Corporate social responsibility and effective global public relations require understanding cultural differences between countries. [1] Executives must consider diverse business practices and ethics in other cultures to avoid problems. [2] What works domestically may not succeed globally. [3] Flexibility is key to developing a global mindset, as negotiations styles and views of time and risk differ cross-culturally.
AN ANALYSIS OF ETHNOCENTRISM IN A GLOBALIZED BUSINESS ENVIRONMENT
The Cultural Component of Global CSR
1. Corporate Social Responsibility & Green PR
GLOBALIZATION
Monica Stevens, MSBA A global mentality is indispensable in today's
Some of the main concerns regarding economic globalization are the corporate PR.
very marked cultural differences between countries. Another worry are the
diverse business practices, and the new approach to ethics that executives
may have to take when dealing with other cultures. A global mentality is Corporations and small companies trying to
indispensable in today’s corporate PR. do business with other countries require
awareness of cultural differences when
The fact is that many business people in the United States, who have presenting a product or service to other
never had the opportunity to travel to other countries, usually do not wonder cultures.
whether they will encounter a different set of rules to conduct business
abroad, and this can create serious problems. In general, they wonder
whether the place will really have five-star hotels, whether it will be safe, What works at home, may not work well
whether businesswomen are well accepted, and whether their foreign with others.
counterparts will speak good English – but a new cultural approach is seldom
taken into account. Unfortunately, what works at home, may not work well
with others. It is the customs, traditions, and attitude in
Ethnicism, the doctrine that dictates that ethical ideas and behavior each country that count.
are valid and important, is growing in business, in spite of criticism from
locally established corporations that have been in operation for many years.
Many of these companies find it difficult to cope and tend to resent the new, The key words to develop a global mindset is
expanded use of business ethics that local, federal, and state laws now flexibility.
demand, and this is where effective global PR comes into action.
In some countries with collective societies, for example, executives
tend to look for the common good, more than individual l gain, and this
attitude is an important aspect of social responsibility and ethicism.
Ethical business processes in the US have begun to play a very In some countries a business deal is
personal.
important role when deciding who to do business with at international levels.
Corporate Responsibility includes new transparency, care for the
environment, and a very important change: The ability to view negotiations,
not as a competition, but as collaborative effort among companies and
nations.
In a way, many aspects of CSR are already present in most high-
context societies like Italy, Latin America, and Japan. For example, Mexico is
party to international agreements such as Biodiversity, Climate Change,
Desertification, Endangered Species, Hazardous Wastes, Law of the Sea,
Marine Dumping, Marine Life Conservation, Nuclear Test Ban, Ozone Layer
Protection, Ship Pollution, Wetlands, and Whaling.
In order to improve CSR, corporations and small companies trying to
do business abroad now require thorough knowledge of global cultural
differences when presenting a product of service to other cultures. Even
2. High-context cultures view negotiations as though there are quite a few books about other countries in the market, the vast
a collaborative effort.
majority provide mostly information about the countries’ tourist industries. This is
not nearly enough to give an international executive the thorough knowledge and
self-confidence required to successfully deal with business people from other
Body languages is more important than
verbal expression in high-context cultures, cultures. It is the customs, traditions, and attitudes in each country that count.
such as China and Mexico. Sound global PR must be about the new country’s corporate etiquette,
economy, social problems, traditions, and especially its political environment, to
effectively comply with global CSR. Knowing about a country’s business practices,
Monochronic cultures work based not on its food, holidays, family and religious views, and general culture allows executives
schedule but on task completion.
to go through the appropriate channels to establish long lasting business
relationships.
The key word to develop a global mindset is flexibility. Believing that our
Some countries find it hard to say “no” way to conduct business is the only way is actually the surest way to damage an
even though they may not agree with
otherwise successful negotiation. Just like other cultures speak different
what they hear.
languages, eat other foods, and have different laws and traditions, they also have
different views on what a business negotiation entails.
A good example of different negotiating styles are countries like Latin
America, Italy, and the Arab nations, where a business relationship begins once you
have signed a contract. In other words, a business deal is personal, and it involves a
long-term relationship. The concept of personalism is present at all times, and it
plays an important role in the goodwill that these countries display when
negotiating with other nations. These countries do not make a distinction between
business and a personal relationship, which is the exact opposite of the US, where
the contract is the culmination of the negotiations, and therefore, of any personal
involvement with the other company. The expectation of continued personal
contact sometimes puzzles American executives.
Another important difference is how high-context cultures view
negotiations as a collaborative effort, whereas the US tends to view them as a
competition. The discrepancy in approach is obvious, and it can create problems.
There are a series of specific differences that account for most
misunderstandings among nations. Some of the most important are their differing
views on power distance (how much respect you should show figures of authority,
and what is the right way to address them), the concept of time, and the
willingness of a country to take risks.
Dealing with a high-context culture (like Mexico, China, Italy, and the Arab
countries) is always more complicated than dealing with a low-context one (like the
United States). In high-context cultures, verbal communication takes second place
to body language, the inflection of the voice, and face-to-face interaction. These
cultures are less concerned with doing things “by the book”, and are more focused
on a relationship that will be beneficial to all parties involved. Therefore, high-
context cultures require more time and effort to conduct business.
3. When considering the concept of time, polychronic cultures, consider that time is plentiful and
relative (So, why worry?), while monochronic cultures, like the United States, believe time is a precious
commodity (Time is money). Polychronic cultures tend to be late for appointments, do many things at
the same time, and work based not on schedule, but on task completion. Mealtimes, including business
meals, tend to last for hours. When dealing with polychromic cultures, monochronic cultures must use
smart PR, including a full understanding of these differences, and being patient.
A third important difference is the uncertainty avoidance index. A culture high in this type of
index (like Greece and Portugal) is usually highly emotional, more bureaucratic, reluctant to take risks,
and unwilling to go out of its comfort zone. It also avoids open conflict in business negotiations. High
UAI cultures find it hard to say “no” to their straightforward, low uncertainty avoidance index partners
(like Singapore, Scandinavia, and the US), even though they may not agree with what they hear. So, it is
important not just to listen to their verbal answer, but to watch their body language as well.
The above are only a few of the many cultural differences international executives encounter
when trying to apply CSR dealing with other cultures. Therefore, global PR represents today one of the
most valuable tools to do business abroad.
Good international research will give as a result successful global PR strategies that will provide
company employees the necessary tools to navigate a foreign environment successfully and with greater
confidence.
The application of a well designed global PR campaign in the long run can save corporations
valuable time and money, and the result of these actions is effective corporate social responsibility that
will benefit all.
4. Monica E. Stevens
Cross-cultural trainer and consultant
With a BA in Professional/ Technical Writing, and MSBA in International Studies, Monica has been a PR
director, foreign correspondent in the UK, and radio and television guest speaker. Speaks fluent Spanish,
French and Italian, is a college professor of Business in Latin America,member of the Oxford Round
Table Conference in England, PR Deputy Coordinator for APROMEX, and the Detroit Immigration
Examiner.
She has lived in Mexico, England, and the US.