Business in Asia The Social Aspect of Doing Business

Just imagine it.

You’re in the meeting. The one you’ve been anxious about for over two months. As much with the anticipation of visiting Asia for the first time as the amount of money it could make for your business.

If it’s successful… If you don’t do anything embarrassing that breaks local etiquette and wipes your credibility off the face of the earth in a single, fleeting moment.

Until you’ve spent time in Asia, it’s easy to underestimate just how different these cultures are and how easy it is to create an awkward situation with a seemingly innocuous action or comment.

Not only that, but following proper local etiquette truly lights up the faces of those you’re with, building serious rapport in the process.

That’s why we’ve put together this list of social faux pas for you. There are over 40 countries in Asia, so a list of every potential etiquette beach for each country would take a medium-sized paperback book.

That said, here are the main ones to highlight just how different or unusual some of them can seem to us. We’ll have plenty of examples from China as it’s such a massive global business hub.

Eating at restaurants

There are a few things to bear in mind when eating out in Asia.

The first is to ensure you get your chopsticks skills honed if you’re going somewhere that uses them as the primary table utensil. Impress your dinner guests and save yourself the embarrassment of asking the waiting staff for fork. If you don’t find that idea cringeworthy, you should.

In some parts of Asia, it’s considered the height of rudeness to finish all the food on your plate, so check for the specific country you’re visiting. You may need to leave a small portion to one side to signify that you’re satisfied rather than suggesting that they’ve not provided enough food.

Some Asian countries consider it good manners to burp at the end of a meal, too.

As a final note, if you’re in China, placing your chopsticks in your rice neatly upright (a 90° angle to the table) is considered to signify death. Awkward silences may ensue!

Going for drinks

Certain etiquette must be observed when out for drinks in Asian countries and China is another good example here.

First is toasting. The host will typically make the first toast, so don’t jump the gun if you’re the one who’s been invited out. Instead of “cheers”, you’ll hear either "gan bei" (bottoms up) or "kai pay" (drain your glass) but whatever Asian country you’re visiting, look up this word before you go. Don’t be left looking around wondering what’s going on.

Also, in China, the level of your glass must be below the person you’re “cheersing” if you wish to signify respect. Otherwise, you’re stating that you consider yourself somehow “above” them.

Similarly, you’ll typically want to finish the whole glass. Don’t worry, the glasses over there aren’t as big as the pints you may be used from some countries, so you’ll still be able to hold together a conversation after sinking two or three.

If you’re unable to drink alcohol and need to decline, be aware that this could be seen as rude and make sure do so very respectfully. Explain that you’re very honoured by the generosity but are unable to drink and ask them to suggest a substitute drink so you can be part of their hospitality.

Taboo conversations

It’s good to remember that different political events are illustrated differently in different countries. That means, the narrative of global politics that your Asian counterparts know will be very different to yours.

Typically, it’s best to avoid these conversations. Whatever you’ve heard on the news, don’t insult the monarch, governments or establishment of an Asian country. Leave your political views in the hotel room. And make sure they know your government’s views don’t necessarily represent your views as an individual.

Contraband

What constitutes as contraband varies around Asia. A good example here is that drugs legislation particularly strict in countries such as Thailand or the Philippines. Some products that may even be available over-the-counter in the West could carry very serious penalties.

If you must carry pharmaceuticals around with you, check the specific legislation for that item in the country you’re visiting before you go.

Another good example is chewing gum in Singapore. It’s illegal to chew or be in possession of chewing gum in Singapore, even if you brought it there by accident.

Body language and physical contact

Realistically, the number of times you would touch somebody on the head in a business social outing are relatively slim. However, after a few drinks and a lot of rapport built, it might be feasible.

In much of Asia, touching someone on the head is considered incredibly rude and/or condescending. Similarly, pointing at someone with your feet or hands is best left avoided.

Putting feet on a table is rude (like much of the West) but unlike much of the West, showing the soles of your feet is considered very rude. Examples include Thailand and some other Southeast Asian countries, so be careful of resting an ankle on a knee to show the soles of your feet.

Declining invitations

As a final point, if you’re not big on socialising in general, you may want to revise that policy while in Asia. It can be taken as a serious insult, especially if it’s a senior member of another business who invites you out.

And when you do go out, well, it’s a lot to remember. If you’re worried about slipping up and ruining that business trip, or if you want to know more about sourcing globally from Asia, it’s worth getting in touch with an expert.

Our staff are happy to take your call and offer you a QuickLook Analysis to see how much money we can save your business.

Understanding Asian Management Styles

The West looks to Asia for many things.

Whether it’s globally sourced products or manufacturing, forward-thinking economics, or an incredible history of culture, there’s a lot we can learn from many Asian countries.

And management styles is another item on that list.

With such a different historical background to most Western countries, the perspectives that found their way into the workplace are very different from those you’re probably used to.

And understanding these perspectives better can provide you inspiration on how to more effectively manage your own business.

But perhaps more importantly, it gives you insight into the workings of your Asian business partners, resulting in better interactions and stronger, more profitable relationships.

Let’s look at some key characteristics of Asian management styles and how they can help you understand this part of the world more accurately.

Political connections

The relationship between business and politics is stronger than ever, but in many Asian countries, that link is even more pronounced. In countries like America, deep political connections are a potential roadmap to success. Though capitalising on those connections is much less common in the West than in much of Asia.

In many Asian countries conducting business with politicians is standard practice. For example in China, dinners are regularly enjoyed with businesses owners and high-ranking local government officials to build credibility inside relevant social business circles.

Key takeaway: In many Asian countries, and as we’ll see more of soon, questioning authority is seen as a bad thing. This is especially true with the political establishment. It’s not like the West where an amusing quip about a recently-passed government policy will raise a smile, so the subject is typically best left avoided.

Asian paternalistic style

In the “Asian paternalistic” style of management, business decisions take into consideration the needs of all employees, often to a greater extent than the individual managers. In short, people are put first.

While orders are delivered in a top-down manner, questioning of senior decisions is rare due to an unspoken respect for superiors or management. Staff turnover is low and loyalty is ubiquitously encouraged as a cultural norm.

Key takeaway: Consequently, if you work in a sector of business that involves decisions that have a direct impact on a company’s employees at large, it’s important to frame your sales pitch and conversations in a way that observes the Asian paternalistic style of management. Failing to do so could make you look bad.

Confucian philosophy

There’s a lot of focus in the West these days about equality in the workplace. Back in 2013, we started to see the “bossless office trend” appear in everything from New York magazine to the Harvard Business Review.

The pin-up example is Semco, a conglomerate that’s distributed decision-making since the 1980s and has witnessed 20% annual growth rates for over three decades now. Sounds great, but ideas like that simply don’t fly in much of Asia.

Confusion philosophy is the polar opposite of the above ideology, whereby relationships must have a non-linear structure. A “bossless office” is considered a bizarre notion of the West and, in some cases, that’s putting it politely.

Some research suggests that many people in Asia go as far to say that a lack of acceptance for the inevitably hierarchical order of things is a root cause of many “Western problems” such as the degeneration of morals and the idea that the individual is more important than the collective.

In China, questioning authority can result in “losing face”. It’s a bad thing to have happen to you in a business context and, if you’re trying to source products globally, it’s your savings that are on the line.

Key takeaway: Making the extra effort to show respect for seniority is important. It’s a no-brainer that senior members of staff with whom you attempt to conduct business should be treated with a certain decorum. But you should know in advance that most Asian countries take this particularly seriously.

Want to speak to an expert with an established presence in Asia? Call Mawson Global today and speak to a specialist who knows how to walk the cultural tightropes.