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
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/
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
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
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