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Chapter 5 – Culture, Management Style, and Business
Systems
Teaching Objective
Business customs within a country are an extension of the country’s culture. There are many similarities
in how business is conducted from country to country but the differences, if not properly adjusted for,
often cause enormous problems.
It is not necessary for a business person to forsake their ways and to change to conform to local customs
but, rather, to be aware of differences and willing to accommodate those differences that can cause
misunderstandings. Just as is the case with all cultural differences, a person’s SRC can cause problems
when trying to operate under different business customs. The literature is full of examples of
misunderstandings between business persons from different cultures when each responds to the other
from his/her own SRC without an appreciation of the SRC at work. The classic example is time. In some
Latin cultures, there is a different urgency placed on time. The punctuality of someone from the United
States can appear “pushy, too much in a hurry to make a decision, and so on” while the lackadaisical
response to time by a Latin can be erroneously interpreted as being lazy or indifferent. Or, in the United
States, calling someone by their first name when first introduced implies friendliness but appears as rude
or boorish to a Frenchman or German. The teaching objectives of this chapter are to:
1) Acquaint the student with some of the more frequently encountered differences in business
customs.
2) Emphasize the importance of adaptation or accommodation to differences in behavior patterns.
3) Discuss those business customs that are important to adapt to since many differences that exist
within a culture do not require adaptation.
4) Become aware of the disparate standards for business ethics that exist and to test one’s own
ethical values.
5) Explore a guide to help you make ethical and socially responsible decisions.
