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INTERCULTURAL COMMUNICATION FOR GLOBAL BUSINESS
Introduction
- WHY STUDY INTERCULTURAL COMMUNICATION?
Some practical reasons:
- Adapt to domestic and global workforce diversity: a. Coexistence of people born in different countries and speaking a different language at home b. Workforce is made up of immigrants and minorities
- Improve better workplace communication a. Customers, clients, coworkers, supervisors are likely to come from different backgrounds b. Companies are going global: need to understand how to make communication successful c. Some fields\situations are more affected than others (ex. Healthcare – child birth\use of drugs\vaccinations
- Engage in creative multicultural problem solving a. Different ethnic groups bring different viewpoints and ideas to the table b. Lower probability of groupthink c. Higher chances of identifying risks
- Enhance intercultural relationships satisfaction a. Communication build relationships: needs to be based on mutual understanding
- Deepen cultural self-awareness and other-awareness a. Beliefs, values, attitudes, behavior are acquired unconsciously b. Interculturality makes us question them\helps us overcome ethnocentricity, stereotypes, closemindedness
- Foster global and intrapersonal peace
- Comprehend the role of technology in global communication CULTURE IN BUSINESS CONTEXTS
- A CULTURAL FAUX PAS When Bill Gates, founder of Microsoft, was in South Korea and met the then President Park Geun- hye for the first time, critics were “up in arms” about his behavior. He was there to build relationships and promote his new start- up, TerraPower. Gates was criticized for being too casual in his initial contact with the President. When shaking her hand, he kept his left hand in his pocket. Some of the press read: “Plain rude”; “Ignorance or just plain disrespect?”; “Cultural difference or bad manners?”. There was notable disdain for how Gates went about establishing relationships in the East. This is often our reaction when we do something that contradicts someone else’s expectations of proper behavior— we are incredulous that they don’t understand us. From a multicultural perspective (being able to see things from multiple angles regarding cultural differences), one would have to reassess exactly why the action might have caused disrespect. In Korean culture, using one hand to shake someone else’s is considered too casual, something you would do with a good friend. The other hand in the pocket symbolizes superiority and can be potentially rude when used in the wrong context or situation. South Korea is a hierarchical culture where rank and position of a person must be respected and acknowledged. Some argued that you can’t expect a Western person to follow an Eastern culture’s rules nor be judged by its cultural standards. Others reasoned that he is “one of the richest men in the world and can do whatever
he wants.” But there is an appropriate protocol for such occasions when meeting with heads of state— regardless of how rich or down- to- earth you are. Knowing the code of behavior is essential in creating goodwill and developing lasting relationships. It has often been said that “When in Rome do as the Romans do”. Whether we shake hands, bow, or kiss someone on the cheek, it is important to be aware of the symbolism conveyed in the actual gesture. Being aware of a counterpart’s specific cultural norms demonstrates respect— and that you have spent time learning their customs in order to develop a lasting relationshi. It’s not the actual gesture that contains meaning, but what is in that person’s mind. People create the meaning that is attached to gestures. If you are to be successful as a global leader you must develop an awareness of cultural practices that carry important meaning to the people with whom you interact. It’s important to be ready to adapt to the customs and practices of the people and the place you are visiting. Anything that we can do to promote respect toward someone’s culture or traditions is vital. So, is greeting someone correctly a social necessity? Yes, absolutely! THE CASE OF OBAMA : Obama visited India in 2015 for the 66th^ Republic Day parade. He was caught by cameras while chewing and popping a gum during the function. Some pictures showed him removing his chewing gum while the Indian PM Modi was talking to him. His gesture was defined by the Times of India as “an ungainly sight”. May users on Twitter commented on the news: some just reported it, maybe with a hint of sarcasm, while others criticized him for being disrespectful. The same happened in China. When a habit turns into a cultural faux pas… According to several sources, President Barack Obama has been struggling with nicotine addiction, that is why he is often caught chewing gum to fight cigarette cravings. Indeed, this is not the first time that President Obama was seen chewing gum during important events.
- cultural practices carry important meaning to the people with whom you interact
- In a globalized world cultural differences cannot be ignored
- OUR CHANGING WORLD Our world has shrunk dramatically. With our ability to communicate 24/ 7 with anyone, anywhere via the Internet and smartphones; with one keystroke that brings us streaming news from all over the world; with easy access to cheaper and faster air travel, we have traversed the four corners of the world. We have acquired a misguided notion that because the world has shrunk then it will be easier to interact with others. However, our world is more complex and ambiguous than ever and it is harder to keep up. Now we see this most strikingly due to the global Covid- 19 pandemic, which has demonstrated just how interconnected our economies are. We have been reminded of our human vulnerabilities and the need to work together despite political or economic viewpoints. Communicating and interacting with people from diverse parts of the globe are the new normal. We are now required to interact with people who are different from us. We must learn to speak and listen with a greater sensitivity, flexibility and openness to doing thinks on other people’s terms.
- WHY IS CULTURE IMPORTANT IN BUSINESS What is globalization? In business, it is when technology, communications, trade, tariffs, migration, and labor markets open across borders so that free trade and capital flow unhindered by national boundaries. Technical definition: it also is the increasing interdependence among national governments, businesses, non- profit organizations, and individual citizens. The drivers facilitating globalization are: a) the free movement of goods, services, knowledge, and communication across national boundaries; b) the development of new technologies c) the lowering of tariffs for travel
need global leaders who can identify and interact with people who have different norms, perspectives and ideologies.
- WHAT IS CULTURE Culture affects the norms of every group. These norms, or unstated rules, are the accepted and expected ways of behaving and interacting with other people. But culture is something that we don’t always see. Culture is something that we learn. Starting from infancy, we are conditioned to act, react, and learn about how people in our world behave by watching them and interacting with them. Culture consists of a group’s communication patterns, how a group solves problems, and how a group perceives and passes on its shared values, beliefs, attitudes, and behaviors, including its perception of self, group, environment, authority, and power. It comes from the Latin cultura which means to grow or to cultivate. The closest meaning that the Romans might have attached to our understanding of group interaction would be humanitas , which was associated with human events and therefore culture. The notion of culture is so abstract and complex that there is no end to the number of ways to define this multifaceted human phenomenon. Hall says that culture is about how we communicate and that it is governed by hidden rules, which are reflected in both language and behavior. Trompenaars says that culture is reflected in how a group approaches problem solving. Hofstede argues that culture implies a kind of collective “software of the mind,” learned over a lifetime of “programming” the way we do things. Kluckhohn and Strodtbeck construct their definition of culture around six dimensions that delineate cultural differences. Their framework focuses on value orientations that they believe all humans share in one way or another: environment, time, people, activity, responsibility, and space, which have become the basis for much of today’s research on intercultural communication. A group- membership perspective of culture is about how people identify and relate to others within their in- group and how they develop their sense of belonging. For the purposes of this book, culture will be defined as the values, beliefs, attitudes, and behaviors of a group of people. The theatrical metaphor of front-stage\back-stage culture is helpful in explaining the elusive nature of culture. When we view a theatrical production, we are merely passive spectators observing the illusion of real events as portrayed by the actors on stage. While this can be enjoyable and entertaining, we miss out on all of the action going on behind the curtain. Perhaps we know something about the play’s theme and meaning. This understanding will surely help with the overall enjoyment of what is happening. But this isn’t the full view. If we have any curiosity about theatrical workings, we might choose to go backstage after the curtain call and steal a glimpse of all the props and mechanical devices that go unnoticed throughout the production. We are able to understand not only what is happening, but why it is happening because of our insider’s view and understanding of what is going on behind the scenes. By going backstage, we have become participants. In sum, front- stage culture is what you see on the surface— the behaviors and practices, such as customs, food, dress, holidays. Back- stage culture is the “why” behind the “what” of the hidden dimensions of culture.
- CULTURAL METAPHORS The iceberg metaphor is the most popular rendition of culture. Most of an iceberg— 90 percent— is submerged below the water line, so what we see is its tip. Interculturalists will describe behavior as being the tip of the iceberg. It is what we see most readily— nonverbal gestures, language, how people dress, the foods they eat, and what customs they practice. But it is what is below the water line, what we can’t see, that creates the challenge of understanding someone else’s culture— the values, beliefs, and attitudes that support what people actually do. Understanding what is below the water line helps us begin to decode the why behind the what.
A metaphor is a figure of speech that is representative of something else. Metaphors help us compare one thing to another— they are figurative comparisons, and like mental schema, can help us make sense out of something abstract or unfamiliar. Metaphors are abundant in human communication exchanges and we take them for granted, unaware of how much we use them. Metaphors help us make sense of common experiences and when we use them our understanding is automatic as long as we understand the connotation behind them. Every language has the possibility of containing innumerable idiomatic expressions. Metaphors are powerful meaning-making devices. Metaphors structure thinking and knowledge, are central to abstract language, are grounded in physical experience. When we encounter something new, unfamiliar, or confusing, we automatically make assumptions about our experiences by applying them to more concrete concepts. In this sense, metaphors can actually shape our perception and communication. We use the saying, “time is money.” Time is abstract but money is concrete. The scientific study of the theory of conceptual metaphor has determined that metaphors aren’t simply rhetorical devices but conceptual tools that are linked to our thoughts, perceptions, and understanding. In other words, we use metaphors to help conceptualize our experience— and the concepts we use help to structure how we perceive and relate to everyday life. Metaphor analysis is a starting point for understanding culture’s influence on who we are and how our societies function.
- HISTORICAL FOUNDATIONS OF INTERCULTURAL COMMUNICATION Edward T. Hall is credited with beginning the field of intercultural communication. Intercultural communication is about using communication with people who are different from us. It is about how we use our collective or individual efforts; how we use power; how we interpret time; how we define social identities; how our worldviews affect perceptions; how we persuade, negotiate, and deal with conflict. The key interculturalists are:
- Edward T. Hall
- Fons Trompenaars
- Geert Hofstede
- Clyde Kluckhohn and Fred Strodtbeck Intercultural communication is the communication exchange between people who are different culturally— it is the ability to monitor emotions and behaviors in self and in others; it examines how the specific cultural differences affect the interactions of the people engaged; the focus is the individual. Cross- cultural communication is about the comparison of peoples’ differences across culture; it is comparative in nature. International communication comes from the increasing influences of globalization. It also involves the interaction of people from differing cultures, but it is focused on macro issues, such as governmental or political influence that affect the communication processes as people interact with each other across borders. International communication is about the power, politics, and processes of one nation influencing another. CASE 1: WAL-MART IN GERMANY, Corporate formula doesn’t fit the German culture This case examines the cultural mishaps of America’s largest discount retailer. With low prices and a large array of products, Wal-Mart superstores have become the chosen “one- stop shop” for many consumers. Germans, however, don’t view Wal-Mart in the same way. In late 1997, Wal- Mart decided to expand into Germany but soon learned that its American model didn’t work there. On so many levels, it was an abject failure. Brief Overview of Wal-Mart: Walton brothers opened the first Wal-Mart store in Arkansas in 1962 and by 1988 is the most profitable retailer in the US. Today the company has expanded internationally and has 12000 stores internationally and is the largest private employer in the world. It is a one-stop shop where
Capitolo 2 Serious issues can arise for a company if, in its attempt to be chic and edgy, it ends up insulting a minority group. This is called cultural appropriation, which happens when aspemonocts of one culture are adopted by members of another dominant culture. Members in the minority group often don’t view this as cultural appreciation because they aren’t the ones in power—rather, they feel trivialized and believe that their culture has been misappropriated or misused. EMOTIONAL INTELLIGENCE AND CULTURAL INTELLIGENCE At first glance, the notion of a global leader denotes someone who is able to skilfully perform a merger and acquisition, or easily navigate the intricacies of global supply-chain management or comprehend the myriad details of international accounting practices. However, it’s not enough to simply possess such functional business skills in order to navigate successfully in the global business environment. Another common misconception of a global leader is that leadership skills practiced in one’s own culture are naturally transferable when applied to another cultural setting. We learn of many cross-border deals and negotiations that fall flat simply because due diligence hasn’t been performed. Or it might be because key players are unable to adapt readily to the challenges found in cross-cultural relations despite having performed well in their previous assignments. The concept of emotional intelligence (EQ) includes the ability to recognize, understand, and manage emotions both in ourselves and in others. In the workplace, EQ contributes 80–90 % of the competencies that distinguish outstanding leaders from average leaders. A person with high EQ possesses the following skills:
- Self-awareness and other awareness → the ability to know how you are feeling and how those around you are feeling and to know how your emotions might be affecting others. It also includes the ability to be reflective and take an honest look at yourself regarding strengths and weaknesses.
- Self-regulation → the ability to control your emotions and actions under pressure and think before you act. Because you are self-aware of who you are and how you might respond in different situations, you are able to gauge how to act and react.
- Motivation → your personal drive to learn and improve, to achieve goals, and to take initiative. This also includes your optimism for learning new things and your resilience when the unexpected happens.
- Empathy → the insight to see what motivates others while simultaneously planning how to respond to them. This means having empathy in order to understand the emotional makeup of other people and the skill in treating people according to their emotional reactions.
- Social skills → the ability to have the instinctive “hunch” for what to say and what not to say and how to treat people accordingly. Also, people with good social skills are strong communicators and adept at building and maintaining relationships. For example, if you are managing a team of several individuals, all with different backgrounds and personalities, you need to be aware of what motivates them both on an individual level and as a group. An effective leader will listen in order to earn the individuals’ confidence and respond with equanimity during a crisis. To understand others, the competent leader must be aware of their own feelings, what motivates them, and what makes them “tick.”
Like EQ, cultural intelligence (CQ) has certain aspects that deal with self-awareness and other awareness. CQ takes this even further. CQ is a person’s ability to function skilfully in a cultural context different than one’s own. This means that a culturally intelligent person is someone who is not only able to empathize and work well with others, but can acknowledge differing values, beliefs, attitudes, and behaviours in order to anticipate, act, and react in appropriate ways that produce the most effective outcomes. It doesn’t stop there—because of the CQ leader’s ability—they can then re-evaluate and try acting or reacting in a different way. It is possible to divide CQ in four main aspects:
- CQ Motivation → it reflects your interest in learning about and experiencing other cultures through interaction with people from that culture. It is a person’s energy and curiosity that focuses on discovering as much as they can in order to function in culturally diverse situations.
- CQ Knowledge → it is what you know about other cultures. It’s learning about world history, keeping up to date with current events, and focusing on the history, politics, religion, and social influences of the foreign environments in which you live and work.
- CQ Strategy → it involves your ability to make sense of intercultural experiences. You think critically about what is happening, you check your assumptions and reflect upon what just happened, and you try to understand it in relation to other experiences. It occurs when people make judgments about their own thought processes and those of others.
- CQ Behaviour → it is your ability to use both verbal and nonverbal behaviour appropriately. As you build your knowledge and spend time interacting with people from different cultures, you build your knowledge and spend time interacting with people from different cultures, you begin to build a repertoire of behavioural approaches. You are able to self-monitor and then choose the most appropriate behaviour upon the situation and context. These aspects of CQ are similar to EQ that you use every day to navigate the challenges at home. EQ compels us to be self-aware and other-aware, and to monitor our emotions as we build relationships with people in our sphere of influence. CQ adds the extra layer of complexity, which is culture. You have to gain knowledge about the different aspects of culture, try to figure out what is happening, and then be motivated to continue the learning process as you build a repertoire of behavioural approaches. At the core of Cultural Intelligence is the notion of mindfulness. Mindfulness is a metacognitive strategy that the culturally intelligent person must practice if they are to be successful in cross cultural interactions. Mindfulness requires paying attention, in a reflective way, by observing the many cues in cross-cultural situations while at the same time being alert to and then monitoring personal feelings, thoughts, and actions (just like in EQ).
UNCONSCIOUS BIAS
We all have unconscious bias—this is a psychological phenomenon where we are blinded from seeing reality as it really is. Such lack of awareness contributes to the incapacity to critically analyse one’s performance accurately; hence people tend to overestimate their capabilities. This phenomenon can be conceptualized along four stages: unconscious incompetence , conscious incompetence , unconscious competence , and conscious competence. In sum, we all believe we are better at things than we really are—yet if we are willing to heighten our awareness, develop knowledge, reflect on our interactions with difference, then we can move away from unconscious bias and toward more accurate understanding of our behaviours and interactions with others who are different from us. CASE 2: APPROPRIATING THE SAMOAN CULTURE On July 30, 2013, Nike Tight of the Moment (an online source for Nike Inc.’s news and company information) announced the release of its new Pro Tattoo Tech Tights on its blog. The company posted that the new tights were inspired by the tattoos of the Fijian, Samoan, and New Zealand people. They were black with white lines that created the image of tattoos, resembling the tattoos of the indigenous people of Fiji, Samoa, and New Zealand. Immediately, the public responded. Comments posted just hours after the announcement of the new tight design lamented Nike’s cultural faux pas in its choice to use the tattoos of Fijian, Samoan, and New Zealand people on its apparel. On August 2, John Masina initiated a petition on Change.org asking Nike to cease production of its Pro Tattoo Tech Tights. The pe’a is a traditional tattoo that covers the body from the waist to the knees. The tatau process for the pe’a is extremely painful and is done using handmade instruments that are made of bone and wood and other natural materials. In Samoan custom, a pe’a is only done in the traditional way using only indigenous utensils or practices. The family members of the person getting the tattoo attend the ceremony to provide support during the painful process but stand at a distance from the ceremony. The pe’a is for males only, a rite of passage and a symbol of courage. It’s also seen as a commitment to culture and traditions. In Polynesia, the origins of the tattoo are varied. Samoans believe that the Fijians are the originators of the tatau , the Fijians credit the Samoans, and the Māori of New Zealand think it comes from the underworld. In addition to using the symbolism behind the pe’a , Nike’s use of the design on the clothing line also blatantly affronted gender norms within the Samoan culture. As previously mentioned, the pe’a was only given to men. Women have their own version, which is called the malu , and consists of a different design. By using the pe’a on women’s sheer leggings and giving the impression that a woman is wearing the pe’a tattoo on her body, Nike co-opted the rite of passage and commitment to cultural tradition symbolized by the practice of receiving the pe’a. Nike isn’t new to this type of scandal. In the last couple of years, Nike has committed numerous cultural gaffes, offending various segments of the global population. In June of 2011, Nike released a T-shirt line with phrases such as “Dope,” “Get High,” and “Ride Pipe” written across the front. These expressions are traditionally associated with drug use or the act of sex. One T-shirt displayed a medicine bottle with the word “DOPE” with skateboards and snowboards spilling out of the bottle instead of drugs. The issue in this case, according to then-Boston Mayor Thomas Menino, was the promotion of drug use by a major corporation whose main target market is the younger generation. Despite the backlash, the shirts weren’t pulled, and Nike continued to sell them through the entirety of the
campaign. In March 2012, Nike launched the SB Dunk Low Black and Tan sneakers. Many people are familiar with the alcoholic beverage of the same name. Traditionally, a darker beer, usually Guinness, is mixed with a lighter beer. However, the name Black and Tan also refers to a darker period of history for the people of Ireland. Black and Tan was also the name given to a British military group that was sent to Ireland to quell the Irish rebellion against the British in the 1920s. The Black and Tan regiment was the cause of many civilian deaths. Black and Tan, or Tan, is still used in Ireland as a derogatory term for the British. It’s been said that the use of Black and Tan for the sneakers is equivalent to naming them “Taliban” or “Nazi.” Nike was slow to respond to criticism, but eventually a representative for Nike apologized, stating that the company meant no offense. However, the name remained, and the shoe wasn’t pulled from stock. After the London Summer Olympics in the summer of 2012, Nike released a shirt with the words “Gold Digging” and the signature Nike check mark to honour the 46 gold medals won by the U.S. women. In recent years, gold digging has come to refer to women who date wealthy men only for their money. The T-shirt caused additional tension because it was only available in women’s sizes. In contrast, Nike was quick to act in April 2013. Following the tragic attacks at the Boston Marathon, Nike immediately pulled its Boston Massacre T-shirt from the shelves. The design on the T-shirt referred to a four-game sweep of the Red Sox by the Yankees in 1978. The shirt is blue and white, Yankee colours, and has the words “Boston Massacre” with bloodstains on the letters. Critical Issues:
- Lack of cultural intelligence
- Insensitivity to cultural differences
- Lack of due diligence
- Disrespect toward a certain demographic of people
- Apology (needs to be timely, sincere, appropriate and mindful of their audience). Who is at stake?
- Nike’s company’s reputation and brand
- Members of the Indigenous Peoples of the Pacific’s identity and culture
- offended because: • something sacred has been turned into something to be bought and sold • their sacred tattoos are now on women’s clothing
- New Zealand Parliament Members • responsible for voicing and addressing the concerns of the indigenous people
- Athletes around the world • supporting and potentially being sponsored by a company that is so grossly insensitive to other cultures
- Investors (Nike stock, and the company in general)
- Nike affiliates and distributors • decrease in revenues because of the negative image that has been brought about Change of perspective? Companies acknowledge that global leadership development is critical for personal performance and company growth. What is needed:
- Cultural knowledge
- Intercultural competence. Recent reports:
Ethnicity relates to sociological factors that can include a shared language, nationality, religion, cultural traditions, and group history. Ethnicity is defined in terms of shared ancestry. It can be actual or presumed. Often people will associate with a particular group based upon family stories passed down from generation to generation—there is a nostalgic or emotional interest in being associated with a particular group—and, whether actual or imagined, the person will self-identify and believe to be part of that group. Their salience, or emotional connection for the need to belong, creates bonds to a particular group membership. Heritage: what we have inherited from the past, to value and enjoy in the present, and to preserve and pass on to future generations
- Historical sites, buildings, monuments, objects in museums, artefacts and documents
- Natural environments
- Customs, sports, music, dance, folklore, crafts, skills, traditions, myths, traditions Ancestry: family or group of people you come from/ descendants
- actual or presumed (self-identification)
- may be connected with some nostalgic or emotional interest
- Ex.: family stories passed down from generation to generation May have cultural, religious or even political significance, and can play a key role in shaping personal and public identities
- Ex.: the Italian immigrant in the US running for major in a highly Italian-populated city Culture: • Beliefs • Attitudes • Religion • Food • Clothes • Language • Traditions RACE In the United States, using the term “race” originally has meant placing people into groups based upon physical characteristics such as bone structure, eye and skin colour, and hair—all of which were supposedly the result of distinctive genetic differences. The idea of race has changed because of the determination that the concept of race is not scientific (the definition of race is currently disputed in biology and anthropology circles as not having biological merit); rather it is political and social. As humans, we are part of the human species “homo sapiens” (Latin: human being + wise) and, while people may look different because of facial features, skin, eyes, and hair colour, there is much variation in the categories we assign to people. Social mores and attitudes as well as political agendas determine how people are perceived and treated, so race is a social construct. NATIONAL DIFFERENCES IN IDENTITY Nations differ in how they, as a society, approach classifications. In the United States people are usually classified by their ancestry, so technically the Moroccan American citizen would be considered African American. However, in Brazil, people are classified by what they look like, using a large number of categories. Brazil classifies people based upon main ethnic groups (Indian, White, Black, Asian) and mixed race (Pardo), which includes Mulatto, Cafuzo, Caboclo, Juçara, and Ainocô. Our interactions within our many groups shapes both us and our groups—one affects the other. As we have seen with the U.S. Census questions, it is not sufficient to check one box—or even two—our backgrounds are too complex to be defined by simplistic (and outdated) categories. No matter our nationality, one thing for sure is that our main group membership is made up of many different aspects of our social identities, with race and ethnicity as only part of where we may or may not develop our identity salience. In many cultures people identify group membership through their name, which becomes a form of salience. Identity can even come in the form of a number. People
identify with many things—even area codes for telephone numbers. As we wrap up our discussion regarding group membership—and specifically race and ethnicity—it’s important to understand two things. First, each of us develops our sociocultural identity/identities based upon our family, our upbringing, and the many social influences in our lives, as well as our personal identities which include our distinctive personalities. Second, in any given country—or nation group—there are many cultures and subcultures. Language colors for race in the US:
- White (Caucasian): • person having origins in any of the original peoples of Europe, the Middle East, or North Africa
- Black: • person having origins in any of the Black racial groups of Africa
- Yellow (racist): East Asians
- Red (racist): Native Americans
- Brown: Arab Americans and South East Asians
- ‘of color’: non white Nationality: being a member or citizen of a particular nation. Not set in stone, people can change nationality. You can have multiple ethnich affiliations; you have multiple nationalities; you can have genes considered to be part of different races. Minority: any category of people who are distinguished by physical or cultural difference, that a society sets apart as subordinate. Not necessarily ‘minority’ in numbers. Some examples: • Women • South Africans segregated in South Africa (1948-1994) • People ‘of color’ in some US states (California, New Mexico, Texas, Nevada, Hawaii) (Minority-Majority states) Capitolo 4 CULTURAL FRAMEWORKS AND FOUNDATIONS New times new challenges: for many companies growing their brand outside of their initial country means
- entering untapped markets
- opening up opportunities for increasing sales
- in-depth market research needed, including cultural issues UNDERSTANDING HUMAN VALUES Every society has values and value systems. A value is an enduring belief that one way of existence (thinking, believing, doing) is better than another. A value system is the composite of principles and rules that people in a society learn in order to help choose how to interact and navigate through life. Values are made up of cognitive, affective, and behavioral aspects that guide humans in preferring one behavior versus another. We make choices so there is a constant comparing of opposites. We learn these values at an early age, implicitly taught by those who raise us and influence our early development, and which have a tremendous impact on us. “Values can serve as standards that guide our choices, beliefs, attitudes, and actions”. Values are shaped by one’s culture, which has an enormous impact on both collective and individual values, beliefs, attitudes, and behaviors. CULTURAL DIMENSIONS 101 Geert Hofstede, a brilliant statistician, described culture as the collective programming of the mind. He explained that norms— the accepted and expected ways of living— are formed from within the collective group interactions of people and subsequently influence us in ways we aren’t even aware.
These include accepting (or not) power and authority; identifying with individualism or collectivism; distinguishing traditional roles of masculinity or femininity; embracing uncertainty or change; perceiving short- term or long- term time; and preferring indulgence or restraint. POWER DISTANCE : how we measure, accept, expect and justify inequality in society. Power distance is the extent to which the less powerful members of society accept that power is distributed unequally. As a result, people will accept and expect power that is unequal and act accordingly without need for added justification of why. Hofstede comments that some societies are more unequal than others and as a result of being in a low- power position “inequality is endorsed by the followers as much as by the leaders”. This means that a society will function “best” when it’s socially stratified: everyone has a place with different rights and responsibilities to be fulfilled for the good of the society. In countries that have a lower power distance all people feel entitled to a certain amount of power. In countries that have a higher power distance people recognize that some are given little power and others are in extremely high powered positions. In a business context: low-power distance organizations:
- Information flows freely and flattens the hierarchy
- leaders receive information, process it, and respond it faster
- Individual skills are valued
- Creative capabilities are unleashed
- Higher chances for the company betterment How do countries range in the scale of power distance? Saudi Arabia 90/100 (very high power distance), Italy 50/100, Austria 11/100. INDIVIDUALISM AND COLLECTIVISM : Individualism and collectivism deal with how we tend to interact with others in individual or collective ways— Do we think in terms of “me” or “we?” Do we have strong ties with our family or in- group where there is loyalty and respect for members of the group? Or are those ties looser and less defined by expectations that allow us to put our own interests first? If so, this means less responsibility for other’s well- being and less interpersonal connection beyond family and close friends. Concepts of a collectivistic society:
- Group success • ties with, cohesion with, loyalty and respect for clan, family, in-group
- Collective interest comes first
- Restrain self to fit in with the group
- Take care of each other • responsibility for others’ well-being • interpersonal connection beyond family and close friends. Cultures in Asia, South America and Africa tend to be collectivistic. Concepts of an individualistic society:
- The individual succeeds • No strong ties with, cohesion with, loyalty and respect for clan, family, in-group
- Less interpersonal connection beyond family and close friends
- Take care of oneself
- Express individual identity • personal interest comes first • less responsibility for others’ well-being. Cultures in North America and Western Europe tend to be individualistic.
UNCERTAINTY AVOIDANCE : Uncertainty is part of life as we simply can’t know the future— we all live with it. But some cultures deal with uncertainty differently than others— should we try to control the future, or should we just “go with the flow” and see what happens? This is also known as control and constraint. Uncertainty avoidance is about how a society tolerates ambiguity or the degree to which people feel anxiety when they find themselves in uncertain situations. It is “the extent to which the members of a culture feel threatened by unknown situations and have created beliefs and institutions that try to avoid these”. Normally the highest degree of uncertainty avoidance is found in collective societies because of the need to act interdependently as well as the fact that such societies also have a higher power distance. Hofstede describes it as the extent that a culture programs its members to feel either uncomfortable or comfortable in unstructured (surprising and new) situations. Such cultures try to “minimize the possibility of ambiguous situations via strict behavioral codes, laws and rules” and don’t tolerate deviant opinions from what is expected from those in power. It’s important to note that uncertainty avoidance isn’t about risk, it is about minimizing what might happen when one deviates from the accepted and expected norm. Aspects of uncertainty avoidance:
- Travelling: • Spontaneous last minute trips or well-planned itineraries and activities?
- Parenting: • Loose or strict rules as to what is dirty, dangerous or taboo?
- Working: • Change the employer often or not so much? • Work hard only when needed or do you have an emotional need to be busy and an inner urge to work hard? • How much uncertainty are you comfortable with? In a business context:
We can look at Greece for an example of uncertainty avoidance. Greece was hit hard after the 2008 financial crisis. Today people tend to distrust the government as corrupt, inefficient, and unreliable, allowing for many forms of political corruption. “Normally taxes are considered the price you have to pay for a just state, but this isn’t accepted by the Greek mentality” (Karnitschnig and Stamouli). To some, tax evasion perhaps becomes a type of social norm and a way to fight back against the corrupt government (Johnson). Greece has the highest possible score for uncertainty avoidance: 100, which makes for an anxious and stressful approach toward life. Hofstede explains it through Greek mythology— it is like the Sword of Damocles hanging over the society. In business, a high- uncertainty- avoidance culture (averse to change) means that employees would rather stay with one organization for life; there are many rules and regulations within a centralized system; employees are used to formality; decisions can’t be made individually; and one needs the approval of a senior official before any decisions or plans can be implemented. On the flip side a low- uncertainty- avoidance culture (embraces change) is open to innovation, more willingness to take risks, can make decisions unilaterally and have more flexibility and creativity in implementing ideas, work atmosphere is informal and relaxed, and rules are flexible. Serafeim explains the uncertainty avoidance of Greece in the following way: Bureaucracy, laws, and rules exert particular influence in Greece because they help make life more structured and less uncertain. In Greece, acquiring construction permits, registering property, and enforcing contracts in courts require vast amounts of paperwork and time… Because of the aversion to risk they are unlikely to invent new products, processes, or business models. However, countries that have low- uncertainty avoidance and low bureaucracy have high innovation, such as Sweden, Denmark, and the United Kingdom. Because of a less bureaucratic government, people spend less time with red tape and more time developing their buisnesses, which benefits everyone. Bureaucracy— full of rules and laws and structures— actually makes life more structured and less uncertain. Thus, the Hofstede scores suggest a tendency that Greek society generally doesn’t embrace ambiguity and struggles with unstructured situations and change. MASCULINITY AND FEMININITY: seems to be a rather unusual way to name the phenomenon of traditional socio- emotional roles, but these are based upon the Latinized words for manlike and womanlike (a man can be called feminine and a woman masculine). A “masculine” culture refers to a society that leans toward competition, achievement and success, which are typically considered masculine roles within traditional society; whereas a “feminine” culture values cooperation and caring. This means that in masculine cultures the emotional gender roles are distinct: boys should be assertive, tough and grow up to be focused on material success; girls are encouraged to focus on the quality of life. So, men should deal with facts and women with feelings. In a feminine culture there is more role separation— where men can be modest, tender, and focused on the quality of life, and both men and women can deal with facts and figures. Also, religion in masculine societies focuses on God as the father; in feminine societies religion focuses on fellow human beings. In feminine societies you are expected to balance family and work. In masculine societies work takes precedence over family activities. In a feminine society family shouldn’t be neglected.
