International Business Communication

Customs and
Etiquette in the
U.S.A
Jordan French

May Thaddar, Lina Xuan, Sebastian Hisch, Dominic Andrey

5. November 2010
Table of Contents
Introduction...........................................................................................................................................3
Individualism.........................................................................................................................................3
Low context culture...............................................................................................................................3
Egalitarianism........................................................................................................................................3
Working practices in the United States.................................................................................................4
Structure and hierarchy in American companies...................................................................................4
Business Etiquette.................................................................................................................................4
Time is Money.......................................................................................................................................5
Business meetings.................................................................................................................................5
Business dress code...............................................................................................................................5
Introductions and handshaking.............................................................................................................5
Team working........................................................................................................................................6
Political correctness...............................................................................................................................6
Listening skill.........................................................................................................................................6
E-Mail etiquette.....................................................................................................................................7
Smoking.................................................................................................................................................7
American business structure.................................................................................................................7

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Introduction

Knowledge of the business culture in a foreign country is essential when companies engage in
international business to reduce lost time and money. As Steven Covey once said: “Seek to first
understand, then seek to be understood.”

All the different cultures around the globe are very complex entities. This is also the fact in America
which has cultural backgrounds from many countries. Unlike Japan and Switzerland which are
homogeneous cultures, the United Sates is heterogeneous culture. Therefore the American business
culture is unique among all the nations.

This report will help people who want to conduct business in the USA to get a better understanding
about the existing business culture.

Individualism

Individualism plays a significant role in America. American culture emphasizes individual initiative
and personal achievement. Independence and self-reliance are highly valued and this also extends to
the workplace where business is frequently carried out autonomously. Consequently, one’s position
in US society is determined by one’s own achievements as oppose to status or age.

Low context culture

In a low context culture information is expressed explicitly through words. Americans do not hesitate
to say “no” or to criticize others in public. Foreign visitors might consider this reactions and culture
as rude and embarrassing to other business people who are not used to such open communication.
However, it is important to remember that in a business situation it is not meant personally and
should not be understood as rude or embarrassing.

Equality

Equality is a high value in America's business culture. Americans believe in having equal rights, equal
social obligations and equal opportunities. As a result, there is a general lack of respect in US to
people of greater wealth, age, higher social status or authority. Americans call each other by their
first names almost straight away. Egalitarianism also contributes to the system whereby hard work
deserves personal success and financial success. This can often cause separation in the workplace
and office hierarchy between managers and their subordinates.

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Working Practices

An essential part of business etiquette is punctuality and therefore, scheduled appointments or

meetings must be attended on time. Being late is as a sign of disrespect for Americans. Therefore, in
situations where you know you will be late, a call should be made to inform your American
colleagues of your delay.

Deadlines are strict. Americans greatly emphasize on getting the best results in the quickest time.
The concept “time is money” is taken extremely serious in the US.

Generally, the working week in US consists of Monday to Friday, 9-5pm. however working long hours
and overtime is common practice due to the strong American work ethics.

Structure and hierarchy in American companies

America is famous for its individualism and diversity so the organization and structure of companies
differs according to the industry, region or company history. Office hierarchy within a company is
very important. It is recommended to learn the rank and titles of all members of the organization.

One person who has authority usually makes negotiations and final decisions. Team negotiations are
not common is US companies.

According to American business culture, the hierarchical chain of command often takes over from
personal relationships.

There are several types of business structures existing around the U.S., but they all have some
characteristics in common.

First, a company is absolutely independent from its employees and it is an entity with its own rights.
Employees and members will perform in the organization for a certain period of time and might
even leave the company for another challenge. Life-long employment barely exists in the U.S.
relationship.

Second, in America a CEO of an organization holds big influence on the company. At the level of
senior management the personality is more embedded in personality than in other countries, such
as Germany for example where the senior management is based on academics. Like in other
countries there is a Board of Directors who oversees the activities of an organization. But the CEO is
the person in charge who is responsible for falls on results on the day-to-day business.

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Third, the organizational structure tends to be vertical. Americans like to know what their
responsibilities are and to whom they report, so that they exactly know where they stand in an
organization.

Business Etiquette

When meeting the American business colleagues for the first time, it is polite to address them with a
title, such as “Dr”, “Ms”, “Mr”, or “Mrs”, and their last name. Commonly they will later on insist on
using first names.
Saying “please” and “thank you” to everyone for even the smallest kindness is necessary.
Americans will expect you to be as polite, since politeness is highly valued in US.
Physical contact such as hugging when we greet the American counterpart for the first time is not a
right thing to do since Americans respect their privacy and personal space. Don't be offended or
shocked if the American colleagues cannot accept a gift. Gift giving is often discouraged or limited by
many US companies and therefore most employees are unable to accept them.

Business meetings

Being on time, especially for a business meeting is very important as Americans are extremely
punctual. It is viewed as disrespectful to be late.

The meeting may give a relaxed impression, but they are taken serious. Meetings are held according
to the agendas and finished with a summary of what has been discussed. There will be a written
report about what has been decided and a list of the following steps to be taken and by whom.
Presentations have to be straight forward and to the point supported with statistics or data to
support your case.

Business dress code

Most large companies and organizations require a more formal dress than small organizations.
Additional some companies may supply customized uniforms for their employees.

In general, men wear dark business suits with a tie in combination with a white or blue long-sleeve
shirt. Women are more flexible, yet should choose an outfit which is formal and professional. A
potential business partner will also welcome you when you just wear a clean shirt and jeans but
there is nothing wrong with being overdressed at the first time you meet.

Introductions and handshaking

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Handshaking is a very important procedure in the western civilization and also in American business
culture. There are three basic rules to follow for a proper handshake. When giving or receiving a
handshake you have to stand up, shake for a couple of times and don’t grab the partners hand too
soft or too hard.

It is customary to greet the business partners with a firm handshake at the beginning as well as at
the end of a business meeting and especially when you have agreed on working together. During the
handshake and introduction eye contact should be maintained.

As names are very important in the American business culture, it is important during introductions
to listen carefully to the pronunciation of a person's name. Most business partner introduce
themselves with the first name, and this is usually the way to address each other. When talking to a
higher ranked person, or while addressing a person you have never met before, you should always
add Mr. or Ms. in front of their last name. Once you are getting to know your business partner
better, they might like you to call their nickname.

Teamwork

Each member in a team has to fully commit to the common goals and work with dedication to
ensure that the goals are achieved. It is important in America that the members perform with
enthusiasm and show belief in the achievement of the objectives.

Once the team has completed all the tasks involved in the project, the members will be separated
and new teams will be formed if necessary for new projects. To break up teams in the USA is less
dramatic than in group oriented cultures. Teams are regarded to exist only for a short time and are
not from long enduring.

Political correctness

"No religion", "no politics". This unwritten rule is carried out on many parties, social events and in
the world of USA business. No one can say where that "rule" has originated from and if it does make
sense or not but it should always be considered in doing successful business in American.

At the beginning of every new business relationship, avoid any topic related to politics, religion, race,
gender and so on.

Listening skill

To listen carefully is very important in intercultural communication such as in business meetings.

Information can be received through the speaker's message and through non-verbal elements such
as postures or facial expressions. Effective listening can strengthens organizational relationships.

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The American business culture is regarded as a so called “low context culture”. People rely more on
verbal communication and less on circumstances and cues to convey meaning. Companies and
people tend to focus on the results from decisions they face such as, “Will this be good for our
company or for my career”?

Electronic Communication

E-mail makes communication easy and the delivering of messages is at high-speed. American
business people nowadays receive a constantly increasing amount of e-mails every single day. Most
business people have a difficult time handling the number of e-mails in their mailbox due to over-
communication. Furthermore people are confronted with answering or forwarding all mails.

Writing a "good" e-mail becomes more and more important in the business environment worldwide.
E-mails are fast and convenient to send but still bare some disadvantages.

For an efficient use of this communication tool it is important to avoid grammatical errors and
overload of information. An e-mail has to be short, simple and clear to understand. No one is willing
to read a novel like text.

It is challenging to eliminate all errors in every single mail, but an automatic spell-check and the re-
reading of an e-mail before sending can reduce many mistakes. Business people in the U.S. are
generally keen and respectful towards each other, nobody will start to criticize others mails for no
reason. However, the quality of a message will have a significant impact on the way one perceives
your business.

Smoking

One third of US employers have already banned smoking from the working place. Smoking in the US
won’t be treated as a private manner. Employers are fearing absence of their employees and costly
health insurances, therefore they are trying to discourage from smoking through prevention
programs.

Conclusion

We cannot expect all companies to be the same as business culture differs according to
companies, levels, business structure, regions and industries. In detail research about a specific
business or an organization is necessary in order to get a correct idea of the existing business
culture. Getting these information will ensure an easy and mistake free introduction into the new
business surrounding.

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