The Philippines – a cultural puzzle
Various factors are brought together to form what is a truly unique Asian country. Situated in the heart of South East Asia but heavily influenced by non-Asian forces such as Spain (and Mexico), the United States and the Catholic Church. The Philippines has a large population of around 92 million inhabitants, the majority of whom are of ethnic Malay but, unlike neighbouring countries, the Roman Catholic Church is predominant. This combined with the legacy of US colonial rule, produce an approach to business, which is influenced by Asian values, but not dominated by them.
Thus, issues such as ‘loss of face’ and group orientation are still very influential, but exist alongside a fierce sense of personal pride and dignity such as can be found in many Central and South American countries. The Society as a whole tends to be hierarchically structured, but is accompanied by a far more informal approach to interpersonal dealings than would be found in countries such as Japan or Korea.
Time can be very elastic in the Philippines. It is certainly not unusual for meetings to start late – and the more senior the person you are going to meet, the more likely it is that the meeting start time will be delayed. It is important, however, that you arrive punctually in order to show the right amount of respect.
The business language of the country is English (a result of the American influenced era which began in 1898). Meetings will usually start with quite a lot of small talk. This small talk is part of the relationship-building process and will probably precede meetings at all stages of a project. Be prepared to engage in this process – it is important. It is also appropriate to give gifts at an early stage of a new business relationship as well as on the satisfactory conclusion of negotiations.
Filipinos tend to be extremely non-confrontational (unless their strong sense of personal dignity seems to be under attack). The concept of ‘pakikisama’ or getting along smoothly with everybody is very strong and negativity of any kind is frowned upon. This can mean that a meeting seems to be progressing very well, even when no progress at all is being made. Do not be overly influenced by any apparent ‘quick wins’ – it could be a long time before any concrete action follows. People find it extremely difficult to say ‘no.’ To say ‘no’ could be construed as confrontational and unfriendly, so Filipino’s would rather say ‘yes’ even if they mean ‘no.’ Any agreements should be viewed with extreme caution unless accompanied by a written confirmation or at least detailed action points and proposals.
Please share your experience of doing business in the The Philippines