The Philippines, an archipelago republic comprising of more than 7,000 islands, is a geographical and cultural meeting ground of east and west that has emerged from a unique blend of foreign influences, native culture and an illustrious colonial past.
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The Philippines Today
The Philippine Islands, named after King Phillip II of Spain, were officially discovered in 1521 and soon became a Spanish colony. Following the Spanish-American war, control of the archipelago was transferred to the US in 1899. Shortly after, the nation became a self-governing commonwealth, but soon fell under Japanese occupation during World War II. On 4 July 1946, after more than 300 years under foreign rule, the Philippines became an independent democratic republic. This eclectic cultural heritage, a mixture of Malay, Spanish and American cultures, has created many ethno-linguistic groups that are divided by their own distinctive traits and dialects but together form a unique Filipino identity that must be understood in order to effectively do business in the Philippines.
Philippine Culture - Key Concepts and values
Face – Maintaining ‘face’ and upholding an individual’s reputation is a vital component of Philippine culture. In the Philippines, expressing anger, negativity or experiencing public embarrassment results in a ‘loss of face’ and as such has negative consequences. Filipinos will try to remain calm and in control of their emotions at all times and avoid direct confrontation. When doing business in the Philippines, you should avoid causing embarrassment or offence whenever possible and make an effort not to be too direct when communicating with your Filipino counterparts.
Communication style – Closely related to the concept of ‘face’, the Philippine style of communication is indirect and takes into consideration the perception of the recipient. In order to save face and remain courteous, Filipinos rarely give a direct answer of ‘no’ and will avoid disagreement, rejection and confrontational behaviour, especially when a superior is involved. The word ‘yes’ is often used to disguise more negative responses and avoid causing embarrassment or offence. ‘Yes’ may mean ‘maybe’ or ‘I’ll think about it’ or even an outright ‘no’. You will have to be more alert to the subtle cues hidden in conversation such as nonverbal communication, to help decipher meaning. This ambiguity in response means that it can take longer to get a firm negative answer.
Pakikisama – This Philippine cultural concept, loosely translated as ‘group loyalty’, is an important cultural value in the Philippines and defines the social need for comradeship and general consensus. ‘Pakikisama’ is closely linked with maintaining harmony and as a result, disagreement and interpersonal tension are considered negative aspects of behaviour. In business terms, it is often necessary to gain a group decision before proceeding further which can make negotiations seem more indefinite and take more time.
Doing Business in the Philippines
Following its independence in 1946, the Philippines experienced a period of volatile governance and a series of economic problems and instability. However, from the mid-1990s onwards, the Philippines has made a steady recovery, boasting an economy that now matches those of the more industrialised countries in east Asia. The country was able to resist the global financial crisis of 2008 much better than other countries in the region because it is less dependent on exports and shows stable domestic consumption. The Philippines has a stable banking system and its government is planning to increase the budgets for education and health and to facilitate doing business. This flourishing nation attracts much interest from abroad and continues to seek greater integration into Asia and the rest of the world with its economic reforms and developing trading relations.
The Philippines business Part 1 - Working in the Philippines: Working practices in the Philippines
Structure and hierarchy in Philippine companies
Working relationships in the Philippines
The Philippines business Part 2 - Doing business in the Philippines: Business practices in the Philippines
The Philippines business etiquette (Do’s and Don’ts)
DO avoid direct and continuous eye-contact during business conversations, since staring is generally considered to be rude and confrontational.
DO engage in light conversation with your Filipino business colleagues either before and/or after the meeting, since establishing a cordial personal relationship is very important in Philippine business culture. This may involve being asked rather personal questions regarding your marital status, income, religion and other sensitive subjects.
DO dress in an appropriate manner when doing business with your Filipino counterparts. Both men and women should dress conservatively and with a certain degree of formality. A vital part of gaining respect and being effective depends on you dressing well and taking pride in your appearance.
DON’T be surprised if business negotiations take longer than anticipated. The pace of doing business in the Philippines is slow and the decision-making process tends to be detailed and protracted.
DON’T underestimate the influence of the family unit and the effect it often has on business. Nepotism exists in some Philippine business organisations and certain preferences are often made as a result of this.
DON’T raise your voice or interrupt while your Filipino business colleagues are talking since this is usually considered offensive and shows a lack of respect.
The Philippines Culture Quiz - true or false
1. A Filipino will often laugh to disguise embarrassment, nervousness or apprehension.
2. In Philippine business culture, decision-making and problem-solving are based on empirical evidence and specific facts.
3. A vital part of Philippine culture is the concept of ‘hiya’ or ‘shame’. To be shamed is the greatest form of disgrace to a Filipino.
4. To point the middle finger at a person or thing in the Philippines is considered a particularly obscene gesture.
5. If you receive a gift during business negotiations, you should follow the Asian custom by opening it in front of the person who gave it to you.
The Philippines Culture Quiz - Answers
1. True.
2. False. Filipinos tend to rely heavily on immediate feelings rather than rules or facts, to guide them in making decisions and judgements.
3. True.
4. True.
5. False. You should not open the gift in front of the giver but wait until they leave.
The Philippines Today
The Philippine Islands, named after King Phillip II of Spain, were officially discovered in 1521 and soon became a Spanish colony. Following the Spanish-American war, control of the archipelago was transferred to the US in 1899. Shortly after, the nation became a self-governing commonwealth, but soon fell under Japanese occupation during World War II. On 4 July 1946, after more than 300 years under foreign rule, the Philippines became an independent democratic republic. This eclectic cultural heritage, a mixture of Malay, Spanish and American cultures, has created many ethno-linguistic groups that are divided by their own distinctive traits and dialects but together form a unique Filipino identity that must be understood in order to effectively do business in the Philippines.
Philippine Culture - Key Concepts and values
Face – Maintaining ‘face’ and upholding an individual’s reputation is a vital component of Philippine culture. In the Philippines, expressing anger, negativity or experiencing public embarrassment results in a ‘loss of face’ and as such has negative consequences. Filipinos will try to remain calm and in control of their emotions at all times and avoid direct confrontation. When doing business in the Philippines, you should avoid causing embarrassment or offence whenever possible and make an effort not to be too direct when communicating with your Filipino counterparts.
Communication style – Closely related to the concept of ‘face’, the Philippine style of communication is indirect and takes into consideration the perception of the recipient. In order to save face and remain courteous, Filipinos rarely give a direct answer of ‘no’ and will avoid disagreement, rejection and confrontational behaviour, especially when a superior is involved. The word ‘yes’ is often used to disguise more negative responses and avoid causing embarrassment or offence. ‘Yes’ may mean ‘maybe’ or ‘I’ll think about it’ or even an outright ‘no’. You will have to be more alert to the subtle cues hidden in conversation such as nonverbal communication, to help decipher meaning. This ambiguity in response means that it can take longer to get a firm negative answer.
Pakikisama – This Philippine cultural concept, loosely translated as ‘group loyalty’, is an important cultural value in the Philippines and defines the social need for comradeship and general consensus. ‘Pakikisama’ is closely linked with maintaining harmony and as a result, disagreement and interpersonal tension are considered negative aspects of behaviour. In business terms, it is often necessary to gain a group decision before proceeding further which can make negotiations seem more indefinite and take more time.
Doing Business in the Philippines
Following its independence in 1946, the Philippines experienced a period of volatile governance and a series of economic problems and instability. However, from the mid-1990s onwards, the Philippines has made a steady recovery, boasting an economy that now matches those of the more industrialised countries in east Asia. The country was able to resist the global financial crisis of 2008 much better than other countries in the region because it is less dependent on exports and shows stable domestic consumption. The Philippines has a stable banking system and its government is planning to increase the budgets for education and health and to facilitate doing business. This flourishing nation attracts much interest from abroad and continues to seek greater integration into Asia and the rest of the world with its economic reforms and developing trading relations.
The Philippines business Part 1 - Working in the Philippines: Working practices in the Philippines
Structure and hierarchy in Philippine companies
Working relationships in the Philippines
The Philippines business Part 2 - Doing business in the Philippines: Business practices in the Philippines
The Philippines business etiquette (Do’s and Don’ts)
DO avoid direct and continuous eye-contact during business conversations, since staring is generally considered to be rude and confrontational.
DO engage in light conversation with your Filipino business colleagues either before and/or after the meeting, since establishing a cordial personal relationship is very important in Philippine business culture. This may involve being asked rather personal questions regarding your marital status, income, religion and other sensitive subjects.
DO dress in an appropriate manner when doing business with your Filipino counterparts. Both men and women should dress conservatively and with a certain degree of formality. A vital part of gaining respect and being effective depends on you dressing well and taking pride in your appearance.
DON’T be surprised if business negotiations take longer than anticipated. The pace of doing business in the Philippines is slow and the decision-making process tends to be detailed and protracted.
DON’T underestimate the influence of the family unit and the effect it often has on business. Nepotism exists in some Philippine business organisations and certain preferences are often made as a result of this.
DON’T raise your voice or interrupt while your Filipino business colleagues are talking since this is usually considered offensive and shows a lack of respect.
The Philippines Culture Quiz - true or false
1. A Filipino will often laugh to disguise embarrassment, nervousness or apprehension.
2. In Philippine business culture, decision-making and problem-solving are based on empirical evidence and specific facts.
3. A vital part of Philippine culture is the concept of ‘hiya’ or ‘shame’. To be shamed is the greatest form of disgrace to a Filipino.
4. To point the middle finger at a person or thing in the Philippines is considered a particularly obscene gesture.
5. If you receive a gift during business negotiations, you should follow the Asian custom by opening it in front of the person who gave it to you.
The Philippines Culture Quiz - Answers
1. True.
2. False. Filipinos tend to rely heavily on immediate feelings rather than rules or facts, to guide them in making decisions and judgements.
3. True.
4. True.
5. False. You should not open the gift in front of the giver but wait until they leave.
