Part II: Thailand and the Philippines

Culture has a tremendous influence on ethics and its application in a business setting. We can argue that culture and ethics cannot be separated, because ethical norms have been established over time and make sense to people who share the same background, language, and customs. When a business attempts to establish itself in a new environment, culture comes into play.

In the previous part, we reviewed how ethnic groups influence culture and business in Malaysia and Singapore. This time we will dig deeper into ethnic group cultures in other parts of Southeast Asia, Thailand, and the Philippines.

Thailand: Sanuk, Personal Relationships, and Hierarchical

Thailand is often referred to as ‘the Land of Smiles’, well known for the welcoming and warm disposition of its culture and people. It is a home for 6.2 million people dominated by Thai ethnic. Thailand is often portrayed as a culturally homogeneous country, but there are approximately 75 distinct ethnolinguistic groups (Advameg 2020, World Culture Encyclopedia: Thailand). Other significant indigenous minorities include Chinese, Malay-speaking Muslims, and Khmer.

However, Thailand is the only Southeast Asian country that has never been colonized. Thailand is a constitutional monarch with the monarch as the head of the state. Buddhism and the monarchy have historically been seen as sources of order and stability in society and continue to act as symbols of unity for the Thai people. Yet, the culture is also accommodating of contemporary practices and values.

Sanuk — The word Sanuk (pronounced sanook) refers to the concept of striving to achieve satisfaction and pleasure from whatever you do. It is a concept of guiding principles in business and work settings. This concept reflects in Thai expression, “Mai pen rai” (nevermind) which is the overarching approach to life that “it is to be enjoyed”.

Thai people will generally seek to make work a pleasant and enjoyable experience. It is common to see Thai people smiling and laughing when interacting with others. They believe that dull activities should be spiced up with a little playfulness, even in the aspect of work.

Personal Relationships — Personal relationships are the key to a successful deal in Thailand and the level of closeness with Thai professionals may take priority over the offer. The family is essential for Thai community life and remains particularly strong in rural areas. Thais also shared common cultures with neighboring countries, including collectivism.

As the Thais strongly value relationships, personal and insider connections are of great importance. They often work hard to help or assist friends and family. Before Thai people will agree to do business, they will want to first develop a personal relationship.

Hierarchy — Hierarchy not only defines the working environment but the Thai society as a whole. Individual status (i.e. age, level of education, seniority, rank within the firm) is always taken into consideration in social and business interactions. Therefore, it is common for Thais to ask personal questions to discern your status to ensure they address you correctly and behave appropriately.

For example, Thai people indicate respect with the depth of a wai which involves placing hands together in prayer form and making a slight bow of your head. Also by using honorifics that indicate both affection and relation. On a broader level, the highest level of respect is awarded to the king and the monastic community.

Work Ethic and Business Culture

Thai’s business culture bears some of the characteristics of the work etiquette of other countries in Southeast Asia. However, as Thailand was never colonized, the business culture has not been much influenced by Western culture. Thai also shares business culture with neighboring countries such as Malaysia and Singapore. This includes collectivism, personal relations, saving ‘face’, and a strong hierarchy. The aspect of Sanuk often blurred the distinction between work and life. Social affairs being a welcome topic of discussion during work hours or meetings, and for business-related matters being discussed in social events.

Personal relationships are valued and business dealings often center around first building a relationship. Negotiations rarely take place before being personally or formally acquainted. Thai may ask a lot of personal questions, but this is just a way to get to know you better. As in many Asian societies, non-verbal communication is often more important than verbal communication. Body language and facial expressions must be noticed, as these often will be believed much more than words.

Thais generally value their freedom of personal expression, speech, and religion. However, despite the cultural value placed on freedom of expression, laws limit the extent to which Thais can criticize or insult the two fundamental institutions of their society: the royal family and Buddhism (IES 2020, The Cultural Atlas: Thailand).

Consideration

There are several things to consider regarding Thais and the way they do business. As non-verbal communication is often more important, small token gifts are frequent and often an appreciated gesture. Due to the emphasis placed on relationships in Thai business, your business connections are often as important as what you know. Generally, Thais tend not to be competitive and, at times, are reluctant to initiate change.

Since the Thais are supportive of hierarchies and respect all forms of authority, often blame is passed upwards in business settings towards higher-ranking persons rather than juniors. However, according to the Corruption Perception Index (2017), Thailand ranks 96th out of 180 countries, receiving a score of 37 (on a scale from 0 to 100). This perception suggests that the country’s public sector is somewhat corrupt (IES 2020, The Cultural Atlas: Thailand).

The Philippines: Hiya, Hospitality, and Acculturation

The Republic of the Philippines was named the Filipinas to honor King Philip the Second of Spain in 1543. It is an archipelago consisting of some 7,100 islands and islets lying about 500 miles (800 km) off the coast of Vietnam. The Philippines is a home for 110 million people with 95% of the population is of Malay ancestry and the other identifiable group is of Chinese ancestry (Britannica).

Various countries such as Spain, China, and the United States have interacted with and impacted Filipino culture. The Philippines was under Spanish rule for 333 years and under U.S. tutelage for a further 48 years (IES 2020, The Cultural Atlas: The Philippines). The official languages are Filipino, which is based on Tagalog with words from other native languages, and English.

The population in the northern islands generally identifies as Christian while it is much more common to find those who identify as Muslim in the southern parts of the Philippines. However, loyalties remain foremost with one’s family and place of birth. Key values such as fellowship, respect, and acceptance are found throughout the culture, with many Filipinos displaying a warming and hospitable attitude.

Hiya — translated as ‘shame’ or ‘embarrassment’, on a deeper level it refers to one’s sense of self, propriety, and respect. The concept of ‘hiya’ is also one of the underlying factors influencing how Filipinos behave and interact with others. Filipinos may be more motivated to succeed by a fear of shame rather than fear of failing the task at hand.

This concept relates to Kapwa (fellowship or togetherness) that is a core value that explains Filipinos’ interpersonal behavior. Kapwa is related to the collectivistic nature of Filipino society. It is believed that what is good for one person will be good for the collective and ought to be shared with fellow people. Filipinos believe in the concept of smooth relationships and avoidance of confrontation. Individuals will often try to be generous and hospitable to avoid hiya and to maintain kapwa.

However, the interests of the collective often override the interests of the individual. Filipinos generally feel a strong sense of pride towards their group and will celebrate their pride through sharing stories or facts about their family, barangay (village), or town (IES 2020, The Cultural Atlas: The Philippines).

Hospitality — Filipinos are usually very warm and friendly people who enjoy conversing with those around them. It is common to find strangers engaging in conversation or sharing stories about their hometown, family, or country. Networking is not done idly in Filipino culture. Personal contacts can be crucial to success, and therefore Filipinos invest much time and effort into their relationships.

They seek to develop a friendship between individuals, not companies. This indicates a fatalistic attitude throughout society whereby Filipinos are generally accepting of theirs and other circumstances. However, this does not mean Filipinos are passive. Rather, they are hardworking and will often do their best to help themselves and their family.

Acculturation — The Philippines culture is a blend of Western and Eastern influences owing to the country’s location and history. In the contemporary Philippines, many Filipinos are acutely aware of the colonial history of their country. The long history of contact with Spain and the United States continues to have a significant impact on the Filipino identity. For example, the prominence of Christian ideology, the Philippines is one of the countries that have the highest Christian populations in Southeast Asia (Banco Santander 2020, Business Practices in The Philippines).

Filipinos tend to dress modestly, especially when in public. The impression you have on a Filipino will largely influence the decisions they make to the point that their view of you may even override certain business objectives. For example, the price can become secondary to Filipinos if they like their business partner.

Work Ethic and Business Culture

Personal relationships play a large role in the Filipino business culture. Finding a third-party introduction is a helpful strategy as Filipinos prefer to work with those that they know and trust. For this reason among others, nepotism is common. It is also favored that face-to-face meetings are held when possible as they consider over-the-phone business to be impersonal.

Filipino business culture is also hierarchical, this is one of the similarities between the Philippines and Thailand. The hierarchy culture reflects in the action of approving all final decisions by the person of highest status but group consensus is still necessary for all decisions before it reaches this person.

Work culture is also dominated by family-run businesses where key family members get to decide how the company operates. Filipinos will often be eager to know you and may ask many questions about your family and personal life. They may expect you to grant privileges for them based on your friendship and vice versa, which usually entail favors for their family.

Consideration

There are several things to consider regarding Filipino and the way they do business. The hierarchy is vertical and the most senior person in a company approves all final decisions. Verbal agreements are adhered to based on trust. If you break them, you will jeopardize your business relationships.

Filipinos often communicate indirectly to prevent a loss of face and avoiding hiya (shame or embarrassment). To avoid directly saying ‘no’, a Filipino may respond with a statement to the effect of ‘bahala na’, which generally means that it is up to God’s will or fate. Filipinos tend to use polite forms of speech when speaking to those who are older or of higher status. At the end of phrases, sentences, or questions, they will say ‘po’ to demonstrate this respect for hierarchy.

The Philippines is a collectivist society and individuals tend to understand themselves as a part of a group. For Filipinos, the interests of the collective often override the interests of the individual.

Finally, based on the Corruption Perception Index (2017), the Philippines ranks 111th out of 180 countries, receiving a score of 34 (on a scale from 0 to 100). This perception suggests that the country’s public sector is somewhat corrupt and it can impact business climate that could change at any time due to the corrupt practices.

Break the Barriers with BRIGHT Indonesia 

ASEAN has a very diverse ethnic group, socio-economic background, religion, and professional experiences. From a wider perspective, an important step towards becoming a competent player in the international work environment is having a good understanding about one’s own culture. 

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