What is it like to live and operate a business in the Philippines?

A foreigner will be delighted to find that Filipinos are very warm and hospitable people who will go out of their way, walk an extra mile to be friendly and helpful.

Filipinos are very personal. "Personal relationship" counts a lot and is a major consideration in many business decisions. A supplier, business partner, customer, etc. deals with Mr. Juan De La Cruz, the owner not with ABC Corporation , which is owned by Mr. Juan De La Cruz. One's "closeness" to a businessman almost assures him of a good amount of concessions or simply a good deal.

Having a personal conflict, (even if not in anyway connected with business) will be taken by a Filipino heavily and will definitely affect future business dealings.

This extreme personal complex results to several problems. As will be explained later, Filipinos have difficulties following rules and regulations, standard operating procedures or make business decisions on meritocracy. Thus, a subordinate's personal relation with his superior may result to the latter covering up the mistake or irregularities of the former.

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Close Family Ties and Extended Family Ties

The Filipinos have a great respect and love for a family, which is the basic unit of society. The Filipino family comprises of grandparents, the parents, the children, aunts, uncles, cousins and other relatives. The Filipino extended families include not only blood relatives, but also those relationships created by marriage. Being a godfather in baptism or wedding ("compadres") assumes familial responsibilities for the child. Being a "compadre" or a godfather is one way of integrating oneself to a Filipino family.

Family members are responsible for one another. Filipinos do not send their old folks to homes for the aged. Filipino families take care of their elders even if they have debilitating illness and till death. In contrast with western culture (which draws strength from being independent), Filipinos find a strong sense of security by being dependent in a closely-knit family structure. Affluent family members, those holding powerful positions in government or those successful in business are expected to take care of their less fortunate family members.

Nepotism may be practiced in a business organization or in running the affairs of government to the detriment of the greater good of many or the community. A family member may be exempted from following hours of work and standard procedures in a company or given "special privileges" or "favors". Preference is given to relatives and friends in hiring even if they are not qualified for the position. These are some of the negative impacts of these values in business.

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Respect for the Elders

This is one enduring trait of the Filipinos. The father is the head of the family and makes the final decision in case of conflicting positions among members. The parents exercise power over their children and their decisions are almost respected in all cases. Elders believe that they can demand obedience among the young members of the family- right or wrong.

Again, in family-owned businesses, the decision of the eldest member of the family (right or wrong) must be respected.

In the Filipino dialect, one answers "YES" by saying "OO". If one is talking to an elder or an older person, one has to say '"OPO" as a sign of respect. " PO " is used in the vernacular in deference to a person of old age or higher position.

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Lack of Discipline

The Filipinos have difficulty complying strictly with standard procedures that are designed to preserve order and discipline in an organization. Thus, they oftentimes have little respect to traffic regulations and will violate any rules to get to their destination quickly. They resort to the use of "short-cuts" and oftentimes feel proud that they obtain advantage bypassing the rules. When the attention of a Filipino is called for violating a rule, he will often find a convenient excuse and will not readily accept guilt. In the vernacular, this is called " Palusot ".

" Filipino Time " means arriving late in the appointment by as much as 15 minutes, 30 minutes or even an hour. In western culture, arriving late is looked upon with disfavor and considered an act of disrespect to the person who waited. This is not so in the Philippines . The Filipinos take a much more relaxed view of punctuality and there is less or no sanction at all for not accomplishing a job on time or being late for an appointment. When working together in business, this becomes a significant cause of friction between Filipinos and foreigners. However, new generation of professional Filipinos is slowly discarding this bad habit.

The cogon is a type of ordinary grass, which when dry burns very quickly. " Ningas-cogon " means cogon grass burning and losing fire or heat very fast. Like the cogon grass, Filipinos start out a project or endeavor passionately, with full enthusiasm and interest, only to die down, leaving the goals or objectives unaccomplished. This negative trait must be watched out and corrected.

"Mañana habit" is the Filipino's tendency to procrastinate. He postpones or delays accomplishing a task today for the simple reason that tomorrow is to come. He has a penchant for doing things at the last minute. Some have the tendency to be indolent, a trait oftentimes attributable to the warm tropical climate and the abundance of natural resources.

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Fatalism and Superstition

Many Filipinos have fatalistic attitudes. " Bahala Na, Bahala na ang Diyos " attitude means, "Whatever will be, will be; Everything is up to God". He resigns to whatever happens because he believes that is the fate or destiny. He conveniently blames fate , that what has been happening is "God's will". This becomes a convenient excuse for every failure or misfortune.

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Selfish Attitude

Personal ambition, personal vested interest and quest for power and status, drive many Filipinos to act without regard to the common good. Thus, they oftentimes resort to unfounded charges and malicious criticisms to bring down others. This is known as the " crab mentality ". The local crab, when put in a container or basket, will try to grab down another crab wanting to get out. The end result is that nobody gets out of the hole.

Looking into one's own interest that of his family or group to the detriment of an organization to which they belong is known as " kanya-kanya " attitude. This results to factionalism in an organization. In many cases, it is difficult to unite warring or conflicting factions in an organization and direct their efforts to a common direction. Disagreements over issues are taken as "personal" and the other party espousing a contrary position is considered an "enemy". Con-sensus building among corporate directors may be difficult to obtain unless there is a majority bloc.

It is not uncommon for a Filipino to generate a feeling of envy towards a peer that has gained recognition for exemplary performance or a sterling accomplishment. This is commonly known as "inggit ".

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Apathy

Many Filipinos are passive in character. If they witness a wrong doing, corruption, irregularities or even a serious violation of human rights, their tendency is to close their eyes and ignore them. Thus, they tend to tolerate and accept inept service, inefficiency and irregularity. They only move when a close member of the family is involved or affected by the problem.

Thus, if an employee reports a violation of company regulations to his superior, he is castigated by his peers and branded as "walang-pakisama", meaning (non-cooperation).

In some cases, a Filipino will choose to bear oppressive or exploitative conditions by resigning to his fate.

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Show-off

When confronted with a serious problem, a Filipino tends to take the same lightly. There is lack of depth in his analysis of the problem and he would prescribe a hasty solution or accept a superficial reason or cause. Rather than attending to the substance, he would be more concern on the perception of the organization, society or the public. He pretends to find a solution and wants to impress that he is on "top of the situation". This attitude is called " pakitang-tao ".

When a public issue is sensationalized or a scandal is exposed, it is often that Congress or even the Executive branch will conduct several and simultaneous fact-finding investigations. Special task forces or committees are organized purportedly to seek the truth and solve the problem. Political leaders make public statements, which contain empty rhetoric to impress the public that the government is serious in addressing the problem. In the end, no real solution is done and later the issue will just fizzle out.

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Propensity to gambling or "get-quick" rich mentality

Some Filipinos have gambling as a vice. Regardless of income strata, jueteng, cock-fighting, lotto, casino, etc. are favorites. The poor, who wants to get rich quickly resorts to gambling as an alternative.

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Self-Esteem

An individual (Filipino or foreigner) is expected to be extremely sensitive to the feelings of others. One is expected to act or talk in such a manner not to hurt another person's self esteem ("amor propio") . A Filipino will find ways (indirectly or at length) to avoid causing others shame or embarrassment ("hiya") . Oftentimes, a Filipino cannot be frank or straightforward in his conversation, in what he really feels, etc. because he does not like to offend another person. This applies, even if by being frank means being truthful.

A Filipino will try to be circuitous or beat around the bush to avoid shaming others, as he is very sensitive to being embarrassed himself, particularly in public. Much of interpersonal conflicts can be traced when a Filipino's ego or "amor propio" is pricked. An outright apology may not work. Once the conflict exists, a considerable length of time has to pass before harmonious working relations are restored. In working environs, it is common that two employees (whose working tables may be in the same room) will not be in talking terms for years just because of an insignificant issue but involving their "amor propio".

Westerners encounter difficulties in dealing with Filipinos because their frankness is considered as tactless. Westerners find it well and even enjoyable to disagree, while Filipinos may consider it a breach of etiquette. Filipinos are cautious to disagree or displease so as not to be insulting if he gives a candid view.

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Hard Working and Loyalty

A Filipino is capable of hard work when given the right opportunity, working environment, and compensation. He will work very hard if the desired results are "savings", which he can use to uplift the living standards of his family. He will persevere and take risks even working overseas to accomplish this objective. Thus, Filipino economic migrants and those who permanently reside in foreign lands are known to have accomplished great strides because of their hard work.

A Filipino is capable of strong and enduring friendship. He is not just a "fair weather" friend and one can expect mutual help under any kind of condition. A close friend is considered a member of the family, who will bear the same sufferings and share in the blessings (" pakikiramay "). Once friendship is established between a boss and a subordinate, said bond will be lasting and the Filipino will likewise be loyal to the company.

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Creative, Resourceful and Adaptable

Filipinos have the ability to adjust to different working conditions. They don't easily complain when put under pressure. They are very creative and resourceful when given the leeway or elbowroom. A Filipino willingly performs tasks not in their company job description. Thus, the concept of multitasking is popular in many small and medium sized enterprises.

They are also fast learners. Even without technical training, Filipinos would tinker or experiment with parts, e.g. electronic boards and be capable of repairing cellular phones and other high tech gadgets or appliances.

Even when short in resources, the Filipino has the capability to improvise. A Filipino engineer, for example, will try his best to make a machine or equipment functional in the absence of the original needed spare parts.

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Bonds that promote cooperation and close relations

In any Filipino organization it is equally important to maintain good relationship, as it is to accomplish a job. " Pakikisama " is a very important Filipino value. A manager is expected to reprimand an erring subordinate in such a manner not to insult him. He will seldom use harsh words and express criticisms with utmost tact. If a group decides to have some leisure or fun time after work and one is invited to join, he is expected to yield as part of his "pakikisama". A manager who gets along with his peers will certainly get the best cooperation from them.

In order to hurdle big tasks, Filipinos bind themselves together in a spirit of cooperation and neighborliness exemplified in the " bayanihan " system. A barangay captain (local village chieftain) may summon the help of community members to construct an infrastructure or conduct patrols to eliminate criminality.

The Filipino will always empathize with others as an expression of support in times of need or grief. One is expected to attend the funeral wake of a co-employee's close relative and make a donation according to the donor's stature. The same thing is expected of his peers when one is hit by a tragedy or calamity. This is part of "pakikisama" or " pakikiramay ".

One is expected to act justly and fairly in his dealings with his fellowmen. Acts of goodwill are to be reciprocated as part of the value of " pakikipagkapwa -tao ".

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Hospitality

The Filipino is extremely a hospitable individual. A guest or a foreigner will be welcome to his home even at an unholy hour of the day, with or without appointment. A persistent invitation to visit his home is extended to one genuinely wanted as a guest. Such an invitation manifests a desire to develop a more intimate or closer relation as a person or a business partner.

Town "fiestas" (feast day of a patron saint) are practiced. During these festivities, Filipinos invite and welcome people to their homes, even if they are not friends or acquaintance. Guests are treated with various forms of merriment and served with a variety of native foods.

Invitation to lunch or dinner in a restaurant or hotel is popular. Said occasion is considered an extension of business meetings. A person who extended an invitation to dine in a restaurant is expected to foot the bill.

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Religious and Superstitious

Filipinos, in general, are deeply religious. Their deep faith, makes them readily accept whatever happens as part of God's grandiose plan for their lives. Thus, good things that occur are part of God's blessings, while tragedies are considered as trials or tribulations, and inner strength must be drawn out of their faith in God. Prayers, masses and other rituals are part of a Filipino's life. Employers must be sensitive to expressions of religious beliefs, such as display of holy statues, asking for leave to attend prayer meetings, mass celebrations, etc.

Superstitious beliefs abound and survived despite the coming of the western civilization. These beliefs permeate in business practices and oftentimes affect the decision-making process. Thus, even the Chinese art and science of living in harmony with the environment or "Feng Shui" is practiced.

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Respect and Special Treatment for Women

Women are granted equal rights with men under Philippine society. Recent trends in legislation reinforce women's rights such as laws against domestic violence, sexual harassments, etc. Men are expected not to be rude to women. They must modulate their voice when talking to them. It is basic courtesy to help a woman open the door or carry a load. It is very un-Filipino to ask a woman to do heavy physical chores in a work environment. Seats must be offered to them for comfort.

In traditional courtship, men should show sign of respect to the woman by not being touchy. Pre-marital sex is looked with disfavor but this trait is slowly disappearing in urban areas. A man is expected to visit the woman in her house and be known to the parents as a sign of good or honest intentions.

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Sense of propriety

Sense of propriety or "delicadeza" is the Filipino's sensitivity to what is right or wrong or as being perceived by the public as right or wrong. An honest judge or official would not want to mingle or be seen together with party-litigants or parties with pending matters before them out of "delicadeza". A government bureau head may resign his position if a trusted staff is involved in a scandal or a family member was suspected or openly accused of involvement in anomalies related to his functions as an official. A Filipino, out of prudence, would not only be concerned about the truth, but in addition to be careful about public perception over his actuations.

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Debt of Gratitude

"Utang na loob" means debt of gratitude. A favor asked and given must be repaid. A Filipino who benefited from a favor is under obligation to repay the same according to his means. A debt of gratitude in the first generation will be remembered and may be paid by the second generation of siblings.

In some cases, the act of repaying a debt of gratitude may result to performing an act, which is irregular or unlawful. A Filipino may accede to a request of a friend to whom he has a debt of gratitude even if it is a corrupt act.

A Filipino is honored to be asked a favor but will avoid asking favors.

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Word of Honor

Word of honor in the vernacular means "palabra de honor". It is the Filipino virtue, which provides that commitments and contractual obligations must be respected, honored and complied with. A Filipino, who breaks his word is put to shame and branded as a person without "palabra de honor". This cherished virtue is oftentimes forgotten. Several businessmen would not be faithful to contracts and would often resort to litigious proceedings in court. Foreigners must select Filipino partners that practice this time-honored virtue.

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Sense of Humor

The Filipino's resilience in confronting the ups and downs of life is supported by his sense of humor. Laughter is resorted to as a coping mechanism to embarrassing, emotionally charged situation or while in the midst of serious problems. Laughing, joking and giggling are acceptable behaviors for a Filipino in stressful situations. Filipinos are sometimes playful and cynical.They make fun or jokes about personalities (friends, foes or even politicians). With the advent of modern technology,this behavior is now expressed through text messages.

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Graft and Corruption

To facilitate or hasten the processing of transactions with government agencies, "lagay" or "padulas" is sometimes given or asked for. In the vernacular, bribing means "lagay " or "padulas ". The same thing is asked of if an advantage or favor wants to be obtained. Private enterprises are not immune from these practices. Thus, bribing or giving grease money to the purchasing department and or members of the bid committee is not uncommon. A businessman must substantially comply with the lawful requirements and procedures to avoid or minimize graft.

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