On this chapter I will be discussing what culture means and how it impacts on businesses.

Culture (BASA muna) – So dito pumapasok yung A group of people's beliefs, values, the way they think,
and customs. Meaning lahat tayo lumaki sa different belief system that’s why lahat tayo may kanya
kanyang paniniwala at uniqueness. Kaya kapag nagkakaroon ng cross cultural contact, challenging siya sa
karamihan because they expect or assume na they would act and think similarly. That’s why mahalaga
na magkaroon tayo ng Culture Awareness to understand the beliefs and viewpoints of another culture.
Also yung, mindset na meron sila and how its history, economy and society have influenced their beliefs.
Kapag ang pinaguusapan is culture, lagi natin tatandaan na walang tama or mali because as an individual
yung value systems and reasoning natin is based nga sa teachings and experiences natin so
nakadepende to sa perceptions ng isang tao.

Values - So as we explore kung paano ba nag evolve yung culture, titignan natin yung mga factors. So jan
pumapasok yung Value. So Values is yung individual beliefs natin na nagmo-motivate or influence sa
other people to act one way or another. Ito yung nagsisilbing guide sa ating behavior or human
behavior. Sa buong mundo itong values and cultures nag e evolve sya generation to generation because
as we can see, people are influenced by things outside their culture. Ngayon na nasa modern times tayo
we have media and technology na mas napapadali yung spread ng informations, so dahil don Malaki
yung impact nito sa culture and it enable us to interpret customs and understand local cultures.

Dito by understanding the meaning of culture and yung components ng culture it will helps us to
evaluate the impact on businesses or company at both macro and micro levels.

Language- Naiisip natin parati is yung words lang diba pero hindi. Kasama rin dito yung pronunciation,
tone and yung dialects at lahat to is influenced by culture. (for example nalang nito is yung sinabi ni vice
ganda diba yung Different school different pronunciation.) When you interact with another language, it
means that you are also interacting with the culture that speaks the language. Kaya itong culture and
language intertwined sila.

Custom – ito yung mga traditions or traditional way of behaving or doing something and bawat society,
religion at community ay may kanya kanyang unique customs. (For example dito satin sa pilipinas,
during wedding, fiestas and any occasions diba yung mga relatives, friends and kapit bahay tumutulong
sa pagpe prepare ng food at tradition narin satin yung parating nagbe bless sa parents and sa mga
nakatatanda satin like lolo lola’s ganern)

So baka malito lang kayo, yung Customs essential feature sya ng culture. Pero ang customs kasi is more
on yung traditional way sya at parte sya ng culture, while culture naman is yung as a whole na sya,
beliefs, knowledge and all.

We have kinds of culture first is National Culture so mapapansin natin na yung boundaries have changed
throughout the history. It symbolizes the shared values and customs that allow members of the same
country to recognize.

Next is yung Subculture ito naman isa silang cultural group within a larger culture (for example is
kunwari head ako sa marketing department then nag collect ako ng mga individuals who have
similar experiences, training, and values, so kami na yung magkakasama para madevelop pa yung
working practices namin, by that matutulungan ko sila na ipakita nila yung best qualities nila. O
kaya naman isang grupo like, Environmental Activists meaning itong group nato dini- defined as the
actions of individuals or groups na nagpo protect sa environment.)
While sa organizations naman, ito yung kung paano ka manamit (casual or formal), when it
comes sa company naman is yung how they perceive and value employees, or how they make
decisions (as a group or by the manager alone) kapag ang pinaguusapan natin is about
entrepreneurial culture sa isang company, meaning ine encourage nila yung mga employees to think
creatively and respond to new ideas fairly ng hindi na kailangan ng mahabang proseso for approval.

So base sa diniscuss ko about culture, Im sure Madali nalang natin masasagutan tong question ko, HOW
DOES CULTURE AFFECT INTERNATIONAL BUSINESS? PAANO NGA BA?

So first we have communication- Communication plays an important role in international business,

dito marami tayong need i-consider when it comes to, looking for an effective business
communication. Ofcourse yung pinaka una dapat kino consider is yung language, next is yung
customs. Kaya dito, they need to be aware of language barriers, tone and body language. Also as
I mention earlier yung cross cultural communication is challenging sya, but if the approach naman
sa cultural differences is may sensitivity, openness and curiosity kayang mag succeed ng isang
international business, if they have these characteristics.

Attitude – alam naman nating lahat na when it comes to Businesses lalo na if International
business pa, we also need to be aware that different cultures have different attitudes towards
business. Isa ito sa main reason kaya nagkakaroon ng conflict sa management. Kaya mahalaga sa
isang businesses na aware sila sa target market’s cultural approach para magkaroon ng
magandang organizational structure.

Lastly we have Workplace etiquette, this is something else that businesses need to be aware of,
lalo na if they are working internationally. Dito pumapasok yung customs. For example
nagtatrabaho ako sa isang international business so kailangan kong iconsider like, Are they
comfortable with being approached on a firstname basis? Or do they prefer titles and surnames?.
Pero diba yung ganito naman kaformal is hindi naman gaanong ka importante, but once kasi na
nagkamali tayo lalo na when it comes sa body gestures , Malaki yung chance na mawalan tayo ng
potential foreign client. That’s why it is important for businesses na aware sila sa level of
formality, yung communication dapat is depends on the culture of the client or person.

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So we have two methos to describe Culture, This section we will look at both thinkers and yung
main components dito is paano nila dini define yung culture, and also yung impact on both
communication and business. At first sa pagaaral natin nitong approaches nato hindi na sya
maysadong relevant when it comes sa day to day business. But in reality, dahil nga sa cultural
evolution, itong mga methods nato is nagpo-provide ng comprehensive and long-term
understanding of the key factors that shape a culture, which is Malaki yung influence nito sa
aspect ng business globally. So dito yung dalawang method nato ahh enable us to compare and
contrast cultures in more objective manner so isa isahin natin.
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First is Edward T Halls Context, Si Edward T Halls kilala sya sa 3 major categories that analyzes
and interpret cultural communication whis is yung context, space and time.

Dito yung High and low context refers to how a message is communicated. So dito sa Low context
nakalagay jan is Verbal and yung communication is direct. More on sa United States and European
countries ito yung culture na meron sila. For them satisfying the needs is important and straight to
the point sila. In high context culture naman, ito yung mga sa Latin America, Asia and Africa. Sila
naman is more on indirect. Dito ang pinaka importante naman is yung body language kesa sa actual
words.
So dito yung communication between people from high context and low contex cultures can be
confusing. Sa business interactions dito sa low context mas priority nila is yung verbal, they listen
only to the words spoken kesa sa body language. Kaya nami missed nila yung mga important clues or
part sa isang specific issues or topic.
Next is space, ito naman is about sya sa study of space and people. Hall called this the study
of proxemics, which focuses on space and distance between people as they interact. Diba kapag
nakikipag interact tayo sa iba we developed a comfort zone. Even in business encounters like, tayong
mga filipino yung culture natin is influenced by 3 centuries ng Spanish colonization diba. Kaya hindi
nagkakalayo yung culture natin sakanila. Kumbaga Culture to culture sya.
Next is yung time, so dito inidentified din ni Hall na ang time is another important concept greatly
influenced by culture. So may 2 kinds tayo, yung polychronic ito yung people can do several things at
the same time. In short ito yung sinasabi nating multitasking. While yung monochronic naman ito
naman yung one task at a time. So for example sa isang company may meeting sila one event at a
time lang sila. While sa polychronic yung mga employees can work several tasks. So tayong mga
Pilipino dito tayo nakapaloob sa polychronic culture because we used to pursuing multiple actions
and goals.
Next is si Hofstede isa syang social psychologist who focused on a comparison of nations gamit ang
statistical analysis which is dalawa yung database na yon. Kilala sya bilang “Father of Modern Cross
Cultural Science and Thinking”. Meron syang diniveloped na framework for us to understand the
systematic differences between nations and how values influence organizational behavior at yung
framework nayon is naka focused sa value dimensions.
So he identified five key value dimensions. First we have Power Distance, open yung society or
culture nila. As in yung structure nila sa workplace, politics and so on. Example, yung matataas yung
position is kino consider nila as boss at deserve ng formal respect and authority. Kagaya dito satin sa
Pilipinas diba, Mexico at sa Japan.
Next is Individualism, Ito naman yung bahala ka sa buhay mo ganon. Kasi priority mo is yung sarili
mo. Ito yung Magisa ka ina achieve yung mga goals mo, magisa kang hinaharap yung mga
unnecessary things. And for them to success, dito umiiral yung competition. So nakikipag compete
sila. More on sa United States and Northern European societies nangyayare to. Kung may
Individualism meron din tayong Collectivism, ito naman yung instead of “me” the “us or tayo” yung
priority nila so as a whole or group na, and pinaka importante is meron silang common goals, beliefs
and values. Kagaya sa Korea.
Next is masculinity, kapag pinaguusapan natin is masculinity or feminine where not talking about
diversity issues. Dito minimeasure natin yung value dimension on how well a culture follows to what
are considered to be "masculine" ideals. Diba dito usually ang men motivated by achievement,
ambition and financial success while women naman encourage modesty or mahinhin and quality life.
But then when it comes sa feminine culture- both genders nag swap na ng roles and this is a strong
emphasis on freedom and quality of life.
Next naman is yung Uncertainty Avoidance ito naman is degree to which community, institution or
group depends on social norms, laws and practices para malessen yung mga unexpected nature of
future events. For example, Paano ba mag deal ang isang tao na may anxiety. Then sa mga countries
na low yung Uncertainty avoidance, more people are willing to take on risks, so yung mga companies
na nakapaloob dito malelessen yung formality and yung structure na ginawa nila. Kagaya sa
Singapore at Australia ganito yung nangyayare sakanila .
Last dimension is Long Term Orientation naman is dinifine sya as the extent to which a society looks
forward to the future kesa sa past events. Futuristic. While sa short term orientation naman they are
more focused on both sides, present and past. More on dito magastos sila, they more likely to spend
money, live for the moment and value tradition.
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How do culture impacts local business
Marami pa ring mga tao sa buong mundo na, they think business is just about principles and making
money. They assume na ang culture don’t really matter. But in reality these issues do matter in many
ways. Ofcourse sa isang company ang mga employees is magkakaiba ng beliefs yan, Kaya based on
their value and priorities, culture have an impact on how people should be managed kasi
naaapektuhan rin dito yung marketing, sales and distribution.
Plus, It can affect a company’s analysis and decision on how best to enter a new market. Also yung
Communication, assume natin na nagwowork tayo then when we are working with someone from a
foreign culture, madidiscover natin that their management, communication and business techniques
ay magkaiba satin. That is why, as I said earlier it is essential to understand the culture of the people
with whom you are dealing with. By that ma a achieve natin yung successful business interaction to
accomplish business objectives.
In addition, yung pagintindi natin sa culture may affect the ability to enter a local market, develop
and maintain business relationship, negotiate successful deals also yung sa advertising campaigns
lahat ng to maaapektuhan because of culture. Kaya importante rin na maintindihan natin yung
politics and history of any nation or area that we plan to work or san magko conduct ng business.
For the Last Part Global Business Ethics. Ethics can be defined as a system of moral standards or
values. Based on my discussion don sa What is culture, values , customs and language. People are
taught how to behave by their families, exposure to education and thinking, and the society in which
they live. So Ethical behavior it refers also to our behavior that is generally accepted within a
specific culture. Pero diba some behaviors are universally accepted naman na, ang example nito is
yung people shouldn’t physically hurt other people diba alam naman nating lahat yan.
So when it comes nga dito globally Local culture impacts the way people view the employee-
employer relationship. Culture can impact how people see the role of one another in the workplace.
So dito for example is yung gender issues, So paano ba ito iha handle ng isang companies yung mga
local customs and values for the treatment of gender issues in the workplace? Syempre dapat yung
global firm ay mayroong clear guidelines articulating antidiscrimination policies. Next is yung
Corruption alam na alam nating lahat ito. So bribery yan yung panunuhol. So nangyayare to globally
para mapabilis ang decision making at business transactions. So sa isang businesses or firms their
workers frequently attempt to strike a balance between moral conduct and commercial goals. Kahit
alam naman nating lahat na ang corruption is unethical tinatago parin satin ito specially ng media.
Lastly, thou self explanatory naman na sya dagdagan ko lang haha, so yung CSR first developed more
than three decades ago, and as the businesses look to build goodwill with their staff, mga clients, and
stakeholders, it has become stronger over time. So ang best example nito is yung Coca Cola meron na
silang long term commitment sa CSR na nagpo promote ng local economic development. Kung
mapapansin nyo diba they are using an environmental friendly containers at sinusuportahan pa nila
yung mga local educations. Isa ang coca cola sa mga global companies na nagsi seek to increase their
commitment to local markets while enhancing their brand, yung corporate image, and reputation by
engaging in socially responsible business practices.