The Setting: Social

Mythbusters Trivia What is one thing almost any decent hotel in China offers? a) Billiards room b) Putt-putt course c) Prostitutes d) Movie theater

What is one thing almost any decent hotel in China offers? Answer: C) Prostitutes  A Westerner may think of the Chinese as very “conservative”, but…  Polygamy was a common practice in previous eras and can still be found in isolated rural areas  Today, the practice of having a mistress or “minor wife” is common

Mythbusters Trivia True or false? A Westerner should not drink with the Chinese at a business dinner, as drinking is considered deviant.

A Westerner should not drink with the Chinese at a business dinner? Answer: False  One should participate in the strong drinking culture of China in order to foster relationships. ( Guanxi )  Generally, the Chinese regard with suspicion anyone who does not participate in the inevitable drinking that takes place during almost all business dinners.  It is at these kinds of social occasions that most negotiating breakthroughs are made.  Toasting is an important part of Chinese business etiquette.

Hofstede Analysis PDI: Power Distance IDV: Individualism MAS: Masculinity UAI: uncertainty avoidance LTO: long term orientation Versus

Hofstede Analysis  Long-term Orientation is the highest-ranking factor, which is true for all Asian cultures.  Chinese rank lower than any other Asian country in Individualism.  high level of emphasis on a Collectivist society due to the Communist rule  The low Individualism ranking is manifest in a close and committed member 'group', be that a family, extended family, or extended relationships.  Loyalty in a collectivist culture is paramount. The society fosters strong relationships where everyone takes responsibility for fellow members of their group.

Hofstede Analysis  Significantly higher Power Distance ranking of 80 (Far East Asian countries' average is 60 and the world average is 55)  Indicates a high level of inequality of power and wealth within the society.  This condition is not necessarily forced upon the population, but rather accepted by the Chinese as their cultural heritage.

Chinese Social Classes

Role of Women in China  Traditionally: 3 Confucian Obediences; Patriarchal Society  Implications of the One Child Policy  Communism: females have equal status with men (in theory)  Today: nearly all women in China work, many doing the same kinds of jobs as men; more inequality in rural areas  Labour force participation rate of women: 45% in  Still fierce competition, discrimination in educational institutions, dual responsibilities, and prejudice.

Chinese Culture: Implications for Business  High context culture: choose words carefully; complex meanings  Importance of family: many firms controlled by one family and frequently the patriarch of the family  Family (not the individual) is the basic unit of social organization

Guanxi: “relationships/connections”  Guanxi: a network of contacts, which an individual can call upon when something needs to be done, and through which he or she can exert influence on behalf of another.  China: people exist only in relationship to others  Build relationships before conducting business  Less concerned with what is written in a contract vs. the actions that people take to meet their obligations

The Chinese Concept of Face  Face is an essential component of the Chinese national psyche.  “Having face”: having a high status in the eyes of one's peers; is a mark of personal dignity.  The Chinese are acutely sensitive to gaining and maintaining face in all aspects of social and business life.  Face is a prized commodity which can be given, lost, taken away or earned.  Causing someone to lose face could ruin business prospects