Cross Cultural Awareness for 21st Century Business
From APEC HRDWG Wiki
As part of International Education Week 2010, APEC has expanded on several themes of the "Language Education: An Essential for a Global Economy," seminar to provide a guide for students and instructors interested in the critical importance of business language for strengthening business relations in a global context. These themes include Business in the 21st Century; Cross Cultural Awareness for 21st Century Business; Language for 21st Century Business; Business Language Learning; and Business Language Policy.
This page discusses the importance of cross cultural awareness and understanding, of the need to be mindful of one another's values and traditions as we engage in business with partners around the world.
In today's global economy, the success of international business will increasingly depend on our awareness of the social and cultural values of the economies that we work with. It is often our ability to understand and perceive culture-specific, hidden, or implied communication that lead to a successful international business partnership.
Technology has eliminated lags in communications (email is instantaneous, and urgent questions are quickly asked and answered) and travel time (fresh fruits and vegetables are shipped daily around the world, distributed in countries thousands of miles apart days before they spoil). These, advancements in technology bring social interactions between increasingly diverse individuals, groups, business entities, and governments. Everyday we encounter how culture, language, religion, history, sociology, politics, and other factors influence both our social interactions and business, as seen in the scenarios below.
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Key Topics
- It is important to identify the cultures, values, and customs of your own economy as well as those of others.
- Small, miscommunication may lead to the loss of business contracts and the severing of good relationships with our business partners.
- In order to be successful in business, the values of our customers, our partners, and their societies must be upheld and take precedence over our own.
Scenario
In the fictional scenario presented below, we learn that despite having the best of intentions, businessmen who do not understand the importance of proper cross cultural communication and awareness may lose out on lucrative business partnerships.
Situation
A successful business in Economy A, grounded in western business ethics and practices, wanted to expand its business operations and influence. After several months of negotiations with various companies, the firm selected a company operating in Economy B as a business partner. Soon after an agreement was reached, and senior executives from Economy A were invited for a week-long tour of their partner companies world headquarters, located in Economy B.
Several events took place during the trip that illustrates the cultural orientations of the two economies. For example, the executives from Economy A were told how to present their business cards to executives from Economy B (with two hands, the card facing the recipient) and how to receive business cards from executives in Economy B (with two hands, viewing the card carefully before placing it in a front pocket). Executives from Economy A were also asked to remove their shoes before sitting down for a traditional meal, although they had not been required to do so at the company cafeteria that afternoon. During the traditional meal, executives from Economy A appeared not very very skilled at using the traditional eating utensils of Economy B. For example, one Economy A executive found it easier to grip them by first standing them upright in his bowl of rice, and then picking them up between his fingers.
Weeks after returning to their home country, the Economy A executives from had not received any response to their emails and phone calls to their Economy B colleagues. After nearly six weeks, Economy B sent a short fax stating that the business environment in that economy had changed, and that the company could no longer commit to the business partnership with the Economy A organization. The executives from Economy A, puzzled by this response, hired an independent consultant (an expert on cross-cultural communication) to help them understand what they might have done to offend their colleagues in Economy B. During the meeting, one executive casually spoke about the difficulty he had with the utensils and how how he solved the problem. The consultant told him that Economy B was offended by how he used his utensils since that method is reserved only for funerals. Thus the proposed partnership was dissolved.
Points to Consider
- Consider the example in which a task as simple as using eating utensils correctly determined the outcome of the business partnership. What might the representatives from Economy A have done to better prepare for the meeting?
- What aspects of the communication style of the representatives from Economy B puzzled the company from Economy A?
- What might both parties to the business dealing have done to ensure a successful outcome for both sides?
Lessons Learned
- Business relationships often are based on an understanding of, and ability to, adapt to the cultural customs of the various economies. Differences between individuals, customs, societies, and cultures quickly become apparent and are key factors in establishing and maintaining business partnerships.
- Traditional business considerations such as enhancing a company’s presence in an economy or increasing sales may not be sufficient reasons for establishing business partnerships. Rather, the economies’ prevalent culture and customs may be as important as traditional business considerations.
- In today’s global economy, communications technologies grow and advance at a rapid rate. It is important for companies to consider not just the direct written and oral aspects of communication across cultures, but also the indirect and implied aspects of this communication while facilitating business relationships within and across their economy’s borders.
- The relationship between the two companies appeared to be perfect on paper. Emails and phone calls were exchanged, the terms and conditions of the relationship were agreed upon, and as is customary in the host country, the executives from Economy A were invited by their colleagues for a week long visit to Economy B. Unfortunately the relationship became estranged as the man's inability to use the traditional utensils resulted in the severing of the entire partnership.
Resources
- Video from the APEC-RELC International Language Seminar presentation "Trade Specific Language Learning in Higher Education"
- Industry-Specific English Glossaries organized by industry and topic
- Related Tips for Teaching 21st Century Workplace Skills
See Also
Language for 21st Century Business
Back to Business Language for a Global Economy
Other content for International Education Week 2010
