Elements of Culture

We live in a time period when business and communication extends beyond the borders of nations.  While the mechanics of a business are without a doubt  important, perhaps the most crucial issue of whether an international business will be successful is culture.  For years, geographers, sociologists, anthropologists have debated the definition of culture.  However, it is the elements of culture that an international businessperson must understand in order to be successful.
 

The basic elements of culture are social structure, language, communication, religion, and values.  These elements determine the rules and contexts in which business takes place.  These rules affect all aspects of business- meetings, negotiation, marketing, finance, strategy, organizational structure to name a few.
 

To determine the social structure of a society, think of a target, similar to the one below.  Start in the middle, and ask yourself, what does this culture value the most?  In America, it’s the self, discouragement of favoritism, and individuality.  Also, we value the nuclear family (family, mother, and offspring).  Even as early as grade school, American children are taught to discover and develop their own unique talents.  However, Japanese culture stands in start contrast to America with regard to social structure.  In group-focused societies such as Japan, children are told their primary role is to serve the group.  This strong emphasis on the group and hierarchy has very important implications for business.  For example, Japanese businesspeople exchange business cards upon meeting for the first time to learn each other’s level and title so that the proper greeting and personal address can be used. 
 

Because language is the way to communicate verbally, it is an important element that distinguishes one culture from another.  English only has one word for “you” whereas hierarchical societies utilize various forms of the words “you” and “I”.  Smart businesspeople will adapt their marketing strategies to account for linguistic differences among their customer base.  For instance, market researchers discovered that English Canadians favor soaps that promise cleanliness whereas French Canadians opt for soaps that smell sweet.  Proctor and Gamble English-language Canadian ads for Irish Spring soap emphasize its cleansing value while the French-language ads stress the aroma.  Furthermore, word-for-word translation cannot solve all linguistic differences.  Translators must be aware to subtle connotations of the words in addition to the words themselves.  When KFC first introduced its “Finger-Lickin’ Good” slogan into China, the Chinese translated it to mean, “Eat You Fingers Off”. 
 

Communication, both verbal and non-verbal, is yet another cultural element that is of the utmost importance to international managers.  The meaning of gestures and expressions differ among countries, so it is wise to research meticulously before doing business abroad.  For example, in the United States, people discussing business typically stand 20 inches from each other.  Many Americans become uncomfortable in Saudi Arabia, where the normal conversational distance is 9 to 10 inches.  If the American politely steps back in the course of a conversation, the Saudi culture regards this is a deeply offensive sign of disrespect.  Even silence has different implications.  American culture treats silence as awkward, and often need to fill the quietness with words.  In Japan, silence often indicates that the individual is pondering, and sometimes, these spells of silence can last 5-10 minutes in a business meeting. 
 

Despite the secularization of many parts of the worlds, religion still plays a role in how business is conducted.  Hinduism emphasizes spiritual accomplishment more than accumulation of material items, which is why many businesses haven’t experienced as much success as forecasted in India.  Another example is Islamic Law-known as Sharia-which forbids interest on loans.  To get around this constraint, some banks have started to offer financing options that charge a flat fee instead of interest.
 

The last element of cultures is values and attitudes.  For instance, attitudes towards time vary drastically across cultures.  In America, the prevailing viewpoint is that “time is money”, and it represents the opportunity to produce more and raise one’s income.  Moreover, the Protestant work ethic discourages free time, claiming, “idle hands are the Devil’s workshop”.  In Latin American and Arab cultures, however, no one thinks it unusual if a meeting begins 45 minutes after its scheduled start time.  In contrast, in America, Canada, and the United Kingdom, if a meeting starts at 1 P.M., businesspeople arrive at 12:55, exchange pleasantries, and start promptly on time. 
 

No matter where you hang your hat, understanding the elements of a culture is an essential ingredient to success in a foreign culture.  Before you board your plane to head abroad, do your homework on how social structure, religion, language, communication norms, and values affect the business environment.