1. CULTURE AND DIVERSITY IN BUSINESS
Chapter 16

2. IMPORTANCE OF CULTURE
Culture – the beliefs, customs, and attitudes of a distinct group of people
Often defined by dress, food, language, art
Can also be defined by history, geography, religion
Can refer to a group, an entire city, or a country

3. IMPORTANCE OF CULTURE
Companies MUST know the cultural differences as they trade globally
Must know etiquette, business customs, and proper personal interaction
Will lose business
Will be seen as less smart

4. IMPORTANCE OF CULTURE Culture has TWO distinct meanings
Culture of other countries you do business with
Culture of your own business/company

5. CULTURE IN GLOBAL ECONOMY
Must be aware of differences in language (especially slang), currencies, laws, and measurement, customs
Eating habits
Touching
Making eye contact
Life in Japan

6. MARKETING ABROAD
Might have to change your product to suit the new market
Chevy Nova
Coca-Cola changing formula
Budweiser changing alcohol content
Must be aware of language issues
Jolly Green Giant

7. WORKERS ABROAD Must adapt to culture of country living in
Mexico has siesta in the afternoon
Holidays are different in other countries
Religious beliefs (days of operation)
Interaction with employees

8. BUSINESS ETIQUETTE
Business Etiquette – what is considered acceptable social behavior and manners in business.
Different in different parts of the world
Gifts from clients in Japan
Having a meal before getting started
Must respect the customs of those countries

9. CORPORATE CULTURE
Corporate Culture – a company’s shared values, beliefs and goals.
Can be formal or informal
Owner or boss can dictate formality of culture
Level of formality sets rules for business

10. FORMAL CULTURE
Strict Hierarchy – everyone has a specific rule or chain of command.
Dress codes strictly enforced
Written manual of expectations and job duties
Job titles a sign of power and status
Very attention to detail oriented

11. INFORMAL CULTURE Not as strict – employees have more freedom.
Casual dress code
Promote social activities
Flexible work hours
Creativity and teamwork over job titles and status
Managers on first name basis with employees

12. DIVERSITY IN THE WORKPLACE
No two people or groups are alike
Your success in the workplace depends on how well you get along with others
Different skills
Different work habits
Different approaches to tasks

13. DIVERSITY IN THE WORKPLACE
Diversity is not the same as culture
People diverse based on:
Age
Gender
Ethnicity
Individual Needs (handicapped)
Education
Marital/Parental status
Income
Religious beliefs

14. DIVERSITY IN THE WORKPLACE
Stereotyping is bad
People have individual skills
Dealing with diversity means understanding and using the differences of people

15. STOP SLIDE

16. IMPACT OF DIVERSITY
Hispanics and Asians are fastest growing groups in US
Hispanic population grew almost 60% b/t
Hispanics no longer minorities in CA and TX
Population getting older
babies are called baby boomers (due to WW II)
Have 51% of all wealth in country

17. CHANGES IN WORKPLACE
About 85% of people entering workforce are women and minorities
More women, Asians, Hispanics, African-Americans in management
Younger workers becoming more important

18. CHANGES IN THE MARKETPLACE
Minorities and women now working
Now have purchasing power
Company reaction
Used to only target white males
Now target all areas of market
Must appeal to all different groups
More pharmaceutical ads than ever before, why?
Baby boomers are now years old

19. MANAGING DIVERSITY
Human Resources responsible for managing – tries to make company inclusive organization
Increases productivity
People want to work for company
Goal is to create inclusive, respectful work environment

20. MANAGING DIVERSITY Until 1970’s workforce was white males
People tend to hire people like themselves
Had no laws to protect anyone
Discrimination – excluding someone on the basis of age, gender, ethnicity, or physical handicaps
Illegal in workforce now due to Anti-Discrimination Laws
Some companies did policies before laws

21. LAWS AGAINST DISCRIMINATION
Age Discrimination Act
Protects workers over 40 (ageism)
Equal Employment Opportunity Act
Regulated by EEOC
Protects based on gender, ethnicity, religion, etc.
Americans with Disabilities Act (ADA)
Protects handicapped workers
Requires handicapped accessibility for all buildings

22. DIVERSITY PROGRAMS
Many companies have diversity programs to help employees work together
Promote trust and cooperation b/t employees
Break down stereotypes
Managers must work to promote equality and break stereotypes and discrimination
Promote this through corporate culture

23. BENEFITS OF DIVERSITY Companies purposefully hire diverse people
Allows to work with more diverse customer base
Have increased productivity and efficiency
Fewer legal costs from being sued

24. BENEFITS OF DIVERSITY
A diverse workforce offers a broader range of ideas and ways of looking at things.
Greater diversity in the workplace helps a company better understand and serve the needs of a more diverse marketplace.
It creates a greater sense of morale among employees and commitment to company goals.