Topic 5 - Cultural Considerations and Ethical Practices Flashcards
(31 cards)
What is cultural considerations?
Refer to the specific knowledge, understandings and practices linked to a group (usually geographic region) that should be incorporated into business dealings and strategy to increase the likelihood of success.
What are the 6 types of impacts on cultural considerations?
1) Levels of education
2) Customs
3) Business Etiquette
4) Communication Protocols
5) Holidays and Celebrations
6) Religious Beliefs
What do the levels of education refer to?
More industrialised and economically developed countries maintain higher levels of education. Higher levels of education generally correlate with increased wealth and access to skilled labour which impact global businesses directly.
- In the United States, they have high overall standards with a strong university sector.
In developing countries, levels of education are lower.
- In India, rural areas face literacy and skill gaps.
What are the key cultural considerations related to the levels of education?
Skilled Labour:
Low levels of education can lead to a shortage of skilled workers in a country or region. Businesses looking to expand into such a region may need to base skilled domestic employees overseas to fill these skill gaps and/or provide training to upskill overseas workers (and provide financial incentives to retain these staff).
Marketing and Products:
Depending on the complexity of products, features and marketing may need to be adapted to meet the education and literacy levels of target market segments.
What are customs?
Customs describes a patterned way of behaving within a particular society.
What are key cultural considerations related to customs?
Customary meeting protocols:
A business employee who approaches an international meeting with knowledge of a customer/business partner’s cultural background can adapt their way of speaking, body language and actions to suit regional customs.
Relationship Building and Business Success:
Allows businesses to demonstrate thoughtful care and respect for foreign individuals/groups and companies they enter business dealings with. This may lead to building stronger relationships and successfully operating in the region, growing their customer base in the region and increasing sales and profits.
What is an example of customary meeting protocols?
- In Asia, formal greetings, gift-giving, and respect for hierarchy are important. Some gestures (pointing, thumbs up may be rude or offensive in Asian cultures).
- In Western countries (USA, NZ), informal greetings and relaxed customs (handshakes) is common.
What is business etiquette?
Business etiquette encompasses the expected norms and behaviours that govern interactions in a professional setting. It builds on the understanding of regional customs focusing explicitly on business dealings and enhancing international relationships while avoiding causing offence due to ignorance.
What are key cultural considerations related to business etiquette?
Formality of address:
The formality of address is an important consideration when dealing with colleagues and business partners from different countries. Businesses should consider if team members working in specific international regions prefer titles and surnames or being referred to on a first name basis.
What is an example of the formality of address?
- In Asia, you would use a formal address using titles/surnames with business cards treated with respect.
- In Western countries (USA, NZ), a first-name basis is common with a casual but respectful tone.
What are communication protocols?
Communication protocols are a significant cultural consideration for global businesses because differences in language, tone, formality, and communication styles can impact collaboration, negotiations, and relationship-building across cultures.
What are key cultural considerations related to communication protocols?
Respect for Non-Verbal Norms:
Businesses must recognize that gestures, body language, and personal space vary significantly across cultures, and what is acceptable in one culture (eye contact or handshakes) may be inappropriate or offensive in another.
Research and Preparation:
It is essential for businesses to research and understand local professional communication styles and expectations before engaging with international colleagues or clients.
Cultural Sensitivity and Adaptability:
Success in cross-cultural communication relies on being perceptive, asking respectful questions when unsure, and approaching interactions with openness, curiosity, and a willingness to adapt.
What is an example or research and preparation?
- In Asia, indirect, polite speech and non-verbal cues (tone and silence) are significant.
- In Western countries, direct and concise communication is preferred.
What are holidays and celebrations?
Holidays and celebrations are a significant cultural consideration for global businesses because they influence consumer behaviour, employee availability, marketing strategies, and the need for cultural sensitivity across diverse markets.
What are key cultural considerations related to holidays and celebrations?
Marketing Opportunities:
Holidays and celebrations can be leveraged to create culturally relevant promotions, social media content, and seasonal campaigns that resonate with local audiences.
Cultural Diversity:
In multicultural countries like Indonesia and Malaysia, businesses must recognize and respect a wide range of cultural and religious holidays to appeal to diverse customer bases.
Operational Awareness:
Understanding the timing and significance of local holidays is crucial for planning business activities, as they can affect consumer behavior, staff availability, and overall business operations.
What are examples of operational awareness?
- In Indonesia/Malaysia/The Middle East, Ramadan and Eid impact working hours and consumption.
- In China, Chinese New Year pauses business operations.
- In the USA, Thanksgiving and Christmas drive consumer activity.
What are religious beliefs?
Religious beliefs are a key part of culture, shaping values, behaviour, and decisions. In business, they influence consumer choices, workplace norms, and accepted practices. Respecting religious customs helps global businesses build trust, avoid offence, and succeed in diverse markets.
What are key cultural considerations related to religious beliefs?
Consumer Behavior and Preferences:
Religion influences values and decisions, affecting customer behaviour and product choices. Beliefs can shape buying habits, like preferring halal items or avoiding certain ingredients or services.
Cultural Sensitivity and Respect:
To avoid offending customers and maintain positive relationships, businesses must understand and respect the dominant religious beliefs and practices in the countries where they operate.
What are examples of consumer behavior and preferences?
- In Indonesia, Malaysia, and the Middle East, most people are Muslim. Businesses should offer halal products, respect modest dress codes, and be aware of Ramadan.
- In India, most of the population is Hindu. Businesses should avoid selling beef and respect festivals like Diwali.
What are benefits of ethical practice in a global context?
Businesses that prioritise ethics over short-term gains reduce risks such as reputational damage and legal penalties, strengthen brand loyalty, attract socially conscious investors and do right by the global community.
What are the 3 types of ethical practice in a global context?
1) Minimum Standards of Labour by the International Labour Organisation (ILO)
2) Corporate Social Responsibility
3) Environmental Sustainability
What are the Minimum Standards of Labour by the International Labour Organisation (ILO)?
International labour standards are principles and guidelines established by the International Labour Organisation (ILO), a United Nations agency, to promote decent work for all workers worldwide. These standards aim to ensure fair treatment, safety, and dignity for workers and to prevent exploitation in global supply chains.
What are strategies and guidelines for adhering to International Labour Standards?
- Paying fair wages to all workers to ensure a decent standard of living
- Complying with occupational health and safety regulations to protect worker wellbeing and prevent injury
- Avoiding the use of sweat shops, where workers may be underpaid, forced into unpaid overtime, violates labour laws, denied breaks or mistreated
How does the ILO relate to child labour?
They implement strict policies against the exploitation of children, in line with the ILO’s Minimum Age Convention:
- 13-15 years: Only allowed light work around schooling.
- 15 years: Minimum legal age for general work.
- 18 years: Minimum age for hazardous work.
