1. Chapter 16: Culture and Diversity in Business
Introduction to Business
Unit 5: Human Resources

2. Section 16.1
Culture in Business

3. Culture in a Global Economy
Culture: the beliefs, customs, and attitudes of a distinct group of people
dress, food, language, art
history, geography, and religion
Culture may refer to an entire country, ethnic group, social group, or institution.
As companies trade worldwide, they must be aware of different cultural and business practices (e.g. etiquette, business customs, rules for personal interactions)

4. Culture and Business
In business, culture has two important meanings.
In the broad sense, it refers to the customs of other countries with which companies do business.
Business culture refers to the standards of a particular company.

5. Consider This . . .
Why is it important to understand other cultures when doing business in a global marketplace?
What are some things that you would do when planning to conduct business in another country?

6. Marketing Abroad
To market products successfully in another country, companies must research the country’s languages, customs, and tastes.

7. Doing Business Abroad
Companies doing business in other countries must be aware of cultural differences that affect the workplace.
Problems for EuroDisney
Fear of cultural imperialism
Resistance to strict dress codes
Mandatory use of English in meetings

8. Business Etiquette
Business etiquette: conduct that is considered socially acceptable in business; differs from country to country
Strategies to avoid cultural problems
Hire local managers (e.g. hire a Swedish person to manage office in Sweden)
Train American employees to live and work in other countries
As more countries trade globally, there is an increased demand for people who have studied other languages and cultures.
Study high-demand language/culture (Spanish, Mandarin/Chinese, Arabic, etc.)
Spend a semester or two of college studying abroad
Teach English in a foreign country

9. Corporate Culture
Corporate culture: a company’s shared values, beliefs, and goals
Culture may be defined
Formally, through a company code of ethics, a written manual, and the orientation process
Informally, through dress codes, work habits, and social activities
Factors influencing cultures may include
Company’s founder
Industry (banking vs. technology)
Geographic location (NYC vs. Silicon Valley)
Consider This
Why is it important to know something about a firm’s corporate culture before accepting a job there?

10. Corporate Culture continued . . .
Formal Culture
Informal Culture
Employees encouraged to make decisions on their own; may have decentralized organization
Dress code is more casual
Work hours are more flexible; may also work from home
Job titles are not as important
May value innovation over tradition
May have a strict hierarchy, or chain of command
May have one top decision maker with several layers of management below (bureaucracy)
Making changes or passing down decisions may be complicated
Job titles indicate power/status
Dress codes and work hours strictly enforced
Note: There may be different cultures within one company.

11. Considering Corporate Culture
Form groups of two to four people. Appoint a timekeeper and recorder.
Discuss the following questions. Your recorder should write your answers on a separate sheet of paper (to hand in at end of class).
Review the descriptions of formal and informal culture. What are some drawbacks and benefits of each?
Describe the classroom culture of your favorite class(es). What classroom rules, work habits, and activities help shape how you work, act, and deal with problems? How does this culture influence your work as students? Try to connect your discussion of classroom culture to the notes on corporate culture.