Chapter 5

Business Customsin

Global Marketing

Cultural Adaptation

Cultural ImperativesCultural Imperatives

Cultural AdiaphoraCultural Adiaphora

Cultural ExclusivesCultural Exclusives

Hall’s Silent Languages

Language of TimeLanguage of Time

Language of SpaceLanguage of Space

Language of ThingsLanguage of Things

Language of FriendshipLanguage of Friendship

Language of AgreementsLanguage of Agreements

Cultural Differences between Japanese and American Business

Game concept: Business is a game in pursuit of profits under the rules of laws and contracts

Efficiency-oriented and approximate accuracy simplicity, clarity, and quickness

Quantity-oriented

Short-term performance evaluation

Easy layoffs, dismissals of employees, and selling of businesses

Japanese BusinessAmerican Business

Mutual trust-oriented business: business is based on trusting relationship among people rather than the rules of game

Highly precision-oriented and perfectionism-high dependency on human awareness

Quality-oriented

Mid-to-long term evaluations

Job security

SOURCE: Norihiko Shimizu, “Today’s Taboos may be gone tomorrow,” Tokyo Business, February 1995, p.51.

Cultural Differences between Japanese and American Business

Top down management

Low mutual dependence between employers and employees

Control of business by stockholders and the management

Management by "force"

Heavy dependence on machinery and technology, vs. Light dependence on human resources

Limited loyalty and incentive-oriented work ethics

Excellent software-based technology development

Heavy dependence on human resources bottom-up management and teamwork

High mutual dependence between employers and employees

Joint management of business by Employees and Employees

Management by "motivation"

Heavy dependence on human resources

Strong loyalty and fewer incentives

Inadequate software development ability

Japanese BusinessAmerican Business

SOURCE: Norihiko Shimizu, “Today’s Taboos may be gone tomorrow,” Tokyo Business, February 1995, p.51

Corruption Perception Index* (Selected Countries 1999)

5-7

Country* CPI 1999** Country CPI 1999

Denmark (1) 10.0 Brazil (45) 4.1

Finland (2) 9.8 South Korea (50) 3.8

Singapore (7) 9.1 China (58) 3.4

Norway (9) 8.9 Mexico (58) 3.4

Switzerland (9) 8.9 India (72) 2.9

United States (18) 7.3 Russia (82) 2.4

France (72) 6.6 Nigeria (98) 1.6

Czech Republic (39)

Irwin/McGraw-HillSource: “The 1999 Transparency International Corruption Perceptions Index (CPI), “http://www.transparency.org/documents/cpi/index.html. (March 2000)

* The number in parenthesis is rank for 1999, which is based on 99 counties studied.

** The maximum score is 10.00; the minimum score is 0. A perfect score of 10.00 would be totally corrupt free country.

Bribery?

Variations on a Theme

Bribery

Extortion

Subornation

Lubrication

Three Ethical Principles

Utilitarian Ethics Does the action optimize the "common good" or benefits of all constituencies?

Rights of the Parties Does the action respect the rights of the individuals involved?

Justice or Fairness Does the action respect the canons of justice or fairness to all parties involved?

Principle Question

A Decision Tree for Incorporating Ethical and Social Responsibility Issues into Multinational Business Decisions

Does the decision efficiently optimize the common good or benefits of:

SocietyCultureOrderJustice“The good life”Other

The Individual?FreedomHealth and welfareSelf-realizationHuman dignityOpportunityOther

The Business firm?StockholdersManagementProfitsGrowthOther

The Economy?Economic growthAllocation of resourcesProduction and distribution of goods and servicesOther

Are there critical factors that justify suboptimizing these goals and satisfactions?

Does the decision respect the rights of individuals involved.

Reject decision

Are there critical factors that justify the abrogation of a right.

Does the corporate decision respect the canons of justice or fairness to all parties involved?

Rejectdecision

Are there critical factors that justify the violation of a canon of justice?

Rejectdecision

Accept decision

YESNO

YES

NO

YES YES

NONO

YES YES

NO

NO

The Caux Round Table Principles

The responsibilities of businesses : Beyond shareholders

toward shareholders.

The economic and social impact of business:

Beyond shareholders toward justice and world community.

Business behavior: Beyond the letter of law toward a spirit of

trust.

Respect for rules.

Support for multilateral trade.

Respect for the environment.

Avoidance of illicit operations.

General Principles

SOURCE: Joel Makower and business for social responsibility, Beyond The Bottom Line: Putting Social Responsibility to Work for your Business and the World (New York: Simon and Schuster, 1994)

The Caux Round Table Principles

The mobility of employment, capital, products, and technology is making business increasingly global in its transactions and its effects.

Laws and market forces are necessary but insufficient guides for conduct.

Responsibility for a business's policies and actions and respect for the dignity and interests of its shareholders are fundamental.

Shared values, including a commitment to shared prosperity, are as important for a global community as for communities of smaller scale.

For these reasons, and because business can be a powerful agent of positive social change, we offer the following principles as a foundation for dialogue and action by business leaders in search of business responsibility. In so doing, we affirm the necessity for moral values in business decision making. Without them, stable business relationships and a sustainable world community are impossible.

SOURCE: Joel Makower and business for Social Responsibility, Beyond the Bottom Line : Putting Social Responsibility to Work for your Business and the World (New York: Simon and Schuster, 1994)

Preamble

Elements of Culture Material Culture

Technology

Economics

Social InstitutionsSocial Organization

Education

Political Structures

Humans and The UniverseBelief Systems

AestheticsGraphic and Plastic Arts

Folklore

Music, Drama, and Dance

Language

Cultural Factors Never touch the head of a Thai or Pass an object over it

The head is considered sacred in Thailand.

Avoid using triangular shapes in Hong Kong,

Korea, and Taiwan. It is considered a negative shape.

The number 7 is considered bad luck in Kenya, good luck in

the Czech Republic and has a magical connotation in

Benin, Africa.

The number 10 is bad luck in Korea.

The number 4 means death in Japan.

Red represents witchcraft and death in many African

countries.

Red is a positive color in Denmark.

SOURCE: Business America, July 12, 1993

Cultural Differences between Japanese and American Individual Lifestyles

Clear expression of joy and sorrow

Unequivocal expression of “Yes/No”

Strong self-assertion

Strong personality

Excellent negotiating skills

Priority of self-interest

CulturalBackground

Reticence

Modesty

Reserve

Punctiliousness

Politeness

Obligation

Ambiguous expression of Joy/Sorrow

Equivocal expression of “Yes/No”

Weak self-assertion

Weak personality

Poor negotiating skills

Priority of harmony with others

JapaneseA Culture of Self-restraint

AmericansA Culture of Self-expression

SOURCE: Norihiko Shimizu, “Today’s Taboos may be gone Tomorrow,” Tokyo Business, February 1995, p.50.

Cultural Differences between Japanese and American Social Life

Dignity of individuals

Individual work ethic

Great individual freedom

Respect for rules

An open and transparent society

Multi-cultural society

A society excelling in creativity and versatility

Individual decisions over consensus

A society which pursues the ideal

Human relations oriented

Dependence on the group

Lack of individual freedom

Low regard for rules

A closed society, lacking in transparency

Mono-cultural society

An orderly and uniform society

Dependence on consensus

A society which pursues harmony with reality

Japanese Society“In the Same Boat” Concept

American SocietyDignity of Individuals

SOURCE: Norihiko Shimizu, “Today’s Taboos may be gone Tomorrow,” Tokyo Business, February 1995, p.50.

Cultural Change

Pas de Franglais

Old New

Prime Time Heures de grande ecoute

(hours of largest audience)

Air Bag Coussin gonflable de protection

(Inflatable cushion of protection)

Cookie Sable americain

Trans. (American cookie)

SOURCE: Adapted from “La Guerre Franglaise,” Fortune, June 13, 1994, p. 14.