▪ Culture – the beliefs, customs, and attitudes of a
distinct group of people
▪ Often defined by dress, food, language, art
▪ Can also be defined by history, geography, religion
▪ Can refer to a group, an entire city, or a country
▪ Companies MUST know the cultural differences as
they trade globally
▪ Must know etiquette, business customs, and proper
personal interaction
▪ Will lose business
▪ Will be seen as less smart
Culture has TWO distinct meanings
▪ Culture of other countries you do business with
▪ Culture of your own business/company
▪ Must be aware of differences in language (especially slang),
currencies, laws, and measurement, customs
▪ Eating habits
▪ Touching
▪ Making eye contact
▪ Life in Japan
▪ Might have to change your product to suit the new market
▪ Chevy Nova
▪ Coca-Cola changing formula
▪ Budweiser changing alcohol content
▪ Must be aware of language issues
▪ Jolly Green Giant
▪ Must adapt to culture of country living in
▪ Mexico has siesta in the afternoon
▪ Holidays are different in other countries
▪ Religious beliefs (days of operation)
▪ Interaction with employees
▪ Business Etiquette – what is considered acceptable social
behavior and manners in business.
▪ Different in different parts of the world
▪ Gifts from clients in Japan
▪ Having a meal before getting started
▪ Must respect the customs of those countries
▪ Corporate Culture – a company’s shared values, beliefs and
goals.
▪ Can be formal or informal
▪ Owner or boss can dictate formality of culture
▪ Level of formality sets rules for business
▪ Strict Hierarchy – everyone has a specific rule or chain of
command.
▪ Dress codes strictly enforced
▪ Written manual of expectations and job duties
▪ Job titles a sign of power and status
▪ Very attention to detail oriented
▪ Not as strict – employees have more freedom.
▪ Casual dress code
▪ Promote social activities
▪ Flexible work hours
▪ Creativity and teamwork over job titles and status
▪ Managers on first name basis with employees
▪ No two people or groups are alike
▪ Your success in the workplace depends on how well you get
along with others
▪ Different skills
▪ Different work habits
▪ Different approaches to tasks
▪ Diversity is not the same as culture
▪ People diverse based on:
•Age
•Education
•Gender
•Marital/Parental status
•Ethnicity
•Income
•Individual Needs
(handicapped)
•Religious beliefs
▪ Stereotyping is bad
▪ People have individual skills
▪ Dealing with diversity means understanding and using the
differences of people
▪ Hispanics and Asians are fastest growing groups in US
▪ Hispanic population grew almost 60% b/t 1990-2000
▪ Hispanics no longer minorities in CA and TX
▪ Population getting older
▪ 1946-1964 babies are called baby boomers (due to WW II)
▪ Have 51% of all wealth in country
▪ About 85% of people entering workforce are women and
minorities
▪ More women, Asians, Hispanics, African-Americans in
management
▪ Younger workers becoming more important
▪ Minorities and women now working
▪ Now have purchasing power
▪ Company reaction
▪ Used to only target white males
▪ Now target all areas of market
▪ Must appeal to all different groups
▪ More pharmaceutical ads than ever before, why?
▪ Baby boomers are now 50-60 years old
▪ Human Resources responsible for managing – tries to make
company inclusive organization
▪ Increases productivity
▪ People want to work for company
▪ Goal is to create inclusive, respectful work environment
▪ Until 1970’s workforce was white males
▪ People tend to hire people like themselves
▪ Had no laws to protect anyone
▪ Discrimination – excluding someone on the basis of age,
gender, ethnicity, or physical handicaps
▪ Illegal in workforce now due to Anti-Discrimination Laws
▪ Some companies did policies before laws
▪ Age Discrimination Act
▪ Protects workers over 40 (ageism)
▪ Equal Employment Opportunity Act
▪ Regulated by EEOC
▪ Protects based on gender, ethnicity, religion, etc.
▪ Americans with Disabilities Act (ADA)
▪ Protects handicapped workers
▪ Requires handicapped accessibility for all buildings
▪ Many companies have diversity programs to help employees
work together
▪ Promote trust and cooperation b/t employees
▪ Break down stereotypes
▪ Managers must work to promote equality and break
stereotypes and discrimination
▪ Promote this through corporate culture
▪ Companies purposefully hire diverse people
▪ Allows to work with more diverse customer base
▪ Have increased productivity and efficiency
▪ Fewer legal costs from being sued
▪ A diverse workforce offers a broader range of ideas and ways
of looking at things.
▪ Greater diversity in the workplace helps a company better
understand and serve the needs of a more diverse
marketplace.
▪ It creates a greater sense of morale among employees and
commitment to company goals.