Globalization is inevitable in the contemporary corporate world. As such, business companies and firms cannot avoid carrying out business across cultures. It is, therefore, necessary that in planning their strategic policies, business organizations should prioritize the aspect of cultural differences (Gesteland, 2002). Worth noting is the fact that there are quite a number of differences among the various cultures that a business concern can establish in. It is a matter of common understanding that the cultural differences are most likely to bring hiccups and technical hitches to the smooth running of a business. The problems posed by the cultural differences range from the language barrier to religious and traditional beliefs. This paper seeks to explain the various difficulties of doing business across many cultures, and how a business concern can go about handling such unforeseen disturbances.
One of the major difficulties that a business can encounter in doing business across many cultures is the fact that communication barriers may exist. Communication plays a central role in business transactions and dealings. Such communication barriers are mainly rooted in language differentials between the business associates and the members of the community (Smith, 2003). The second difficulty associated with doing business across the cultures is the fact that there may be a number of cultural inconsistencies. This may include such factors as religion. For instance, a firm that was established and incorporated in a country where the community observes Christianity, can find it difficult operating in such a Muslim-dominated country as Saudi Arabia. For example, company dealing in such animal products as pork, may have an easy time with a Christian culture, but will experience serious problems in a Muslim society since their culture and religion do not approve of pork consumption.
In the event that a corporation offends the culture of the community through its practices and activities, it can carry out some remedial measures, such as corporate social responsibility. According to the functionalism theory, all institutions have a role to play in upholding social well-being. As such, the corporation should, as part of remedying social offenses, engage in social responsibility such as preservation of the environment. Social responsibility is a way of appreciating the role of the community. After offending the culture of the community, the company can, as well, consider rebranding their company image through the use of a new name and corporate symbols. According to Max Weber’s interactionism theory, the firm should always interpret the cultural beliefs according to the community’s perspectives. The theory emphasizes subjective interpretations and justifications. On the other hand, the conflict theory, which is based on the conviction that social welfare and development are based on the works that people engage in to achieve prosperity (Baron, 2006). On this assumption, the company should provide employment opportunities to members of the public as a remedial measure to offensive activities.
References
Baron, R. S. (2006). Distraction-conflict theory: Progress and problems. Advances in experimental social psychology, 19(2006), 1-39.
Gesteland, R. R. (2002). Cross-cultural business behavior: Marketing, negotiating, sourcing and managing across cultures.
Smith, A. D. (2003). The concept of social change: a critique of the functionalist theory of social change. London: Routledge & Kegan Paul.
