Rules of Thumb for Business Conduct Across Cultures  Be prepared  Slow down  Establish trust  Understand the importance of language  Respect the culture  Understand the components of culture

What is Culture?  Culture is the sum total of beliefs, rules, techniques, institutions, and artifacts that characterize human populations  Culture is learned  Its aspects are interrelated  Culture is shared (as opposed to individual traits)  It defines the boundaries of different groups LO1

Ethnocentricity  Ethnocentrism is the belief in the superiority of one’s own ethnic group  To overcome ethnocentricity  Realize that there are many different cultures  Spend time in another country  Undergo training on culture and language LO1

Sociocultural Components  Culture is reflected in  aesthetics  attitudes and beliefs  religion  materialism  language  societal organization  legal characteristics  political structures LO2

Attitudes and Beliefs  Attitudes Toward Time  Vary across cultures  Difficult area for some Americans  Directness and drive may be perceived to be rudeness  Deadlines  Liability abroad LO2

Attitudes Toward Achievement and Work  Germans put leisure first and work second  The demonstration effect  Result of having seen others with desirable goods  Job Prestige  The distinction between blue-collar workers and office employees  Professional order of hierarchy LO2

Religion  Religion is responsible for many of the attitudes and beliefs affecting human behavior  Work Ethic  Protestant work ethic  Duty to glorify God by hard work and the practice of thrift  Confucian work ethic  Drive toward hard work and thrift; similar to Protestant work ethic LO2

Primary Asian Religions  Hinduism  Caste system  Society is divided into four groups (plus the outcasts)  Each is assigned a certain class of work  Buddhism  Reform of Hinduism  Jainism (Mahavira a contemporary of Buddha)  Nonviolence a major principle  Sikhism  Bridge between Hinduism and Islam LO3

Primary Asian Religions  Confucianism  Inseparable from Chinese culture  Taoism  Lao Tzu, contemporary of Confucius  Shintoism  Indigenous to Japan LO3

Islam  Islam is the youngest and second largest faith  1.3 billion followers  In comparison, Christianity has 2 billion adherents  Muhammad is Founder  Prophet of God and head of state  Holy Book Koran LO3

Islam  Five Pillars of Faith  Confession of faith  Five daily prayers  Charity  Ramadan fast  Pilgrimage to Mecca  Jihad – holy war  Sunni-Shia Conflict  Conflict gives rise to violent clashes LO3

Religions of the World Insert Figure 6.1 LO3

Spoken Language  Spoken language is the most apparent cultural distinction between countries  Spoken languages demarcate cultures  Switzerland has four separate cultures  Many languages can exist in a single country, but one usually serves as communication vehicle  Lingua franca or link language  English primary language of business LO6

Language and Translation  Translation  The ability to speak the language well does not eliminate the need for translator  Use back translation to avoid translation problems  Japanese hotel: “You are invited to take advantage of the chambermaid.”  Bangkok dry cleaner: “Drop your trousers here for best results.” LO6

Language Issues  Technical words do not exist in all languages  Usually use English  Many cultures avoid saying anything disagreeable LO6

Unspoken Language  Nonverbal communication  Gestures vary tremendously from one region to another  Closed doors convey different meanings  Office size has different meanings in various cultures  Conversational distance small in Middle East  Gift giving has specific etiquette in each culture  Gift or bribe?  Questionable Payments LO7

Corruption Index Scores and Ranking

Societal Organization  Kinship  Extended family  includes blood and marriage relatives  Member’s responsibility  Although the extended family is large, each member’s feeling of responsibility to it is strong  Associations  Social units based on age, gender, or common interest, not on kinship LO8

Societal Organization  Associations  Age is an important market segment criterion  Gender  As nations industrialize, more women enter the job market and assume greater importance in the economy  Free association  people joined together by a common bond: political, occupational, religious or recreational LO8

Understanding National Cultures  Hofstede’s Dimensions of Culture  Individualism versus Collectivism  Large versus Small Power Distance  Strong versus Weak Uncertainty Avoidance  Masculinity versus Femininity LO9

Hofstede Value Dimension Scores LO9

Individualism versus Collectivism  Collectivistic cultures  People belong to groups that are supposed to look after them in exchange for loyalty  Individualistic cultures  People look after only themselves and the immediate family LO9

Large versus Small Power Distance  Power distance refers to the extent to which members of a society accept the unequal distribution of power among individuals  In large-power-distance societies employees believe their supervisors are right; employees do not take any initiative in making non-routine decisions LO9

Strong versus Weak Uncertainty Avoidance  Uncertainty avoidance refers to the degree to which members of a society feel threatened by ambiguity and are rule-oriented  Employees in high uncertainty-avoidance cultures tend to stay with their organizations  Japan, Greece, and Portugal  Those from low uncertainty-avoidance nations are more mobile  United States, Singapore, and Denmark LO9

Power Distance and Uncertainty Avoidance LO9

Individualism and Power Distance LO9

Masculinity versus Femininity  Masculinity versus femininity refers to the degree to which the dominant values in a society emphasize assertiveness, acquisition of money, and status  Masculinity  achievement of visible and symbolic organizational rewards  Femininity  emphasize relationships, concern for others, and the overall quality of life LO9