| Introduction: The purpose of this paper is to examine the importance of the cross-cultural understanding for corporations within the global world, and to identify some of the pitfalls to be surmounted. Facts: Because of the constant development in the process of globalization within the business world, nowadays, the multi-national corporations have become a norm. Initially, the process of globalization began as a way of increasing the profits and efficiency of the business corporations. Yet the economic aspect of globalization is not the only one that should be taken into account. It is very important to promote the cross-cultural understanding within the corporate world. Every person identifies with a certain ethnic, religious, or social group, which determines the person’s values, morals, beliefs, understandings, and perceptions. Consequently, those cultural traits determine the way different people approach the business situations. What is considered an acceptable business practice in the United States might be rejected by the businesspeople of Japan, or Great Britain, or China. Regardless, of the fact that nowadays the corporations operate according to the same basic economic principles, the cultural traits of different global communities play a great role in how they approach business situations. There are many definitions of a culture. Webster dictionary defines it as “the customary beliefs, social forms, and material traits of a racial, religious, or social group; the integrated pattern of human knowledge, belief, and behavior that depends upon man's capacity for learning and transmitting knowledge to succeeding generations; and the set of shared attitudes, values, goals, and practices that characterizes a company or corporation.” Social behaviors, traditions, food, and language are some the essential components of culture. Analysis: Becoming accustomed with the new culture has been the essential part of any diplomat’s career for decades. Gradually, the professionals from other fields began to realize the importance of such practice. These days, it is not enough to be dependent on the help of interpreters, assistants, and secretaries alone. A businessperson might be excellently prepared for a corporate meeting, but if that person does not have the knowledge of the appropriate behavior in a social setting, such as a business dinner, or if a person does not understand the nuances of the language, or is not familiar with certain cultural traditions of the host, then their business success is greatly undermined. Being culturally sensitive and knowledgeable is just as important as having good leadership and managerial skills, because it allows businesspeople to relate to their hosts on a more personal level. The greater level of understanding between business partners leads to easier communication and reciprocal respect. When the host observes that the foreigner is making an effort to develop cultural understand, then he or she, in turn, makes an effort to accommodate the foreigner. Cross-cultural sensitivity and understanding lead to cross- cultural harmony and decrease in unnecessary conflicts. Conclusion: The success of today’s corporations depends largely on their ability to promote cross-cultural understanding and to surmount the unavoidable pitfalls. |
| Cultural Understanding in Multi-Cultural Corporations |