Business Practices

Doing business in any country requires one to understand the culture and business environment. In the Philippines, there are some business practices anyone interested in doing a business there must know:

1) Highly face saving culture: Hiya is shame and is a motivating factor behind behaviour. Filipinos believe they must live up to the accepted standards of behaviour and if they fail to do so they bring shame not only upon themselves, but also upon their family. Always accept any offer of food or drink. If you turn down offers of hospitality, your colleagues lose face. It is also very important to think before you speak.

2) Businss is a highly personalized affair: Like in many Asian countries, Filipinos thrive on interpersonal relationships, so it is advisable to be introduced by a third party. It is crucial to network and build up a network of business associates you can call upon for assistance in the future. Business relationships are personal relationships, which mean you may be asked to do favours for colleagues, and they will fully expect you to ask them for favours in return. To a Filipino, a successful business relationship is based on human interaction, personal contact and establishing trust.

3) Filipinos are status conscious: When meeting your Filipino business associates for the first time, it is appropriate to address them with their title and family name. Ensure that you address business associates with their formal titles as a means of showing respect. As for people without a professional title? They should be addressed with courtesy titles such as “Mr”, “Mrs”, or “Miss”, followed by their surname. Avoid at all costs calling someone by their given name UNLESS you have known them for a long period of time, or until they invite you to be more informal.