Cultural Etiquette: Doing Business in Philippines

Doing business in the Philippines can be a rewarding experience, but it’s important to understand and respect the country’s cultural etiquette. The Philippines has a unique blend of Eastern and Western influences, which greatly impacts business interactions. In this article, we will explore twelve key aspects of cultural etiquette in the Philippines to help you navigate the business landscape effectively.

Meeting and Greeting

Meeting and greeting in the Philippines is typically warm and friendly. Handshakes are the most common form of greeting, and it’s important to maintain eye contact while shaking hands. Filipinos often use titles and surnames when addressing each other, so it’s advisable to use appropriate titles such as “Mr.” or “Ms.” followed by the person’s last name. It is also common to exchange business cards upon meeting, so make sure to have a stack readily available.

• Punctuality: Filipinos value punctuality, so it’s important to arrive on time for meetings. However, it is common for Filipinos themselves to be a few minutes late, so be understanding and patient.
• Respect for Elders: The Filipino culture places great importance on respect for elders. When meeting someone older, it is customary to show deference and address them with appropriate titles like “Tito” or “Tita” (Uncle or Aunt).
• Body Language: Filipinos are generally warm and expressive, so it is acceptable to use hand gestures and maintain close proximity during conversations. However, avoid excessive physical contact, as personal space is still respected.
• Small Talk: Engaging in small talk before getting down to business is common in the Philippines. Topics such as family, travel, and sports are safe and can help build rapport.

Communication

Effective communication is crucial in the Philippines. English is widely spoken and understood, which makes it the primary language for business transactions. However, it’s important to be mindful of cultural nuances and adapt your communication style accordingly.

• Indirect Communication: Filipinos tend to be indirect in their communication style, often using euphemisms and non-confrontational language. It’s essential to read between the lines and pay attention to non-verbal cues to fully understand the intended message.
• Politeness and Respect: Filipinos value politeness and respect in their interactions. Avoid confrontational or aggressive language, as it can be seen as disrespectful. Instead, maintain a polite and courteous tone throughout your conversations.
• Hierarchy and Authority: The Filipino culture has a strong sense of hierarchy and respect for authority. When communicating with senior executives or officials, it’s important to show deference and use appropriate language and tone.
• Non-Verbal Communication: Non-verbal cues, such as facial expressions and body language, play a significant role in communication in the Philippines. Pay attention to these cues to gauge the other person’s response and adjust your communication accordingly.

Business Attire

Business attire in the Philippines is generally formal, especially in corporate settings. Men typically wear suits and ties, while women wear conservative dresses or business suits. However, dress codes may vary depending on the industry and location.

• Conservative Dress: It’s important to dress conservatively to show respect for the Filipino culture. Avoid revealing or flashy clothing, as it may be deemed inappropriate in a business setting.
• Accessorizing: Filipinos appreciate subtle accessories, so adding a touch of elegance with tasteful jewelry or a quality watch can be seen as a positive gesture.
• Personal Grooming: Maintaining good personal hygiene and grooming is highly valued in the Philippines. Ensure you are well-groomed and presentable during business meetings.
• Footwear: Polished, closed-toe shoes are the norm for both men and women. Avoid wearing sandals or casual footwear to maintain a professional appearance.

Gift Giving

Gift giving is a common practice in the Philippines, especially during holidays and special occasions. However, there are certain considerations to keep in mind when giving gifts in a business context.

• Appropriate Gifts: When giving gifts, choose items that are not overly personal or extravagant. It’s best to opt for practical items that can be shared with the recipient’s colleagues or family.
• Gift Wrapping: Take the time to wrap the gift neatly and present it with both hands. This gesture shows respect and appreciation for the recipient.
• Timing: Gifts are usually exchanged at the end of a business meeting or during social gatherings. Avoid giving gifts at the beginning of a meeting, as it may be perceived as a bribe.
• Corporate Policies: Some companies have strict policies regarding gift giving. It’s advisable to check with the recipient’s company or consult a local contact to ensure compliance with any regulations.

Business Meetings

Business meetings in the Philippines follow a structured format, but they are often conducted in a relaxed and friendly manner. Building relationships and establishing trust is crucial before delving into business discussions.

• Relationship Building: Filipinos value personal connections and trust in business relationships. Take the time to build rapport and establish a personal connection before diving into the main agenda.
• Agenda and Punctuality: Provide a clear agenda in advance and stick to the schedule during the meeting. However, be prepared for discussions to veer off-topic, as building personal connections may take precedence.
• Consensus Decision-Making: Filipinos prefer consensus-based decision-making. It’s important to involve all participants in the decision-making process and give everyone a chance to contribute their opinions.
• Hierarchy and Respect: Respect for authority and seniority is crucial during business meetings. Address senior executives first and allow them to lead the discussions.

Negotiations and Contracts

Negotiations in the Philippines are often collaborative and focus on building win-win solutions. It’s important to approach negotiations with patience, respect, and a willingness to compromise.

• Building Trust: Trust is essential in negotiations. Invest time in building relationships and establishing trust before engaging in serious negotiations.
• Indirect Communication: As mentioned earlier, Filipinos tend to be indirect in their communication style, which may extend to negotiations. Pay attention to non-verbal cues and read between the lines to understand the other party’s position.
• Patience and Flexibility: Negotiations in the Philippines may take longer than expected, as building consensus and maintaining harmony are key priorities. Be patient, flexible, and open to compromise.
• Contracts and Agreements: Once an agreement is reached, it’s essential to formalize it in a written contract. Ensure the contract is clear, concise, and legally binding.

Business Entertaining

Business entertaining in the Philippines often involves meals and socializing outside of the office. This is an opportunity to strengthen relationships and build trust with potential business partners.

• Hospitality: Filipinos are known for their hospitality and generosity. If invited to a business meal or social event, it’s polite to accept and show appreciation for the invitation.
• Table Manners: Familiarize yourself with Filipino table manners, such as using utensils properly and waiting for the host to start eating before you begin. It’s also customary to offer a toast before the meal.
• Gifts for the Host: Bringing a small gift for the host, such as flowers or chocolates, is a thoughtful gesture. It shows gratitude for their hospitality.
• Engaging in Conversation: Use mealtime as an opportunity to engage in casual conversation and build personal connections. Avoid discussing sensitive topics such as politics or religion.

Business Etiquette

Understanding and adhering to business etiquette is crucial for success in the Philippines. By respecting local customs and norms, you can demonstrate professionalism and build trust with your Filipino counterparts.

• Respect for Superiors: Show respect for senior executives and authority figures. Use appropriate language and deference when addressing them.
• Business Titles: Address individuals by their professional titles, such as “President” or “Manager,” until given permission to use first names.
• Follow-Up: Follow up promptly after meetings and business interactions. Sending a polite email or thank-you note shows your professionalism and appreciation.
• Building Long-Term Relationships: Filipinos prioritize long-term relationships over short-term gains. Invest time in building trust and maintaining relationships for future business opportunities.

Business Gifts and Hospitality

Gift giving and hospitality play a significant role in Filipino business culture. They are seen as gestures of goodwill and help strengthen relationships.

• Appreciation for Gifts: When receiving a gift, express genuine appreciation and gratitude. It’s customary to open the gift in private.
• Reciprocity: If you receive a gift, it’s polite to reciprocate the gesture. Choose a thoughtful gift that aligns with the recipient’s interests or preferences.
• Business Dining: When hosting a business meal, select a reputable restaurant and cover the expenses. It’s a way to show respect and appreciation for your guests.
• Generosity: Filipinos are known for their generosity. If invited to a Filipino home, it’s polite to bring a small gift or token of appreciation for the host.

Conclusion

Doing business in the Philippines requires an understanding of the country’s cultural etiquette. By respecting local customs, building relationships, and adapting your communication style, you can navigate the business landscape effectively. Remember to be patient, flexible, and open to building long-term relationships, as these are key to success in Filipino business culture.

References

– www.philippinebusiness.com
– www.investphilippines.gov.ph
– www.dfa.gov.ph
– www.tourism.gov.ph
– www.doingbusiness.org.ph