Doing Business in the Philippines

Business Culture

Business matters are always best dealt with face-to-face in a warm and pleasant atmosphere. While many Western businesspeople think that time is gold and want to get to the point immediately, Filipinos like to be indirect, talk about mutual friends and family, exchange pleasantries, and share a joke or two. Only after establishing a cordial atmosphere will people negotiate. No matter what the final result, the discussions should always end cheerfully. To a Filipino, cultivating a friend, establishing a valuable contact, and developing personal rapport are what make business wheels turn. The Filipino way of doing business is a confluence of East and West.

Appointments

In setting up appointments, especially in government offices, it is most advantageous if a "go-between," someone with previous connections to that office, can make an introduction on behalf of the requesting party. Mid-morning or afternoon meetings are preferred, and a follow-up call to confirm the meeting a day before is recommended. Allow at least fifteen minutes of leeway before your Filipino contact arrives for an appointment. For VIPs, waiting time could be longer.

Meetings

After the requisite small talk following the introductions, a typical business meeting focuses mainly on the agenda at hand. Specific conclusions are not necessarily reached during the initial meeting, but Filipinos are usually amenable to follow-up discussions or negotiations. A formal agreement or contract may take longer to finalize than Westerners are used to.

Avoiding "Loss of Face"

As in most Asian cultures, Filipinos would rather avoid "loss of face" or public humiliation. Filipino contacts therefore prefer an atmosphere of calm and restraint, avoid direct confrontation, and would typically offer a polite reply coupled with a smile rather than outright negative feedback on the other party's ideas. A "yes" may mean many things, so be aware of the subtleties of a particular conversation.

Etiquette and Titles

As a show of respect, Filipinos usually address people by their titles (e.g., Architect Cruz, Attorney Jose, Dr. Romero), although the professional may request a more informal approach after the formal introduction. In dealing with high-ranking government and military officials, it is best to address them by their formal titles.

Handing out business cards (preferably bearing your position or title) is standard procedure, although cards are exchanged rather informally compared with other cultures. If a Filipino contact gives you a personal number aside from what is indicated on the business card, it is usually an invitation to call and a good sign for establishing cordial relations.

Bureaucracy

Foreign businesspeople should avoid, as much as possible, personally grappling with the bureaucracy. Customs, for instance, requires many signatures to clear air cargo. The Filipino approach is to use staff capable of moving through the bureaucracy, so delegate such chores to someone able to negotiate through a sea of desks.

Office Etiquette

When reprimanding employees, take them aside and do it privately. Be as gentle as possible and always end the meeting with some show of personal concern, so they feel they are still part of the team and that the criticism is not personal. Again, this is consistent with avoiding "loss of face."

Language

English is the official business language. Most correspondence, contracts, and other documents are written in English. Among Filipinos, however, it is common to hear "Taglish" (a combination of Tagalog and English) during informal conversations. Body language and hand gestures are also integral to how Filipinos express themselves. Texting has become a choice medium.

Business Meals and Social Events

Business lunches and dinners are usually arranged personally over the phone and confirmed by the secretary. The person who invites customarily pays. A guest does not order the most expensive items on the menu unless the host insists. Business is not usually discussed until after a convivial atmosphere has been established, usually after the soup or appetizer.

Filipinos tend to be relaxed in replying to RSVPs. Telephone follow-ups are best, about three days before. At formal occasions, seating is arranged and there is usually a head table for VIPs.

Gifts

Christmas is a time to show appreciation to people with whom you have regular dealings, such as the security guard, doorman, and messenger, as well as good customers and clients, through token gifts such as baskets of goodies, company giveaways, or calendars and office items with your company logo.

Office Hours and Dress

Office hours for business firms and the Philippine Government are normally 8:00 a.m. to 5:00 p.m., with a one-hour lunch break. Most banks are open from 9:00 a.m. to 3:00 p.m. It is best to attempt business objectives in mid-morning or late afternoon. Offices are generally closed on Saturdays and Sundays.

Summer-weight clothing is suitable for the Philippines. A two-piece suit or the native barong tagalog is acceptable business attire. Light suits and dresses are appropriate for women.