Leadership and Professional Development Course 1Unit 10 – Business Etiquette, Culture & Ethics

10 BUSINESS ETIQUETTE & CULTURAL DIFFERENCES

TABLE OF CONTENTS10 Business Etiquette & Cultural Differences................................................................................1

10.1 Introduction.....................................................................................................................2

10.2 Differences between Etiquette and Manners..................................................................2

10.3 Etiquette Quiz.................................................................................................................5

10.4 Business Etiquette Rules at Work...................................................................................6

10.5 Business Meal Etiquette.................................................................................................8

10.6 Etiquette in Different Countries: Avoid Faux Pas .........................................................11

10.7 Cross-Cultural Differences - Geert Hofstede................................................................14

10.8 Business Ethics.............................................................................................................22

Leadership and Professional Development Course 2Unit 10 – Business Etiquette, Culture & Ethics

10.1 INTRODUCTION

Do you know the definition of Business Etiquette? Business etiquette is about building relationships with other people. Etiquette is not about rules & regulations but is about providing basic social comfort and creating an environment where others feel comfortable and secure, this is possible through better communication.

Etiquette or manners have always been a way throughout history where people tend to judge what class another person comes from. Granted that “class” was more important in older days but do not believe for a minute it is gone. People still make judgements based on behavior of another especially when it comes to conducting relationships.

Etiquette does not just apply to in-person situations anymore. Social media communication platforms (i.e. Facebook, LinkedIn) are evolving rapidly day by day, as the concept of social media etiquette becomes a crucial part of business.

Business etiquette consists of two things.

Firstly, thoughtful consideration of the interests and feelings of others and Secondly, being able to minimize misunderstandings.  These are influenced by individual

behavior & demeanor. Business etiquette instructs this behavior.

Business etiquette differs from region to region and from country to country. This creates a complex situation for people as it is hard to balance the focus on both international business etiquette and other business activities at the same time. Therefore, a wise step is to focus on some key pillars of business etiquette.1

Following are some fairly universal key business etiquette tips that mean real success to business:

10.2 DIFFERENCES BETWEEN ETIQUETTE AND MANNERS2

Even though both play a significant role in controlling human behavior in accordance with social standards, etiquette and manners are not the same. They are different from one another. Etiquette refers to the code of polite behavior in society. Manners, on the other hand, refer to the way of behaving, speaking and living in accordance with the expected patterns of behavior. When paying attention to the definitions they appear quite similar. But the difference lies in etiquette being a particular code of conduct, unlike manners. Through this article let us examine the differences between etiquette and manners.

So Etiquette is a specific CODE of behavior.

Etiquette refers to the code of polite behavior in society or organizational setting. Unlike manners, etiquette is a specific code of behavior. Etiquette is considered as the superior of the two as it goes beyond the understanding of manners. However, if a person has no manners, one cannot expect him to have etiquette. This is because it is on the foundation of good manners that etiquette is being nurtured. Unlike manners, in order to learn etiquette, one must make a conscious effort.

1 International Business Etiquette – definition and tips http://businessculture.org/business-culture/business-etiquette/2 http://www.differencebetween.com/difference-between-etiquette-and-vs-manners/

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For example, in order to have an understanding of behaving at a particular function or knowing which fork or spoon to use, the person has to learn it.

One has to learn dining etiquette.

Etiquette allows individuals to behave in special situations in a socially approved and cultured manner by being respective as well as sensitive to the situation and also other individuals. People attend finishing schools and read special material to gain more knowledge about etiquette.

What are Manners?

Manners are polite behavior. These types of behavior are rather general. From childhood onwards children are taught good manners by parents and also in schools. This highlights the importance given to good manners within the societal context. As the child grows, he internalizes good manners that then become a part of their behavior. For example:

Saying ‘Thank you’ after receiving something, saying ‘please’ when requesting something, saying ‘sorry’ one you have hurt someone, respecting elders are all manners that are taught to children at a very small age.

When an individual displays good manners, he is considered as a well brought up person. This highlights that Etiquette and manners are not the same but refer to two different things.

Summary: Etiquette vs Manners

What is the difference between Etiquette and Manners?

• Etiquette refers to the code of polite behavior in society whereas Manners refer to the way of behaving, speaking and living in accordance with the expected patterns of behavior.

• Manners are more generalized, unlike etiquette that dictate a specific code of conduct.

• Individuals learn manners from childhood through instruction and socialization, but etiquette has to be specially learned.

• It is manners that lay the foundation for an individual whereby the individual progresses by learning etiquette.

Letitia Baldridge explains it well in the “Introduction” of her book Letitia Baldridge’s New Manners for New Times:

Etiquette is protocol, a set of behavior rules you can memorize like a map, which will guide you safely through life. Manners are much more, since they are an expression from the heart on how to treat others whether you care about them or not.

Manners teach you how to value another’s self-esteem and to protect that person’s feelings. Etiquette consists of firm rules made by others who have come before, telling you to do this and do that on specific occasions.

Etiquette means acting with grace and efficiency, very laudable in itself, but your manners are yours, yours to use in making order out of chaos, making people feel comfortable, and giving pleasure to others.

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10.3 ETIQUETTE QUIZ

ANNOYING HABITS

DIRECTIONS: Rate each of the following habits on a scale of 1-5. Be prepared to discuss your rating in class.

1 = extremely annoying2 = very annoying3 = annoying4 = somewhat annoying5 = does not annoy me at all

_____ 1. Being bossy _____ 13. Pushing to the front of lines

_____ 2. Bragging _____ 14. Putting on airs

_____ 3. Cheating _____ 15. Seeking attention

_____ 4. Continually criticizing _____ 16. Spitting

_____ 5. Coughing on others _____ 17. Talking too much

_____ 6. Cracking or popping gum _____ 18. Talking too loudly

_____ 7. Disrespecting the elderly _____ 19. Talking about sex

_____ 8. Gossiping _____ 20. Trying to be funny

_____ 9. Giving unwanted advice _____ 21. Using baby talk

_____ 10. Having body odor or bad breath _____ 22. Using incorrect words

_____ 11. Losing temper _____ 23. Cursing

_____ 12. Telling "little white lies" _____ 24. Dominating conversations

_____ 25. Overusing slang language

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10.4 BUSINESS ETIQUETTE RULES AT WORK

Elements of business etiquette. Business etiquette instructs on you how to present yourself professionally in different cultures. Some keys for making a good impression are dressing appropriately, your body language, presenting your business cards, gift giving, and many other important elements. The following list will be helpful.

Sensitivity & Diplomacy. A key pillar of business etiquette is sensitivity, meaning giving careful thought to every business aspect before making a judgement. This gives a strong foundation to your business. Also, thoughtless words and actions lead to a negative outcome. Being aware of business etiquette encourages careful thought.

A Good Introduction. This includes understanding that a good introduction is your only first impression. Don’t rush it. Calmly introduce yourself, pronounce your name clearly and distinctly (if difficult offer a shorter version). A good firm handshake, smile and looking in the eyes.

Always stand when you're being introduced to someone. "Standing helps establish your presence. You make it easy for others to ignore you if you don’t stand. If you are caught off guard and cannot rise, you should lean forward to indicate that you would stand, if you could."

When in doubt, introduce others. Always introduce people to others whenever the opportunity arises, unless you know that they’re already acquainted. It makes people feel valued, regardless of their status or position.

A handshake is still the professional standard. Not only does this simple gesture demonstrate that you’re polite, confident and approachable, it also sets the tone for any potential future professional relationship. In a very casual work atmosphere, you might be able to get away with a nod or a hello, but it’s worth it to make the extra effort to offer your hand.

Always say your full name. In a business situation, you should use your full name, but you should also pay attention to how others want to be introduced. If your name is too long or difficult to pronounce, Pachter says you should consider changing or shortening it. Or you should consider writing down the pronunciation of your name on a business card and giving it to others.

Always say “Please” and “Thank you.” This should go without saying, but even in a very casual professional atmosphere, this basic form of courtesy is still imperative. Today, sending a thank you e-mail is perfectly acceptable, but a handwritten thank you note is always a nice touch.

Don’t interrupt. We’ve become a nation of “over-talkers,” so eager to offer our own opinions or press our point that we often interrupt others mid-sentence. It can be tongue-bitingly difficult to force ourselves not to interject, especially when the discussion is heated. Don’t. It’s rude and shows disrespect for the opinions of others. Remember, be assertive, not aggressive.

Watch your language. Verbal and written communications are often much less formal than in times past, but be careful to choose your words wisely. Of course, derogatory, rude or offensive language is unacceptable, but so is slang. While it may be commonplace in our society, it’s never acceptable in a professional atmosphere.

Double check before you hit send. While we’re on the subject of communication, always check your e-mails for spelling and grammar errors. Since the advent of spell check, there is no excuse for

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typos. Also, do a quick read to make sure the meaning and tone are what you wish to convey. And no smileys, please.

Don’t walk into someone’s office unannounced. It’s disrespectful to assume that you have the right to interrupt other people’s work. Knock on the door or say hello if it’s open and ask if it’s a good time to talk. If the discussion is going to take more than a few minutes, it’s a good idea to call or e-mail and schedule a good time for both of you.

Don’t gossip. It’s so hard sometimes to resist engaging in a little “harmless” gossip. But the reality is that gossip is never harmless. It is most certainly damaging to the subject of the gossip, but it also reflects poorly on you. It’s natural to be curious and interested in what other people are doing, but talking about someone who is not present is disrespectful.

Don’t eavesdrop. Everyone is entitled to private conversations, in person or over the phone. The same goes for e-mail; don’t stand over someone’s shoulder and read their e-mails.

Acknowledge others. When someone approaches you, acknowledge him or her. If you’re in the middle of something important, it’s fine to ask them to wait a minute while you finish. If you pass someone in the hallway or on the street, but don’t have time to talk, at least wave a hand and say hello. Busyness is not an excuse to ignore people.

Avoid the “Big Two.” We have blurred many of the personal and professional lines, but politics and religion are still off-limits. These topics are highly charged minefields for a professional atmosphere. Leave them at the office door.

Be on time. We’re all busy. Being punctual shows others that you value their time. Being late doesn’t mean that you’re busier than other people; it just means that you’re inconsiderate.

Don't cross your legs. Both men and women do it, but it can be distracting and even too sexy for a professional setting, says Pachter. "The bottom line, however, is health related: crossing your legs is bad for your circulation because it increases the pressure on your veins."

Keep your fingers together when you point. "Point with an open palm, and keep your fingers together. If you point with your index finger, it appears aggressive. Both men and women point, but women have a tendency to do it more than men."

No phone during meetings. When you’re in a meeting, focus on the meeting discussion. Don’t take calls, text or check e-mail. It’s disrespectful to the other attendees, not to mention, extremely annoying. It also makes meetings last longer because the participants keep losing focus.

Don’t be a business card pusher. Don’t simply hand out business cards to everyone you meet. It’s a bit aggressive unless you’re on a sales call. Ask for the other person’s card, offer to exchange cards or at the very least, ask if you can leave your card before you reach in your pocket.

Show genuine interest. Keep eye contact and make an effort to truly listen to what others are saying. We are so easily distracted in this climate of increasingly short attention spans; we often can’t wait for the other person to hurry up and finish so we can move on to the next thing. Resist the lure of distraction and haste. Take the time to ask questions and show an interest in the other person’s thoughts.

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10.5 BUSINESS MEAL ETIQUETTE

Although some rules will vary from country to country, these meal etiquette tips are pretty universal. 3

Always break bread with your hands.

You should never use your knife to cut your rolls at a business dinner.  "Break your roll in half and tear off one piece at a time, and butter the piece as you are ready to eat it."

How to handle meal utensils

Once you begin the meal, your utensils should never touch the table, as no one enjoys the site of a soiled tablecloth. It's improper to even allow the handle of a utensil to touch the table while the other end rests on the plate. Between bites place your fork and knife in a resting position shown on the right.

When a course is complete, place any utensils meant for that course on the plate, whether or not they were used. For example, if during the salad course you don't use your knife, it still goes on the plate at the end of the course. If you don't put it on the plate, the waiter will do it for you.

What to do with Forks and Knives after dinner

When you've finished eating, the knife and fork are placed side by side on the right side of the plate in the 4 o'clock position, with the fork on the inside, tines up, and the knife on the outside, blade in. This "I am finished" position non-verbally alerts the wait staff to clear your plate.

Do not push away or stack your dishes.

3 Adapted from One Page Slides Vivian Giang Kathleen Tyler Conklin Source: "The Essentials Of Business Etiquette"

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"You are not the waiter. Let the wait staff do their jobs."

Do not fold your napkin.

Simple crumble it beside your plate. And, if you have to leave for a break, leave your napkin on your chair.

Elbows and Hats

Do not rest your elbows on the table –ever! Always take off your hat even in informal settings.

Chew with your mouth closed

Do not talk with food in your mouth

Never ask for a to-go box.

You are there for business, not for the leftovers. Doggie bags are okay for family dinners but not during professional occasions."

Keep the food options balanced with your guest.

This means that if your guest orders an appetizer or dessert, you should follow suit. "You don’t want to make your guest feel uncomfortable by eating a course alone.”

If the host follows certain dietary restrictions, consider the restaurant they're taking you before ordering.

"Most people do not impose their dietary choices on others. Nevertheless, you can often judge what to order by the type of restaurant she chooses." For example, if your boss is a vegetarian but chose to meet you at a steak house, “by all means you can order steak."

The host should always pay.

"If you did the inviting, you are the host, and you should pay the bill, regardless of gender. What if a male guest wants to pay? A woman does have some choices. She can say, 'Oh, it’s not me; it is the firm that is paying.' Or she can excuse herself from the table and pay the bill away from the guests. This option works for men as well, and it is a very refined way to pay a bill." "

Prepare a polite exit.

You need to be the one talking as you're making the exit. "Remember to leave when you are talking. You can also excuse yourself for a bathroom break, to get food, or say you wanted to catch someone before they leave.

Know where to properly place plates and silverware.

Remember that "left" has four letters and "right" has five letters. "Food is placed to the left of the dinner plate. The words food and left each have four letters; if the table is set properly, your bread or salad or any other food dish, will be placed to the left of your dinner plate. Similarly, drinks are placed to the right of the dinner plate, and the words glass and right contain five letters. Any glass or drink will be placed to the right of the dinner plate." "Left and right also work for your utensils. Your fork (four letters) goes to the left; your knife and spoon (five letters each) go to the right."

Also, think "BMW" when trying to remember where to place plates and glasses. The mnemonic BMW here stands for "bread, meal, and water" so remember that "your bread-and-butter plate is on the left, the meal is in the middle, and your water glass is on the right."

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Simple Setting

Resources for Business Etiquette

The Essentials of Business Etiquette: How to Greet, Eat, and Tweet Your Way to Success (July 30, 2013) Barbara Pachter (Author) http://www.amazon.com/The-Essentials-Business-Etiquette-Success/dp/0071811265

15 Vital Business Etiquette Rules

Royale Scuderi Consultant, Strategist, Writer, Productive Life Concepts

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https://www.americanexpress.com/us/small-business/openforum/articles/15-vital-business-etiquette-rules/

10.6 CELL PHONE ETIQUETTE

See following article online for some good and maybe even very obvious tips:

http://www.cellphonebeat.com/10-important-cellphone-etiquette-rules-break.html

10.7 ETIQUETTE IN DIFFERENT COUNTRIES: AVOID FAUX PAS 4

Brazil

Though meetings often run late, never leave early. It is considered rude to exit before the gathering ends.

Brazilians stand very close and use physical contact during conversations. In Brazil, closeness inspires trust, and trust inspires long-term relationships.

Canada

Be on time. Canadians tend to be extremely punctual and meetings are well-organized and adhere to time schedules.

China

Bring a small gift from your hometown or country to business meetings. Chinese businesspeople appreciate presents. One gift to avoid: clocks as they represent death. Also, do not use white, black or blue wrapping paper.

The Chinese will decline a gift three times before finally accepting, so as not to appear greedy. You will have to continue to insist. Once the gift is accepted, express gratitude. You will be expected to go through the same routine if you are offered a gift.

Business meetings are very formal events and dinner meetings can feature many rounds of toasts; be sure to pace yourself so you don’t overindulge.

Germany

4 http://www.forbes.com/sites/susanadams/2012/06/15/business-etiquette-tips-for-international-travel/

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A no-nonsense culture, Germans are hard-working and business events are very structured, serious engagements.

India

Indians are very polite. Avoid use of the word “no” during business discussions; it’s considered rude. Opt for terms such as “we’ll see,” “I will try,” or “possibly.”

Don’t order beef if attending a business meal in India. Cows are considered sacred in Indian culture.

Traditional Indian food is eaten with the hands. When it is necessary to use your hands, use only your right hand, as the left hand is considered unclean.

Japan

Japanese culture is very welcoming and formal. Expect each of your counterparts to bow during an introduction. Wait for them to initiate a handshake because it is less common, and sometimes avoided, in business.

The exchange of business cards is a very formal act that kicks off meetings. Present your card with two hands while facing your colleague. Do not conduct a brief exchange or slide your card across the table.

During meetings, the most senior person will lead discussions and members of his or her party may not say a word. Follow this lead and have the most senior member of your team participate in discussions.

When entering a meeting, you should sit across from your counterpart with a similar level of experience. Your junior staffers should not sit across from senior team members.

USA

Time is MoneyThe country that coined the phrase obviously lives the phrase. In America, time is a very important commodity. People 'save' time and 'spend' time as if it were money in the bank. Americans ascribe personality characteristics and values based on how people use time. For example, people who are on-time are considered to be good people, reliable people who others can count on.With the emphasis on controlling time, business is conducted rapidly. Expect very little small talk before getting down to business. It is common to attempt to reach an oral agreement at the first meeting. The emphasis is on getting a contract signed rather than building a relationship. The relationship may develop once the first contract has been signed.Dining in USA

Do not begin eating until the hostess starts or says to begin.

Remain standing until invited to sit down.

Do not rest your elbows on the table.

Put your napkin in your lap as soon as you sit down. Leave a small amount of food on your plate when you have finished eating

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Business Etiquette and Protocol in Hungary

Relationships & Communication

Hungarians pride themselves on using proper etiquette in all situations and expect others to do the same.

Hungarians prefer face-to-face meetings rather than more impersonal vehicles of communication such as letters.

.Hungarians are emotive speakers who say what they think and expect you to do the same. They do not like euphemisms or vague statements. Hungarians often use stories, anecdotes, and jokes to prove their points. Hungarians are suspicious of people who are reticent and not willing to share their innermost

thoughts. Hungarians view eye contact as indicative of sincerity and believe that people who cannot

look them in the eye while speaking have something to hide.

Business Meeting Etiquette

Appointments are necessary and should be made in advance in writing. Punctuality for all social situations is taken extremely seriously. If you expect to be delayed,

telephone immediately and offer an explanation. It is considered extremely rude to cancel a meeting at the last minute and could ruin your business relationship.

Initial meetings are scheduled to get to know each other and for your Hungarian colleagues to determine if you are trustworthy.

Expect some small talk and getting-to-know-you conversation before business is discussed. Do not move the conversation to business yourself.

Do not remove your suit jacket without asking permission.

Business Negotiating Etiquette

Business is conducted slowly. Deals in Hungary cannot be finalized without a lot of eating, drinking and entertaining. Hungarians are very detail-oriented and want to understand everything before reaching an

agreement. Contracts should be clear and concise. Contracts function as statements of intent. It is expected that if circumstances change, the

contract will accommodate the revised conditions. Hungarians are skilled negotiators. Avoid confrontational behaviour or high-pressure sales tactics.

Dress Etiquette. .

. Men should wear dark business suits with a white shirt and tie.

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. Women should wear either business suits or elegant dresses, complimented with good quality accessories.

Hungary – see http://www.kwintessential.co.uk/resources/global-etiquette/hungary-country-profile.html

Etiquette for all countries: http://www.kwintessential.co.uk/resources/country-profiles.html

Also: www.executiveplanet.com

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10.8 CROSS-CULTURAL DIFFERENCES - GEERT HOFSTEDE

When it comes to international business, it is remarkable to see how different cultures approach management. There is certainly no one way of doing business and as technology narrows borders and globalization integrates the world’s economies, developing a sensitivity to how other cultures operate, generally and in business, is becoming essential.

Geert Hofstede carried out one of the most comprehensive studies on how values in the workplace are influenced by culture. Hofstede is a renowned Dutch organizational sociologist who conducted detailed interviews with thousands of IBM employees in 53 countries from 1978-83 and has continued to develop his research since. Through his large database of statistics he was able to determine five dimensions of culture.

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Another way to see it: Hofstede’s six dimensions of culture include:

Small vs. large power distance (PD) – This refers to how a society handles inequalities and the extent to which the less powerful members of organizations and institutions (like family) accept and expect that power is distributed unequally.

Individualism vs. collectivism (IDV) – Behavior towards community. The degree to which individuals are integrated into groups or are expected to look after themselves and self-actualize.

Masculinity vs. femininity (MAS) – Behavior and roles distributed according to gender. (This dimension is often renamed by users of Hofstede’s work to Quantity of Life vs. Quality of Life because one of the notable findings in the IBM studies revealed that in ‘masculine’ cultures, people (whether male or female) value competitiveness, assertiveness, ambition, and the accumulation of wealth and material possessions whereas in ‘feminine’ cultures, people (again whether male or female) value relationships and quality of life.

Weak vs. strong uncertainty avoidance (UA) – This refers to the level of need for structure. Cultures with low uncertainty avoidance tend to accept risk and change and prefer implicit or flexible rules and guidelines.

Long vs. short term orientation (LTO) – How much society values long-standing, as opposed to short term, traditions and values. Cultures with high long-term orientation place strong importance on family, discipline and social obligations. (Note: This fifth dimension was added in a study that took place in 23 countries around the world, using a questionnaire designed by Chinese employees and managers.)

Indulgence – This dimension is defined as the extent to which people try to control their desires and impulses, based on the way they were raised. Relatively weak control is called “indulgence” and relatively strong control is called “restraint”. Cultures can, therefore, be described as indulgent or restrained.

http://geert-hofstede.com/countries.html

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Japan

(image source)

The results of Hofstede’s study show that Japanese culture wields a business ethos that places:

high value on fixed gender roles (MAS), an importance on structure (UAI), and a focus on long term goals (LTO). Power distance (PD) and individualism (IDV) are relatively low, as equality is seen as a way of

maximizing cohesion and in turn, productivity.

Japanese firms invest an enormous amount in their employees’ training and development. New employees train for six to twelve months in each of the firm’s major offices or divisions so that within a few years they know every facet of the company operations.

In Japanese organizations, supervisors and employees have a largely egalitarian relationship where consensus on both parts is required for making decisions. Rather than being a source of authority, top management is seen as a facilitator/consensus builder and has the responsibility of maintaining harmony so that employees can work together. Top management takes cues from middle management, who base policies on the information forwarded by subordinates.

“Hourensou” and “genchi genbutsu” are at the core of Japanese management and the terms often referred to in Jeffrey K. Liker’s book The Toyota Way, which outlines 14 principles that underlie the company’s managerial approach and production system. The Toyota Production System (TPS) (despite recent issues) is probably the most famous and successful example of a Continuous Improvement (CI) culture (CI is the ongoing effort to improve products, services and processes). Toyota’s founder, Kiichiro Toyoda, is a firm believer that “each person fulfilling his or her duties to the utmost can generate great power when gathered together, and a chain of such power can generate a ring of power”.

“Hourensou” (hou = report, ren = inform, and sou = feedback) means to report out to other’s frequently and keep those necessary informed of your work, while remaining open to feedback and direction from peers.

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“Genchi genbutsu” means “getting your hands dirty, to identify or solve immediate problems and leaders are not exempt from this”.

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What about Hungary?

If we explore the Hungarian culture through the lens of the 6-D Model©, we can get a good overview of the deep drivers of its culture relative to other world cultures.

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Power DistanceThis dimension deals with the fact that all individuals in societies are not equal – it expresses the attitude of the culture towards these inequalities amongst us. Power Distance is defined as the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.

Hungary scores low on this dimension (score of 46) which means that the following characterizes the Hungarian style: Being independent, hierarchy for convenience only, equal rights, superiors accessible, coaching leader, management facilitates and empowers. Power is decentralized and managers count on the experience of their team members. Employees expect to be consulted. Control is disliked and attitude towards managers are informal and on first name basis. Communication is direct and participative.

IndividualismThe fundamental issue addressed by this dimension is the degree of interdependence a society maintains among its members. It has to do with whether people´s self-image is defined in terms of “I” or “We”. In Individualist societies people are supposed to look after themselves and their direct family only. In Collectivist society’s people belong to ‘in groups’ that take care of them in exchange for loyalty.

Hungary, with a score of 80 is an Individualist society. This means there is a high preference for a loosely-knit social framework in which individuals are expected to take care of themselves and their immediate families only. In Individualist societies offence causes guilt and a loss of self-esteem, the employer/employee relationship is a contract based on mutual advantage, hiring and promotion decisions are supposed to be based on merit only, management is the management of individuals.

MasculinityA high score (Masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the winner / best in field – a value system that starts in school and continues throughout organizational life.

A low score (Feminine) on the dimension means that the dominant values in society are caring for others and quality of life. A Feminine society is one where quality of life is the sign of success and standing out from the crowd is not admirable. The fundamental issue here is what motivates people, wanting to be the best (Masculine) or liking what you do (Feminine).

Hungary scores 88 on this dimension and is thus a Masculine society. In Masculine countries people “live in order to work”, managers are expected to be decisive and assertive, the emphasis is on equity, competition and performance and conflicts are resolved by fighting them out.

Uncertainty Avoidance    The dimension Uncertainty Avoidance has to do with the way that a society deals with the fact that the future can never be known: should we try to control the future or just let it happen? This ambiguity brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways.  The extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these is reflected in the score on Uncertainty Avoidance.

Hungary scores 82 on this dimension and thus has a preference for avoiding uncertainty. Countries exhibiting high Uncertainty Avoidance maintain rigid codes of belief and behaviour and are intolerant of unorthodox behaviour and ideas. In these cultures there is an emotional need for rules (even if the rules never seem to work) time is money, people have an inner urge to be busy and work hard, precision and punctuality are the norm, innovation may be resisted, security is an important element in individual motivation.

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Long Term Orientation 

This dimension describes how every society has to maintain some links with its own past while dealing with the challenges of the present and future, and societies prioritise these two existential goals differently. Normative societies. which score low on this dimension, for example, prefer to maintain time-honoured traditions and norms while viewing societal change with suspicion. Those with a culture which scores high, on the other hand, take a more pragmatic approach: they encourage thrift and efforts in modern education as a way to prepare for the future.

Hungary is shown to be a pragmatic country with a high score of 58 on this dimension. In societies with a pragmatic orientation, people believe that truth depends very much on situation, context and time. They show an ability to adapt traditions easily to changed conditions, a strong propensity to save and invest, thriftiness, and perseverance in achieving results.

Indulgence

One challenge that confronts humanity, now and in the past, is the degree to which small children are socialized. Without socialization we do not become “human”. This dimension is defined as the extent to which people try to control their desires and impulses, based on the way they were raised. Relatively weak control is called “Indulgence” and relatively strong control is called “Restraint”. Cultures can, therefore, be described as Indulgent or Restrained.

Hungary has a low score of 31 on this dimension. Societies with a low score in this dimension have a tendency to cynicism and pessimism. Also, in contrast to Indulgent societies, Restrained societies do not put much emphasis on leisure time and control the gratification of their desires. People with this orientation have the perception that their actions are Restrained by social norms and feel that indulging themselves is somewhat wrong.

http://geert-hofstede.com/hungary.html

http://www.halogensoftware.com/blog/the-business-of-culture-how-culture-affects-management-around-the-world/

Look at how Hungary compares to other countries

PD Indiv Mas UA LT IndulgJapan 54 46 95 92 80 42China 80 20 66 30 118 24Germany 35 67 66 65 31 40US 40 91 62 46 29 68Hungary 46 80 88 82 50 31

Leadership and Professional Development Course 23Unit 10 – Business Etiquette, Culture & Ethics

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Japan China Germany US Hungary

Leadership and Professional Development Course 24Unit 10 – Business Etiquette, Culture & Ethics

10.9 BUSINESS ETHICS

Business ethics is the behavior that a business adheres to in its daily dealings with the world. The ethics of a particular business can be diverse. They apply not only to how the business interacts with the world at large, but also to their one-on-one dealings with a single customer.

Many businesses have gained a bad reputation just by being in business. To some people, businesses are interested in making money, and that is the bottom line. It could be called capitalism in its purest form. Making money is not wrong in itself. It is the manner in which some businesses conduct themselves that brings up the question of ethical behavior.

Good business ethics should be a part of every business. There are many factors to consider. When a company does business with another that is considered unethical, does this make the first company unethical by association? Some people would say yes, the first business has a responsibility and it is now a link in the chain of unethical businesses.

Many global businesses, including most of the major brands that the public use, can be seen not to think too highly of good business ethics. Many major brands have been fined millions for breaking ethical business laws. Money is the major deciding factor.

If a company does not adhere to business ethics and breaks the laws, they usually end up being fined. Many companies have broken anti-trust, ethical and environmental laws and received fines worth millions. The problem is that the amount of money these companies are making outweighs the fines applied. Billion dollar profits blind the companies to their lack of business ethics, and the dollar sign wins.

A business may be a multi-million seller, but does it use good business ethics and do people care? There are popular soft drinks and fast food restaurants that have been fined time and time again for unethical behavior. Business ethics should eliminate exploitation, from the sweat shop children who are making sneakers to the coffee serving staff who are being ripped off in wages. Business ethics can be applied to everything from the trees cut down to make the paper that a business sells to the ramifications of importing coffee from certain countries.

In the end, it may be up to the public to make sure that a company adheres to correct business ethics. If the company is making large amounts of money, they may not wish to pay too close attention to their ethical behavior. There are many companies that pride themselves in their correct business ethics, but in this competitive world, they are becoming very few and far between. (http://www.wisegeek.org/what-is-business-ethics.htm)