Business Culture

The working culture in Philippines is highly hierarchical and patriarchal due to it being highly influenced by Asian values. It can be reflected in the seating arrangement, where the boss or in charge always takes the seat at the top of the table and assumes a paternalistic role within the company. Within the company, there is also many different levels of subordinates and business protocols to be negotiated.

According to the Hofstede’s model (below), Philippines has been rated 94 on the Power Distance Index, compared to Singapore’s 74. Power Distance Index (PDI) that is the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally.

Philippines is also rated low on Long Term Orientation. Values associated with Long Term Orientation are thrift and perseverance; values associated with Short Term Orientation are respect for tradition, fulfilling social obligations, and protecting one's 'face'. This is in line with the Philippine culture of ‘Hiya’.

The following shows Philippines compared to the rest Asia on the various indices