Business ethics in Asia

The American speaker begins with a small joke to “break the ice,” while this is inappropriate in Germany. Germans wish to be reassured by the professionalism and seriousness of the speaker. Humor suggests casualness that might translate into an ill-considered undertaking. The American's slides contain flashy visuals with such phrases as “fantastic opportunity,” which strike the Germans as childish. They prefer graphs and charts to reassure them that proper market research has been conducted. These differences are due to the fact that Germany is an uncertainty avoiding culture, while the United States is not. Indeed, the American audience probably contains venture capitalists, who are willing to fund risky startups, while the German audience is more likely to consist of stolid bankers. The desire for security and predictability go far beyond the business meeting. Germans pay a premium for high-quality products that are less likely to break down, and they invest heavily in a highly-engineering physical and social infrastructure on which they can rely.

The American presentation could also cause problems in Scandinavia. The speaker delivers a hard sales pitch, sprinkled with buzz words and such terms as “aggressive,” while Scandinavians prefer a low-key presentation couched in plain language. The American approach reflects a “masculine” culture that values competition and aggression, whereas Scandinavian culture is “feminine” and emphasizes cooperation more than competition.

Western Europeans make much of their different styles, but one should see them as variations on low-context, logic-based communication. It is true that the British are normally reserved and understated, while the French gave us the very word frank (which refers to the Franks, an old word for the French). Yet British can deliver a devastating comment with scarcely an inflection of the voice. If French and Italians become animated or emotional in a business meeting, one must bear in mind that Descartes was French and Galileo was Italian, and at the end of the day the decision is likely to reflect the logic and pragmatism of a Glaswegian.

The situation changes somewhat as one moves east. Russian society, for example, is essentially rule-based, but business partners may find it more important to feel comfortable with each other than to get the financials right. Business people from abroad should be particularly cognizant of this, due to the uncertainty-avoiding culture and the tendency of Russians to feel apprehensive about foreigners. Frequent references to mutual Russian friends and contacts can be reassuring, as can participating in such rituals as vodka drinking and banya, the Russian sauna.

1.13 Variations among relationship-based cultures

Themes and variations also occur among relationship-based cultures, and one obvious theme is saving face. In Confucian cultures, for example, one never utters a word or takes an action without calculating the effect on face. This is obviously important when dealing with superiors or colleagues, as when verbal disagreements are muted and indirect signals are used in negotiation. Yet it can be equally important to respect the face of subordinates. These are high power distance cultures in which the boss is expected to be authoritarian, perhaps bark orders, and deal harshly with employees who disobey. Yet the boss should not embarrass employees in from of others when they make a good faith effort to do the job right--unless they have bungled so badly as to lose face already. This can damage morale and may even erode the boss's authority in the eyes of other employees. Confucian authority carries with it a paternalistic duty, and careless disregard of face indicates lack of care for one's subordinates. Face is a powerful force and must be used wisely.

Face is likewise important in the more conservative Latin American countries, such as Mexico, but it is manifested in a somewhat different form--namely, as machismo or masculine honor. A Mexican business conversation can be very different from one north of the border in the United Sates. The purpose of conversation is as much to build trust between business partners as to exchange information, particularly in the early stages of the relationship. There is much talk about family, because a good family man is a man of honor who can perhaps be trusted in business as well. The relationship is not based so much on mutual obligation, as in the case of guanxi, but at its best on an emotional bond of friendship. Whereas U.S. business people talk business in a business meeting, Mexican business conversation is about the whole person. It is important to keep the emotional radar in operation to remain sensitive to how the other party is reacting. In particular, one should take care not to embarrass the other by alluding to mistakes or shortcomings, because this brings loss of honor. Honor is the primary male virtue in machismo cultures. The very word virtue comes from the Latin for manhood (vir). Toughness and capacity for violence can be part of machismo, but only in service of an honorable cause, such as protecting one's family.

Machismo evolved in treacherous environments where courage and a code of honor were necessary survival traits for men, and successful cultures have a way of making virtues out of necessities. The sense of honor and self-respect can be very finely tuned, which may create the impression that men are thin-skinned. In any event, it is essential to respect this sensibility. This becomes a particularly delicate issue when there are problems in the company, and so much as mentioning the problems may cast aspersions on managers who could be held responsible for them. One technique for broaching the topic is to blame it on outside forces, such as unreliable suppliers or corrupt politicians.

These may not lie at the root of the problem, but blaming them at least allows the problem to be discussed. The historical source of Latin American machismo is Arab culture, by way of the northern African influence on Spain. It remains very much alive in Arabic-speaking countries today, particularly in Saudi Arabia and the Gulf region. Warm personal greetings and ceaseless courtesy are a must in business dealings. It is a never a bad idea to preface one's remarks with some such nicety as, “Thank you for your comments,” or, “I learned much from your report.” An impractical proposal or a questionable statement should be ignored or smoothed over, so that no one appears foolish. The goal is to protect the male ego. Flattery that strikes Westerners as obsequious is perfectly appropriate, particularly where superiors are concerned. Power distance is very much part of the picture, and honorific terms and titles are expected. Such phrases as “Your Excellency” may be obligatory for government officials or members of a royal family.

Courtesy is integral to business relations throughout the Middle East. Arabic, Turkish, Farsi, and other Middle Eastern languages contain many resources for polite speech, and when speaking the languages one should take advantage of this. Above all, it is important to convey a message that one enjoys the company of one's business partners. The Western distinction of professional life from life as a whole is as foreign here as in Latin America.

A second theme is found in the communication styles that promote harmony and mutual support in group-oriented cultures.

Interestingly, this last example is not so much an affirmation of community as of individualism. Cultures that rely heavily on one principle tend to compensate by providing an outlet for its opposite. The communalism of many African cultures is often counterbalanced by occasions for ego recognition. It is on much the same principle that highly individualistic Western cultures may develop such communal mechanisms as volunteerism, patriotism, and support groups.

Another distinctive form of group communication is found in the Japanese practice of consensus building for a policy decision. The practice is traditionally known as nemawashi (“going around the roots”), which refers to the practice of preparing a tree for transplant, much as one prepares an organization for a new policy. A memo would be circulated among members of the group, each of whom would contribute ideas and identify them with his stamp. The object is to accommodate everyone's view and thereby maintain harmony. Consensus building through informal consultation remains an important process in the Japanese business world. Decisions in an organizational setting tend to evolve in the middle ranks and receive ratification by superiors, perhaps at a formal meeting. This is not a denial of high power distance but actually protects it, because if the decision turns out to be a mistake, it is impossible to hold a single decision maker responsible, and face is saved.

CHAPTER 2. PRACTICAL PART. DESCRIPTION AND COMPARISON OF SAUDI ARABIA AND UNITED ARAB EMIRATES

Of all the cultural elements that an international traveler must study, the language of the host country is among the most difficult to manage. Although it is beneficial for individuals to know the language, one also needs the competency to recognize idiomatic interpretations, which are quite different from those found in the English dictionary. All cultures have verbal and nonverbal communication systems, and each country's vocabulary reflects its primary value and composition. Words spoken by an American may not have the same meaning when translated into another language.

When visiting a country in which English is not spoken, executives often use an interpreter to translate for them. Yet numerous gestures, facial expressions, and motions send different signals, and an interpreter might not be capable of articulating the full intention of the message.

"Some cultural differences are tolerated with ease, while others may cause deeply felt antipathies. Some differences are immediately apparent, while others are not overtly noticed and may create severe mistrust," said von Raffler-Engel. "When we judge a foreigner's behavior for a cause for mistrust, we may have simply misunderstood it."

2.1 Doing business in Saudi Arabia

People in Saudi Arabia respect their culture and uphold their tradition. They follow the dictates of the Quran and consider it to be their book of guidelines. For tourists there are certain basic Do's and Don'ts in Saudi Arabia that shall make their tour a success.

Some Saudis wear two watches, one with Greenwich Mean Time and the other with Saudi Lunar Time.

In Saudi Arabia, eye contact and gestures of openness are important and could facilitate communications.

In Saudi Arabia, for example, during the month of Ramadan, Moslems fast from sunrise to sunset. As a consequence, worker production drops. Many Moslems rise earlier in the morning to eat before sunrise and may eat what they perceive to be enough to last until sunset. This affects their strength and stamina during the work day. An effort by management to maintain normal productivity levels will likely be rejected, so managers must learn to be sensitive to this custom as well as to others like it.

Eating pork is forbidden by law in Islam and Judaism. So if hot dogs are an American's favorite lunch, all-beef hot dogs would have to be substituted for pork. The pork restriction exists in Israel as well as in Islamic countries in the Middle East, such as Saudi Arabia, Iraq, and Iran, and Southeast Asia, such as Indonesia and Malaysia.

In Saudi Arabia and Iran, it is not unusual for managers and workers to place carpets on the floor and kneel to pray several times during the day. Although Sunday is a day of rest for most countries in the world, there are several countries in which the rest day is not Sunday.

In Saudi Arabia, it is an insult to question a host about the health of his spouse, show the soles of one's shoes, or touch or deliver objects with the left hand.

In some countries, such as the Arab nations and many Latin American countries, people recognize and respect differences in power. In these high power distance cultures, bypassing a supervisor or any other superior would be considered insubordination. In low power distance countries, such as America, the lines between superiors and subordinates are often blurred. It is perfectly acceptable in America, for example, that supervisors can mingle with subordinates as equals within a social setting.

Saudi Arabian tradition also stresses on dress codes of the men and women. Each person customarily wears long flowing and loose garments. This is in accord of the hijab custom that insists on the maintenance of modesty. Usually men wear an ankle length cotton shirt called thwab. It is accompanied by either a check-shirt which is known as the keffiyeh or a ghutra. For women it is compulsory to wear a niquab, that is, a veil. Tourists should follow the Do's and Don'ts in Saudi Arabia as a sign of reverence for the customs and traditions of the local people.

If you are a women and are greeting a man for some reason, it's not normal to shake hands, just a simple greeting, hello, etc, unless he is westernized and familiar with western ways, he might offer his hand to shake, but you as a female,

It is polite to have two cups of Arabic coffee in a Saudi home, no more, no less. When you have enough, place your hand over the cup or shake it from side to side as you give it back to the waiter. He will understand you have finished. An invitation to tea should be accepted. You are being honored as a guest. Be very courteous if you really must refuse.

The proper term is “Islam” for the religion not Mohammedanism and “Muslim” or “Moslim” for the person, not Mohammedan. Islam means “submission to God”. Do not discuss religion. This can be a sensitive subject to some people.

Do not use the name of god (Allah), the Qur'an of the prophet Mohammed and other Muslim saints irreverently. Say “Allah ta, ala” (the most high), “Quran el karim” (holy Qur'an) and “rasul Allah” (messenger of Allah). Do not attempt to enter a mosque if you are not a Muslim unless you have permission.Do not enter the cities of Makah and Medina if you are not a Muslim.

Do not touch the holy Qur'an or other Muslim prayer books when you are in a private houses or offices. It is a very irreverent gesture. Even a Muslim is discouraged from touching the holy Qur'an without ablution.

Do not carry in your possession any non-Muslim religious articles or objects, i.e. Bible, rosary, stampedes, medallions, etc., when travelling to Arab countries in the Middle East, especially to the kingdom of Saudi Arabia.

All Muslims celebrate the holidays of Eid-el-Fitr (end of Ramadan, the month of fasting) and Eid-el-Addha (pilgrimage to Makah, better known as the “hajj”). Familiarize yourself with these and other festivities in the Islamic calendar.During the holy month of Ramadan, eating, drinking and smoking are all strictly prohibited with daylight hours. Penalty, if caught, is expulsion especially from the kingdom of Saudi Arabia.

Do not stare at women. Women are advised to avoid going out alone for their own safety and protection. Women should not talk intimately in public with their husbands. They may go out with other male friends, provided they maintain a distance from them. Women should refrain from exhibiting aggressive stance or attitudes at all times.

Even if you are a husband or a wife or you are officially engaged, you should never embrace in public, hold hands romantically or show any signs of romance. These acts are considered offensive to public morals. Do not insist that a Saudi bring his wife to social gatherings. There are two separate social groups: men and women; and they do not usually intermingle in public gathering and occasions.

Never show disrespect for the Saudi flag or the Saudi monarch. A tattoo of the Saudi flag could be considered an offense.

Always carry your iqama (residence permit) and a copy of your passport. Authorities have the right to demand to see the documents for identification purposes. Most public transactions in the kingdom require the presentation of an iqama. Always check the validity of your iqama and passport. Both documents should never expire. A passport must always have 6 months validity.

If you are not a Muslim, you may not enter Saudi Arabia without an invitation and you may not leave without an exit permit. Visitors to Saudi Arabia are subject to the same rigorous Islamic law as Saudis. It is not uncommon for Westerners to be imprisoned for possessing illegal substances such as alcohol, pornography, pork or narcotics. Thieves still have their hands amputated and capital crimes are punished by public beheadings.

2.2 Doing business in United Arab Emirates

In UAE etiquettes form a significant part in one's identity. In order to run any business an also for traveling one needs to get acquainted with the etiquette of the country. Politeness and respect to the elders are generally expected, when in UAE. If you visit the house of a friend in UAE you are expected to enter the house bare footed or with a clean pair of shocks. People in UAE eat with their right hand. One is also not expected to appreciate any showpiece at the house, as the house owner feels obliged to gift it to the visitor.

Showing respect towards the women is another important component of UAE etiquette. The local women generally keep their heads covered. And although the foreign tourists can wear any clothes they are supposed not to wear skimpy and revealing clothes in the public places.

Due to the development of the tourism industry restaurants and night clubs have flourished in many parts of UAE and espacily in UAE. People can get alcohol in these restaurants. Even local people can get restaurants and pubs, but nobody is supposed to look drunk on the street and supposed to maintain the peaceful environment.

Over the years UAE has also earned the reputation of a tolerant society. Although 96% of the population is Muslim they do not pass comments or remarks that might hurt the religious feeling of other people. In return the followers of other religion try to maintain an amicable relation with all the people.

Different cultures have varying rules on personal space and touching. Americans sometimes touch others on the hand or arm or shoulder when talking. In some cultures, such behavior may not be appropriate, especially with the left hand when in the Middle East.

The distance between individuals when talking is another issue that must be known and respected. Although one may not be able to define the exact distance if asked, most individuals have a specific amount of space that they maintain between themselves and others when conversing. Americans are typically made uncomfortable by the close conversation distance of Arabs and Africans. In the same respect, Arabs and Africans may feel rejected by the lengthy personal distance Americans maintain.

Arabic is a language of hyperbole, where the merits of others are praised and overtly commented upon. Therefore, during the relationship-building process, it is important to offer compliments to your host, his organisation and the Muslim world in general. You, in return, will be complimented. Do not seem distant, aloof or embarrassed if this happens - take the compliments in the spirit they are given.

You may be asked questions, which seem overly familiar at a very early stage. Questions about marital status, children, religious convictions and personal wealth are commonplace. If you feel uncomfortable answering such questions, have a ready supply of stock answers at your disposal. Refrain from saying that you are an atheist as this is incomprehensible in a society, in which the absolute existence of a monotheistic deity is a given.

People are reluctant to convey bad news to you about any business issues. When this characteristic is combined with natural Arabic hyperbole, it is important to maintain a sense of perspective when being given very positive feedback about any particular proposition.

Do not be surprised, if people seem somewhat aggressive in meeting situations. Speaking volubly and with arising tone shows sincerity. This denotes engagement and interest and it is not a way with a negative sign. (The ability to converse in this manner is a much-admired characteristic in the region.)

Finally, be aware of the importance of good, strong eye contact. A man's sincerity and honour can be judged by their ability to look you in the eye. This can be somewhat uncomfortable for those from cultures with much weaker eye contact (many Asian countries) but efforts must be made in this area.

When you have completed the Arab business culture profile, you may feel you need to learn more about some of the other business cultures you deal.

The situation in the UAE is very different than in neighboring Saudi Arabia, where opportunities for women are very restricted. There is an increasing sense of entrepreneurship amongst local women which means that conditions have changed considerably in the past ten years or so.

Although it is still possible to meet local men, who show an overt gender bias (unfortunately these elder, more traditional men are often the decision-makers), it is becoming increasingly common to encounter women in business in all sectors of the economy.

These changes have probably been driven by the sheer number of expatriates who work in the region and the influence of the many multi-national corporations who operate there and who import their beliefs in gender equality (a well as other diversity strands).

It is impossible to say there is no gender bias in the UAE (Dubai is probably the most liberal of the states) but international women business travelers shouldn't find this too much of an issue.

2.3 Negotiations and decision making

When creating a contract, a negotiator is not only doing so to reach an agreement between two or more parties, but to create an agreement that is durable; whereby parties of the contract are legally bound and committed to its promises [7]. A legally binding contract is defined as an exchange of promises or an agreement between parties that the law will enforce, and there is an underlying presumption for commercial agreements that parties intend to be legally bound.

Provided an agreement is contractual in nature, and regardless of whether or not they have read it, a person is bound by a written contract as long as they have signed it.

Wade and Honeyman [7] describe a `durable' contract as one in which all parties substantially perform without abandonment and without resorting to legal proceedings.

With only anecdotal evidence, it is difficult to know what percentages of contracts are in fact breached. It is probable that the statistics vary greatly over differing class, culture, wealth and type of transaction. The reasons for a breach of contract are also varying, and ethical issues can emerge in some situations.

Some ethical considerations which may become apparent in the durability of contracts, are cultural relativism and moral relativism.

Grace and Cohen [8] describe cultural relativism as the extent to which different societies and cultures have different values and ethical standards in the fields of business and organisational life. Those who embrace cultural relativism believe that all beliefs (religious, ethical, aesthetic, and political) are relative to the individual within a culture. Types of relativism include moral (where ethics depend on the social assembly), situational (where right or wrong is dependent on the situation), and cognitive (where truth itself has no objective standard). The legislative system is having a harder time defining laws with the diminishing set of standards, and our court system is having a harder time interpreting them.

Moral relativism views ethical standards, morality, and positions of right or wrong as being culturally-based. This therefore subjects these views as being an individual's choice. While modern society was previously governed by a "Judeo-Christian" standard, this view has increasingly been acknowledged as the chief moral philosophy of modern society. However, these "Judeo-Christian" standards continue to be the foundation for civil law, as most people believe that right and wrong are not absolutes, but are determined by the individual.

Following are reasons for breaches in contracts and the way in which these ethical considerations may impact upon them. In most of these situations, the law may not agree with moral or cultural relativism and award in favour of what people generally view as being `right' or `wrong'.

It is therefore imperative that contracts are created to be as durable as possible so parties are unable to find legal `loopholes' and use their power, wealth, ignorance or cultural differences in setting contracts aside. Following these descriptions is a list of ways on which contracts can be made more durable.

Cultural Expectations of Flexibility. In some cultural groups such as Japan, the creation of a contract symbolizes the formation of a working relationship, and not a legally binding agreement. Some groups will regard the contract as being flexible in terms that if any problems or issues arise, the parties will reassess the obligations of the agreement and negotiate ways to preserve the relationship [9]. However, this is not generally the `Western' view on contracts.

In relation to the ethical issue of cultural relativism, a business is obliged to operate in a manner acceptable to the host country, both legally and morally [10]. But what if the contract is not necessarily subject to having a `host country'? Is it morally wrong for a Western party to hold a Japanese party to the contract when it is known that the Japanese party would not have intended to be legally bound? Or is it unethical or immoral of the Japanese to sign such an agreement, even though they mean well when signing it, knowing the Western party intended to be legally bound by the contract but themselves see the contract as more of a flexible agreement?

Honeyman and Wade [9] state that differences in cultural expectations can predictably lead to the more economically powerful party attempting to negotiate that all breaches will be dealt with ultimately by courts from their own culture, applying their own cultural and legal rules.

This then highlights the issue of different legal rules existing in different countries which enable contracts to be set aside. The list of exceptions to finality of contracts varies from one jurisdiction to another, and this is often placed under the label `frustration of contracts'.

Lack of Informed Consent. Some acts cannot legally take place because of a lack of informed consent. This can occur under conditions of pressures of limited time, money, exhaustion and exhortations to settle from lawyers. Another person is generally authorized to give consent if an individual is unable to. These cases sometimes result in a party refusing to comply with the terms of the contract; however, they are rarely successful as a defense to an enforcement action. Judges usually take the view that a client advised by a lawyer is strongly presumed both to have a basic understanding of legal principle, and to have given consent. This was the case, where a husband settled for 10% of assets against his probable entitlement to 40%, and it was held that there was no miscarriage of justice as the husband acted feely and was advised to seek legal advice. In cases where an individual is provided limited facts, serious ethical issues may arise.

Is it ethical to hold someone to a contract when they clearly had no awareness of exactly what they were signing and committing themselves to, due to ignorance or not? Is it ethical for a lawyer to encourage the signing of a document if they are clearly not fully understanding of the document?

Wealth. If the chance of success and money is opportune to a wealthy person, their capacity and willingness can give rise to alleging various legal justifications for breach. A few years of legal expenses may only be a small proportion of their empire, and the resulting attrition and disparate investment in the conflict may eventually encourage other parties to renegotiate the disputed clauses.

In terms of moral relativism, most people would agree that it is ethically wrong to use wealth to control a situation and to `force' people into renegotiating clauses in contracts if they are unable to afford the legal bill accompanying a dispute. However, as moral relativism is subject to a one's own beliefs on what is right and wrong, some may not view using wealth as a means to control as being the wrong thing to do. In situations such as these, the `little man' usually loses out and will ultimately succumb to the power of the other party or parties.

Undue Influence. Undue influence is an equitable doctrine that involves one person taking advantage of a position of power over another. The law presumes that in certain classes of relationship there will be a special risk of one party unduly influencing their conduct and motives for contracting. Because the court can vitiate such a contract if there is a special relationship, when no special relationship exists, the general rule is whether there was a relationship of such trust and confidence that it should give rise to such a presumption.

The plaintiff was under contract as a teacher. He was arrested, and the next day he allegedly was pressured by his superiors to sign and deliver his resignation. He was cleared of the criminal charges, and then he sought to be reinstated by the school district. They refused, so he sued to rescind his resignation. He claimed that his resignation should not be enforced because, among other things, he signed it under the “undue influence” of his superiors.

When a party has placed their confidence and trust in another and this relationship is broken, the view of moral relativism will generally see this situation as being wrong. Undue influence is usually an act of dishonesty and/or deceit in a situation where one party realizes their power over the other and takes advantage of this. Deception and deceit are not viewed as being ethical values inherent in a person.

Increasing the Durability of Contracts. To increase the chances of `performance' of a contract (and therefore reduce chances of a breach), a party should enhance:

Entering into contracts with parties where there is already a longstanding relationship - therefore raising incentives to perform promises.

Avoiding making contracts with cultural groups that view contracts as the `beginning of a relationship', rather than a legally binding agreement.

Clarifying whether `yes' means `maybe' or `no' and whether signed and detailed contracts are considered to be binding, morally, legally and/or in reputation, or just amount to the declaration that a working relationship now exists.

Including clauses and a discussion regarding how any future misunderstandings and problems will be addressed.

Attempting to agree that final determination of any future problems with performance will be in a court or arbitration venue.

Only going into contract with parties that are stable and reliable.

Taking out risk management insurance for non-performance or currency fluctuations.

Attempting to enter into an agreement which recognizes procedural, emotional and substantive needs of all parties involved.

Not walking close to the line on any of the legal rules such as duress, deceit, vague terminology or illegality and this will give other parties the opportunity to claim a loophole.

Attempting to reduce buyer's remorse by:

Making congratulatory speeches about the agreement's benefits

Never agreeing quickly to any clauses

Adding post-agreement gifts and bonuses

Publicize the deal by mutual agreement. A wider audience will then place expectations on all parties to perform, or risk losing face and credibility in future arrangements. Most people have a strong desire to act consistently with their own clear commitment.

Every cross-cultural business manual cautions Western negotiators that, in much of the world, “yes” does not necessarily mean yes, and “maybe” can mean no. “Yes” can be a way of indicating that one understands or acknowledges a proposal. If the proposal is unsatisfactory, the response is likely to be indirect, perhaps consisting of such statements as, “we will think about it,” a period of silence (as in a Japanese setting, where silence can have other meanings as well), or simply a failure to pursue the matter in subsequent meetings.

Saudi Arabia. If a deadline is mentioned to an Arab, however, it is like waving a red flag in front of a bull. Forcing the Arab to make a quick decision may very well cost you the deal. What appears to be inefficiency and muddling on the part of Arab businessmen may be a signal of displeasure with the way things are going. Experienced negotiators recommend slowing down and looking for signals that suggest that negotiations are not going well.

Shaking hands is customary when people meet or are introduced.Do not shake hands with women if you are a man and with men if you are a woman. Both host and visitor address each other using “Mr.” with family name. This is the most commonly used form of address. Other forms of address are: “sheik, hajji” (indicating one who has made the pilgrimage to Mecca), “said” or “Saied” (sir) and “Abu” (father of) followed by a first name. Do not call anyone by nickname or a slang name that would sound strange to others. Never call anyone with a “come here” motion of your finger as this may offend him.

Try to learn Arabic. It will greatly help in your progress and work relationship. Learn at least all the basic phrases of courtesy and respect. This will be appreciated.

Avoid the topics of Middle East politics and religion. Do not talk to women if you are a man, unless you already know each other.

Never point your finger to a person you are talking to.

Do not cross your legs or sit showing the undersides of your feet while talking to someone. Never laugh at anything pertaining to their customs or way of life that may appear strange or unusual to you. Avoid indulging in loud conversations or boisterous laughers.

Both men and women never appear in shorts, except when swimming or when engaged in sports. Ladies should always present a modest appearance, keeping upper arms and shoulders covered. Men should always present a clean and fresh appearance. Whenever in public, a woman should wear an abaya.

Use your right hand when offering or receiving something to or from an Arab (or a Muslim). Do not give or receive anything with your left hand. The right hand is used for eating, holding books or any clean item. The left hand is for cleaning oneself.

Prayers are said at 12 noon, 3 p.m., 5:30 p.m., 7:30 p.m. And 3:30 a.m. But the time changes with the seasons. Do not attempt to do business during daily prayer hours. Do not talk, play music or make any form of noise while someone is praying and while the holy Qur'an is being read or played on a cassette, television or radio. Do not walk in front of someone who is praying. Do not stare at someone who is praying. Do not step on a prayer rug if someone is preparing to pray.

Never show bare shoulders, stomach, calves and thighs.

Visitors are expected to abide by local standards of modesty however, do not adopt native clothing. Traditional clothes on foreigners may be offensive.

Despite the heat, most of the body must always remain covered.

A jacket and tie are usually required for men at business meetings. Men should wear long pants and a shirt, preferably long-sleeved, buttoned up to the collar. Men should also avoid wearing visible jewelry, particularly around the neck.

Women should always wear modest clothing in public. High necklines sleeves at least to the elbows are expected. Hemlines, if not ankle-length should at least be well below the knee. A look of baggy concealment should be the goal, pants or pant suits are not recommended. It is a good idea to keep a scarf handy, especially if entering a Mosque.

It is common to remove your shoes before entering a building. Follow the lead of your host.

In the Muslim world, Friday is the day of rest.

The left hand is considered unclean and reserved for hygiene, avoid gestures with the right hand. Do not point at another person and do not eat with the left hand.

Men, who are walking hand in hand, are just friends.

Try not to cross your legs when sitting. Never show the bottom of your feet.

The "thumbs up" gesture is offensive.

Gifts are not necessary, but appreciated. Avoid admiring an item too much, you host may feel obligated to give it to you. When offered a gift, it is impolite to refuse.

Do not discuss the subject of women, not even to inquire about the health of a wife or daughter. The topic of Israel should also be avoided. Sports is an appropriate topic.

Names are often confusing. It's best to get the names (in English) of those you will meet, speak to, or correspond with before hand. Find out both their full names and how they are to be addressed in person.

Communications occur at a slow pace. Do not feel obligated to speak during periods of silence. "Yes" usually means "possibly".

Your Saudi host may interrupt your meeting or conversation, leave the room and be gone for 15 to 20 minutes for the purpose of his daily prayers.

At a meeting, the person who asks the most questions is likely to be the least important. The decisionmaker is likely a silent observer.

A customary greeting is salaam alaykum. Shaking hands and saying kaif hal ak comes next.

The above topics are important issues that we need to understand before we can start negotiations. As a manager it is very important to know how other cultures handle negotiations, you would not want to offend them, things that we do in our culture may not be the same in theirs.

As a manager attending a meeting in Saudi Arabia, we need to know certain things including that Saudis prefer face-to-face meetings but before we can attend the meeting with them it is best to establish a trust. It is recommended that you as a manager try to build a solid business relationship before entering business dealings as this will be the key to your success.

As a manager attending a meeting in Saudi Arabia for the first time there are some helpful things to do and not to do. Do address your Saudi counterparts with the appropriate titles for their job classification followed by their first name. Do maintain strong eye contact. As mentioned above Saudis like close conversations and expect eye contact when communicating among members that are negotiating. As a manager you should not raise your voice, this type of behavior is considered rude and vulgar to Saudis. Do not rush your Saudi counterpart during any negotiation as communications generally occur at a slower pace in Saudi Arabia.

Managers need to remember that most Saudi businessmen have attended meetings with other western cultures and are comfortable dealing with us, but they also have some different characteristics in meetings. As a manager attending a meeting with Saudis it will not be uncommon for them to get up to answer the phone or seek advice from someone else. There also may be times when someone else may just enter the meeting that was not originally on the list of attendees; this is common in the Arab society.

As a visitor to their county, we must remember that their religious needs are more demanding than ours, so do not find it offensive if they leave the meeting to attend prayer.

The official language of Saudi Arabia is Arabic. Many Saudi businesspeople, especially young ones and those in top positions, speak English well enough, so you rarely need an interpreter. When communicating in English, speak in short, simple sentences and avoid using jargon and slang. It will help people with a limited command of English if you speak slowly, summarize your key points often, and pause frequently to allow for interpretation.

Saudis usually speak in quiet, gentle tones. A raised voice usually indicates anger, which is a very bad signal. At restaurants, especially those used for business lunches and dinners, keep conversations at a quiet level. Being loud may be regarded as bad manners. People in the country generally converse in close proximity, standing only two feet or less apart. Never back away, even if this is much closer than your personal comfort zone allows. Doing so could be read as a sign that you are uncomfortable around them.

Communication is generally rather indirect. Saudis often use circuitous language, which can make it difficult for Westerners to figure out the exact message. They love flowery phrases, exaggerations, and other rhetoric, and generally consider eloquent people more respectable and trustworthy. Open disagreement and confrontation are rare and best avoided. You will usually not hear a direct `no.' When a Saudi says `yes,' he may actually mean `possibly.' Ambiguous answers such as `we must look into this' or `we will think about it' usually mean `no.' Silence is another way to communicate a negative message. It is beneficial to use a similarly indirect approach when dealing with Saudis, as they may perceive you as rude and pushy if you are too direct.

Gestures and body language are usually more restricted than in other Arab countries. Men tend to make frequent physical contact, though. They may greet each other by hugging and kissing as a sign of friendship. However, never touch someone's head, not even that of a child. Since Muslims consider the left hand unclean, use it only if inevitable. The soles of your shoes are also considered unclean and you must avoid showing them to others, even when seated on a cushion. Pointing at people or objects is impolite. Instead, wave your open hand toward the object.

This conveys sincerity and helps build trust. Saudis enjoy showing positive emotions as long as it is done in a controlled fashion. However, they may smile less often than some of their neighbors.

Initial Contacts and Meetings. Choosing a local intermediary who can leverage existing relationships to make the initial contact is crucially important. Having a sponsor is also a legal requirement for visiting the country. A person who can introduce you to the right contacts and help you build relationships is essential when doing business in this country. This person will help bridge the gap between cultures, allowing you to conduct business with greater effectiveness. Let him set the pace of your initial engagements.

Negotiations can be conducted by individuals or teams of negotiators. It is vital that teams be well aligned, with roles clearly assigned to each member. Saudis may be very good at exploiting disagreements between members of the other team to their advantage. Changing a team member may require the relationship building process to start over and should therefore be avoided. Worst case, such a change can bring negotiations to a complete halt.

If possible, schedule meetings at least three to four weeks in advance. The length of a meeting is usually unpredictable, so do not try to schedule more than one per day. Since Saudis want to know whom they will be meeting, provide details on titles, positions, and responsibilities of attendees ahead of time. Be prepared for your counterparts to cancel or postpone meetings with little or no notice. Schedules are often loose and flexible, and meetings may start considerably late. However, Saudis generally expect foreign visitors to be punctual. Avoid being more than 15 to 20 minutes late, and call ahead if you will be. Displaying anger if you have to wait, which happens often, reflects very poorly on you. The most senior meeting participants often arrive last.

Saudi names can have several parts and may be difficult to identify. It may be best to inquire from someone upfront or politely ask the person how to address him or her correctly. In that case, make sure you do the same for your own name. Titles, such as Doctor or Professor, are highly valued. Always use them when addressing a person who carries one. Do not call Saudis by their first name unless they offered it. Arabs may see mispronouncing their names as a sign of disrespect. Greet the most senior person first, and then greet everyone else in the room individually. Introductions and greetings are accompanied by extensive compliments as well as handshakes using the right hand. Saudi businessmen may be reluctant to shake the hand of a foreign woman.

After the introductions, offer your business card to everyone present. Cards should be in English on one side and in Arabic on the reverse, and must be in pristine condition. Show doctorate degrees on your card and make sure that it clearly states your professional title, especially if you have the seniority to make decisions. Present your card with your right hand, with the Arabic side facing the recipient. Similarly, accept others' cards using only the right hand. Smile and keep eye contact while doing so, then examine the card carefully. Next, place it on the table in front of you. Never stuff someone's card into your back pocket or otherwise treat it disrespectfully.

The first meeting may consist entirely of small talk, which may include prolonged inquiries about your health, family, and so on. This may include very personal questions. It may actually take several meetings before you even get to discuss business. Be patient and let the other side set the pace. Frequent meeting interruptions are normal and do not signal a lack of interest.

Presentations should be short and concise. Allow sufficient time for questions and clarifications. Either the decision maker is a silent observer, or that person may not attend at all. People asking many questions usually hold less important positions. Your presentation materials should be attractive, with good and clear visuals. Use diagrams and pictures wherever feasible, cut down on words, and avoid complicated expressions. Having your handout materials translated to Arabic is not a must, but it helps in getting your messages across and is thus preferable.

Negotiation. Leveraging relationships is an important element when negotiating in Saudi Arabia. Nevertheless, Saudis often employ distributive and contingency bargaining. While the buyer is in a superior position, both sides in a business deal own the responsibility to reach agreement. They expect long-term commitments from their business partners and will focus mostly on long-term benefits. Although the primary negotiation style is competitive, Saudis nevertheless value long-term relationships. They will ultimately look for win-win solutions and show willingness to compromise if needed. Saudi negotiators may at times appear highly competitive, fiercely bargaining for seemingly small gains. They respect hard bargainers as long as they avoid creating direct conflict. You earn your counterparts' respect by maintaining a positive, persistent attitude. It is critically important to remain calm, friendly, patient, and persistent, never taking anything personally.

Should a dispute arise at any stage of a negotiation, you might be able to reach resolution through leveraging your personal relationship with the Saudi negotiation leader in a one-on-one setting. Show your commitment to the relationship and refrain from using logical reasoning or becoming argumentative since this will only make matters worse.

Information is rarely shared freely, since the Saudis believe that privileged information creates bargaining advantages. In contrast, expect any information you share to reach your incumbent competitor. Based on their existing relationship, your Saudi counterparts will likely believe that this party must be given the right to respond to the new competitive threat.

Pace of Negotiation. Expect negotiations to be slow and protracted, and be prepared to make several trips if necessary to achieve your objectives. Throughout the negotiation, be patient, control your emotions, and accept that delays may occur. Attempts to rush the process are highly unlikely to produce better results and may be counterproductive. A Saudi proverb warns, `Haste is of the devil,' and many Saudis may believe that whether something happens quickly, slowly, or not at all is beyond their control as it depends on Allah's will. On the other hand, do not be surprised if the pace suddenly changes from very slow to very fast - once your counterparts have made a positive decision, they may expect fast progress.

When engaging in initial business negotiations in the country, it is often crucial to take a long-term perspective over many years. It is often advisable to accept an initial deal even when its return-on-investment does not look appealing. Much bigger profits tend to come once you manage to prove yourself a worthy partner.

Most Saudis prefer a very polychronic work style. They are used to pursuing multiple actions and goals in parallel. When negotiating, they often take a holistic approach or frequently jump from one topic to another rather than addressing them in sequential order. In multi-item negotiations, people may bargain and haggle over several aspects in parallel. It is common for them to re-open a discussion over items that had already been agreed upon. In addition, they may take phone calls or interrupt meetings at critical points in a negotiation. While they may be doing all this on purpose in order to distract or confuse the other side, there are usually no bad intentions. Negotiators from strongly monochronic cultures, such as Germany, the United Kingdom, or the United States, may find this style confusing, irritating, and even annoying. Surprisingly, Saudis themselves may expect their foreign visitors to stick to the subject of conversation unless there is a logical opportunity or invitation to change topics. In any case, do not show irritation or anger when encountering this behavior. Instead, keep track of the bargaining progress at all times, often emphasizing areas where agreement already exists. Repeating your main points conveys seriousness and builds trust.