Diversity International Business Diversity Training:

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Diversity training: The Middle East

Because of the wealth and oil concentrated in the region, the Middle East is becoming one of the most critical areas of the world involved in modern commerce. However, despite the fact that the globe is becoming increasingly interconnected, notable divisions exist between the United States' and the Middle East's cultural assumptions that must be kept in mind when doing business.

According to the characterizations or 'indexes' of the theorist Geert Hofstede, the Middle East rates high on Hofstede's power discrepancies between superiors and subordinates. It also rates high on Hofstede's uncertainty avoidance indexes which indicates "a caste system that does not allow significant upward mobility of its citizens….[the Middle East is] highly rule-oriented with laws, rules, regulations, and controls in order to reduce the amount of uncertainty, while inequalities of power and wealth have been allowed to grow within the society" (Taylor 2007). Many of the Arab states are known as rentier states, in which the majority of the oil wealth is controlled by the state, and doled out to the citizens. In contrast, the United States emphasizes the need for upward mobility amongst its citizens, and, at least in theory, believes strongly in the value of change and growth.

Foreign negotiators must be cognizant of the ranks of the individuals whom they are addressing when doing business in the Middle East. Addressing someone of a lower rank first, for example, might be seen a sign of serious disrespect, while in the United States it might merely be regarded as a minor or even humorous faux paux. In the Middle East, there is a strong divide between managers and subordinates; also, age is important when exhibiting deference to superiors. Proper etiquette must be strictly observed: "Arabian culture utilizes the concept of face to solve conflicts and avoid embarrassing or discomforting others. In a business context, preventing loss of face is equally important' (Gorrill 2007).

For female executives, one of the foremost concerns is the manner in which women are viewed in the region, given the high masculinity index rating of the Middle East, according to Hofstede's ratings of cultural dimensions. The Middle East, even in areas with relatively secular governments, have a strong Islamic tradition with specific strictures upon what is considered the 'correct' behavior for women, and every woman from outside the culture must decide how much she wishes to accommodate those demands. Some Western businesswomen may agree to cover their heads out of modesty during business meetings in areas where Islam plays a significant role in governance; others may not.

The Middle East, in contrast to America, has a strong collectivist tendency as a society as "is manifested in a close long-term commitment to the member 'group', that being a family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount, and over-rides most other societal rules" (Taylor 2007). Social rules may override even legal requirements -- in many Arab nations, bribery is a relatively accepted practice to circumvent red tape. One of the difficulties of Americans and other Westerners doing business in the region is the fact that they must balance their own organization's ethics with the expectations of their hosts and business partners.