CROSS-CULTURAL BUSINESS PRACTICES
© Carol Kinsey Goman

My husband and I arrived in Istanbul the night the United States began our military campaign in Afghanistan. Because we knew that Turkey is a Muslim country, we were apprehensive about going sight-seeing the next day. In retrospect, we lost a full day in one of the most fascinating cities in the world because of our ignorance. Turkey is indeed Islamic, but its government is secular (the only Islamic country to be structured in such a fashion). It is a member of NATO and an aspiring member of the European Union. The following day when we did venture into the city, we found people to be gracious and very pro-American. I tell myself that if this had been a business trip instead of a vacation, I would have "done my homework" and been better prepared for the new environment.

The thing that I've tried to keep in mind as I travel the world is, although the international business arena may blur distinctions between some cultures, it hasn't eliminated them completely. Even representatives from different parts of the European Community still encounter - and stumble over - differences in cultural style. When the prototypical reserved British business person confronts the machismo of the Latins or interacts with the argumentative French, there is still potential for cultural clash. And no region of the world has greater variety and diversity of languages, races and religions than Asia, although the cultures of the countries of Asia and the Pacific have crisscrossed and intermingled for centuries. There is still much cultural variance in the world.

While not at all comprehensive, the following list is the minimum information that I try to know about the business practices in a host
country before I travel:

Greeting Behaviors - How do business people greet one another?
o Do they touch or shake hands? If so, do they prefer a firm or a gentle grip?
o Do they bow?
o When should business cards be exchanged? How should cards be handled?
o How are introductions made?
o What is considered good manners for greeting senior executives when they enter a room?
o How are you expected to address others?

A case in point: An American traveled nine thousand miles to meet his clients in Singapore. On the trip over he memorized the names of all the key men he was to see. This was no easy job, as each man had three names. The board chairman was Lo Win Hao, and the American began his greeting by addressing him as Mr. Hao, only to be told by a colleague that he had been too friendly and informal much too soon. In Chinese the surname comes first and the given name last. It was as if he was calling his clients Mr. Bob or Mr. John.

Business Protocol - How formal and ritualistic is this culture in its approach to business dealings?
o What is the culture's concept of time?
o How important is it to be prompt for a business meeting?
o What does it mean when/if you are left waiting at an appointment?
o What is the protocol for seating around the conference table?
o How much space between people in normal business situations is their "comfort zone?"
o What is the communication style of the people in the host country?
o How much time should be spent in pleasantries and social interaction?
o Who takes the initiative in "getting down to business"?
o How do you go about obtaining information?
o When is the use of humor appropriate?
o What topics of conversation are considered inappropriate or unprofessional?
o If you are a female (or a minority) in business, how should you expect to be treated?
o How are males and females expected to interact in business situations?
o In what language will the meeting take place?
o Do you need to have translated handouts or other business materials?
o How much physical contact is appropriate?
o What is appropriate behavior when leaving and saying good-bye?

A case in point: "The most important thing I learned on my international assignment was not to rush meetings with the typical 'American take-charge attitude.' I was present when a newly arrived officer chief was taken by the outgoing chief to meet a key contact. The hand-off was so important that I had traveled some distance to be present. The incumbent and I watched, helpless and horrified, as the new man destroyed in five seconds what the incumbent had taken a year to build. Undoubtedly the new man thought he was creating the impact of the hard-charging young executive, but in reality he was tearing down a delicate relationship."
Major, U.S. Air Force

Negotiating Behaviors - Who negotiates and how do negotiators reach decisions?
o Is negotiating done by an individual or a team and will the negotiators have the authority to make a firm decision?
o How important is it to create an ambience of good feelings and harmony?
o How important is it for people within this culture to like the people with whom they are doing business?
o Are business deals made verbally or by contract?
o How direct can you be when dealing with this culture?
o Is a deadline always a deadline - or should it be considered only a
flexible guideline?
o What is the negotiation style of people in this culture - do they have a fallback position, expect the other party to reveal their own interests and priorities first, enjoy the fine art of haggling, or look for a compromise position?
o Do they spend a great deal of time on the emotional and dramatic effects of negotiating or do they rely on a strictly logical approach?
o Are they likely to use a sense of obligation as part of their negotiation tactics?
o Is asking questions a primary bargaining strategy or is questioning
interpreted as prying and inappropriately nosy?
o Are decisions made primarily on a cost-benefit basis or on the basis of saving someone from embarrassment?
o How does this culture use silence in the negotiating process?
o How do they feel about lawyers attending the negotiations?

A case in point: Ford Motor Company, when Lee Iacocca was running it, wanted to buy Ferrari. Some of Iacocca's top people went to see Enzo Ferrari and they came to an understanding: Ford would acquire not the race car but the production side of the company so that the Ferrari name could be used in the United States. The deal was made on a handshake. Soon, though, Ford's attorneys arrived in Italy with contracts, and a crew
arrived to take inventory. This was normal business procedure for the Americans, but Ferrari was disgruntled -- to his thinking he had an understanding with a gentleman, not with a group of attorneys and accountants -- and had second thoughts. The deal fell through. From the book International, by Lennie Copeland and Lewis Griggs

Social Behavior --How much socializing is not only expected, but necessary for doing your job successfully?
o How much importance will be placed on the existence of and adherence to rules for social behavior?
o How do people organize their daily activities?
o What is the normal meal schedule? Is there a daytime rest period?
o Is it typical to be invited to a private home for dinner? If so, how are you expected to reciprocate? If you are invited for dinner, should you arrive early, on time or late? If late-how late?
o Are dinner or lunch meetings most desirable?
o Does one drink or not at a business meal? Are you expected to offer a formal toast before drinking?
o What is the proper seating order at a restaurant or dimmer table?
o Are females and/or spouses included in after-hours business entertainment?
o What are considered good table manners?
o Is it expected practice to exchange gifts? If so, what kinds of gifts are proper and how should they be presented?
o What kind of compliments are expected, and which are inappropriate?

A case in point: A woman traveling in the Middle East as chief emissary for her Fortune 500 corporation was surprised after meeting with men all day to be placed at a separate table with their wives at dinner.

Nonverbal Communication - What meaning is attached to physical gestures in the host's culture?
o What does it mean to make eye contact, to use hand and arm gestures, to smile, to laugh, to cross you legs, to put your hands in your pockets or on your hips, to touch another person, etc.?
o Especially - what gestures are absolutely taboo in this culture?

A case in point: The "thumbs up"gesture that North Americans and many other cultures flash when they want to signify "Good job!" or "Well done!" in certain locales is considered offensive and should be avoided.

Religion, Morals, Superstitions -- What are the religious beliefs and moral attitudes of this culture?
o What are the strong traditions that this culture has which governs daily life and social interactions?
o What are the business ethics of this culture?
o What social behaviors are out of place (smoking, drinking, gambling, etc?)
o What special religious or superstitious customs dominate business practices?
o How are you expected to behave when others observe their religious customs?

A case in point: "What do you do when you've been asked to dinner by your Moslem host and (in the middle of the meal) he takes out his prayer rug to pray? Well, they hadn't covered that in my pre-assignment training, so I was bewilderedSdo I stop eating, bow my head, what? Luckily, I was not the only guest, so I followed the lead of others, who quietly continued talking and eating until our host returned to the dinner party."
Expatriate executive of an oil company in Saudi Arabia.

In addition to the preparations listed above, I suggest doing some
background readings on the host country -- its history, fine arts, native sports, political, social and economic structure, etc. What is the status of business? How does the culture view foreigners? Who are their national heroes? What is the religious history? What kind of local transportation is available? What are the important holidays and how are they observed? Can you recognize their national flag?

It is not necessary to adopt other people's cultural norms as part of your own personal value system. What is required, however, is to identify, understand, accept and respect other cultures and try to understand how your behavior may impact them. All in all, it's just good business.

Carol Kinsey Goman, Ph.D. is an international lecturer who specializes in human capital issues. She presents keynote addresses and seminars for management conferences and major trade associations.