	
  your	
  ac,ons.	
  
	
  
Examples:	
  	
  
Did	
  you	
  know	
  that	
  in	
  the	
  United	
  States	
  a	
  woman	
  must	
  first	
  extend	
  her	
  hand	
  to	
  engage	
  in	
  a	
  handshake	
  
with	
  a	
  male	
  or	
  else	
  it	
  is	
  considered	
  to	
  be	
  rude	
  (but	
  this	
  is	
  opposite	
  in	
  other	
  parts	
  of	
  the	
  world)?	
  Do	
  you	
  
stop	
  to	
  think	
  about	
  this	
  or	
  do	
  we	
  naturally	
  act	
  out	
  of	
  habit	
  which	
  we	
  maybe	
  unconsciously	
  learned?	
  
	
  
In	
  Mexico,	
  it	
  is	
  considered	
  rude	
  to	
  throw	
  your	
  cash	
  on	
  the	
  counter	
  when	
  checking	
  out	
  at	
  a	
  retail	
  store;	
  
you	
  must	
  hand	
  it	
  to	
  the	
  salesperson.	
  No	
  maKer	
  how	
  “cultured”	
  U.S.	
  business	
  people	
  are,	
  I	
  see	
  this	
  
mistake	
  take	
  place	
  over	
  and	
  over.	
  	
  
	
  
In	
  Korea,	
  it	
  is	
  rude	
  to	
  show	
  the	
  boKom	
  of	
  your	
  cup	
  when	
  taking	
  a	
  drink	
  to	
  someone	
  above	
  you	
  in	
  
hierarchy.	
  Do	
  you	
  learn	
  this	
  in	
  business	
  school	
  or	
  from	
  experience?	
  
Why	
  is	
  Culture	
  Important?	
  
7
¢ Mul,	
  Ac,ve	
  	
  
¢ Linear	
  Ac,ve	
  
¢ Reac,ve	
  
Many	
  cultures	
  are	
  a	
  mix,	
  but	
  tend	
  to	
  
dominate	
  in	
  one	
  or	
  two	
  categories	
  
_______________________________________________________________________________	
  
Richard	
  D.	
  Lewis,	
  When	
  Cultures	
  Collide	
  (1996)	
  
	
  
Cultural	
  Types	
  by	
  Lewis	
  
8
The	
  Lewis	
  Model	
  
8
9
The	
  Lewis	
  Model	
  
9
10
¢ Low	
  Context	
  
Explicitly	
  communicated	
  verbally	
  and	
  in	
  contractual	
  agreements	
  (very	
  
direct).	
  This	
  can	
  be	
  viewed	
  as	
  being	
  rude.	
  	
  
¢ High	
  Context	
  
Physical	
  context	
  or	
  ini,alized	
  in	
  the	
  person;	
  body	
  language	
  and	
  unspoken	
  gestures	
  
(very	
  indirect).	
  This	
  can	
  be	
  viewed	
  as	
  confusing.	
  	
  
_____________________________________________	
  
Edward	
  T.	
  Hall,	
  Beyond	
  Culture	
  (1989)	
  
	
  
10
Hall’s	
  Communica,on	
  Style	
  
11
¢ Monochronic	
  Time	
  
Schedules,	
  segmenta,on,	
  and	
  promptness	
  
¢ Polychronic	
  Time	
  
Characterized	
  by	
  several	
  things	
  happening	
  at	
  once	
  
Quiz	
  yourself:	
  
hKp://x.digitalavenues.com/uploads/mediafiles/dynamic/innovint/toyota_0/	
  	
  
_____________________________________________	
  
Edward	
  T.	
  Hall,	
  Beyond	
  Culture	
  (1989)	
  
	
  
11
Hall’s	
  Time	
  Orienta,on	
  
12
¢ Power	
  Distance	
  
¢ Individualism	
  
¢ Masculinity	
  
_______________________________________	
  
Geert	
  Hofstede,	
  Culture’s	
  Consequenses:	
  	
  Comparing	
  
Values,	
  Behaviors,	
  InsBtuBons,	
  and	
  OrganizaBons	
  
Across	
  NaBons	
  (2001)	
  
	
  
12
Hofstede’s	
  Cultural	
  Constructs	
  
¢ Uncertainty	
  Avoidance	
  
¢ Long	
  term	
  Orienta,on	
  
¢ Indulgence	
  vs.	
  Restraint	
  	
  
	
  
Cultural	
  Awareness	
  
14
¢ Individualists	
  
Group	
  goals	
  are	
  subordinate	
  to	
  personal	
  goals,	
  the	
  individual	
  is	
  the	
  core	
  of	
  
the	
  social	
  unit,	
  independence	
  and	
  personal	
  achievement	
  are	
  highly	
  valued,	
  
discipline	
  is	
  loose,	
  tend	
  to	
  cherish	
  their	
  freedoms,	
  make	
  independent	
  
decisions,	
  and	
  value	
  directness	
  and	
  strive	
  to	
  stand	
  out	
  (mostly	
  Westerners:	
  
US,	
  Western	
  Europe,	
  Canada,	
  Australia)	
  	
  	
  	
  
¢ Collec,vists	
  
Personal	
  goals	
  are	
  subordinate	
  to	
  group	
  goals,	
  family	
  and	
  employment	
  
organiza,ons	
  are	
  the	
  core	
  of	
  the	
  social	
  unit,	
  duty	
  harmony,	
  politeness,	
  and	
  
modesty	
  are	
  very	
  important	
  with	
  high	
  discipline	
  and	
  individuals	
  should	
  not	
  stand	
  
out.	
  (Asia,	
  Eastern	
  Europe,	
  La,n	
  America)	
  
	
  
14
Individualism	
  vs.	
  Collec,vism	
  
15
Hapden-­‐Turner	
  &	
  Trompenaars	
  
Cross-­‐Cultural	
  Competence	
  
¢ Universalism	
  Vs.	
  Par,cularism	
  
¢ Specificity	
  Vs.	
  Diffusion	
  
¢ Status:	
  	
  Achieved	
  Vs.	
  Ascribed	
  
¢ Inner	
  Vs.	
  Outer	
  Direc,on	
  
¢ Sequen,al	
  Vs.	
  Synchronous	
  ,me	
  
_____________________________________________	
  
Charles	
  M.	
  Hapden-­‐Turner	
  &	
  Fons	
  Trompenaars,	
  
Building	
  Cross-­‐Cultural	
  Competence	
  (2000)	
  
15
16
Kluckhon	
  &	
  Strodbeck	
  Value	
  
Orienta,ons	
  
¢ Human	
  Nature:	
  	
  Good	
  Vs.	
  Evil	
  
¢ Man	
  Vs.	
  Nature	
  Orienta,on	
  
¢ Ac,vity	
  Orienta,on:	
  	
  Being	
  Vs.	
  Doing	
  
_________________________________________	
  
Florence	
  Rockwood	
  Kluckhon	
  &	
  Fred	
  L.	
  Strodbeck,	
  
VariaBons	
  in	
  Value	
  OrientaBons	
  (1961)	
  	
   16
17
¢ Rela,onship-­‐based	
  Vs.	
  Rule-­‐based	
  
¢ Sociocentric	
  Vs.	
  Egocentric	
  
¢ Emo,onally	
  Neutral	
  Vs.	
  Expressive	
  	
  
¢ Technology	
  Vs.	
  Nurturing	
  
¢ Harmony	
  Vs.	
  Mastery	
  
17
Cultural	
  Variances	
  
18
¢ Poli,cal	
  Environment	
  	
  
Government	
  stability,	
  public	
  goods	
  available	
  for	
  business…	
  
¢ Economic	
  Environment	
  	
  
Income	
  levels,	
  demand,	
  exchange	
  rate	
  risk,	
  etc.	
  	
  
¢ Social	
  Environment	
  	
  
Cultural	
  acceptance	
  and	
  idiosyncrasies	
  
	
  
Comfort	
  Market:	
  a	
  market	
  in	
  which	
  you	
  understand	
  the	
  culture	
  and	
  the	
  local	
  
business	
  nuances.	
  	
   18
Environment	
  
19
¢ Differences	
  That	
  Make	
  A	
  Difference	
  	
  
Language,	
  Religion,	
  Tastes,	
  Business	
  Prac,ces,	
  Income	
  Levels,	
  Product	
  
Standards,	
  Physical	
  Environments,	
  and	
  Legal	
  Requirements	
  
¢ Adapta,ons	
  Worth	
  Considering	
  	
  
To	
  the	
  Product,	
  Promo,onal	
  Materials	
  and	
  Packaging	
  
StandardizaBon	
  Vs.	
  LocalizaBon	
  
19
Market	
  Considera,ons	
  
20
¢ Economic	
  Freedom	
  
hKp://www.heritage.org/index	
  	
  
¢ Global	
  Compe,,veness	
  
hKp://www.weforum.org/issues/global-­‐compe,,veness	
  	
  
¢ Global	
  Peace	
  Index	
  	
  
hKp://www.visionojumanity.org	
  
20
Indices	
  
21
¢ Sell directly to end-users (short term)
¢ Sell through an intermediary – an agent or
distributor (long-term)
¢ Hire staff overseas (comply with local
employment laws)
¢ Establish office overseas (investment)
¢ Establish Joint Venture (JV) or subsidiaries
abroad (investment)
21
Distribu,on	
  Channels	
  
22
¢ Should	
  I	
  conduct	
  a	
  background	
  check?	
  
¢ Should	
  our	
  agreement	
  be	
  in	
  wri,ng?	
  
¢ At	
  what	
  point	
  do	
  you	
  bring	
  out	
  the	
  contracts?	
  
(lawyers	
  vs.	
  pracBcal	
  businessman)	
  
Rela,onships	
  =	
  business;	
  trust	
  =	
  partnerships	
  
_______________________________________________________________________________	
  
Roger	
  B.	
  Myerson,	
  GeOng	
  to	
  YES	
  (1996)	
  -­‐	
  The	
  Nash	
  
Equilibrium	
  by	
  John	
  Forbes	
  Nash	
  
22
BATNA	
  
Best	
  Alterna7ve	
  To	
  a	
  Nego7ated	
  Agreement	
  
Don’t	
  accept	
  anything	
  less!	
  
	
  
23
¢ Become	
  educated	
  
¢ Hire	
  staff	
  
¢ Travel	
  
	
  
Cultural	
  miscommunica,on	
  is	
  the	
  main	
  reason	
  for	
  business	
  nego,a,ons	
  to	
  
fail.	
  Lack	
  of	
  cultural	
  prepara,on	
  is	
  the	
  main	
  reason	
  for	
  ex-­‐pat	
  failure.	
  For	
  
culture	
  to	
  be	
  engrained,	
  it	
  is	
  typically	
  experienced	
  rather	
  than	
  learned.	
  	
   23
Mi,gate	
  Cultural	
  
Miscommunica,on	
  
2424
Cultural	
  Summary	
  -­‐	
  USA	
  
“Guanxi”	
  literally	
  means	
  "rela,onships“	
  and	
  in	
  the	
  Chinese	
  business	
  world	
  it	
  is	
  
also	
  understood	
  as	
  the	
  network	
  of	
  rela,onships	
  among	
  various	
  par,es	
  that	
  
cooperate	
  together	
  and	
  support	
  one	
  another.	
  In	
  essence,	
  this	
  boils	
  down	
  to	
  
exchanging	
  favors,	
  which	
  are	
  expected	
  to	
  be	
  done	
  regularly	
  and	
  voluntarily.	
  
Therefore,	
  it	
  is	
  an	
  important	
  concept	
  to	
  understand	
  if	
  one	
  is	
  to	
  func,on	
  effec,vely	
  
in	
  Chinese	
  society.	
  	
  
	
  
Avoid	
  the	
  American	
  stereotype	
  of	
  self-­‐interest,	
  quick	
  profit	
  and	
  abandonment.	
  
Rela,onships	
  are	
  NOT	
  project-­‐based,	
  they	
  are	
  life-­‐long.	
  Show	
  an	
  earnest	
  
commitment	
  to	
  the	
  interests	
  of	
  the	
  community,	
  not	
  just	
  your	
  bank	
  account.	
  	
  
	
  
Example:	
  Cummins	
  -­‐	
  power	
  genera,on	
  equipment,	
  power	
  systems,	
  gasoline	
  
engines,	
  custom	
  power	
  supplies;	
  paints	
  elementary	
  schools	
  on	
  the	
  weekends	
  but	
  
does	
  not	
  boast	
  about	
  it.	
  	
  
hKp://chinese-­‐school.neoirms.com/guanxi.html	
  	
  
Guanxi	
  
26
¢ CANNOT	
  “influence	
  a	
  decision”	
  (bribery)	
  
¢ Okay	
  to	
  expedite	
  ac,vity	
  or	
  incen,vize	
  service	
  (,ps)	
  
¢ Keep	
  ,ps/giqs	
  to	
  low	
  value	
  ($20	
  or	
  less	
  for	
  U.S.	
  
government	
  officials)	
  
___________________________________	
  
The	
  Foreign	
  Corrupt	
  Prac,ces	
  Act	
  of	
  1977	
  (FCPA)	
  is	
  a	
  United	
  States	
  federal	
  law	
  known	
  
primarily	
  for	
  two	
  of	
  its	
  main	
  provisions,	
  one	
  that	
  addresses	
  accoun,ng	
  transparency	
  
requirements	
  under	
  the	
  Securi,es	
  Exchange	
  Act	
  of	
  1934	
  and	
  another	
  concerning	
  
bribery	
  of	
  foreign	
  officials.	
  	
  
26
Foreign	
  Corrupt	
  Prac,ces	
  Act	
  
Department of Justice, Criminal Division, Fraud Section
Attention: FCPA Coordinator
FCPA.Fraud@usdoj.gov / http://www.usdoj.gov/criminal/fraud/fcpa/
California	
  Country	
  Contacts	
  
hKp://www.calchamber.com/interna,onal/contacts/pages/countrycontacts.aspx	
  	
  
29
¢ Introduc,ons	
  
¢ Appointment	
  	
  
¢ Business	
  Dress	
  
¢ Conversa,on	
  
¢ First	
  Name	
  or	
  Title	
  
¢ Giq	
  Giving	
   29
¢ Nego,a,on	
  
¢ Entertaining	
  
Social	
  E,queKe	
  
3030
Color	
  Supers,,on	
  
Color	
   Lucky/Popular	
   Unlucky/Unpopular	
  
Black	
   All	
  Asia-­‐Pacific	
  Cultures	
  
White	
   China,	
  Japan,	
  Vietnam	
  
Red	
   China,	
  Japan,	
  Philippines,	
  
South	
  Korea,	
  Thailand,	
  
Vietnam	
  
Names	
  and	
  red	
  ink;	
  China,	
  
Japan,	
  South	
  Korea	
  
Blue	
   South	
  Korea	
   China	
  
Gold	
   Asian	
  Cultures	
   On	
  leaves:	
  Japan	
  
Green	
   Philippines,	
  Vietnam	
   Japan;	
  Don’t	
  wear	
  a	
  green	
  
hat	
  in	
  China	
  
Yellow	
   All	
  Asia-­‐Pacific	
  Cultures	
   Personal	
  wear:	
  Malaysia	
  
Purple	
   China	
  
3131
Number	
   Lucky/Popular	
   Unlucky/Unpopular	
  
0	
   Philippines	
  
3	
   All	
  Asia-­‐Pacific	
  Cultures	
  
4	
   China,	
  Japan,	
  South	
  Korea	
  
5	
   South	
  Korea	
  
6	
   China	
   Thailand,	
  Vietnam	
  
7	
   Western	
  Countries,	
  Japan,	
  South	
  Korea	
  	
  
8	
   China,	
  Japan,	
  Philippines,	
  Vietnam	
  
9	
   China,	
  South	
  Korea,	
  Vietnam	
  
10	
   Vietnam	
  
13	
   All	
  Asia-­‐Pacific	
  Cultures	
  
Number	
  Supers,,on	
  
Japan
South Korea
China
Singapore
Hong Kong
Canada
USA
Australia
Very High
High
Moderately High
Moderate
Moderate
Moderately Low
Low
Very Low
Most Formal
Least Formal
Formality	
  Factor	
  
33
¢ Percep,ons	
  
¢ Behavior	
  
¢ Communica,on	
  
¢ Management	
  
¢ Nego,a,on/decision-­‐making	
  
¢ Rela,ons	
  (your	
  business	
  base)	
   33
Business	
  Implica,ons	
  
34
¢ Date/,me/loca,on	
  
¢ Décor	
  (flags,	
  flowers)	
  
¢ Contact	
  person	
  
(including	
  mobile	
  #)	
  
¢ Mee,ng	
  par,cipants	
  
list	
  with	
  ,tles	
  
¢ Objec,ves/goals	
  
34
¢ Talking	
  points	
  
¢ Dress	
  	
  
¢ Sea,ng	
  chart	
  
¢ Giq	
  
Business	
  Mee,ng	
  Best	
  Prac,ces	
  
35
¢ McCaffrees	
  book	
  Protocol	
  
¢ Holberg’s	
  book	
  Forms	
  of	
  Address	
  
¢ CultureGrams®	
  	
  
¢ Execu,vePlanet.com	
  guides	
  
Many	
  others…The	
  four	
  listed	
  are	
  well-­‐known	
  authori,es	
  on	
  culture	
  and	
  protocol;	
  
however,	
  there	
  are	
  a	
  variety	
  of	
  resources	
  available	
  including	
  the	
  Dos	
  and	
  Taboos	
  
Around	
  the	
  World,	
  Kiss	
  Bow	
  or	
  Shake	
  Hands,	
  Business	
  Strategies	
  Interna,onal	
  Keys	
  to	
  
Success,	
  Kwintessen,al	
  Global	
  Guides,	
  etc.	
  
	
  
35
Cultural	
  Protocol	
  Resources	
  
Giq	
  Giving	
  
Selec,ng	
  and	
  presen,ng	
  an	
  appropriate	
  business	
  giq	
  	
  
Let's	
  Make	
  a	
  Deal!	
  
What	
  you	
  should	
  know	
  before	
  you	
  nego,ate;	
  
Intermediaries,	
  protocols,	
  and	
  the	
  nego,a,ng	
  process	
  	
  
Prosperous	
  Entertaining	
  
General	
  ,ps,	
  ea,ng	
  and	
  drinking;	
  Ea,ng	
  cont'd	
  and	
  
business	
  entertaining;	
  Social	
  entertaining	
  	
  
Public	
  Behavior	
  
Acceptable	
  public	
  conduct	
  	
  
About	
  	
  
Introduc,on,	
  geography,	
  climate,	
  and	
  popula,on	
  	
  
Demographic	
  profile,	
  government	
  and	
  poli,cal	
  structure	
  	
  
Economy	
  and	
  entrance	
  requirements	
  	
  
Appointment	
  Alert!	
  
Making	
  appointments	
  	
  
Business	
  Dress	
  
Guidelines	
  for	
  business	
  dress	
  	
  
Conversa,on	
  
General	
  guidelines;	
  Welcome	
  topics	
  of	
  conversa,on;	
  
Topics	
  to	
  avoid	
  in	
  conversa,on	
  	
  
First	
  Name	
  or	
  Title?	
  
Addressing	
  others	
  with	
  respect	
  	
  
Execu,ve	
  Planet	
  Guides	
  -­‐	
   Outline	
  
hKp://execu,veplanet.com	
  	
  
37
¢ Self-­‐awareness	
  	
  
¢ Awareness	
  of	
  others	
  
[Distribute	
  CultureGrams]	
  
37
All	
  About	
  Understanding	
  
Los	
  Angeles	
  Center	
  for	
  Interna7onal	
  Trade	
  Development	
  	
  
Hosted	
  by	
  El	
  Camino	
  College	
  
	
  
Bronwen	
  E.	
  Madden,	
  Ac,ng	
  Director	
  
El	
  Camino	
  College	
  Business	
  Training	
  Center	
  
13430	
  Hawthorne	
  Boulevard	
  
Hawthorne,	
  California	
  90250	
  USA	
  
www.LACITD.org	
  
bmadden@elcamino.edu	
  
	
  
Appointment	
  Line:	
  (310)	
  973-­‐3177	
  
Fax	
  Number:	
  (310)	
  973-­‐3132	
  
Contact	
  
Quiz	
  
What	
  is	
  the	
  belief	
  that	
  your	
  own	
  group	
  culture	
  is	
  superior	
  to	
  other	
  
groups	
  or	
  cultures?	
  
	
  
(A)	
  egocentrism	
  
(B)	
  ethnocentrism	
  
(C)	
  cultural	
  rela,vism	
  
(D)	
  Stereotyping	
  
	
  
	
  
___________________________________________________________	
  
Source:	
  McGraw-­‐Hill	
  Higher	
  Educa,on	
  ,	
  Human,	
  CommunicaBon	
  Third	
  
EdiBon	
  (2008)	
  
hKp://highered.mcgraw-­‐hill.com/sites/0073385018/student_view0/
chapter7/mul,ple_choice_quiz.html	
  	
  
	
  
Quiz	
  
People	
  from	
  _____________	
  cultures	
  rely	
  heavily	
  on	
  situa,onal	
  cues	
  for	
  
meaning.	
  
	
  	
  
	
  (A)	
  high-­‐context	
  
	
  (B)	
  low-­‐context	
  
	
  (C)	
  monochronic	
  
	
  (D)	
  universalist	
  
	
  (E)	
  rela,vist	
  
	
  
___________________________________________________________	
  
Source:	
  McGraw-­‐Hill	
  Higher	
  Educa,on	
  ,	
  Human,	
  CommunicaBon	
  Third	
  
EdiBon	
  (2008)	
  
hKp://highered.mcgraw-­‐hill.com/sites/0073385018/student_view0/
chapter7/mul,ple_choice_quiz.html	
  	
  
	
  
Quiz	
  
The	
  Germans	
  have	
  a	
  _____________	
  culture.	
  
	
  	
  
	
  (A)	
  universalis,c	
  
	
  (B)	
  rela,vist	
  
	
  (C)	
  low-­‐context	
  
	
  (D)	
  high-­‐context	
  
	
  (E)	
  collec,vist	
  
	
  
	
  
___________________________________________________________	
  
Source:	
  McGraw-­‐Hill	
  Higher	
  Educa,on	
  ,	
  Human,	
  CommunicaBon	
  Third	
  
EdiBon	
  (2008)	
  
hKp://highered.mcgraw-­‐hill.com/sites/0073385018/student_view0/
chapter7/mul,ple_choice_quiz.html	
  	
  
	
  
Quiz	
  
People	
  from	
  _____________	
  cultures	
  tend	
  to	
  place	
  greater	
  emphasis	
  on	
  
community	
  goals	
  and	
  subordinate	
  their	
  own	
  wishes	
  and	
  goals.	
  
	
  
	
  (A)	
  monochronic	
  
	
  (B)	
  rela,vist	
  
	
  (C)	
  low-­‐context	
  
	
  (D)	
  heterogeneous	
  
	
  (E)	
  collec7vist	
  
	
  
___________________________________________________________	
  
Source:	
  McGraw-­‐Hill	
  Higher	
  Educa,on	
  ,	
  Human,	
  CommunicaBon	
  Third	
  
EdiBon	
  (2008)	
  
hKp://highered.mcgraw-­‐hill.com/sites/0073385018/student_view0/
chapter7/mul,ple_choice_quiz.html	
  	
  
	
  
Quiz	
  
People	
  in	
  polychronic	
  cultures	
  view	
  ,me	
  as	
  
	
  	
  
	
  (A)	
  linear	
  
	
  (B)	
  standardized	
  
	
  (C)	
  precise	
  
	
  (D)	
  mul7dimensional	
  
	
  (E)	
  inelas,c	
  
	
  
	
  
___________________________________________________________	
  
Source:	
  McGraw-­‐Hill	
  Higher	
  Educa,on	
  ,	
  Human,	
  CommunicaBon	
  Third	
  
EdiBon	
  (2008)	
  
hKp://highered.mcgraw-­‐hill.com/sites/0073385018/student_view0/
chapter7/mul,ple_choice_quiz.html	
  	
  
	
  
Quiz	
  
Someone	
  from	
  England	
  is	
  likely	
  to	
  require	
  greater	
  interpersonal	
  space	
  
than	
  someone	
  from	
  
	
  	
  
	
  (A)	
  	
  Korea	
  
	
  (B)	
  	
  U.S.	
  
	
  (C)	
  	
  Canada	
  
	
  (D)	
  	
  Switzerland	
  
	
  (E)	
  	
  Germany	
  
	
  
___________________________________________________________	
  
Source:	
  McGraw-­‐Hill	
  Higher	
  Educa,on	
  ,	
  Human,	
  CommunicaBon	
  Third	
  
EdiBon	
  (2008)	
  
hKp://highered.mcgraw-­‐hill.com/sites/0073385018/student_view0/
chapter7/mul,ple_choice_quiz.html	
  	
  
	
  

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Cultural Language of Business

  • 1. 11 Intercultural  Rela,ons  Class   Westwood  College   Instructor:  Sonara  Carter-­‐Barber,  MS,  ATMB,  PhD  Candidate   scarterbarber@westwood.edu         Bronwen  E.  Madden   Guest  Presenter   April  27,  2013   hKp://www.LACITD.org  
  • 3. 3 ¢ Group/community   ¢ Common  experiences   ¢ Heritage   ¢ Par,cipatory  inclusion   ¢ Socially  accepted  behaviors,  values,   beliefs,  and  standards 3 What  is  Culture?  
  • 4. 4 “Culture  refers  to  the  socially  transmiKed  values,  beliefs  and   symbols  that  are  more  or  less  shared  by  members  of  a  social   group.”     Kevin  Avruch,  Culture  as  Context       “Culture  is  a  common  system  of  knowledge  and  experiences   that  result  in  a  set  of  rules  or  standards;  these  rules  and   standards  in  turn  result  in  behavior  and  beliefs  that  the  group   considers  acceptable.”     Pat  K.  Chew,  The  Pervasiveness  of  Culture  in  Conflict     4
  • 5. 5 • Beliefs (superstitions) • Corporate (“the Toyota way”) • Country / Region • Economic • Education • Ethnicity • Faith • Food • Generation • Interests (i.e., music, art…) • Language • Political • Social Culture  Defined   It is what makes us unique and interesting and at times, causes misunderstanding
  • 6. Culture  is  important  in  business  so  we  understand  how  to  effec,vely  communicate  and   produce  produc,ve  rela,onships.       First  –  Understand  your  own  culture.  Know  your  history  and  your  business  style.     Generally  most  of  us  do  this  naturally  without  thought;  become  aware  of  your  ac,ons.     Examples:     Did  you  know  that  in  the  United  States  a  woman  must  first  extend  her  hand  to  engage  in  a  handshake   with  a  male  or  else  it  is  considered  to  be  rude  (but  this  is  opposite  in  other  parts  of  the  world)?  Do  you   stop  to  think  about  this  or  do  we  naturally  act  out  of  habit  which  we  maybe  unconsciously  learned?     In  Mexico,  it  is  considered  rude  to  throw  your  cash  on  the  counter  when  checking  out  at  a  retail  store;   you  must  hand  it  to  the  salesperson.  No  maKer  how  “cultured”  U.S.  business  people  are,  I  see  this   mistake  take  place  over  and  over.       In  Korea,  it  is  rude  to  show  the  boKom  of  your  cup  when  taking  a  drink  to  someone  above  you  in   hierarchy.  Do  you  learn  this  in  business  school  or  from  experience?   Why  is  Culture  Important?  
  • 7. 7 ¢ Mul,  Ac,ve     ¢ Linear  Ac,ve   ¢ Reac,ve   Many  cultures  are  a  mix,  but  tend  to   dominate  in  one  or  two  categories   _______________________________________________________________________________   Richard  D.  Lewis,  When  Cultures  Collide  (1996)     Cultural  Types  by  Lewis  
  • 10. 10 ¢ Low  Context   Explicitly  communicated  verbally  and  in  contractual  agreements  (very   direct).  This  can  be  viewed  as  being  rude.     ¢ High  Context   Physical  context  or  ini,alized  in  the  person;  body  language  and  unspoken  gestures   (very  indirect).  This  can  be  viewed  as  confusing.     _____________________________________________   Edward  T.  Hall,  Beyond  Culture  (1989)     10 Hall’s  Communica,on  Style  
  • 11. 11 ¢ Monochronic  Time   Schedules,  segmenta,on,  and  promptness   ¢ Polychronic  Time   Characterized  by  several  things  happening  at  once   Quiz  yourself:   hKp://x.digitalavenues.com/uploads/mediafiles/dynamic/innovint/toyota_0/     _____________________________________________   Edward  T.  Hall,  Beyond  Culture  (1989)     11 Hall’s  Time  Orienta,on  
  • 12. 12 ¢ Power  Distance   ¢ Individualism   ¢ Masculinity   _______________________________________   Geert  Hofstede,  Culture’s  Consequenses:    Comparing   Values,  Behaviors,  InsBtuBons,  and  OrganizaBons   Across  NaBons  (2001)     12 Hofstede’s  Cultural  Constructs   ¢ Uncertainty  Avoidance   ¢ Long  term  Orienta,on   ¢ Indulgence  vs.  Restraint      
  • 14. 14 ¢ Individualists   Group  goals  are  subordinate  to  personal  goals,  the  individual  is  the  core  of   the  social  unit,  independence  and  personal  achievement  are  highly  valued,   discipline  is  loose,  tend  to  cherish  their  freedoms,  make  independent   decisions,  and  value  directness  and  strive  to  stand  out  (mostly  Westerners:   US,  Western  Europe,  Canada,  Australia)         ¢ Collec,vists   Personal  goals  are  subordinate  to  group  goals,  family  and  employment   organiza,ons  are  the  core  of  the  social  unit,  duty  harmony,  politeness,  and   modesty  are  very  important  with  high  discipline  and  individuals  should  not  stand   out.  (Asia,  Eastern  Europe,  La,n  America)     14 Individualism  vs.  Collec,vism  
  • 15. 15 Hapden-­‐Turner  &  Trompenaars   Cross-­‐Cultural  Competence   ¢ Universalism  Vs.  Par,cularism   ¢ Specificity  Vs.  Diffusion   ¢ Status:    Achieved  Vs.  Ascribed   ¢ Inner  Vs.  Outer  Direc,on   ¢ Sequen,al  Vs.  Synchronous  ,me   _____________________________________________   Charles  M.  Hapden-­‐Turner  &  Fons  Trompenaars,   Building  Cross-­‐Cultural  Competence  (2000)   15
  • 16. 16 Kluckhon  &  Strodbeck  Value   Orienta,ons   ¢ Human  Nature:    Good  Vs.  Evil   ¢ Man  Vs.  Nature  Orienta,on   ¢ Ac,vity  Orienta,on:    Being  Vs.  Doing   _________________________________________   Florence  Rockwood  Kluckhon  &  Fred  L.  Strodbeck,   VariaBons  in  Value  OrientaBons  (1961)     16
  • 17. 17 ¢ Rela,onship-­‐based  Vs.  Rule-­‐based   ¢ Sociocentric  Vs.  Egocentric   ¢ Emo,onally  Neutral  Vs.  Expressive     ¢ Technology  Vs.  Nurturing   ¢ Harmony  Vs.  Mastery   17 Cultural  Variances  
  • 18. 18 ¢ Poli,cal  Environment     Government  stability,  public  goods  available  for  business…   ¢ Economic  Environment     Income  levels,  demand,  exchange  rate  risk,  etc.     ¢ Social  Environment     Cultural  acceptance  and  idiosyncrasies     Comfort  Market:  a  market  in  which  you  understand  the  culture  and  the  local   business  nuances.     18 Environment  
  • 19. 19 ¢ Differences  That  Make  A  Difference     Language,  Religion,  Tastes,  Business  Prac,ces,  Income  Levels,  Product   Standards,  Physical  Environments,  and  Legal  Requirements   ¢ Adapta,ons  Worth  Considering     To  the  Product,  Promo,onal  Materials  and  Packaging   StandardizaBon  Vs.  LocalizaBon   19 Market  Considera,ons  
  • 20. 20 ¢ Economic  Freedom   hKp://www.heritage.org/index     ¢ Global  Compe,,veness   hKp://www.weforum.org/issues/global-­‐compe,,veness     ¢ Global  Peace  Index     hKp://www.visionojumanity.org   20 Indices  
  • 21. 21 ¢ Sell directly to end-users (short term) ¢ Sell through an intermediary – an agent or distributor (long-term) ¢ Hire staff overseas (comply with local employment laws) ¢ Establish office overseas (investment) ¢ Establish Joint Venture (JV) or subsidiaries abroad (investment) 21 Distribu,on  Channels  
  • 22. 22 ¢ Should  I  conduct  a  background  check?   ¢ Should  our  agreement  be  in  wri,ng?   ¢ At  what  point  do  you  bring  out  the  contracts?   (lawyers  vs.  pracBcal  businessman)   Rela,onships  =  business;  trust  =  partnerships   _______________________________________________________________________________   Roger  B.  Myerson,  GeOng  to  YES  (1996)  -­‐  The  Nash   Equilibrium  by  John  Forbes  Nash   22 BATNA   Best  Alterna7ve  To  a  Nego7ated  Agreement   Don’t  accept  anything  less!    
  • 23. 23 ¢ Become  educated   ¢ Hire  staff   ¢ Travel     Cultural  miscommunica,on  is  the  main  reason  for  business  nego,a,ons  to   fail.  Lack  of  cultural  prepara,on  is  the  main  reason  for  ex-­‐pat  failure.  For   culture  to  be  engrained,  it  is  typically  experienced  rather  than  learned.     23 Mi,gate  Cultural   Miscommunica,on  
  • 25. “Guanxi”  literally  means  "rela,onships“  and  in  the  Chinese  business  world  it  is   also  understood  as  the  network  of  rela,onships  among  various  par,es  that   cooperate  together  and  support  one  another.  In  essence,  this  boils  down  to   exchanging  favors,  which  are  expected  to  be  done  regularly  and  voluntarily.   Therefore,  it  is  an  important  concept  to  understand  if  one  is  to  func,on  effec,vely   in  Chinese  society.       Avoid  the  American  stereotype  of  self-­‐interest,  quick  profit  and  abandonment.   Rela,onships  are  NOT  project-­‐based,  they  are  life-­‐long.  Show  an  earnest   commitment  to  the  interests  of  the  community,  not  just  your  bank  account.       Example:  Cummins  -­‐  power  genera,on  equipment,  power  systems,  gasoline   engines,  custom  power  supplies;  paints  elementary  schools  on  the  weekends  but   does  not  boast  about  it.     hKp://chinese-­‐school.neoirms.com/guanxi.html     Guanxi  
  • 26. 26 ¢ CANNOT  “influence  a  decision”  (bribery)   ¢ Okay  to  expedite  ac,vity  or  incen,vize  service  (,ps)   ¢ Keep  ,ps/giqs  to  low  value  ($20  or  less  for  U.S.   government  officials)   ___________________________________   The  Foreign  Corrupt  Prac,ces  Act  of  1977  (FCPA)  is  a  United  States  federal  law  known   primarily  for  two  of  its  main  provisions,  one  that  addresses  accoun,ng  transparency   requirements  under  the  Securi,es  Exchange  Act  of  1934  and  another  concerning   bribery  of  foreign  officials.     26 Foreign  Corrupt  Prac,ces  Act  
  • 27. Department of Justice, Criminal Division, Fraud Section Attention: FCPA Coordinator FCPA.Fraud@usdoj.gov / http://www.usdoj.gov/criminal/fraud/fcpa/
  • 28. California  Country  Contacts   hKp://www.calchamber.com/interna,onal/contacts/pages/countrycontacts.aspx    
  • 29. 29 ¢ Introduc,ons   ¢ Appointment     ¢ Business  Dress   ¢ Conversa,on   ¢ First  Name  or  Title   ¢ Giq  Giving   29 ¢ Nego,a,on   ¢ Entertaining   Social  E,queKe  
  • 30. 3030 Color  Supers,,on   Color   Lucky/Popular   Unlucky/Unpopular   Black   All  Asia-­‐Pacific  Cultures   White   China,  Japan,  Vietnam   Red   China,  Japan,  Philippines,   South  Korea,  Thailand,   Vietnam   Names  and  red  ink;  China,   Japan,  South  Korea   Blue   South  Korea   China   Gold   Asian  Cultures   On  leaves:  Japan   Green   Philippines,  Vietnam   Japan;  Don’t  wear  a  green   hat  in  China   Yellow   All  Asia-­‐Pacific  Cultures   Personal  wear:  Malaysia   Purple   China  
  • 31. 3131 Number   Lucky/Popular   Unlucky/Unpopular   0   Philippines   3   All  Asia-­‐Pacific  Cultures   4   China,  Japan,  South  Korea   5   South  Korea   6   China   Thailand,  Vietnam   7   Western  Countries,  Japan,  South  Korea     8   China,  Japan,  Philippines,  Vietnam   9   China,  South  Korea,  Vietnam   10   Vietnam   13   All  Asia-­‐Pacific  Cultures   Number  Supers,,on  
  • 32. Japan South Korea China Singapore Hong Kong Canada USA Australia Very High High Moderately High Moderate Moderate Moderately Low Low Very Low Most Formal Least Formal Formality  Factor  
  • 33. 33 ¢ Percep,ons   ¢ Behavior   ¢ Communica,on   ¢ Management   ¢ Nego,a,on/decision-­‐making   ¢ Rela,ons  (your  business  base)   33 Business  Implica,ons  
  • 34. 34 ¢ Date/,me/loca,on   ¢ Décor  (flags,  flowers)   ¢ Contact  person   (including  mobile  #)   ¢ Mee,ng  par,cipants   list  with  ,tles   ¢ Objec,ves/goals   34 ¢ Talking  points   ¢ Dress     ¢ Sea,ng  chart   ¢ Giq   Business  Mee,ng  Best  Prac,ces  
  • 35. 35 ¢ McCaffrees  book  Protocol   ¢ Holberg’s  book  Forms  of  Address   ¢ CultureGrams®     ¢ Execu,vePlanet.com  guides   Many  others…The  four  listed  are  well-­‐known  authori,es  on  culture  and  protocol;   however,  there  are  a  variety  of  resources  available  including  the  Dos  and  Taboos   Around  the  World,  Kiss  Bow  or  Shake  Hands,  Business  Strategies  Interna,onal  Keys  to   Success,  Kwintessen,al  Global  Guides,  etc.     35 Cultural  Protocol  Resources  
  • 36. Giq  Giving   Selec,ng  and  presen,ng  an  appropriate  business  giq     Let's  Make  a  Deal!   What  you  should  know  before  you  nego,ate;   Intermediaries,  protocols,  and  the  nego,a,ng  process     Prosperous  Entertaining   General  ,ps,  ea,ng  and  drinking;  Ea,ng  cont'd  and   business  entertaining;  Social  entertaining     Public  Behavior   Acceptable  public  conduct     About     Introduc,on,  geography,  climate,  and  popula,on     Demographic  profile,  government  and  poli,cal  structure     Economy  and  entrance  requirements     Appointment  Alert!   Making  appointments     Business  Dress   Guidelines  for  business  dress     Conversa,on   General  guidelines;  Welcome  topics  of  conversa,on;   Topics  to  avoid  in  conversa,on     First  Name  or  Title?   Addressing  others  with  respect     Execu,ve  Planet  Guides  -­‐   Outline   hKp://execu,veplanet.com    
  • 37. 37 ¢ Self-­‐awareness     ¢ Awareness  of  others   [Distribute  CultureGrams]   37 All  About  Understanding  
  • 38. Los  Angeles  Center  for  Interna7onal  Trade  Development     Hosted  by  El  Camino  College     Bronwen  E.  Madden,  Ac,ng  Director   El  Camino  College  Business  Training  Center   13430  Hawthorne  Boulevard   Hawthorne,  California  90250  USA   www.LACITD.org   bmadden@elcamino.edu     Appointment  Line:  (310)  973-­‐3177   Fax  Number:  (310)  973-­‐3132   Contact  
  • 39. Quiz   What  is  the  belief  that  your  own  group  culture  is  superior  to  other   groups  or  cultures?     (A)  egocentrism   (B)  ethnocentrism   (C)  cultural  rela,vism   (D)  Stereotyping       ___________________________________________________________   Source:  McGraw-­‐Hill  Higher  Educa,on  ,  Human,  CommunicaBon  Third   EdiBon  (2008)   hKp://highered.mcgraw-­‐hill.com/sites/0073385018/student_view0/ chapter7/mul,ple_choice_quiz.html      
  • 40. Quiz   People  from  _____________  cultures  rely  heavily  on  situa,onal  cues  for   meaning.        (A)  high-­‐context    (B)  low-­‐context    (C)  monochronic    (D)  universalist    (E)  rela,vist     ___________________________________________________________   Source:  McGraw-­‐Hill  Higher  Educa,on  ,  Human,  CommunicaBon  Third   EdiBon  (2008)   hKp://highered.mcgraw-­‐hill.com/sites/0073385018/student_view0/ chapter7/mul,ple_choice_quiz.html      
  • 41. Quiz   The  Germans  have  a  _____________  culture.        (A)  universalis,c    (B)  rela,vist    (C)  low-­‐context    (D)  high-­‐context    (E)  collec,vist       ___________________________________________________________   Source:  McGraw-­‐Hill  Higher  Educa,on  ,  Human,  CommunicaBon  Third   EdiBon  (2008)   hKp://highered.mcgraw-­‐hill.com/sites/0073385018/student_view0/ chapter7/mul,ple_choice_quiz.html      
  • 42. Quiz   People  from  _____________  cultures  tend  to  place  greater  emphasis  on   community  goals  and  subordinate  their  own  wishes  and  goals.      (A)  monochronic    (B)  rela,vist    (C)  low-­‐context    (D)  heterogeneous    (E)  collec7vist     ___________________________________________________________   Source:  McGraw-­‐Hill  Higher  Educa,on  ,  Human,  CommunicaBon  Third   EdiBon  (2008)   hKp://highered.mcgraw-­‐hill.com/sites/0073385018/student_view0/ chapter7/mul,ple_choice_quiz.html      
  • 43. Quiz   People  in  polychronic  cultures  view  ,me  as        (A)  linear    (B)  standardized    (C)  precise    (D)  mul7dimensional    (E)  inelas,c       ___________________________________________________________   Source:  McGraw-­‐Hill  Higher  Educa,on  ,  Human,  CommunicaBon  Third   EdiBon  (2008)   hKp://highered.mcgraw-­‐hill.com/sites/0073385018/student_view0/ chapter7/mul,ple_choice_quiz.html      
  • 44. Quiz   Someone  from  England  is  likely  to  require  greater  interpersonal  space   than  someone  from        (A)    Korea    (B)    U.S.    (C)    Canada    (D)    Switzerland    (E)    Germany     ___________________________________________________________   Source:  McGraw-­‐Hill  Higher  Educa,on  ,  Human,  CommunicaBon  Third   EdiBon  (2008)   hKp://highered.mcgraw-­‐hill.com/sites/0073385018/student_view0/ chapter7/mul,ple_choice_quiz.html