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Chapter 3 The Cultural Environment

Chapter 3

The Cultural Environment

International/ Global Business: An Emerging Markets Perspective by Prof Suresh Vishwanath - 1 -


The Cultural Environment

“A nation's culture resides in the hearts and in the soul of its people”.

Mohandas Gandhi

MINI CASE 1 Suzlon Energy Limited is a leader on the wind energy stage, a pioneer in end-to-

end wind power solutions and ranks as the 5th leading supplier of wind turbines

in the world. In 2008 its revenues were USD 2,808 Million with a Net Profit of

USD 291 Million.

The company was established in 1995 and has grown to become a global

corporation with operations across five continents, and a workforce of over

14,000 people from over 14 nationalities.

Suzlon has its Global Management headquarters in the Netherlands, Marketing

headquarters in Denmark, R&D centers in Germany, and its engineering and

manufacturing centered in India.

One of Suzlon’s key differentiators is innovation. This innovation in approach is

applied to all aspects of its business and operations, leading the company to

adopt the dictum ‘We Are Because We Innovate’.

MINI CASE 2

ArcelorMital is the world’s largest and the most integrated steel Company with,

with sales of USD 15.1 Billion for the quarter ended 31st March 2009, 300,000

people strong and operations in 28 countries. In their document on ‘Diversity and

Inclusion’ they state, “…that we deploy our worldwide activities having regard for

the laws and customs of every country where we operate... we are convinced the

diversity of our workforce is an asset; bringing fresh ideas, perspectives and

experiences in a welcoming environment which supports our values of



Leadership, Sustainability and Quality.

For ArcelorMittal diversity means a workforce reflective of different cultures,

generations, genders, ethnic groups, nationalities, abilities, social backgrounds

and all the other unique differences that make each of us individuals. Inclusion is

about creating a work environment where everyone has the opportunity to fully

participate in creating business success and where all employees are valued for

their distinctive skills, experiences and perspectives”.

MINI CASE 3

Tata companies operate in seven business sectors: communications and

information technology, engineering, materials, services, energy, consumer

products and chemicals. They are, by and large, based in India and have

significant international operations, operating in eighty countries. The total

revenue of Tata companies, taken together, was $62.5 billion in 2007-08, with 61

per cent of this coming from business outside India, and they employ around

350,000 people worldwide. The Tata name has been respected in India for 140

years for its adherence to strong values and business ethics.

In achieving their remarkable levels of Global presence and dominance, these

companies faced numerous challenges (as well as opportunities)-leveraging low-

cost production operations in emerging markets, access and control of sizable

amounts of input material, establishing an extensive international distribution

network, leveraging financial resources through creative and complex deals and

garnering support and enthusiasm from high ranking foreign politicians to the

local people in various countries. These people in turn would become the key

stakeholders in their businesses in the form of customers, suppliers and

members of their organizational team.

What is evident is that one of their biggest challenges that they face is that of

Managing and Leveraging Cultural Diversity!



Tata Group’s Code of Conduct, under the headings of Unity and Responsibility

states “We must work cohesively with our colleagues across the Group and with

our customers and partners around the world, building strong relationships based

on tolerance, understanding and mutual cooperation. We must continue to be

responsible, sensitive to the countries, communities and environments in which

we work…” As a 350,000 people strong group of which 30 percent work outside

India and that too in around 80 countries- surely it’s both a challenge and an

opportunity- from a cultural/ multi-cultural standpoint!

What is the meaning of the term ‘culture’? How does one understand it, in order

to work cohesively? What is the meaning of being sensitive and developing

sensitivity? And how does one build strong multi-cultural relationships?

1. CULTURE: EXPLAINED and DEFINED

The term ‘Culture’ is used quite loosely in everyday language. Sometimes, even

as far as referring to someone as ‘Cultured’ or not, based on our perception

about people’s tastes, interests and appreciation of music, theatre, Language &

Literature, dress code & fashion and other aesthetic inclinations. Religion too

becomes an important determinant of culture. The common implication of these

concepts is that culture is an abstract entity which involves a number of usually

man-made, collective and shared artifacts, behavioral patterns, values or other

concepts which taken together form the culture as a whole.

‘Culture’ is derived from the Latin word ‘colere’, which could be translated as ‘to

build’, ‘to care for’, ‘to plant’ or ‘to cultivate’. Thus ‘culture’ is usually referred to

something that is derived from or created by the intervention of humans –

‘culture’ is cultivated. With this definition in mind, the word ‘culture’ is often used

to describe something refined, especially ‘high culture’, or describing the concept

of selected, valuable and cultivated artifacts of a society. (Dahl, 1998, 2000)

Basically, the word Culture is used to describe the way people behave in a

group, specifically in an organisation, and in a society. This concept of culture



implies the shared behavior norms and also the shared values, depicting the

inherent values and behaviour of people in a group situation. This does not mean

that people have the same stance or no individual perception. It denotes that in

spite of varying degree of shared value, people, in all probability, share the

intrinsic common values and express it collectively. Values are passed from one

generation to another.

This concept of shared values resulting in shared behaviour has also been

applied to other groups outside one’s own group or society. For example,

‘Culture consists of patterns, explicit and implicit, of and for behaviour acquired

and transmitted by symbols, constituting the distinctive achievements of human

groups. The essential core of culture consists of traditional (i.e. historically

derived and selected) ideas and especially their attached values; culture systems

may, on the one hand, be considered as products of action, on the other, as

conditional elements of future action.’ (Kroeber & Kluckhohn 1952: 181; cited by

Adler 1997).

The idea of a shared, yet distinctive, set of values held by one society with

resulting behaviour and artefacts is also fundamental to the basic idea of ‘culture’

within the realm of intercultural communication. Hofstede (1994) defined culture

as “the collective programming of the mind which distinguishes the member of

one group or category of people from another”. Hofstede expands the concept of

‘collective programming’ by suggesting that culture could therefore be situated

between human nature, which is not programmed, nor programmable on the one

side – and the individual’s personality on the other side. This idea of the culture

in the individual is particularly useful for explaining the concept of culture on the

one side – as well as allowing for the diversity of individual personalities within

any one culture.

Spencer-Oatey (2000) defines the functions that ‘culture’ performs as: “Culture is

a fuzzy set of attitudes, beliefs, behavioral norms, and basic assumptions and



values that are shared by a group of people, and that influence each member's

behaviour and his/her interpretations of the "meaning" of other people's

behaviour.”

It can be concluded that Culture is the patterns of behavior and thinking that

people living in social groups learn, create, and share. Culture distinguishes one

human group from another. Among the factors that determine culture are

people’s beliefs, rules of behavior, styles of work, their perceptions about money,

relationships, power, status, language, rituals, art, technology, styles of dress,

food, religion, history, geography, and political, legal and economic systems.

Any group of people who share a common culture—and in particular, common

rules of behavior and a basic form of social organization—constitutes a society.

Thus, the terms culture and society are somewhat interchangeable.

Culture has evolved with the advancement of the human species, and is

therefore closely related to our biological evolution.

There are certain salient features about culture, which must be borne in mind:

• Culture is shared. People in the same society share common behaviors

and ways of thinking through culture.

• Culture is learned. While people biologically inherit many physical traits

and behavioral instincts, culture is socially inherited. A person must learn

culture from other people in a society.

• Culture is adaptive. People use culture to flexibly and quickly adjust to

changes in the world around them.

How savvy is a person in responding effectively to people from different cultural

backgrounds than theirs?

One can begin by doing a quick diagnosis of one’s own ‘Cultural Intelligence’.

See Exhibit 3.1 below.



Exhibit 3.1

Diagnosing Your Cultural Intelligence These statements reflect different facets of cultural intelligence*. For each set, add up your scores and divide by four to produce an average. Our work with large groups of managers shows that for purposes of your own development, it is most useful to think about your three scores in comparison to one another. Generally, an average of less than 3 would indicate an area calling for improvement, while an average of greater than 4.5 reflects a true CQ strength. Rate the extent to which you agree with each statement, using the scale: 1 = strongly disagree, 2 = disagree, 3 = neutral, 4 = agree, 5 = strongly agree.

Before I interact with people from a new culture, I ask ________ myself what I hope to achieve.

If I encounter something unexpected while working in a new culture, I use this experience to figure out new ways

________ to approach other cultures in the future.

I plan how I’m going to relate to people from a different ________ culture before I meet them.

When I come into a new cultural situation, I can immediately sense whether something is going well

+ _________ or something is wrong.

Total ______ /4 = Cognitive CQ It’s easy for me to change my body language (for example, eye contact or posture) to suit people from

_________ a different culture.

I can alter my expression when a cultural encounter _________ requires it.

I modify my speech style (for example, accent or tone) _________ to suit people from a different culture.

+ I easily change the way I act when a cross-cultural _________ encounter seems to require it.

Total /4 = Physical CQ

_____ I have confidence that I can deal well with people from

_________ a different culture.

I am certain that I can befriend people whose cultural _________ backgrounds are different from mine.

I can adapt to the lifestyle of a different culture with _________ relative ease.

I am confident that I can deal with a cultural situation

_________ that’s unfamiliar.

Total + _____ /4 = Emotional/Motivational CQ

Source: Earley & Masakowski, “Cultural Intelligence”, October 2004, Harvard Business Review



How does one classify culture in order to understand it, and to work cohesively

and effectively with people from countries?

Outlined below are four of these systems of classifications that would provide a

greater insight.

2. NATIONAL CULTURE CLASSIFICATIONS 2.1 Edward T. Hall’s Classification Edward T. Hall was an anthropologist and cross cultural researcher who outlined

key cultural factors. In particular he is known for his definitions of high and low

context cultural factors as well as structuring of time and space.

In order to put this in perspective, a case situation is discussed in Exhibit 3.2.

below:

Exhibit 3.2

Story of a Successful Indian Businessman Rajiv Sharma is a successful Indian businessman, based in Mumbai. His company provides high end engineering design services. Rajiv has been in touch (telephonically and through exchange of e-mails) with the Frankfurt (Germany) office of a Detroit (US) based company. The company is a globally diversified manufacturer and supplier of technologically advanced automotive systems, assemblies and modules. The company wishes to sign a three year contract with the Rajiv to provide certain specialized design services. He has been invited to their Frankfurt office the following Monday at ten in the morning, to sign the contract. Rajiv books himself on a direct flight that Sunday night, from Mumbai to Frankfurt



and arrives early on the morning of Monday. His car journey from his South Mumbai home to the international airport, the early check-in time (four hours before the flight in the wee hours of the morning), the previous evening and the long flight takes its toll on him. Rajiv decides to catch up with a few hours of sleep (in any case he has gained three and a half hours by flying to the west from India) before meeting his client at ten. He oversleeps but hurriedly makes it to the client’s offices located in the Bankenviertel (financial district) by ten thirty. The company’s receptionist escorts him to the conference room where four Germans and an American are already seated. The look on their faces fails to hide their displeasure of Rajiv being thirty minutes late! They greet him with a guttural sound-‘morgen’ (a shortened version of Guten Morgen), which he rightly assumes to be ‘Good Morning’ though it sounds different. Rajiv reciprocates and sits down. A copy of the contact had been placed on the table in front of him, even before he arrived. ‘Herr Direktor - International, Hermann Karolak’ immediately proceeds by requesting the American legal advisor to discuss the ‘draft’ contract point by point. As the discussions proceed, the Direktor makes a mention that he has ordered coffee and sandwiches for Rajiv. Rajiv wonders why these people appeared irritated by his being only thirty minutes late - they did not bother to enquire “how his flight had been” or was “he comfortable in his hotel” etc. In short there were no pleasantries exchanged. Even his attempt to make lighter of the situation (by narrating a poplar Indian joke) was quickly frowned upon. Business is done very differently in India. Indians are more generous as far as timeliness are concerned, courteous, warm, hospitable etc. Didn’t they realize how tiring his journey had been? Indians would never begin a business meeting in such a cut & dry, direct, forthwith and straight to the point manner. Besides, how could they order coffee for him without asking him? He preferred tea!

2.1.1 Context In high-context cultures (See Exhibit 3.3), like that of Rajiv (India) many

situational elements, other than the task, guide people to understand the basic

norms and the conduct of meetings. As a result, much is unstated and taken for


http://en.wikipedia.org/wiki/Bankenviertel_(Frankfurt_am_Main)


granted. This can be very baffling for people who do not understand the

'unwritten rules' of the culture, exemplified with many overt and hidden

messages, with use of metaphor and reading between the lines—Inner locus of

control and personal acceptance for failure; much nonverbal communication;

strong sense of affectionate bonding to family; and community; high commitment

to long-term relationships; spending more quality and sometimes quantity time

with family; time being open and flexible career and personal goals taking a

second place to community or organizational goals; relationships and friendships.

In short factors more important than the task. The end does not justify the

means. For these cultures, the process is more important than product. Countries

such as China, India and Japan exemplify this.

Exhibit 3.3

Factor

High-context culture

Country Examples: China, India and Japan

Low-context culture

Country Examples: USA, Germany, and

Switzerland

Overtness of

messages

Many covert and implicit

messages, with use of

metaphor and reading

between the lines.

Many overt and

explicit messages

that is simple and

clear.

Locus of control

and attribution for

failure

Inner locus of control and

personal acceptance for

failure

Outer locus of control

and blaming others

for failure

Use of non-verbal

communication

Much nonverbal

communication

More focus on verbal

communication than

body language



Expression of

reaction

Reserved, inward reactions Visible, external and

outward reaction

Cohesion and

separation of

groups

Strong distinction between

in-group and out group.

Strong sense of family.

Flexible and open

grouping patterns,

changing as required

People bonds

Strong people bonds with

affiliation to family and

community

Fragile bonds

between people with

little sense of loyalty

Level of

commitment to

relationships

High commitment to long-

term relationships.

Relationship more

important than task.

Low commitment to

relationship Task

more important than

relationships

Flexibility of time

Time is open and flexible.

Process is more important

than product

Time is highly

organized.

Product is more

important than

process

Source:http://changingminds.org/explanations/culture/hall_culture.htm

In a low-context cultures, like that of the Direktor (German) and of the Legal

Advisor (American), very little is taken for granted. Everything is quantified, listed,

following properly laid down rules and regulations. Whilst this involves written

procedures and tedious task orientation, it also means there is less chance of

misunderstanding or anything going wrong, particularly when visitors are present.

This method is exemplified with many overt and explicit messages that are

simple and clear—Outer locus of control and blaming others for failure; more

focus on verbal communication than body language; visible and external outward

reaction; changing as needed, fragile bonds between people with little sense of



loyalty; low commitment to relationship; etc. Task is more important than

relationships and time is highly organized. There is no wastage of time in

unimportant festivities and discussions. End justifies the means and product is

more important than process. USA, Germany, and Switzerland are good

examples of this type of culture.

2.1.2 Time Exhibit 3.4

Factor Monochronic action

Country Examples: USA, Germany, and Switzerland

Polychronic action Country Examples:

Brazil, India and Mexico

Actions do one thing at a time do many things at once

Focus Concentrate on the job at

hand Are easily distracted

Attention to

time

Think about when things

must be achieved

Think about what will be

achieved

Priority Put the job first Put relationships first

Respect for

property

Seldom borrow or lend

things

Borrow and lend things

often and easily

Timeliness Emphasize promptness Both promptness &

relationship factors

Source:http://changingminds.org/explanations/culture/hall_culture.htm

Monochronic time (M-Time): This implies linearity or doing only one thing at a

time (See Exhibit 3.4). It means careful planning and scheduling and is a familiar

Western approach that adopts proper 'time management'. The Direktor and his

Legal Advisor being nationals of Germany and USA displayed these

characteristics. Monochronic people also tend towards being low contextual.



Polychronic time: In Polychronic cultures, human interaction is valued over time

and material things, leading to a lesser concern for 'getting things done'—they do

get done, but more in their own time. Emphasis is on ‘people management’ not

time management. Brazil, India and Mexico can serve as examples. Polychronic

people also tend to be high contextual.

2.1.3 Space

The study of space is called Proxemics. Hall was concerned about space and

our relationships within it. We have concerns about space in many situations;

from personal body space to space in the office, parking space, and space at

home.

The need for space

Some people need more space in all areas. People who encroach into that

space are seen as a threat. The need for space is directly proportional to the

density of the population of the country, state, city, town and locality of the

individual.

Personal space is an example of a mobile form of territory and people need less

or greater distances between them and others. A Japanese needs less space,

thus will stand closer to an American, inadvertently making the American

uncomfortable.

Some people need bigger homes, bigger cars, and bigger offices. This may be

driven by cultural factors, for example the space in America leads to greater use

of space, whilst Japanese need less space, partly as a result of limited useful

space in Japan. It may be observed that people living in large metropolitan cities

compensate the lack of physical space by creating emotional distances.


http://changingminds.org/techniques/body/social_distance.htm


2.1.4 Territoriality

High territoriality

It is greater concern for ownership. People with high territoriality seek to mark

out the areas which are theirs and perhaps have boundary wars with neighbors.

This happens right down to desk-level, where co-workers may fight over a piece

of furniture which is their own ‘marked area’. At national level, many wars have

been fought over boundaries.

Territoriality also extends to anything that is 'mine' and ownership concerns

extend to material things and to positions of power and even people working in

organisations. Security thus becomes a subject of great concern for people with

a high need for ownership.

People with high territoriality also tend to be low context.

Low territoriality

People with lower territoriality have less ownership of space and boundaries.

They will share territory and ownership with little thought.

They also have less concern for material ownership and their sense of 'stealing'

or encroachment, is less developed. People with low territoriality tend also to be

high context.

Another important classification, Geert Hofstede’s Dimensions of Culture,

identified five independent dimensions of national culture differences. Using

these dimensions a greater understanding can be had in respect of the

difference in cultures prevailing in India, China, USA, Brazil and Russia.



2.2 Hofstede’s Dimensions of Culture

Hofstede’s ideas about national culture differences were first based on a large

research project into national culture differences across subsidiaries of a

multinational corporation (IBM) in 64 countries. Subsequent studies by others

covered students in 23 countries. These studies together identified and validated

five independent dimensions of national culture differences:

Power distance (PDI), that is the extent to which the less powerful members of

organizations and institutions (like the family) accept and expect that power is

distributed unequally. This represents inequality (more versus less), but defined

from below, not from above. It suggests that a society's level of inequality is

endorsed by the followers as much as by the leaders. Power and inequality, of

course, are extremely fundamental facts of any society and anybody with some

international experience will be aware that 'all societies are unequal, but some

are more unequal than others'.

Individualism (IDV) on the one side versus its opposite, collectivism, that is the

degree to which individuals are integrated into groups. On the individualist side

we find societies in which the ties between individuals are loose: everyone is

expected to look after him/herself and his/her immediate family. On the

collectivist side, we find societies in which people from birth onwards are

integrated into strong, cohesive in-groups, often extended families (with uncles,

aunts and grandparents) which continue protecting them in exchange for

unquestioning loyalty.

Masculinity (MAS) versus its opposite, femininity refers to the distribution of

roles between the genders which is another fundamental issue for any society to

which a range of solutions are found. The assertive pole has been called

'masculine' and the modest, caring pole 'feminine'.

Uncertainty avoidance (UAI) deals with a society's tolerance for uncertainty and

ambiguity; it ultimately refers to man's search for Truth. It indicates to what extent

a culture programs its members to feel either uncomfortable or comfortable in

unstructured situations. Unstructured situations are novel, unknown, surprising,



and different from usual. Uncertainty avoiding cultures try to minimize the

possibility of such situations by strict laws and rules, safety and security

measures.

Long-term versus short-term orientation (LTO): This fifth dimension was

added subsequently- after a study of Chinese employees and managers- and

referred to as ‘Confucian Dynamism’. Values associated with Long Term

Orientation are thrift and perseverance; values associated with Short Term Orientation are a focus on short term or quick material gains and as per

Confucian norms- respect for tradition, fulfilling social obligations, and protecting

one's 'face' (See Exhibit 3.-).

2.2.1 India

Exhibit 3.5

0

20

40

60

80

100

PDI IDV MAS UAI LTO

Scor

es

ASIAN AVERAGE

WORLDAVERAGEIndia

Source: Adapted from http://www.geert-hofstede.com/hofstede

India has Power Distance Index (PDI) as the highest Hofstede Dimension for the

culture, with a ranking of 77 compared to a world average of 56.5 (See Exhibit

3.5). This Power Distance score for India indicates a high level of inequality of

power and wealth within the society. This condition is not necessarily subverted

upon the population, but rather accepted by the population as a cultural norm.

India's Long Term Orientation (LTO) Dimension rank is 61, with the world

average at 48. A higher LTO score can be indicative of a culture that is

perseverant and thrifty to the point of stinginess. India's lowest ranking


http://www.geert-hofstede.com/hofstede


Dimension is Uncertainty Avoidance (UAI) at 40, compared to the world average

of 65. On the lower end of this ranking, the culture may be more open to

unstructured ideas and situations

Exhibit 3.6

Indian Jugaad

Michael Gates, a cross-culturist recounts an anecdote:

“In India recently for a workshop tour to Bangalore, Mumbai and Delhi, I was about to

start for the day when the organizer said there was a problem with the projection screen.

It was a metre too low, so those at the back would not have been able to see the bottom of

my slides. He called over the lone technician at the 5 star hotel conference centre and told

him he had 10 minutes to resolve the situation. It was a huge and heavy screen with a

large wooden surround with the management school’s logo on it. Impossible to lift alone.

Within seconds the room was bustling with people, ranging from the conference centre

manager to kitchen staff. Trestle tables, starched white cloths, various random pieces of

wood, ropes, hammers and nails appeared. The screen teetered into the air precariously,

just missing the rather large chandeliers. A collective effort raised it onto the now neatly-

covered tables and a disorderly banging and shuffling began behind it. When the course

participants began filing in, the set-up was perfect: screen one metre higher; looking as if

it had always been like that. Not a workman in sight. I glanced behind it and observed

that it was held up by a Heath-Robinson-style rickety wooden framework secured by long

guy-ropes. It served its purpose all day. Next morning the screen was held in place

invisibly and professionally”.

On later asking his local friends, they described it as “a perfect example of Jugaad – best

described as a sort of hurried collective resourcefulness; a finding of an alternative,

laterally-thought out solution – which somehow works against the odds – gaining time by

acting before the proper means to carry out the job arrive, maybe using your connections,

and possibly bending some rules along the way”.



In concrete terms, a Jugaad is also a locally made motor vehicle used mostly in small

villages as a means of low cost transportation and made by carpenters, who fit a diesel

engine to their contraption. The brakes often fail – but, no worries, as a passenger will

jump off and apply a manual wooden block as a brake. More Jugaad, in other words.

Jugaad can also be used in the context of management. In the West we may sometimes

be hidebound by our solid structures and processes, too tied to facts and rules. Jugaad

could be seen as a sort of out-of-the-box and network-style thinking that could serve us

well in times of change, crisis and in extreme circumstances. It requires people to use

skills outside the ones they may have been employed for, and which usually go

unexploited. It requires strong collaborative skills. It means an open mind and boundless

flexibility.

A recent comparative report by McKinsey on the relative strengths of India and China

identified Indian flexibility as a key ‘soft competitive edge’ that India has. He concludes

by saying “We can learn a lot from India”. Gates, Michael, 2009, Richard Lewis Communications, http://www.crossculture.com/home/

Remember, India with its origins from the Indus Valley civilization, goes as far

back as 5000 B.C. India has a special and unique culture that varies

considerably from that of East Asia. While Hinduism (See Chapter Appendix 1)

is a dominant cultural determinant of India, the British Raj also left behind a large

social and cultural legacy. Together this reflects the acceptance of an ‘elite’,

protection of accumulated wealth, democratic constitution, parliamentary rule, a

class system, a large civil service, a legal system, appreciation of music of music,

literature and the English Language as a vehicle of culture and administration.

Indians accept the hierarchical system (with amongst the highest PDI), but are

family oriented, are risk takers and experimenters, are long term oriented and

very flexible. Coupled with the Hindu tradition of being hospitable to guests and

seeing to their every comforts, India has had a history of numerous foreign

‘visitors’- both friendly and hostile. This has probably made Indians receptive to


http://www.crossculture.com/home/


foreigners and there by cross-culturally savvy. They have a very high tolerance

for ambiguity, are shrewd in business and a good many believe in the concept of

Jugaad (See Exhibit 3.6). 2.2.2 China, India and the USA Exhibit 3.7

PDI

0

20

40

60

80

100

Pow

er D

ista

nce

Inde

x

PDI

PDI 36 69 80 35 77 54 93 49 58 35 40

Australia Brazil China * Germany India Japan Russia *South

AfricaTaiwan UK USA

IDV

0

50

100

Indi

vidu

alis

m

IDV

IDV 90 38 20 67 48 46 39 65 17 89 91

Austr Brazil China Germ India Japan Russi South Taiwa UK USA

UAI

0

50

100

Unce

rtain

ity A

void

ance

In

dex

UAI

UAI 51 76 30 65 40 92 95 49 69 35 46

Austr Brazi Chin Germ India Japa Russ South Taiw UK USA

LTO

0

50

100

150

Long

Ter

m O

rient

atio

n

LTO

LTO 31 65 118 31 61 80 87 25 29

Austral Brazil China * Germa India Japan Taiwan UK USA

Source: Adapted from http://www.geert-hofstede.com/hofstede

Why is it easier for an Indian to do business in China than for an American?


http://www.geert-hofstede.com/hofstede


Firstly, the Chinese don't like doing business with companies they don't know, so

working through an intermediary is crucial. This could be an individual or an

organization that can make a formal introduction and vouch for the reliability of

the company. This is sometimes quite common in India as well. Americans fail to

appreciate this.

Secondly, Rank is extremely important in business relationships and business is

hierarchical. China too has an extremely high PDI of around 80 (See Exhibit 3.7).

One must keep rank differences in mind when communicating. Greetings are

formal and the oldest person is always greeted first. Indians, with a PDI of 78, are

somewhat similar in this regard. Americans have a low PDI of 40 (See Exhibit

3.7), and are repulsed by this behavior.

Thirdly, the Chinese are a collective society (IDV as low as 20 compared to

India’s 48) with a need for group affiliation, whether to their family, school, work

group, or country. In order to maintain a sense of harmony, they will act with

decorum at all times and will not do anything to cause someone else public

embarrassment. They are willing to subjugate their own feelings for the good of

the group. It is easy for an Indian to empathize. On the other hand a high

Individualism (IDV of 90) ranking for the United States indicates a society of

people with a more individualistic attitude and relatively loose bonds with others.

The Americans are more self-reliant, verbally expressive and they look out for

themselves. Since the Chinese strive for harmony and are group dependent, they

rely on facial expression, tone of voice and posture to tell them what someone

feels. Frowning while someone is speaking is interpreted as a sign of

disagreement. Therefore, most Chinese maintain an impassive expression when

speaking (poker face). It is also considered disrespectful to stare into another

person's eyes. In crowded situations the Chinese avoid eye contact to give

themselves privacy. It is easy for an Indian to sense this and respond

accordingly.

Fourthly, Chinese negotiations are long, protracted and process oriented. They

want to determine if relationships can develop to a stage where both parties are

comfortable doing business with the other. Decisions may take a long time, as



they require careful review and consideration. Chinese are non-confrontational.

They will not overtly say 'no', they will say 'we will think about it' or 'we will see'.

China has a UAI as low as 30 (compared to that of 46 for USA. See Exhibit 3.7)

and Long-term Orientation (LTO) being the highest-ranking factor at 118 and as

low as 29 for the US, it is easy to see why convergence in thinking poses a

problem. This kind of LTO applies to most Asian cultures and for India at 61

(though lower than Japan at 80), makes it easier to collaborate on issues.

Finally, and similar to India, China is one of the world’s oldest civilization with an

agricultural based society formed on the Yellow river 5,000 years ago. To

understand why the Chinese go about their affairs in an orderly and respectful

manner - we need to understand some of the basic tenets of their beliefs and

philosophies. They are greatly influenced by Confucianism and Buddhism. See

Chapter Appendix 2, 3, 4 & 5.

Even though China ranks high on PDI (80), unequal relationships do not

necessarily mean unfair advantages. The Chinese believe that they should

respect unequal relationships. These are basic on their concept of ethical

behaviour. These being those of Father-Son, Ruler-Ruled, Boss-Subordinate,

Senior Friend-Junior Friend etc. (See separate Exhibit on ‘Guanxi’ in Chapter 16

International Entry Strategies and Chapter 18 Global Marketing Strategy). They

must protect and display kindness to those who show deference, respect and

obedience. Some others are:

• Observing relationship is the Key. They are members of a group, not

individual.

• Behavior must be virtuous. Everybody’s “Face” (see Exhibit 3.7) must be

maintained.

• Moderation is the key. Save (they have the highest LTO of 118), and shun

indulgence (except while dining and where food is concerned – especially

while entertaining).

• Gratitude must be shown for favors.



• Under no circumstances should a person lose his / her temper or he / she

will lose face and irrevocably damage the relationship.

Exhibit 3.8

The Importance of "Face"

The concept of 'face' roughly translates as 'honour', 'good reputation' or 'respect'.

There are four types of 'face':

1) Diu-mian-zi: is when one's actions or deeds have been exposed to people.

2) Gei-mian-zi: involves the giving of face to others through showing respect.

3) Liu-mian-zi: is developed by avoiding mistakes and showing wisdom in action.

4) Jiang-mian-zi: is when face is increased through others, i.e. someone complementing

about a colleague to an associate.

It is critical you avoid losing face or causing the loss of face at all times.

Source: http://www.kwintessential.co.uk/resources/global-etiquette/china

2.2.3. Brazil

Uncertainty Avoidance (UAI) is the highest Hofstede Dimension 76, seen in

Brazil, exhibiting the society’s low level of tolerance for uncertainty. In order to

reduce this level of uncertainty, very strict rules, laws, policies, and regulations

are adopted and implemented. The society shows a very strong need to be in

control to avoid any kind of calamity or discord. As a result of this high

Uncertainty Avoidance characteristic, the people of this country do not readily

accept change and are very risk adverse.

Brazil ranks slightly higher in Individualism (IDV), 38 compared to the average

Latin population score of 21. However, virtually all the Latin countries are

considered to be Collectivist societies as compared to Individualist cultures. This

is manifested in a close long-term commitment to the member 'group', be a

family, extended family, or extended relationships. Loyalty in a collectivist culture

is paramount, and over-rides most other societal values.



Brazilians are predominantly Roman Catholic (See Chapter Appendix 6), and act

quite differently from other South American Countries because their mother

country is Portugal, not Spain.

While they may tend to be like Americans with an optimistic outlook about the

future, they still hold family traditions close to their heart (respect to the family).

They are by nature, group oriented (IDV of 38), impatient but compassionate,

love music and dancing, tend to exaggerate, are relaxed about time, cheerful,

quite emotional yet sometimes to the point of being unruly.

2.2.4. Russia

As far as Russia is concerned, Hofstede’s study shows only estimated values.

The estimates ‘reflect’ high figures (in the 90s) for both the Power Distance (PDI),

similar to that of India and the uncertainty index (UAI) - is closer to that of Brazil

and Japan. An IDV or Individualistic score of around 40 reflects a collective

disposition close to that of India and Japan.

2.3 & 4 Other Culture Classifications

2.3 Kluckholn and Strodtbeck's Dimensions of Culture

Kluckholn and Strodtbeck (1961) identified six dimensions of culture.

2.3.1 The nature of people

What are referred to here are our own assumptions and perceptions about the

nature and the belief or other people. We can label them as ‘Good’ or ‘Bad’ or

perhaps somewhere in-between.

'Good' here is in the traditional sense of being socially oriented. A bad person on

the other hand is thus considered selfish.

It is this perception or belief that we hold about others, that determines how we

respond to them. It also implies a projection of one’s own strengths and

weaknesses.



2.3.2 The relationship with nature

This reflects a person’s own view about nature. Do people believe in being in

harmony with it, nurture it, be grateful for its offerings, preserve and support it,

use it with rationality and prudence? Or believe that it solely exists for human

gratification and is there to be plundered and exploited? It boils down to peoples

own belief about the rights and responsibilities with respect to nature.

This attitude gets reflected in behavior in other walks of life as well. Implying the

person’s attitude towards utilization of all other kinds of resources.

2.3.3 Duty towards others

What is a person’s duty towards others? Do people believe in supporting others

first and thinking about their individuality later or is it vice versa? How are people

disposed as far as their own individual freedom to choose is concerned versus

that of the group or for that matter the community? What kind of choices do

individuals make or impose on the group?

2.3.4 Mode of activity

What is the primary mode of activity in an organization or society?

This is an issue of ascribed status versus achieved status. In some societies,

there is a focus on 'being', where who individuals are, is more important than

what they do. Other societies are very action oriented and status comes from

what has been achieved rather than an ascribed status.

2.3.5 Privacy of space

Here the question is how is space is viewed and treated in a society? Who owns

it? What rights do people have to occupy it?

One approach is that space is owned by individuals and privacy is important.

Meetings are held behind closed doors and people are there by invitation only.



The alternative is open ownership, where individuals can go where they please

and meetings are open to all who want to attend.

2.3.6 Temporal orientation

Here the question is how the past, present or future is viewed?

Number of societies, ascribe an extremely high importance to their ancestry,

history and antecedence and focus on traditionalism. Others focus on the

hedonism of today and yet many others are future centric and plan accordingly.

2.4 Trompenaars' and Hampden-Turner's Cultural Factors

Fons Trompenaars teamed with Charles Hampden-Turner, is another Dutch

culturalist who is into the study of international culture. Their study is that of

understanding individuals as opposed to country stereotypes.

2.4.1 Universalism vs. Particularism

Finding broad-based and generalized rules is Universalism. When no rules fit, it

finds the best rule.

Finding exceptions to the rules is Particularism. Where rules don’t fit, it judges

the case on its own merits, rather than trying to force-fit into an existing rule.

2.4.2 Analyzing vs. Integrating

Analyzing is decomposing to find the details. It assumes that good is in the

details and that breaking down is the way to success. It looks at people who see

the big picture as being impractical and out of touch with reality.

Integrating is bringing things together to build the big picture---the holistic view.

It assumes that if you have your head in the weeds you will miss the true

understanding.



2.4.3 Individualism vs. Communitarianism

People have the right to do what they wish of their life. That is Individualism. It

seeks to let each person grow towards success or fall into failure, on their own.

It sees group-focus as depriving the individual of their unforfeitable rights.

Communitarianism is about the rights of the group or society. It seeks to put the

family, group, company and country before the individual. It sees individualism

as selfish and short-sighted.

2.4.4 Inner-directed vs. Outer-directed

People who are Inner-directed have a very intuitive approach towards their work

and life. They give importance to thinking and personal judgement.

Outer-directed seek data from the outer world to support their stance. They

assume that they live in the 'real world' and that is where everyone should look

for information and take decisions accordingly.

2.4.5 Time as sequence vs. Time as synchronisation

Time as sequence sees events as separate items in time, sequenced one after

another. It finds order in neat compartmentalized actions that happen one after

the other.

Time as synchronisation sees events in parallel, synchronised together. It finds

order in coordination of multiple efforts.

2.4.6 Achieved status vs. Ascribed status

Achieved status is about ‘working hard’ to gain status through performance

output ratio. Therefore, the status of persons in an organization changes

everyday.

Ascribed status assumes that status is acquired by right, such as seniority and

age, rather than daily performance. It finds order and security in knowing where

status is and where it stays.

2.4.7 Equality vs. Hierarchy

Equality is about all people having equal status. It assumes we all have equal

rights, irrespective of birth, hard work, talent, or other gifts.



Hierarchy is about people being superior to others. It assumes that order

happens when few are in charge and others obey through a proper chain of

command.

Aided by these factors, dimensions and classifications, some insights and

understanding is available to business people, about various different cultures

prevalent in the world.

The next sets of issues are how to do business with people from different

cultures in a cohesive manner? And how to build strong multi-cultural

relationships?

The answer lies is communicating effectively across cultures.

3. Communicating Across Cultures

In his book “When Cultures Collide: Managing Successfully Across Cultures”,

Richard D Lewis has divided cultural characteristics in three broad types, to

argue that different nations and their peoples exhibit these traits in varying

degrees. The categories are titled “linear-active”, “multi-active” and “reactive”.

Some countries are identified as the exemplars that exhibit the most extreme

symptoms of the three cultural types. If we adhere to the Lewis classification,

some of the typical traits in each group are:

Exhibit 3.9

LINEAR ACTIVE MULTI-ACTIVE REACTIVE

Germany, Switzerland, UK, USA

Brazil, Spain, Portugal, Arab Countries, Russia,

Most Indians

China, Japan, Taiwan, Korea, Some Indians

introvert Extrovert introvert

patient Impatient patient

speaks to the point Talkative silent, good listener

likes privacy Gregarious says little

plans ahead plans grand design, looks at general



methodically impatient with detail principle, masters

detail

does one thing at a

time

several things at once reacts

works fixed hours,

appointments need

notice

works any hours, will

receive at short notice

flexible, much prefers

systematic method

dominated by

timetable & schedules

timetable

unpredictable

reacts to partner’s

timetable

compartmentalizes

projects

lets one project

influence another

sees whole picture

sticks to facts juggles facts statements are

promises

job-oriented people-oriented people-oriented

accepts favors

reluctantly

seeks favors protects face of other

follows procedures pulls strings inscrutable, calm

uses memoranda rarely writes memos plans slowly

dislikes losing face makes excuses must not lose face

rarely interrupts interrupts frequently does not interrupt

separates personal &

professional

interweaves personal

& professional

connects social &

professional

limited body language unrestricted body

language

subtle body language

mastery over

procedures, “devil is

in the detail” mindset

excellent at human

relations, cross-

cultural skills

keen understanding of

systems, looks to the

grand scene

easily upset over the

unexpected

handles “chaos” well accommodates the

unexpected



principle more

important than

context

will bend principle to

context

seeks to harmonize

principle to context

Source: Lewis, Richard, 2006, “When Cultures Collide”, Nicholas Brealey.

Exhibit 3.10

Source : Richard Lewis Communications, http://www.crossculture.com/home/

Lewis asserts that different countries exhibit these three kinds of characteristics

in varying degrees. The ones who reflect the Linear-Active traits in the most

acute form are the Germans (going back to our story in Exhibit 3.2- Rajiv should

take note of this in preparation for his next meeting with Herr Direktor, Hermann

Karolak), the Austrians and the Swiss, while arch-examples of the Multi-Active

type are Italians, Latin Americans, Arabs, Africans, Indians (as in the case of

Rajiv) and Pakistanis. This latter group is too wide a cluster, and much clearer

differentiation is required. Research into unraveling the distinctions that actually

exist among Africans, Arabs, and Latin Americans is obviously insufficient. The

Japanese, and to a lesser degree the Chinese, are held to be typical of the

Reactive kind.




How does a Global Business person draw some general conclusions to enable

him respond to these cross cultural nuances and adapt his communicating and

negotiating style? Exhibit 3.11 below provides a few key summarizations:

Exhibit 3.11

INDIA USA BRAZIL RUSSIA CHINA

Highest

Ranking in PDI.

Hierarchical &

Status

conscious

Amongst the

lowest PDI.

Greater

equality

between

societal levels

Hierarchical.

Relatively

high level of

inequality of

power and

wealth within

the society

High level of

inequality of

power and

wealth within

the society.

Hierarchical

Respect for

Elders

High level of

inequality of

power and

wealth within

the society

Hierarchical

Respect for

Elders

Lowest UAI.

High tolerance

for ambiguity.

Open to

unstructured

situations

Have a great level of

tolerance for a variety of

ideas, thoughts, and

beliefs.

Very low level

of tolerance

for

uncertainty

Relatively low

level of

tolerance for

uncertainty

Relatively

lower (to

India)

tolerance for

ambiguity and

openness to

unstructured

situations

A shade more

Collective and

consensus

based decision

making but not

as high as

China or Japan

Highest IDV.

Highly

individualistic

and relatively

loose bonds

with others.

Looks out for

themselves

Collectivist

society

Risk adverse, but open to

change

People

Oriented

rather than

deal oriented

Emphasis on

a Collectivist

society. Not

Individualistic.

High MAS. High degree Lower degree Not a high High degree



Hence larger

gap between

values of Men

& Women

of gender

differentiation

of roles. The

male

dominates a

significant

portion of the

society and

power

structure

of gender

differentiation

degree of

gender

differentiation

of gender

differentiation

Very Long term

Oriented

Very Short

term oriented

Medium Term

Oriented

Medium Term

Oriented

Highest Long

Term

Orientation

Indicating a

society's time

perspective

and an

attitude of

persevering

Communication

flowery &

verbose.

Express

Feelings.

Emotional,

Theatrical

Emotional,

Theatrical

Emotional,

Theatrical

Very

controlled.

Very little

display of

Emotions

Warm &

Friendly

Friendly

Pushy

Use Tough

Talk

Friendly Warm ,

Friendly but

Pushy

Use Tough

Talk

Polite,

Cautious,

Patient but

firm. Listens

Relatively

Patient

Impatient Impatient Relatively

Patient

Very Patient



Very

Hospitable

Hospitable Very

Hospitable

Hospitable Hospitable

Not very

fastidious.

Time is poly

chronic

Time is

Money

Relaxed Time Relaxed Time Punctual to

the point of

being early.

But

negotiations

are long and

protracted

Finally, what is meaning of being sensitive and developing sensitivity? The

various stages in the development of Intercultural Sensitivity are provided by

Milton Bennett (1985).

4. Development of Intercultural Sensitivity In describing the stages of development of intercultural sensitivity, Bennett,

spoke of six stages for this process of achieving ‘cultural openness’. The

continuum of stages is not static, and individuals may alternately evolve and

regress, depending on circumstances. They are:

4.1. Denial - represents the lowest degree of openness to cultural differences.

One is quite simply unaware of their existence, or else perceives them on a very

general level: this is what results from a physical or social isolation from such

differences.

4.2. Defense - the most common form of it being the denigration of differences.

We generally recognize this phenomenon in the creation of negative stereotypes,

where every member of a culturally distinct group is regarded as having

undesirable characteristics which are attributed to the entire group. This

denigration can be linked to race, gender or any other indicator of difference

assumed.

4.3. Minimization - It is an effort to bury difference under the weight of cultural

similarities— the intensity of the experience can be such to lead the individual to



seek refuge. Persons at this stage are seeking a peace or comfort that is

impossible to feel in the "Defense" stage. At this stage, it is assumed that all

mankind is ruled by common basic principles that guide values and Behaviours.

4.4. Acceptance - People who are at the stage of Acceptance seek to explore

differences and no longer perceive them as threatening. They accept the fact that

people can have cultural frames of reference different from theirs, and they take

pleasure in that fact. We recognize them from their eager questioning of people

from the other culture, which reflects a real desire to be informed, and not to

confirm prejudices. The stage of Acceptance marks openness in the way we see

differences. The key words of this stage are "getting to know" or "learning."

4.5. Adaptation - The commonest form of Adaptation is empathy. As Bennett

defines it here, empathy implies a temporary change of the frame of reference

where we perceive situations as if we were the other person. When that other

person has a vision of the world somewhat different from ours, the empathy

approaches a change in cultural vision. Generally, it is partial empathy, one that

extends only to the spheres pertinent to the communication situation. The

empathetic behaviour manifests itself in actions more appropriate in the target

culture than in our own culture. These actions may be simply mental, such as the

formulation of acceptable questions, or they may include the ability to generate

coordinated verbal and non-verbal Behaviours that a member of the target

culture would perceive as appropriate. And finally,

4.6. Integration - as the last stage of openness to cultural difference. It is the

sense that underlies Adler's description of the multicultural person: that person

"is not simply a person sensitive to several different cultures. Rather, it is a

person who is constantly in the process of becoming part of, and yet at the same

time feels himself outside a given cultural context." This develops only after

prolonged periods living in various locations where the person comes into contact

with significant cultural differences.

In the language of this model, a person who has integrated the difference is one

who can perceive differences as process, who can adapt to those differences

and who furthermore can define his own culture in a number of different ways.



5. Conclusion People are capable of being very effective when dealing with others from a

similar background, but behave like the proverbial fish out of water when

confronted with people who are different. Some have an innate sense, relying

entirely on intuition and are able to perform well in a wide variety of multicultural

encounters. Yet some possess that inherent natural confidence and are able to

communicate convincingly with people from other cultural backgrounds. Perhaps

this expertise is gained by watching others in similar situations or they are a

‘mimic’ and have the ability to ‘ape’ (without much insight) some of the cultural

cues they pickup from the differing environment. This puts both the guests and

the hosts equally at ease.

Yet there are those ‘naturals’ or ‘chameleons’ able to achieve better results than

the locals themselves, perhaps due to their mastery of insider skills with an

outsider’s perspective. And finally there are those ‘professionals’, who often with

considerable training, study and well thought out analysis, are able to decipher

the foreign culture’s prose, peculiarities and expectations, and respond to these,

often considering various options derived from their earlier learning.

6. Chapter Summary At the beginning of this chapter we took a snapshot view of three Indian

multinationals Suzlon Energy, ArcelorMittal and The Tata Group, who had

operations spread over the five continents and employing tens of thousands of

people from a wide variety of nationalities and cultures.

Conclusion was drawn that these companies faced both a challenge and an

opportunity, from a cultural / multi-cultural standpoint.

What was evident was that one of their biggest challenges was that of Managing

and Leveraging Cultural Diversity! The Key questions were - What then is the

meaning of the term ‘culture’? How does one understand it, in order to work



cohesively? What is being sensitive and developing sensitivity? And how are

strong multi-cultural relationships built?

In answering these questions, it was concluded that Culture, is patterns of

behavior and thinking that people living in social groups learn, create, and share.

Culture distinguishes one human group from another. Among the factors that

determine culture are people’s beliefs, rules of behavior, styles of work, their

perceptions about money, relationships, power, status, language, rituals, art,

technology, styles of dress, food, religion, history, geography, political, legal and

economic systems.

That there were certain salient features about culture, to be borne in mind.

• Culture is shared.

• Culture is learned.

• And Culture is adaptive

National cultures were then classified, to gain insights and understanding using

four different frameworks:

Edward T. Hall’s Classification of Context, Time and Space.

Hofstede’s Dimensions of Culture, under the five headings of Power distance,

Individualism, Masculinity, Uncertainty avoidance and Long-term versus short-

term orientation. Scores with respect to India, China, Brazil, Russia, UK and USA

were analyzed and compared with the World and Asian averages.

A cursory look was taken at two other classifications such as the Kluckholn and

Strodtbeck's Dimensions of Culture and Trompenaars' and Hampden-Turner's

Cultural factors.

In studying how communication takes place across cultures, Richard Lewis’s

cultural characteristics were examined. The categories were titled “linear-active”,

“multi-active” and “reactive”.



The stages of Development of Intercultural Sensitivity were explored, beginning

with Denial, Defense, Minimization, and onto Acceptance, Adaptation and finally

integration.

It was concluded by stating that some people have an innate sense and relying

entirely on intuition and are able to perform well in a wide variety of multicultural

encounters. Yet some possess that inherent natural confidence and are able to

communicate convincingly with people from other cultural backgrounds. Perhaps

this expertise is gained by watching others in similar situations or by being a

‘mimic’. There are ‘naturals’ or ‘chameleons’. And finally there are ‘professionals’

who are able to decipher the foreign culture’s prose, peculiarities and

expectations and respond to these effectively.

_____________________________________________________________________________

References: 1. Adler, N. J. (1997). International Dimensions of Organizational Behavior.

New York, Wadsworth Publishing.

2. Bennett, Milton J. 1985, A developmental Approach to Training for

Intercultural Sensitivity, Intercultural Journal of Intercultural Relations, vol.

10, no 2, New York.

3. http://webspace.ship.edu/cgboer/buddhaintro.html

4. Dahl, S (2000) Intercultural research: The Current State of Knowledge,

Middlesex University Business School, London

5. Dahl, S. (1998). Intercultural Skills for Business. London, ECE Publishing

6. Earley & Masakowski, “Cultural Intelligence”, October 2004, Harvard

Business Review

7. http://changingminds.org/explanations/culture/hall_culture.htm

8. Hall, E. T. (1959). The silent language. New York, Double Day.

9. Hall, E. T. (1976). Beyond culture. Garden City, N.Y., Anchor Press

10. Hofstede, G. (1980). Culture's consequences: International differences in

work-related. Beverly Hills, Sage Publications.


http://changingminds.org/explanations/culture/hall_culture.htm


11. Hofstede, G. (1994). Cultures and organizations: Software of the mind:

London, HarperCollins.

12. Hofstede, G. H. (1991). Cultures and organizations: software of the mind.

London; New York, McGraw-Hill.

13. Hofstede, G. H. (1998). Masculinity and femininity: The taboo dimension

of national cultures. Thousand Oaks, Calif., Sage Publications.

14. http://www.geert-hofstede.com/hofstede

15. Kluckhohn, F. and F. Strodbeck (1961). Variations in Value Orientations.

Evanston, Ill., Row Peterson.

16. Lewis, Richard (2006). “When Cultures Collide”, Nicholas Brealey.

17. Richard Lewis Communications, http://www.crossculture.com/home/

18. http://hinduism.about.com/od/basics/p/hinduismbasics.htm

19. http://www.suzlon.com/home.aspx

20. http://www.arcelormittal.com/index

21. http://www.tatainvestment.com/aboutus/sub_index.aspx

22. http://www.beginningcatholic.com/tenets-of-catholicism.html

23. http://www.kwintessential.co.uk/resources/global-etiquette/china



http://www.suzlon.com/home.aspx

http://www.arcelormittal.com/index

http://www.tatainvestment.com/aboutus/sub_index.aspx

http://www.beginningcatholic.com/tenets-of-catholicism.html


Chapter Appendix 1

What is Hinduism? Hinduism is the world's oldest extant religion, with a billion followers, which makes it the world's third largest religion. Hinduism is a conglomeration of religious, philosophical, and cultural ideas and practices that originated in India, characterized by the belief in reincarnation, one absolute being of multiple manifestations, the law of cause and effect, following the path of righteousness, and the desire for liberation from the cycle of births and deaths. Hinduism cannot be neatly slotted into any particular belief system. Unlike other religions, Hinduism is a way of life, a Dharma, that is, the law that governs all action. It has its own beliefs, traditions, advanced system of ethics, meaningful rituals, philosophy and theology. The religious tradition of Hinduism is solely responsible for the creation of such original concepts and practices as Yoga, Ayurveda, Vastu, Jyotish, Yajna, Puja, Tantra, Vedanta, Karma, etc. Hinduism has its origins in such remote past that it cannot be traced to any one individual. Some scholars believe that Hinduism must have existed even in circa 10000 B.C. and that the earliest of the Hindu scriptures – The Rig Veda – was composed well before 6500 B.C. The word "Hinduism" is not to be found anywhere in the scriptures, and the term "Hindu" was introduced by foreigners who referred to people living across the River Indus or Sindhu, in the north of India, around which the Vedic religion is believed to have originated. Basic tenets of Hinduism: There is no “one Hinduism”, and so it lacks any unified system of beliefs and ideas. Hinduism is a conglomerate of diverse beliefs and traditions, in which the prominent themes include:

▪ Dharma (ethics and duties) ▪ Samsara (rebirth) ▪ Karma (right action) ▪ Moksha (liberation from the cycle of Samsara)

It also believes in truth, honesty, non-violence, celibacy, cleanliness, contentment, prayers, austerity, perseverance, penance, and pious company Source: Subhamoy Das @ http://hinduism.about.com/od/basics/p/hinduismbasics.htm


http://hinduism.about.com/mbiopage.htm


Chapter Appendix 2

Confucianism

Confucianism, major system of thought in China, developed from the teachings of

Confucius and his disciples, and concerned with the principles of good conduct, practical

wisdom, and proper social relationships. Confucianism has influenced the Chinese

attitude toward life, set the patterns of living and standards of social value, and provided

the background for Chinese political theories and institutions. It has spread from China to

Korea, Japan, and Vietnam and has aroused interest among Western scholars. Although

Confucianism became the official ideology of the Chinese state, it has never existed as an

established religion with a church and priesthood. Chinese scholars honored Confucius as

a great teacher and sage but did not worship him as a personal god. Nor did Confucius

himself ever claim divinity. Unlike Christian churches, the temples built to Confucius

were not places in which organized community groups gathered to worship, but public

edifices designed for annual ceremonies, especially on the philosopher's birthday. Several

attempts to deify Confucius and to proselyte Confucianism failed because of the

essentially secular nature of the philosophy. The principles of Confucianism are

contained in the nine ancient Chinese works handed down by Confucius and his

followers, who lived in an age of great philosophic activity. These writings can be

divided into two groups: the Five Classics and the Four Books. Microsoft ® Encarta ® Reference Library 2005



Chapter Appendix 3

Confucius's Analects

The following selections from Confucius's Analects, or “Assorted Sayings,” illustrate

some of his core ideas: humanity, loyalty, reciprocity, and ritual. When Fan Chi asks

about “humanity,” Confucius answers, “love men,” a phrase that literally means “be

concerned about others.” The disciple Zeng Zi says that Confucius's teaching is “loyalty

and reciprocity”; one should do one's best for others and identify as much as one can with

the other person. Confucius was also concerned about “ritual,” the whole collection of

customs and manners in society. He viewed ritual as the binding force of a community

and its cultivation as the duty of scholars. References below are to book and verse

numbers.

From the Analects of Confucius

Confucius said: “Learning without thinking is labor lost; thinking without learning is

perilous.” [II: 15] Confucius said: “Yu, shall I teach you what knowledge is? When you

know a thing, say that you know it; when you do not know a thing, admit that you do not

know it. That is knowledge.” [II: 17]

Confucius said: “A young man's duty is to be filial to his parents at home and respectful

to his elders abroad, to be circumspect and truthful, and, while overflowing with love for

all men, to associate himself with humanity (ren). If, when all that is done, he has any

energy to spare, then let him study the polite arts.” [I: 6] Fan Chi asked about humanity.

Confucius said: “Love men.” [XII: 22]

Zi Zhang asked Confucius about humanity. Confucius said: “To be able to practice five

virtues everywhere in the world constitutes humanity.” Zi Zhang begged to know what

these were. Confucius said: “Courtesy, magnanimity, good faith, diligence, and kindness.

He who is courteous is not humiliated, he who is magnanimous wins the multitude, he



who is of good faith is trusted by the people, he who is diligent attains his objective, and

he who is kind can get service from the people.” [XVII: 6]

Confucius said: “Without humanity a man cannot long endure adversity, nor can he long

enjoy prosperity. The humane rest in humanity; the wise find it beneficial.” [IV: 2]

Someone inquired: “What do you think of ‘requiting injury with kindness’?” Confucius

said: “How will you then requite kindness? Requite injury with justice, and kindness with

kindness.” [XIV: 36]

Confucius said: “Riches and honor are what every man desires, but if they can be

obtained only by transgressing the right way, they must not be held. Poverty and

lowliness are what every man detests, but if they can be avoided only by transgressing the

right way, they must not be evaded. If a gentleman departs from humanity, how can he

bear the name? Not even for the lapse of a single meal does a gentleman ignore

humanity. In moments of haste he cleaves to it: in seasons of peril he cleaves to it.” [IV:

5] Confucius

said: “The resolute scholar and the humane person will under no circumstance seek life at

the expense of humanity. On occasion they will sacrifice their lives to preserve their

humanity.” Source: William Theodore de Bary et al., ed. Sources of Chinese Tradition. Vol. 1. New York: Columbia

University Press, 1960. Microsoft ® Encarta ® Reference Library 2005.

Chapter Appendix 4



An Introduction to Buddhism

To do no evil;

To cultivate good;

To purify one's mind:

This is the teaching of the Buddhas.

--The Dhammapada

The Buddha was born Siddhartha Gautama, a prince of the Sakya tribe of Nepal, in approximately 566 BC. When he was twentynine years old, he left the comforts of his home to seek the meaning of the suffering he saw around him. After six years of arduous yogic training, he abandoned the way of self-mortification and instead sat in mindful meditation beneath a bodhi tree.

On the full moon of May, with the rising of the morning star, Siddhartha Gautama became the Buddha, the enlightened one.

The Buddha wandered the plains of northeastern India for 45 years more, teaching the path or Dharma he had realized in that moment. Around him developed a community or Sangha of monks and, later, nuns, drawn from every tribe and caste, devoted to practicing this path. In approximately 486 BC, at the age of 80, the Buddha died. His last words are said to be...

Impermanent are all created things;

Strive on with awareness.

Source: http://webspace.ship.edu/cgboer/buddhaintro.html



Chapter Appendix 5

The Eightfold Path

1. Right view is the true understanding of the four noble truths.

2. Right aspiration is the true desire to free oneself from attachment, ignorance, and hatefulness.

These two are referred to as prajña, or wisdom.

3. Right speech involves abstaining from lying, gossiping, or hurtful talk.

4. Right action involves abstaining from hurtful behaviors such as killing, stealing, and careless sex.

5. Right livelihood means making your living in such a way as to avoid dishonesty and hurting others, including animals.

These three are refered to as shila, or morality.

6. Right effort is a matter of exerting oneself in regards to the content of one's mind: Bad qualities should be abandoned and prevented from arising again; Good qualities should be enacted and nurtured.

7. Right mindfulness is the focusing of one's attention on one's body, feelings, thoughts, and consciousness in such a way as to overcome craving, hatred, and ignorance.

8. Right concentration is meditating in such a way as to progressively realize a true understanding of imperfection, impermanence, and non-separateness.

The last three are known as samadhi, or meditation.

Source: http://webspace.ship.edu/cgboer/buddhawise.html




Chapter Appendix 6

Basic Tenets of Catholicism The basic tenets of Catholicism are the fundamental beliefs of the Roman Catholic Church. The full content of the Catholic faith can be organized into four categories: ▪ Basic beliefs (the faith itself) ▪ How to live (morality) ▪ How Catholics worship (liturgy) ▪ Prayer Creeds: Summary of the faith From its earliest days, the Church used brief summaries to describe an outline of its most essential beliefs. These summaries are called "creeds", from the Latin credo, meaning "I believe." They are also called "professions of faith," since they summarize the faith that Christians profess. The Catholic Church uses two very old creeds regularly as a part of its liturgy and other prayers. There are a number of other Catholic creeds as well.

Outline: tenets of Catholicism Like the Catechism, we'll use the articles of the Apostles Creed as our outline for describing the essential tenets of Catholicism. This short outline provides only the barest essentials of the Catholic Christian faith. ▪ I believe in God ▪ The Father Almighty ▪ Creator of heaven and earth ▪ I believe in Jesus Christ, his only Son, our Lord. ▪ He was conceived by the power of the Holy Spirit and born of the Virgin Mary. ▪ He suffered under Pontius Pilate, was crucified, died, and was buried. He descended into hell. ▪ On the third day he rose again. ▪ He ascended into heaven and is seated at the right hand of the Father. ▪ He will come again to judge the living and the dead ▪ I believe in the Holy Spirit ▪ The holy Catholic Church ▪ The communion of saints ▪ The forgiveness of sins ▪ The resurrection of the body and the life everlasting ▪Amen is a Hebrew word related to the word for "believe". It expresses solidity, trustworthiness, faithfulness. "Amen" expresses both God's faithfulness towards us and our trust in him. Source: http://www.beginningcatholic.com/tenets-of-catholicism.html

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