Chapter 16:

Culture and Diversity in Business

Unit 5: Human Resources

Culture in Business
• Describe the effect of culture on doing business globally

• Describe how corporate cultures differ among businesses

Culture in a Global Economy

• Culture: the beliefs, customs, and attitudes of a

distinct group of people
– dress, food, language, art
– history, geography, and religion

• Culture may refer to an entire country, ethnic group,

social group, or institution.
Culture and Business
• In business, culture has two important meanings.
As companies trade worldwide, they must
be aware of different cultural and business
practices (e.g. etiquette, business customs,
rules for personal interactions)
 Culture in a Global Economy

o Companies that trade with other countries

must be aware of differences in
o Language
o Currencies
o Laws
o Eating habits
o even systems of measurements.

• Failure to understand the culture of a country in which you

do business can ruin a deal or lead to a marketing disaster
Consider This . . .
• Why is it important to understand other cultures when doing
business in a global marketplace?

• What are some things that you would do when planning to

conduct business in another country?
Marketing Abroad
• To market products successfully in another country,
companies must research the country’s languages, customs,
and tastes.

https://www.youtube.com/watch?v=8qECCCaPdw0
 Marketing Abroad

Example: Pillsbury translated

“Jolly Green Giant” into Arabic
and it became
“Intimidating Green Ogre”

Coca-Cola changes the amount of

carbonation and sugar in its
products to suit the tastes
of different countries
Doing Business Abroad
• Companies doing business in other countries must be aware
of cultural differences that affect the workplace.

Problems for
EuroDisney
-Fear of cultural
imperialism
-Resistance to
strict dress codes
-Mandatory use of
English in meetings
-3,000 French
workers quit
Doing Business Abroad
• Think about marketing goods in other countries.

• What are some obstacles you might face?

Business Etiquette
• Business etiquette: conduct that is considered socially
acceptable in business; differs from country to country

• Example:
• In the USA receiving a gift from a potential business partner
could be seen as a bribe. But in Japan it is customary to give
gifts, and there are many rituals involved.
• In India, before doing business it is customary to
have tea.

• In Mexico, throwing documents on a table during a meeting is

considered an insult
Business Etiquette
• Strategies to avoid cultural problems
– Hire local managers “THINK GLOBAL, ACT LOCAL” (e.g. hire a Swedish
person to manage office in Sweden)
– Train American employees to live and work in other countries
• As more countries trade globally, there is an increased
demand for people who have studied other languages and
cultures.
– Study high-demand language/culture (Spanish, Mandarin/Chinese,
Arabic, etc.)
– Spend a semester or two of college studying abroad
– Teach English in a foreign country
Corporate Culture
• Corporate culture: a company’s shared values, beliefs, and
goals
• Culture may be defined
– Formally, through a company code of ethics, a written manual, and
the orientation process
– Informally, through dress codes, work habits, and social activities
• Factors influencing cultures may include
– Company’s founder
– Industry (banking vs. technology)
– Geographic location (NYC vs. Silicon Valley)
Consider This
Why is it important to know something about a firm’s corporate culture
before accepting a job there?
 Examples of corporate cultures
o McDonald’s & Disney: stress customer service and family
values. Employees are expected to be clean-cut and
greet each customer with a smile.

o FedEx, Ben & Jerry’s, and Patagonia

stress worker satisfaction and
concerns for environment.
 Examples of corporate cultures
o Company founder can influence its culture, William
Hewlett stressed a “people first” culture

o Regional differences: Wall Street firm in NY may expect

to wear a suit and tie. High-tech company in California
might wear T-shirts and shorts to work.
 Corporate Culture continued . . .
Formal Culture Informal Culture
• May have a strict hierarchy, or • Employees encouraged to make
chain of command decisions on their own; may have
decentralized organization
• May have one top decision
• Work hours are more flexible;
maker with several layers of
may also work from home
management below
(bureaucracy)
• May value innovation over
• Making changes or passing tradition
down decisions may be
complicated
• Job titles are not as important
• Job titles indicate power/status
• Dress codes and work hours
• Dress code is more casual
strictly enforced
Note: There may be different cultures within one company.
Considering Corporate Culture
• Form groups of two to four people. Appoint a timekeeper
and recorder.
• Discuss the following questions. Your recorder should write
your answers on a separate sheet of paper (to hand in at end
of class).
– Review the descriptions of formal and informal culture. What are
some drawbacks and benefits of each?
– Describe the classroom culture of your favorite class(es). What
classroom rules, work habits, and activities help shape how you work,
act, and deal with problems? How does this culture influence your
work as students? Try to connect your discussion of classroom culture
to the notes on corporate culture.
Videos for culture
• Google NYC - http://www.wsj.com/video/inside-
google-an-exclusive-look-at-its-nyc-office/88595E54-
0ACC-42D0-963B-0D940612BFA9.html
• Under Armour -http://www.nbcnews.com/video/rock-
center/51109024#51109024
• Google - https://www.youtube.com/watch?
v=LB5utwRnfH4
• UBRN - https://www.youtube.com/watch?
v=uxA1NExdO4E
 Diversity in the Workplace
• Identify ways in which cultural diversity has an impact on
business
• Companies are more aware of the growing spending poser of
different consumers groups.
• Human resources managers find ways to draw on the
strengths of culturally diverse workers.
 Cultural Diversity
• Companies tend to thrive when they have diversity, a variety
of employees with different backgrounds and identities.
• People are diverse in terms of
– Age
– Fender
– Ethnicity
– Individual needs
– Education
– Marital status
– Income
– Religious beliefs
Cultural Diversity
• Diversity in the workplace means
• Differences in skills, work habits, and approaches to tasks.
• People with the same assignments will carry them out in
different ways
Cultural Diversity
• Some people stereotype others who are different from them
• To stereotype people is to identify them by a single trait or as
a member of a certain group rather than as individuals.
• Your success on the job will depend on how well you work
with and for people who are different fromyou
 The Impact of Diversity on Business

● US population is becoming more

ethnically diverse.
● Each year more than 1 million people
come to US
● Growing populations
● Fastest growing population is Hispanic and
Asian
o Hispanic- up 60% in TX and CA
 The Impact of Diversity on Business
● Population is getting older and living
longer.
● More workers age 65 and over are working
past retirement age.
● Women in the labor force expected to rise
slightly faster rate than for men.
● Workers aged 25 -54 are the largest share
of the workforce
Changes in the Workplace
● Women and minorities
are taking more
leadership /
management roles.
● Many workers from
various cultures meet
people of different
ages, ethnic
background, and
abilities
Changes in the Marketplace
o More diverse workplace = more diverse marketplace.
o Different groups with spending power
o Target audiences change
o Many ads in multiple languages (English and Spanish)
Changes in the Marketplace
o Baby Boomer Generation: 76 million born between 46-
64 many are reaching retirement age and developing
specific needs
o Millennial Generation: 80 million born early 1980 –
2000’s sometimes called “echo boomers” 1st generation
to grow up with technologies such as computers and
cell phones
Managing Diversity
• Human Resource Managers oversee diversity.
– Try to make the company inclusive by hiring different characteristics,
backgrounds, and ethnicities.
– Leads to more realistic world views, which can lead to competitive
advantage
– Diversity is an asset when dealing with clients and customers of
various cultures.
– Draw on the strength of the company’s melting pot
Laws Against Discrimination
• Discrimination is unfair treatment of a person or group,
usually because of prejudiced attitudes about race, ethnicity,
age, religion, or gender.
• Many laws have been passed to prevent discrimination.
• In the past, workers over the age of 40 were often fired or
denied jobs in favor of younger workers. This form of
discrimination is called ageism.
Laws Against Discrimination
o Age Discrimination in Employment Act prohibits
discrimination against workers based on their age.

o Equal Employment Opportunity Act- protects against

discrimination against age (ageism), gender, ethnicity, etc

o Americans with Disabilities Act (ADA) – prohibits

discrimination against qualifies people who have disabilities.
Employers must make reasonable accommodation for
qualified person with a disability.
Diversity Programs
• Companies offer diversity training programs to promote
tolerance among workers that helps to reduce conflicts
among workers.
• Diversity training breaks down stereotypes
• Managers must avoid stereotypes
• They must create a work environment in which prejudice is
not tolerated and diversity is welcomed and respected.
• They must create a corporate culture that values diversity
Benefits of Diversity
• A diverse workforce offers a broader range of ideas and
points of view
• Greater diversity in the workplace helps a company better
understand and serve diverse markets
• Diversity improves morale among employees and strengthens
their commitment to company goals.
• Companies that value diversity have
– increased productivity and efficiency
– lower turnover rates
– less absenteeism
– Fewer legal costs from employee complaints
Questions 1

In the business arena:

a) Only men should stand for handshaking and

all introductions

b) Only women should stand for handshaking

and all introductions

c) It is not necessary for men or women to stand

for handshaking and all introductions

d) Both men and women should stand for

handshaking and all introductions
Question 2

For easy reading, one’s name badge should be worn:

a) On the left shoulder

b) On the right shoulder

c) On the left hip

d) Around one’s neck

Question 3
When eating bread in a restaurant, you should:

a) Butter the whole piece of bread, pick it up, and eat one bite at
a time.

b) Break off a bite-sized piece of bread and then butter and eat
one bite at a time
Question 4
The best way to meet people at a business or social function is to:

a) Head for the bar or buffet immediately upon arrival

b) Introduce yourself to two people who are standing close and

talking softly

c) Look confident, standing in the center of the room, and wait

for someone to approach you

d) Introduce yourself to a person standing alone

e) Stick close to those you know very well and forget about the
rest
 Question 5
When making a business introduction, you should :

a) Wing it

b) Introduce the less important/junior person to the more

important/senior person

c) Introduce the more important/senior person to the less

important/senior person

d) Don’t do anything. It is their responsibility to introduce

themselves.
Question 6
When expressing thanks to someone who has given you a
gift, you:

a) Send an email because it is faster and more efficient

b) Send a handwritten note within 48 hours

c) Pick up the phone and call within 72 hours

d) Consider a verbal thank you sufficient

Question 7
When you are dining with someone important and your cell
phone rings, you:

a) Answer it within two rings and keep the call brief

b) Ignore it and pretend that someone else’s phone is

ringing

c) Apologize and turn the phone on silent mode. The

person you’re with takes priority.

d) Apologize, step away from the table, and take the call
in the lobby or restroom.
Question 8

When you are dining in a restaurant and you accidentally drop

your fork on the floor, you:

a) Pick it up, wipe it off, and use it anyway

b) Pick it up, give it to the server, and ask him to bring

you another one

c) Leave it on the floor and ask the server to bring you

another one

d) Leave it on the floor and use your neighbor’s fork when

he’s not looking
Question 9

When seated at a round or rectangular table:

a) Remember, left to right, B-M-W: bread, meal, water

b) Remember left to right, D-D-R: drink, dinner plate, roll

c) It doesn’t matter. There’s enough water and bread to

go around anyway.
Question 10

When you are finished eating, your napkin should be

a) Folded loosely and placed on the right side of your

plate

b) Folded loosely and placed on the left side of your plate

c) Folded loosely and placed on the center of your plate

d) Folded like a dove or pirate’s hat and placed in the

center of your chair
Question 11

When two business people communicate, how far apart should

they stand?

a) 1.5 feet

b) 3 feet

c) 7 feet
Question 12
It is acceptable to tell a business colleague that his/her
zipper is unzipped.

a) True

b) False
Question 13

When answering a business phone, always answer

a) With a simple hello. It sounds more approachable and

less pretentious.

b) With your name

c) With your name, department, title, and a greeting

Question 14
When you reach a doorway at the same time as another
person, the following rules apply:

a) Whoever arrives first should open it and hold it for those who
are following

b) Men should always open doors for women

c) Women should open doors for men to prove that they are no
longer oppressed

d) Always open the door for someone of either sex if that person
has his or her hands full
Question 15

When exiting an elevator and a more senior person is toward the

back, always:

a) Step aside to let the more important person exit first

b) Exit first if you are closest to the door

Question 16
On “Casual Friday”, which item(s) of clothing is (are) generally
considered inappropriate?

a) Khaki slacks e) Loafers

b) Sweat pants f) Flip flops

c) Baseball caps g) Jeans

d) Polo-type shirts
Question 17

You have just heard a coworker in the cubicle next to yours speak
rudely to a client on the phone. You should:

a) Wait until the call is finished, then tell the person

that their behavior is unacceptable

b) Tell your boss

c) Respect your coworker’s privacy and refrain from commenting

Question 18

You have exchanged a couple of angry emails with a coworker who,

in your opinion, is being unreasonable. It’s getting out of hand.
You should:

a) Stop the communication and let things cool off

b) Send one more blistering email, summarizing the situation and

how upset you are with that person’s behavior, and :cc the
recipient’s supervisor

c) Change the medium. Call the person on the telephone or go

sit down face to face.
Question 19
If you have a morsel of food lodged in your teeth and you
want to remove it, you:

a) Take your knife when no one is looking and remove

the morsel promptly with the blade

b) Raise your napkin to your mouth and discreetly use

a sugar packet or your business card to remove the
morsel

c) Politely ask your server for a toothpick

d) Excuse yourself and go to the restroom to pick your

teeth in private
 Academic Vocabulary

• Distinct - distinguishable to the eye or mind as

discrete; separate
• Ethnic - of or relating to large groups of people
classed according to common racial, national, tribal,
religious, linguistic, or cultural origin or background
• Region- a broad geographic area distinguished by
similar features
• Tradition – an inherited, establishes, or customary
pattern of thought, action, or behavior
 Academic Vocabulary

• Diverse - differing from one another

• Assignments - a specified task
• Prohibits – forbid by authority
• Accommodation – the provision of what is needed;
adaption or adjustment