1. Chapter 5
Business Customs in
Global Marketing

2. Cultural Adaptation Cultural Imperatives Cultural Adiaphora
Cultural Exclusives

3. Hall’s Silent Languages
Language of Time
Language of Space
Language of Things
Language of Friendship
Language of Agreements

4. Cultural Differences between Japanese and American Business
Japanese 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
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.

5. Cultural Differences between Japanese and American Business
Japanese 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
SOURCE: Norihiko Shimizu, “Today’s Taboos may be gone tomorrow,” Tokyo Business, February 1995, p.51

6. Corruption Perception Index* (Selected Countries 1999)
Country* CPI 1999** Country CPI 1999
Denmark (1) Brazil (45)
Finland (2) South Korea (50)
Singapore (7) China (58)
Norway (9) Mexico (58)
Switzerland (9) India (72)
United States (18) Russia (82)
France (72) Nigeria (98)
Czech Republic (39)
5-7
* 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 would be totally corrupt free country.
Source: “The 1999 Transparency International Corruption Perceptions Index (CPI), “ (March 2000)
Irwin/McGraw-Hill

7. Bribery? Variations on a Theme Bribery Extortion Subornation
Lubrication

8. 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

9. 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: NO
YES
Are there critical factors that justify suboptimizing these goals and satisfactions?
The Business firm? Stockholders Management Profits Growth Other
The Economy? Economic growth Allocation of resources Production and distribution of goods and services Other
Society Culture Order Justice “The good life” Other
The Individual? Freedom Health and welfare Self-realization Human dignity Opportunity Other
YES NO
Does the decision respect the rights of individuals involved. NO
Reject decision
YES
Are there critical factors that justify the abrogation of a right.
YES
Does the corporate decision respect the canons of justice or fairness to all parties involved? NO NO
Reject decision
Are there critical factors that justify the violation of a canon of justice?
YES
YES NO
Accept decision
Reject decision

10. The Caux Round Table Principles
General 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.
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)

11. The Caux Round Table Principles
Preamble
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)

12. Elements of Culture Material Culture Social Institutions
Technology
Economics
Social Institutions
Social Organization
Education
Political Structures
Humans and The Universe
Belief Systems
Aesthetics
Graphic and Plastic Arts
Folklore
Music, Drama, and Dance
Language

13. 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

14. Cultural Differences between Japanese and American Individual Lifestyles
Americans A Culture of Self-expression
Japanese A Culture of Self-restraint
Cultural Background
Clear expression of joy and sorrow
Unequivocal expression of “Yes/No”
Strong self-assertion
Strong personality
Excellent negotiating skills
Priority of self-interest
Ambiguous expression of Joy/Sorrow
Equivocal expression of “Yes/No”
Weak self-assertion
Weak personality
Poor negotiating skills
Priority of harmony with others
Reticence
Modesty
Reserve
Punctiliousness
Politeness
Obligation
SOURCE: Norihiko Shimizu, “Today’s Taboos may be gone Tomorrow,” Tokyo Business, February 1995, p.50.

15. Cultural Differences between Japanese and American Social Life
American Society Dignity of Individuals
Japanese Society “In the Same Boat” Concept
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
SOURCE: Norihiko Shimizu, “Today’s Taboos may be gone Tomorrow,” Tokyo Business, February 1995, p.50.

16. 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.