Today I begin a new series in this blog of stories from my global travels. Each will seek to raise an issue or provide a lesson for those who are venturing out into the world of global business.
It is 2 AM and I am sitting in the huge exhibition center of a large South American city. In seven hours a crowd, which over the course of the day will swell to 20,000, will be lining up at our registration desks to receive their credentials and pre-purchased tickets for the 1981 Rotary World Congress. The only problem is that all those custom-made badges and tickets in individualized packets are inexplicably being held ransom by a senior customs officer who feels that his government paycheck is not enough and that we should contribute something to help grease the skids. All this is being conveyed through subordinate go-betweens using innuendo to explain how this unfortunate situation can be resolved.
But it was now or never. All I had to do to get my materials was send a representative to the customs official with an envelope stuffed with cash. This was strictly against my employer’s ethics policy as well as my own. But the pressure was mounting, and the question was “who would blink first.”
Once the material arrived we still would have to sort and place everything at the correct registration desk according to alphabetical order. My final gambit was to let it be known that without these materials the opening ceremony could not be held as scheduled, which would certainly displease the country’s dictator president who was scheduled to participate in the opening.
Then we were informed that our materials had been released and we could come to pick them up. By the time the boxes finally arrived it was 3 AM and I had the unpleasant task of waking many staff members to come as soon as possible and set up the long overdue materials. After all, the show must go on.
It’s not the first problem I had getting this particular event launched in this country. They also impounded my computer for a week when I arrived. A local potential supplier had tried unsuccessfully to blackmail a member of my staff into awarding a lucrative contract to that company.
And, the honorary guest for the opening of that congress was the military leader of the host country. The opening ceremony each year is a moving presentation of the flags of every country where a Rotary club operates. But days before the ceremony, the protocol officers of the host nation said we could not present the flag of Taiwan in the presence of the country’s President since they did not recognize Taiwan as a sovereign nation. That year we had to break with tradition and did not present any flags to the great disappointment of every delegate.
These are just a few examples of cultural differences regarding bribery and gifts. May I give an expensive gift to my customer or receive one from my supplier? Absolutely no in some cultures and absolutely yes in others. But what happens when a “no” culture meets a “yes” culture?
Gift or Curse
Being handed an expensive Rolex watch as a gift with no strings attached sounds like something wonderful. But not so in the case of an American key account manager visiting his Asian customers. This particular customer was extremely grateful that the American was able to accommodate some special requests and meet tight deadlines. He wanted to show his gratitude in a way that was absolutely appropriate in his culture, the presentation of an impressive gift.
As the American was receiving this gift, several things went through his mind:
My company expressly forbids exchange of items valued at more than $25 between its employees and its stakeholders.
I know my customer’s culture well enough that to turn down such a gift is a serious insult and would likely have a negative impact on the future of the business relationship between these two people.
So we see that what is ethical in one culture may be considered a kickback or bribe in another. As Key account manager for international accounts the American needed to have a strong sense of ethics while employing creative solutions to dilemmas that may never have been anticipated by those back at headquarters who write the policies.
He came up with an elegant solution. He generously thanked his customer for the very thoughtful gift and placed it immediately upon his wrist, admiring the fine taste of his customer who had selected it for him. But as soon as he returned to his American home base, he informed HR about his receipt of the item and turned it over to the company to be added to their property book as a company asset. The watch was then stored in a safe in the company headquarters. It was recorded that whenever that particular key account manager was traveling to the country where he received the gift or whenever he and that customer were likely to see each other anywhere in the world (visits to the headquarters, attendance at international trade fairs, etc.), He was authorized to sign it out where it in the presence of the gift-giver.
There are many other examples of customs not being respected by well-meaning business travelers from other cultures. In Korea for example visitors bring gifts to their hosts and if their hosts are several persons it is essential that the perceived value of the gift needs to align with the relative importance of the host. High rank means a more precious gift. In other words, all key members of the host team receive gifts but the boss gets the best gift. Imagine bringing a gift of appropriate value for each of the three persons on the host team that have been your contacts. Then realizing after those three gifts have been presented that there is yet a more important person who shows up to participate. Sometimes gifts have to be organized on very short notice and some who seek to avoid such strain bring along more gifts than they think they will need – – just in case.
