Business Protocol Notes

Note:  The following are teaching notes that I made available for students in BSAD560, Intercultural Business Relations, a graduate course offered as an elective in the MBA program at Andrews University.  If you find this material useful, you may use it for non-commercial purposes such as teaching, intercultural training seminars, etc.  In such cases, provide an appropriate academic citation to Dr Charles Tidwell, Dean Emeritus, Andrews University.

In addition, these notes have been translated as listed below.  If you desire to translate these notes into another language and use them in a blog or other publically available web site and wish to have this noted here, please let me know.  My e-mail is tidwell@andrews.edu

Language Translator Web-link



Danish
Sandra Knudson
https://www.zoobio.se/teaching/2018/07/17/business-protokollen/






Is is crucial for business people to recognize that “rules” dominant in business practice.  Ignorance is no excuse — it will usually mean the loss of a good business contact.  Learning the protocol, particularly the elements that initiate business contacts (appointments, greetings, and gift-giving), is essential.
Appointments

 Possibilities range from: showing up, making a telephone call to set up an appointment, to using an intermediary.  But, essential to know how to procedure to follow in setting up appointments. 

Question: How essential are appointments in the US?  In the US, appointments can be made quite casually and on short notice.  Possible, even, to do a “walk-in” appointment.  And, if the person is “free” the appointment can take place right then.  I experience this quite often with sales people seeking my business here in the School of Business.  However, this is not true in many other cultures.
Examples: 
  • In Latin America.  Appointments must be made a least one month in advance by mail or telephone and followed up one week before hand.  Contacts should also be made as high up in the organization as possible and be done so through a “connection” if possible.
  • In China, essential to set up appointments before you even come to the country.
  • In Saudi Arabia, need to have a sponsor who sets up the appointments for you.
  • In Japan, while a connection (who is not part of either your or the other company) is often very useful as a means of introduction, a personal call is the best way to make an appointment.  A letter may not even be answered.
As part of appointments, need to be aware of certain dates which should be avoided in the culture — either because no one will be available, or because of other factors (including superstition)

   In USA, when shouldn’t a person try to make an appointment? (i.e most public holidays and weekends)

Other examples:

  • In most of Asia, not on Chinese New Years (3-7 days) — a lunar holiday in Jan / Feb / March.  And in mainland China, many businesses are closed for two weeks.
  • In most Latin America, not during carnival (even if it isn’t a public holiday)
  • In any overseas British-background country (but especially in Caribbean) not during a cricket test match
  • In Islamic countries, need to check to see if business is conducted on Friday or even Thursday afternoon.  And, especially the three days that conclude the month long “fast” of Ramadan.
  • In Israel, on Saturday.
  • In Japan, three weeks of the year are difficult for business: New Years (Dec 28-Jan 3), Golden Week (April 29-May5), and Obon (mid-August). 
Greetings

How you greet someone when you first meet or leave them (first time ever, first time that day) is an essential part of business protocol.  Americans are generally informal (and a “firm” handshake is customary / cheek kiss / hug for those who have known each other for a long time (and who may not have seen each other for a while).  Americans tend to use first names — except for formal setting or clear “hierarchal” or “traditional” settings.  Business cards are usually only exchanged in a business setting when business is specifically being transacted.

In other cultures, the rules differ significantly (although handshake is becoming much more wide-spread because of other culture’s learning to adapt to western ways):

  • In Saudi Arabia, greetings are expressive, elaborate, with numerous handshakes and often kisses and hugs (among same sex only).  Titles are very important and always used.
  • In China, a nod or slight bow is a preferred greeting.  Titles are widely used and expected.  When met by groups, applause may be given (and expect to be applauded back).  Business cards (in both English and Chinese) are exchanged (and handed with both hands — not one).  You may also be asked if you have eaten yet (This is a greeting, not an attempt to provide food!).
  • In India, men will offer to shake hands but only the most westernized will shake hands with the opposite sex.  Women should not initiate handshakes with men.  The traditional Indian greeting is the namaste.  Titles are highly valued, especially professional titles such as professor or doctor.  First names are only used among close friends — so use Mr, Mrs. Miss.
  • In Japan, handshakes are common because of the western influence (often very weak or limp — but this should not be taken as a sign of a lack of assertiveness.  The bow is customary.  One needs to respond in kind — so essential to notice the depth of bow and do the same — it indicates equality.  A greater or lesser bow indicates superiority or inferiority.  First names are not used.  Business cards are essential and should indicate education and association memberships.  Japanese businessmen present these immediately after a bow or handshake and then read them immediately.  Protocol in handling cards is to treat them as a gift, don’t casually put them in a pocket or wallet (at least in front of the giver).
Gift-Giving

Americans typically see gifts as a type of bribery.  And, if given must be $25 or less.  But in many other cultures, this is standard business protocol.  A person traveling overseas, needs to review the local culture on gift-giving.  And, it is often appropriate to bring something from the US that is “typically” American —   crafts, Native-American items, food.

Other Examples:

  • Arabic countries — hospitality is legendary.  Impolite to refuse a gift (also be wary of admiring something — it will be given to you).  Often expect a percentage of a business deal if they are broker or approve (have to be careful not to break US Foreign Corrupt Practices Act)
  • Singapore — prides itself on being corruption free.  So business gift giving is quite restrained by Asian standards.  Government employees are forbidden.  But small tokens are often exchanged.  I take chewing gum for the office staff!  An Andrews souvenir for managers.
  • Japan — Common practice.  Businesses must give them at New Year and Mid Year.  May often be quite elaborate / expensive — but not required.   Important to have reciprocity however.  And often given at first business meetings.  Ceremony and wrapping is more important than the content.  Gifts not typically opened in front of the giver (and reactions would always be restrained — even if very pleased). 

BSAD 560, Intercultural Business Relations