The Filipino Business Culture

If a foreigner wishes to do business in the Philippines, then he or she must understand the attitudes and dispositions of the locals. Perhaps two phrases can best guide you if you have a hope of establishing good business relations in the country: “small talk” and “loss of face. ”When you are at a business meeting with Filipinos, you should never delve into the subject right away unless your Filipino counterpart does so. Most of the time, Filipinos will begin with small talk – an inquiry about one’s travel, conversation about mutual friends or relatives, news stories and several jokes. This is because Filipinos like having a warm and cordial atmosphere. They like to establish rapport with a person before they consider him as a good potential business partner. Small talk usually lasts for several minutes, until the host or presiding party begins discussing the real business issues.

In all your dealings with Filipino partners, clients and employees — always avoid saying or doing something that will cause them to suffer a loss of face. Filipinos value their self-esteem and would usually give a polite smile instead of turning down a suggestion or criticising someone to his face. If you find that you need to reprimand an employee, be sure to do it privately and end with words of encouragement and support. Always end business talks cordially, even if something unpleasant transpired during the meeting. You will soon find, too, that bureaucracy at government agencies is highly frustrating. Do not attempt to fight this on your own. Filipinos usually leave tasks like government clearance and registration to people who are good at pleasantries, flattery and gift-giving. Many also rely on connections like relatives and “friends in high places.”