How to successfully build cultural awareness

In today’s interconnected world, appreciating and understanding cultural diversity is more crucial than ever. Whether navigating domestic or international markets, a grasp of various cultural norms and practices can set you apart from the competition. Discover how to enhance your cultural awareness and foster stronger, more respectful business relationships.

Entering any new market has its challenges. When that market is in another country with a very different culture, it can be harder still. What may be common practice in North America could be sensitive or off-putting to buyers abroad.

So, how do you ensure that you start out—and stay—on the right foot when doing business outside of Canada? In this blog, we discuss how to build and nurture greater cultural awareness so that you and your company have greater success in intercultural business.

What is culture?

On the surface, culture can be perceived as the way people do things, such as their behaviours and language. However, it can go deeper into the way people think, how people define what is right and wrong and what they consider important in their lives.

Culture impacts every aspect of life and interaction, including business. To be ready to do business in another market, one must first understand the concept of culture and how it affects people’s daily lives.

What is cultural awareness?

Cultural awareness is the understanding and recognition of the differences and similarities in the cultural practices, values, beliefs, and social norms of different groups.

Awareness and consideration for cultural differences help to foster respectful interactions and effective communication. Key aspects of cultural awareness include:

Recognizing that there are many cultures, each with unique traditions, languages, and perspectives.
Being mindful of how cultural differences might affect interactions and being sensitive to these differences.
Reducing stereotypes and avoiding generalizations and assumptions about individuals based on their cultural background.
Adapting communication styles to be inclusive and considerate of cultural variations.
Valuing and appreciating cultural diversity and showing empathy towards people from different backgrounds.

Cultural mistakes and misinterpretations are inevitable without an understanding of how culture affects people’s behaviour, and they can potentially negatively affect professional interactions and even business deals.

Why develop cultural awareness in business

In today’s increasingly globalized business world, understanding different cultures and how to interact with them is essential for success. This is why businesses must prioritize intercultural business and cultural awareness.

Being culturally aware allows you to communicate with a person of another culture in a way that builds more robust and more productive relationships. Cultural awareness also helps to:

Improve customer satisfaction by better serving international customers, increasing customer satisfaction and loyalty.
Increase market reach by providing the knowledge to allow organizations to tailor their products, services, and marketing strategies to fit various cultural contexts, potentially expanding their market reach and increasing sales.
Boost employee morale and retention by supporting a global workforce and building a more inclusive and respectful workplace.
Mitigates risks by avoiding faux pas and legal issues that could arise from cultural misunderstandings.
Promotes innovation and global competitiveness by exposing the workforce to diverse perspectives that drive creativity and innovation.

Cultural awareness examples

Cultural awareness encompasses a range of aspects that are crucial for effective cross-cultural interactions. By navigating these aspects thoughtfully, individuals and businesses can enhance their interactions, avoid misunderstandings, and build stronger, more inclusive connections. When building cultural awareness, here are examples of social norms to consider:

Verbal communications: Some cultures prefer direct communication, while others use indirect methods. There can also be a difference in how humour is used and how people greet one another and say goodbyes.
Nonverbal cues: Gestures, eye contact, and personal space vary significantly across cultures. For example, maintaining eye contact is seen as a sign of confidence in some cultures but can be perceived as rude in others.
Meeting protocols: Different cultures have varied approaches to meetings and negotiations. For instance, in many Asian cultures, building a personal relationship before discussing business is essential.
Decision-making: Some cultures prefer a quick or authoritative decision-making process, while others take a more collaborative approach.
Hierarchy vs. equality: Some cultures highly respect hierarchy and authority, while others emphasize egalitarianism.
Gift-giving: In some cultures, gifts are expected, while in others, they may be considered bribery.
Work-life balance: In some cultures, long working hours are the norm, while others prioritize time off and family.
Respect for local holidays and events: Understanding and respecting national and religious holidays, such as Ramadan in Muslim countries or Lunar New Year in China, is crucial for maintaining good relationships.
Formal vs. casual attire: Business attire might be very formal in some cultures, while casual dress is more accepted in others.
Cultural symbols or practices: Understanding culturally significant symbols, clothing, diets, or religious practices can reduce the risk of offence.

It is also essential to recognize the significance of language in intercultural business. Communicating effectively in different languages can help build stronger relationships with clients and partners from different cultural backgrounds. This can also help to reduce the risk of misunderstandings or miscommunications that can lead to lost opportunities or damage to business relationships.

Building a culturally aware team

Creating a culturally aware team involves intentional efforts to promote understanding, respect, and inclusivity among team members from diverse backgrounds.

From a leadership perspective, the executive team should demonstrate a commitment to cultural awareness by actively participating in training and setting an example in their interactions. Making cultural awareness a company’s core value also emphasizes its importance in every aspect of operations.

Develop recruiting strategies that attract a diverse pool of candidates. Having a diverse team with people from different backgrounds, cultures, and experiences can help your business better understand different customer needs and wants. It can also help create a more inclusive work environment, which can lead to improved employee engagement and satisfaction, leading to better performance.

When hiring, ensure job descriptions are inclusive and avoid biased language. Consider using diverse hiring panels to mitigate unconscious bias in the recruitment process and promote fair evaluations.

Implement regular training sessions for your employees on cultural awareness, unconscious bias, and inclusive practices. This can help them develop a greater understanding of different cultures and provide strategies for effective communication and collaboration with people from different cultural backgrounds.

Intercultural training that focuses on communication styles, cultural norms, and conflict resolution across cultures can help reduce the risk of misunderstandings, cultural clashes, lost opportunities, and damage to business relationships.

How to develop cultural awareness

Developing cultural awareness is a continuous learning and growth process involving understanding, appreciating, and respecting cultural differences and similarities. Here are a few steps to help you cultivate cultural awareness in your organization:

1. Do your research

Most exporters research new markets as a matter of due diligence. That often tends to focus on the commercial and policy environment. But it’s a good idea to see what you can learn about the culture you’ll also be dealing with.

Key questions to ask before going to another culture:

What are the social norms and business protocols?
What are the definite dos and don’ts?
What are the key differences and similarities between this culture and ours?
What stereotypes does this culture have about our culture?
What stereotypes do we have about their culture?
What events are currently impacting the culture?

Websites like the Cultural Intelligence Center or the Intercultural Development Research Institute, as well as databases and reports from organizations such as the World Bank, UNESCO, or the CIA World Factbook, often have up-to-date cultural and socio-economic data.

2. Build cross-cultural relationships and skills

Understanding your cultural background, values, and biases is an excellent first step to build your cultural awareness. Be aware of stereotypes that you may have about your culture and preconceived notions about other cultures.

Once you know more about yourself, develop friendships and professional relationships with individuals from diverse cultural backgrounds. Engage in open and respectful dialogue, attend workshops or training sessions focused on cultural competence, learn a new language, and participate in cultural festivals, exhibitions, performances and organizations.

3. Find a local representative or a cultural expert

Beyond basic research, there may be times when you want to have a cultural expert or local agent in a particular country market to help you build your presence and navigate the subtler aspects of doing business. Ideally, this should be someone who understands the language, the culture, how government works, how business deals are done, and how best to promote your product to buyers in their country.

While the Trade Commissioner Service and Global Affairs Canada may be able to put you in touch with potential agents, they’re not able to endorse any specific representative, so finding the right person will require some screening and due diligence on your part to ensure their compliance with ethics, bribery and corruption practices.

Meet with a potential agent in person. Confirm that they’re reliable, knowledgeable and a good fit for your company culture. BDC has a great list of questions when choosing a foreign agent.

4. Hire a good interpreter

Communication is critical to business deals. If you don’t speak the same language as your buyer, you’ll need someone to interpret for you. Although your buyer will probably have their own interpreter, we highly recommend hiring your own to avoid any conflict of interest.

An interpreter can be a trusted ally. In addition to faithfully rendering your communications with your buyer, your interpreter can also keep an ear out for other conversations in the room that could impact your negotiations. Contact the Canadian embassy in your target country for help finding a local interpreter.

There are also many expatriate Canadians abroad who understand both Canadian culture and the culture of the country where you’re doing business, which can be enormously helpful in building bridges. Be sure to hire someone who is professionally qualified as an interpreter, as the role involves specialized skills and expertise, and a lot can depend on the precision and quality of their work.

Resources

Many resources contain helpful information on other countries’ businesses and broader societal cultures. Key resources include:

Embassy websites: Many countries’ Canadian embassies have information on their websites about their nations’ relationship with Canada, their culture, business etiquette, and more. While these won’t give you a comprehensive perspective, they will get you in the right direction.

Global Affairs Canada’s Centre for Intercultural Learning: The Centre offers courses and resources to help you better understand working and communicating with other cultures. It also offers country insights with information about interacting with citizens of various countries.

CCC: CCC directors and staff have relationships with foreign government buyers, Canadian embassy staff, trade commissioners, etc. These directors can offer their observations and perspectives on the target country’s cultural norms. Contact us today.

Looking to expand into foreign markets? We can help.

Intercultural business is essential to business in today’s global economy. As a Canadian company, we must recognize the diversity of cultures within our country and abroad and develop a deeper understanding of different cultural norms and practices.

But remember, despite all the differences between your company and buyers in another country, you’re still working with people. Making personal connections, earning trust and respect—all those count hugely no matter where you’re doing a deal.

Looking for more information about how CCC can help you export your products and services to foreign governments around the world?

This post was last updated on October 3, 2024.