Russian Business Etiquette and Protocol

The People

Russia has had a long history of totalitarianism, which has resulted in a rather fatalistic approach to living. The desire to work individually under personal initiative was suppressed by the Czarist and Communist states. With the advent of perestroika (restructuring), the Soviet/Communist value system has been scrapped, but the pace of reform has been slow and many are finding it very difficult to adapt to the Western values of individualism and profit maximization. Older Russians are generally quite pessimistic and don't have much faith in a better life in the future. Younger urban Russians have adopted a more Western outlook on life.

Relationships & Communication

• Even though it may sound a bit stiff it is commonplace when doing business in Russia to introduce yourself using only your surname. Before meeting your Russian counterpart ensure you find out if there are any titles they use as these are extremely important and should be used. If you are visiting Russia it is appropriate to refer to your counterpart by either "gaspodin" (a courtesy title similar to "Mr.") or "gaspazhah" (similar to "Mrs." or "Miss") plus his or her surname. On the whole Russians have three names. The first name is the given name while the last name is the father's family name. The middle name is a version of the father's first name, known as a patronymic; for a man, it ends with the suffixes "vich" or "ovich" meaning 'son of.' For a woman, the patronymic is also the father's first name but with suffixes "a" or "ova" added, which means 'daughter of.'

• Russians are transactional and do not need to establish long-standing personal relationships before they do business with people.
• It is still a good idea to develop a network of people who you know and trust. The Russian word "svyasi" means connections and refers to having friends in high places, which is often required to cut through red tape.
• Patience is essential.
• It is best to err on the side of formality when you first make contact.
• Sincerity is crucial as it is required to build trust, and trust is needed to build a relationship.
• Most Russians do not trust people who are 'all business'.
• An indication that you have successfully developed a personal relationship is being asked for a favor by that person.

Business Meeting Etiquette

• Appointments are necessary and should be made as far in advance as possible.
• It often takes roughly 6 weeks to arrange a meeting with a government official.
• Confirm the meeting when you arrive in the country and again a day or two in advance.
• The first week of May has several public holidays so it is best avoided.
• You should arrive punctually for meetings. Russians appreciate punctuality. Business meetings generally begin on time.
• Typical Russian schedules are constantly changing and everything takes longer than expected, so be prepared to be kept waiting.
• Meetings can be cancelled on short notice.
• The first meeting is often a vehicle to determine if you and the company you represent are credible and worthy of consideration for future business dealings.
• Representatives of the Russian company or government body are usually seated on one side of a table at meetings with guests on the other side.
• Initial greetings may come across as cool. Do not expect friendly smiles.
• Use the time effectively to demonstrate what differentiates your company from the competition.
• Expect a long period of socializing and getting-to-know-you conversation before business is discussed. Have all printed material available in both English and Russian.
• Russians expect long and detailed presentations that include a history of the subject and a review of existing precedents.
• Meetings are frequently interrupted. It is common for several side conversations that have nothing to do with the topic of the meeting to be carried on during the meeting.
• At the end of the meeting, expect to sign a 'protokol', which is a summary of what was discussed.

Business Negotiating

• Meetings and negotiations are slow. Russians do not like being rushed.
• It is a good idea to include technical experts on your negotiating team.
• Pitches or presentations should be simple and straightforward. Generally Russians are not impressed by foreigners doing business in Russia who use special visuals, flashy PowerPoint presentations and the like. These do not sway decisions. The most critical element is demonstrating your knowledge, professionalism and expertise.
• Russians usually negotiate technical issues very competently, directly and clearly but, being newcomers to capitalism, often do not fully understand Western business practices and objectives. You may have to explain the reasoning behind some of your demands.
• Hierarchy is important to Russians. They respect age, rank and position. The most senior person reaches decisions.
• Russian executives prefer to meet with people of similar rank and position.
• The highest-ranking person will sit opposite the most important foreign businessman. The others will be more casually arranged, but generally you will not be addressed directly by someone who outranks you.
• Russians see negotiations as win-lose. They do not believe in win-win scenarios.
• Under Communism there were no incentives for bureaucrats to perform well or to even be pleasant toward clients; this meant that the usual answer to any question was "No." This practice is still found in Russian society today, but "No" is usually not the final word on an issue. One has to bargain and be persistent to get what he or she wants.
• Have written materials available in both English and Russian.
• Russians view compromise as weakness. They will continue negotiating until you offer concessions.
• Russians find it difficult to admit mistakes, especially publicly. They also find it difficult to risk offending someone by making requests or assertions.
• Russians may lose their temper, walk out of the meeting, or threaten to terminate the relationship in an attempt to coerce you to change your position.
• Russians often use time as a tactic, especially if they know that you have a deadline. Be cautious about letting your business colleagues know that you are under time pressure or they will delay even more.
• As a foreigner, you should realize that "Final Offers" are often not actually the end of the negotiations, and that often times the outcome will be more beneficial and attractive if you can hold out.
• Nothing is final until the contract is signed. Even then, Russians will modify a contract to suit their purposes.
• Do not use high-pressure sales tactics as they will work against you.

Body Language

• Russians are a very demonstrative people, and public physical contact is common. Hugs, backslapping, kisses on the cheeks and other expansive gestures are common among friends or acquaintances and between members of the same sex.
• Russians stand close when talking.
• Putting your thumb through your index and middle fingers or making the "OK" sign are considered very rude gestures in Russia.
• Do not stand with your hands in your pockets. This is considered rude.
• A handshake is always appropriate (but not obligatory) when greeting or leaving, regardless of the relationship. Remove your gloves before shaking hands. Don't shake hands over a threshold (Russian folk belief holds that this action will lead to an argument).
• Shake hands firmly and maintain eye contact when doing so.

Dress Etiquette

• A "serious" businessperson is expected to look formal and conservative. Wearing very light or bright colors might make you appear lazy or unreliable to a Russian.
• Men should wear business suits and ties.
• Men often do not take off their jackets in negotiations.
• Women should wear subdued colored business suits with skirts that cover the knees.
• Shoes should be highly polished. 

Business Cards

• Business cards are handed out liberally in Russia and are always exchanged at business meetings. The ceremony of presenting and receiving business cards is important. Don't treat it lightly.
• Business cards are exchanged after the initial introductions without formal ritual.
• Most people at a meeting will line up their cards at the table in order to remember the names and seating arrangements. This is not required or ritualized, as in some Asian countries.
• Have one side of your business card translated into Russian using Cyrillic text.
• Include advanced university degrees on your business card.
• Your card should clearly state the year your company was founded and your title.
• Hand your business card so the Russian side is readable to the recipient.
•  If someone does not have a business card, note their pertinent information.

Dining and Entertainment

• When dining in a restaurant, arrive on time.
• Russians are great hosts and love entertaining guests in their homes. They will often put more food on the table than can be eaten to indicate there is an abundance of food (whether there is or not). Guests who leave food on their plates honor their host. It means they have eaten well.
• If you're invited for dinner, don't make other plans for later in the evening. You are expected to spend time socializing after the meal.
• An invitation to a Russian dacha (country home) is a great honor.
• Do not turn down offers of food or drink. Given Russian hospitality, this can be difficult, but to decline such offers is considered rude.
• At formal functions, guests do not usually start eating until the host has begun. At such functions, no one should leave until the guest of honor has left. If you are the guest of honor, do not stay too late.
• Know your limits when drinking alcohol in Russia. Drinking is often an all-or-nothing affair -- moderation is not understood.
• Toasts, which are sometimes lengthy and occasionally humorous, are common. The host starts and the guests reply. Do not drink until the first toast has been offered.
• After a toast, most Russians like to clink their glasses together. Do not do so if you are drinking something non-alcoholic.

Helpful Hints

• Russians are very proud of their culture and enjoy opportunities to talk about their music, art, literature and dance. Knowledge about art, music and some Russian history is appreciated.
• Learn Russian! Learning the language is of incalculable value, and is the best way to win friends for yourself, your company and your country. If that simply isn't possible, try to learn at least a few phrases in Russian. It doesn't have to be perfect; Russians greatly appreciate any attempt by foreigners to speak their language.
• Never refer to a Russian as "Comrade."
• Do not expect to find smoke-free areas anywhere. A standard joke among foreign businesspeople in Russia is that Russian buildings have two sections: "smoking" and "chain-smoking."
• To some extent, Moscow has already outgrown many of the rituals of Russian business—nights of vodka drinking, handshake deals, trips to the banya, days of getting-to-know-you time. But the farther out you go into the regional centers (which are growing in importance), the more of such hazing you can expect. This doesn't mean you can dress more casually; on the contrary, people have more to prove in the regions and will take extra care to display their fancy European trappings.

Sources and Additional Information:

http://www.kwintessential.co.uk/resources/global-etiquette/russia-country-profile.html

http://www.ediplomat.com/np/cultural_etiquette/ce_ru.htm

http://www.cyborlink.com/besite/russia.htm

http://www.foreigntranslations.com/languages/russian-translation/russian-business-etiquette/

http://www.kwintessential.co.uk/etiquette/doing-business-russia.html

Business Card Etiquette in India

It is a common perception that India is a major player on the international business market. It has multiple features allowing using it as a global outsourcing destination due to the pool of well-educated professionals and general fluency in English. But it is also a huge potential market for your products as well. Definitely, the close familiarity with the Indian business ethic can help you when doing business in India.

Business Cards Etiquette

•           Business cards are presented without a great deal of ceremony.
•       Business cards are exchanged after the initial handshake and greeting.
•       Take care before the meeting to have an adequate supply of business card that will be sufficient for all those present at the meeting.
•       If you have a university degree or any honor, put it on your business card.
•       Use the right hand to give and receive business cards. In most Islamic countries, you should present and receive cards with your right hand only because one never knows what you might have been doing with your left hand.
•       Business cards need not be translated into Hindi as English is widely spoken within the business community.
•      Always present your business card so the recipient may read the card as it is handed to them.

General Business Etiquette in India

India is a country composed of a multitude of religious cultures coexisting side by side. The dominant religion is Hinduism, but significant numbers of Muslims, Buddhists, Sikhs, Jains, Jews, and Christians also live in India. Onto this religious diversity is grafted a layer of British formality and good manners resulting across the country in a population that is as polite as it is distinctive. You can expect a great deal of discussion the pleasure most Indians take in bargaining and you have the markings for some long business meetings.

Relationships & Communication

•  Indians prefer to do business with those they know.
• Relationships are built upon mutual trust and respect.
• In general, Indians prefer to have long-standing personal relationships prior to doing business.
• It may be a good idea to go through a third party introduction. This gives you immediate credibility.

Business Meeting Etiquette

• ·         If you will be travelling to India from abroad, it is advisable to make appointments by letter, at least one month and preferably two months in advance.
• ·         It is a good idea to confirm your appointment as they do get cancelled at short notice.
• ·         The best time for a meeting is late morning or early afternoon. Reconfirm your meeting the week before and call again that morning, since it is common for meetings to be cancelled at the last minute.
• ·         Keep your schedule flexible so that it can be adjusted for last minute rescheduling of meetings.
• ·         You should arrive at meetings on time since Indians are impressed with punctuality.
• ·         A short and light, not firm, handshake is the customary start to a business meeting.
• ·         Although it is customary to shake a male colleague lightly by the hand at the start of the meeting, shaking hands with women is a very sensitive point in Indian culture. The important rule is that shaking a woman by the hand is at the woman's initiative. Only when an Indian woman offers her hand, is it acceptable to shake it.
• ·         Western women may offer their hand to a westernized Indian man, but not normally to others.
• ·         In the absence of a handshake, the custom all over India is the greeting of peace known as "Namaste". When making this greeting, hold the palms of both hands together under the chin, smile, bow slightly and say "Namaste".
• ·         Meetings will start with a great deal of getting-to- know-you talk. In fact, it is quite possible that no business will be discussed at the first meeting.
• ·         Always send a detailed agenda in advance. Send back-up materials and charts and other data as well. This allows everyone to review and become comfortable with the material prior to the meeting.
• ·         During meetings, try not to stand with your hands on your hips. This is considered as an aggressive posture in India.
• ·         Follow up a meeting with an overview of what was discussed and the next steps.

Business Negotiating

• ·         Indians are non-confrontational. It is rare for them to overtly disagree, although this is beginning to change in the managerial ranks.
• ·         Decisions are reached by the person with the most authority.
• ·         Decision making is a slow process.
• ·         If you lose your temper you lose face and prove you are unworthy of respect and trust.
• ·         Delays are to be expected, especially when dealing with the government.
• ·         Most Indians expect concessions in both price and terms. It is acceptable to expect concessions in return for those you grant.
• ·         Never appear overly legalistic during negotiations. In general, Indians do not trust the legal system and someone's word is sufficient to reach an agreement.
• ·         Do not disagree publicly with members of your negotiating team.
• ·         Successful negotiations are often celebrated by a meal.

Dress Etiquette

• ·         Business attire is conservative.
• ·         Men should wear dark colored conservative business suits.
• ·         Women should dress conservatively in suits or dresses.
• ·         The weather often determines clothing. In the hotter parts of the country, dress is less formal, although dressing as suggested above for the first meeting will indicate respect. Here, a light jacket with a shirt and pants is standard outfit for businessmen.

Body Language

• ·         Public displays of affection are not proper.
• ·         Indians generally allow an arm's length space between themselves and others. Don't stand close to Indians. Indians value personal space.
• ·         Indian men may engage in friendly back patting merely as a sign of friendship.
• ·         When an Indian smiles and jerks his/her head backward -- a gesture that looks somewhat like a Western "no" -- or moves his head in a figure 8, this means "yes."
• ·         The Western side-to-side hand wave for "hello" is frequently interpreted by Indians as "no" or "go away."
• ·         Use your right hand only to touch someone, pass money or pick up merchandise. The left hand is considered unclean.
• ·         Do not touch anyone's head. The head is considered sensitive.
• ·         Feet are considered unclean. Feet are sacred for holy men and women. Pointing footwear at people is considered an insult.
• ·         Indians are very sensitive to being beckoned rudely. Hand and arm waved up and down (Western "good-bye") means "come here." To beckon, extend your arm, palm down and make a scratching motion with fingers kept together.
• ·         Never point with a single finger or two fingers (used only with inferiors). Point with your chin, whole hand or thumb. The chin is not used to point at superiors.

Titles

• ·         Indians revere titles such as Professor, Doctor and Engineer.
• ·         Status is determined by age, university degree, caste and profession.
• ·         If someone does not have a professional title, use the honorific title "Sir" or "Madam".
• ·         Titles are used with the person's name or the surname, depending upon the person's name.
• ·         Wait to be invited before using someone's first name without the title.

Gifts Giving

• Gifts are not normally expected at the first meeting. Gifts may be given once a relationship develops.
• Give gifts with both hands.
• When presenting gifts, take care that the gift-wrapping is neither black nor white as these are believed to bring bad luck. On the other hand, the colors that are thought to bring good luck are red, green and yellow.
• It is not customary in India to open a gift in the presence of its donor. If you receive a gift from your Indian colleague, open it only after your colleague has left the room.
• Acceptable gifts are flowers, chocolate, perfume and small electronic goods. Sensitivity should be shown to ethnic background in India. Thus, for example, you should refrain from giving gifts that have a picture of a dog (dogs are considered unclean animals). It is also important to know that many Indians do not drink alcohol or eat beef.

Sources and Additional Information:

http://www.pasadenaisd.org/rayburn/Clubs/BPA/contest/India.html

http://www.kwintessential.co.uk/resources/global-etiquette/india-country-profile.html

http://www.worldwide-tax.com/india/indpractice.asp

http://www.ediplomat.com/np/cultural_etiquette/ce_in.htm