Background to Business in the Philippines

Background to Business in the Philippines

The Philippines represents a cultural puzzle. Situated in the heart of South East Asia but heavily influenced by such non-Asian forces as Spain (and Mexico), the United States and the Catholic Church.

These various factors have been brought together to form what is, truly, a unique Asian country.

The Philippines has a large population of around 102 million inhabitants, the majority of whom are of ethnic Malay stock but, unlike neighbouring countries such as Malaysia and Indonesia, the influence of Islam has been limited. Many western values have been assimilated through the auspices of the predominant Roman Catholic Church and, combined with the legacy of US colonial rule, produce an approach to business which is influenced by Asian values but not dominated by them.

Thus, issues such as loss of face and group orientation are still very influential, but exist alongside a fierce sense of personal pride and dignity such as can be found in many Central and South American countries. Society as a whole tends to be hierarchically structured as in most Asian countries but is accompanied by a far more informal approach to interpersonal dealings than would be found in countries such as Japan or Korea.

Truly, the Philippines is neither completely of the East nor of the West but a culture unto itself. Business visitors travelling to the country for the first time are advised to do as much cultural homework as possible.

The Philippines has become a major exporter of electrical and electronic equipment and is also, increasingly, a favoured destination for Business Process Outsourcing projects (due in no small part to the excellent levels of English to be found throughout the country.)

Author

This country-specific business culture profile was written by Keith Warburton who is the founder of the cultural awareness training consultancy Global Business Culture. 

Global Business culture is a leading training provider in the fields of cross-cultural communication and global virtual team working.  We provide training to global corporations in live classroom-based formats, through webinars and also through our cultural awareness digital learning hub, Global Business Compass.

This World Business Culture profile is designed as an introduction to business culture in Philippines only and a more detailed understanding needs a more in-depth exploration which we can provide through our training and consultancy services.