The Challenges Brought by Cultural Differences

The Challenges Brought by Cultural Differences

Hosted by KMC Mag Group, The Luna Dinner was an exclusive dinner for leaders of international firms based in the Philippines. The evening offered a relaxed and intimate environment where our guests were able to meet and network with other senior peers as well as partake in a topical discussion.

This year alone, 43 different multinational will be setting up their regional head quarters in the Philippines. Studies have found that up to 40% of all expatriate managers end their assignments early due to their inability to adjust to the foreign environment. Differences in expectations, language, and even the concept of personal space can be stress factors because they may seem neither understandable nor ethically “correct”.

Corporate culture is not just a set of beliefs; it is comprised of a set of values, patterns of behavior, artifacts like the physical layout of an organization, and accounts and narratives that reinforce those values. As companies have expanded across the globe, the idea of culture has become more complex as core competence is at the crux of today’s sustainable competitive advantage.

• How do international companies ensure that their cultures remain intact while being flexible enough to cater local talent?
• What concrete actions can expat leaders take to cultivate the organizational culture abroad?
• How to successfully promote and develop leadership within local teams
• Wider issues on the changing landscape of the Philippines and Southeast Asia
• How excited should multinationals really be about the Philippines?

The topic was introduced by Aliza Racelis, Associate Professor of Business Administration at University of the Philippines, who kicked things off by introducing the topic of discussion before opening it out to the table.