CULTURAL DIFFERENCES INVOLVING BUSINESS ETIQUETTE IN GERMANY

Prepared for

Matthew Jackson

Chief Executive Officer

Prepared by

Kelly Wildemann

Student Intern

November 20, 2014

MEMO OF TRANSMITTAL

Date: November 18, 2014

To: Matthew Jackson, CEO

From: Kelly Wildemann, Student Intern

Subject: Cultural Differences Involving Business Etiquette in Germany

As you requested, I conducted some research on how German business men and women conduct their daily professional lives. The suggestions I will make in this report will help you do business more successfully in Germany and will give you a sense of how different the values of respect and business procedures are around the world. Although there are many business related aspects that you must consider when forming a relationship with a company, today I will touch on just two very important ones. The topics I will discuss are:

Values and behavior used while doing business in Germany Dining and table manners when having a meal with a professional business client in

Germany

Some people may be narrow-minded when thinking about other people’s values and the way they behave. We judge people because we believe that they should be acting in a way that is satisfying to our own goals and values. However, when traveling to a different country, you must remember that the stereotypes and judgments made by people who live in a different culture will most likely be different than the ones you are used to. In Germany, showing respect is a huge deal. Germans may immediately know that you are not from their country by your accent or the way you dress but if you show them that you respect their values and act like a professional German, they will think even higher of you for changing your own habits to make them feel comfortable and respected.

The research I have gathered was comprised from several websites that explain cultural differences between the United States and Germany. On my references page, you can find the direct link to where I found my information for this report. If you would like to further discuss my findings, I would be more than happy to meet with you and explore more ways to successfully conduct business in a German setting. To arrange this meeting, feel free to call me at 474-990-3838 or e-mail me at kawildman@intern.com and I will do my best to respond promptly.

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TABLE OF CONTENTS

MEMO OF TRANSMITTAL………………………………………………………… ii

EXECUTIVE SUMMARY…………………………………………………………… iv

INTRODUCTION…………………………………………………………………….. 1

DISCUSSION OF FINDINGS……………………………………………………….. 2

Germany’s Strongest Values……………………………… ………………… 2

Dinner Party Etiquette……………………………………………………….. 4

CONCLUSION………………………………………………………………………... 5

REFERENCES………………………………………………………………………… 7

Figure 1………………………………………………………………………………….. 5

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EXECUTIVE SUMMARY

This report will help inform you of the things you should do or avoid when doing

business in Germany. The two focus topics are the core values Germans live throughout their

daily lives and the way Germans typically act when attending a business dinner party. Some of

the core values explored in the report are formality, professionalism, work ethic, bluntness, and

loyalty. Germans like everything to be structured and scheduled out making them formal in most

of their daily activities. Germans believe that there is a place and a time to partake in certain

activities. While at work, Germans solely focus on being professional and getting the job done.

The Germans have a very strong work ethic because they like to be overly thorough and free of

error in all the work they do. Since they are a country that does not like to waste any time, their

bluntness can be seen as rude when trying to make business decisions but they are just respecting

the essence of time. If a German finds you to be a trustworthy client or business partner, they

will sometimes express their loyalty and friendship by inviting you over to their house for dinner.

Living such a structured lifestyle, Germans have a specific order to sitting down, toasting and

eating at the dinner parties. Gifts may be given but certain gifts such as red roses and domestic

wine could offend. It is a better idea to provide yellow roses, candy or imported wine to avoid

offending the German host. If these protocols are followed in a structured order, one will have

more success at forming a professional, long term relationship with a business associate or client.

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INTRODUCTION

When doing business in other countries, it is important to know how to handle yourself in

a foreign, professional situation. Many countries do not conduct business activities the same way

we do in the United States. Some things we just grow up learning throughout our daily lives are

not taught the same way in other countries. In Germany, respect plays a huge part in their daily

lives, especially in the business world. By learning and practicing the way that Germans live, you

will gain their respect and have a better chance of building a professional relationship with them.

This report was not written to explain specific business tactics to use or where to take a client out

to dinner. Before getting in that deep, I will explain the general but key values that Germans

keep close to their hearts and small but meaningful gestures you should perform when attending

a dinner party in Germany. Germans value certain things such as punctuality, respect,

individualism and organization. Using these values in a dinner setting will be the next topic I

discuss. Settings, mannerisms, and gifts at dinners are all culturally different in Germany. If you

practice these small suggestions, you will be more successful when doing business with a

German. The sources that I used to write this report are secondary and cited throughout my

report along with on the reference page at the end. I found comparable information from several

websites that talked about business etiquette in Germany. During my report, I will first discuss

the general values and beliefs that are important to Germans. I will then not only tell you how

you can utilize these values at a dinner party setting but also what to bring, wear and say to a

professional dinner. Finally, I will summarize my results and hopefully provide you will new

incite on how to act professional in a German business setting.

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1

DISCUSSION OF FINDINGS

Germany’s Strongest Values

Germans like every aspect of their lives to be scheduled and done in a certain way. They

will usually find one particular set of procedures on how to conduct an activity and rarely stray

from that process. Germans are usually very serious and strict. They have a strong sense of

respect for higher authority and determination to get tasks done in a timely manner. It will be

easier for one to gain the respect of a company or client in Germany when acting in a way that

expresses their values. InterNations.org has a motto expressing that they strive to connect global

minds. The website was very helpful in finding information about German business etiquette and

explained several values that Germans find important when in the workplace, such as:

Formality

Professionalism

Work Ethic

Bluntness

Fairness and Loyalty

Formality is displayed in the everyday life of a German. Germans will rarely be telling

jokes or reminiscing about old times at any point in a business activity. To a German, everything

has a correct place and time. While working, an employee is solely focused on the job at hand.

They are also very formal in the way they enter a room. When entering the room, the order of

people starts from the highest authority in the business and descends from the top executive. You

also must shake hands with everyone in the room to establish good heartedness during the

business negotiation. The lack of flexibility is displayed by the fact that Germans always have

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their days scheduled out vigorously. They give themselves an allotted amount of time to do each

activity of their day and are not pleased when an issue occurs and disrupts their schedule. While

at work, a German will always establish their authority and professionalism. Diplomas and

certificates are often displayed so when a client enters the room, they are immediately aware of

one’s title or level of hierarchy. A person with academic credentials, good qualifications, and

professional skills commands a lot of respect (InterNations). Germans like to make decisions that

are logical and derived from hard facts. Providing a German with professional documentations

will help establish a business relationship because the potential client has justifications showing

that you will be able to complete the task at hand. A German’s work ethic is also highly valued

when trying to establish a partnership. A German will most likely give themself a longer amount

of time to complete a project because they want to complete everything in one sitting and make

sure that the work is thorough and free from error. Punctuality also plays a big role in work ethic.

When allotting a certain amount of time for a project, it is imperative for a German to finish the

task in that amount of time to avoid judgments of bad time management or incompetence.

If a German does not agree with something, it is expected that they will react very

bluntly. In the United States, a person will be subtle and attempt to cushion the blow of a

negative statement. We find it offensive when someone completely disregards an idea that we

thought of ourselves. A German will get straight to the point but their bluntness is not meant to

be rude. They just want to get to a solution more quickly. A German will also bluntness or

cockiness when trying to assert their position of authority. It is unlikely to see an inferior be

blunt or overly assertive with one of their superiors. The last values that are important to

Germans are fairness and loyalty. Germans establish trust with a potential client at their first

meeting. If trust and a sense of honesty is established, you can be almost certain that a German

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business negotiator will conduct negotiations in a fair way. They find it fundamentally unfair to

take complete advantage of one party (InterNations). Germans are very keen on long term

relationships. If a German has invited you into doing business with them, you can assume that

they will stay loyal to the business partnership and aren’t just in it for the pure business

transaction of buying from and selling to you. When the business relationship is strong enough

that they want to get to know each other on a personal level, they may invite a coworker or client

to dinner. There are many important gestures, manners and actions one should know before

entering a business meal with a business associate.

Dinner Party Etiquette

A German may invite a business associate to their house for a formal dinner. It is

imperative to arrive on time to a dinner party at a German’s house because punctuality is very

important to them. Do not arrive early and if you will be more than 10 minutes late it is polite to

call and tell the host what is holding you up.

Upon arrival, some guest will give gifts. A typical gift would be flowers or dessert,

similar to America. The type of flowers you give could also give off a certain vibe. An

appropriate flower to give could be a yellow rose or tea rose. Red roses can be seen as a romantic

gesture, Carnations symbolize mourning, and lilies and chrysanthemums are used for funerals so

giving any of those kinds of flowers as a gift may make the host feel uncomfortable. Another

good gift to bring to a formal dinner party is wine. However, the wine must be imported from

somewhere like France or Italy because bringing another German wine means you do not think

the host will serve a good quality wine (Kwintessential).

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When arriving at the dining area, everyone remains standing until the host invites you to

sit down. Sometimes the host will assign seats for everyone as well. Similarly to how the tables

are set in America, the fork is set on the left and the knife on the right. The host usually initiates

when to sit down, when to place the napkin on your lap, when to start eating, and also when to

toast. Sometimes the host will say “guten appetite,” which means good appetite in German. This

also indicates that everyone else is allowed to start eating. It is seen as very rude to rest your

elbows on the table at a dinner party in Germany, especially while eating. When eating salad,

you should not cut the leaves. If they are too big, simply fold it by using your silverware.

Germans will use only their fork to cut their food as much as they can before needing a knife

because it indicates that the food is tender and compliments the chef. Germans toast using

different phrases for the type of alcohol they are drinking. When drinking wine, the host will say

“Zum Wohl!” While drinking beer, such as at Oktoberfest, Germans will say “Prost!” Both

quotes mean good health or as we in America say, “cheers!” A German will indicate that they are

done eating by laying their knife and fork parallel across the right side of the plate, with the fork

over the knife. After leaving the dinner party, it is a kind gesture to write a thank you note to the

host for pulling together such a lovely dinner party. Many of the dinner party etiquette that

Germans follow are similar to the United States. However, not everyone practices them as

vigorously in this country as Germans do because to them, there is one way to do everything and

that is the process they stick to.

CONCLUSIONS AND RECOMMENDATIONS

Every country has different ways to go about their daily lives. It is important to discover

what small things Germans find important before proceeding with a business activity. After

practicing and understanding the importance of these small actions, you will be more successful

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in doing business with a German. On a

website called Southeast Schnitzel, a

blogger named Christian Hoferle created

a chart (Figure 1) indicating a few things

you should do to avoid embarrassing

yourself in Germany. His chart contains

some of the topics I pointed out in this

report along with a few more helpful tips.

The most important thing to remember

when doing business with a German is to

show respect, authority and keep

everything structure in a schedule or

record. Germans value attributes such as formality and professionalism. They tend to display a

level of bluntness that we are not used to but also are very loyal to those they can trust. When a

German invites you to a dinner party, you know that they consider you someone they can rely

on. It is expected to allow the host to escort you to your seats and initiate the events at the dinner

party. Gift giving at a German dinner party is allowed but you must be careful about what kind

of gift it is. As a kind afterthought, always remember to send a note of thanks to the host of the

night. When these recommendations are followed, you will have more success doing business

with a German. I hope these tips have helped you develop a deeper understanding on German

values and etiquette in the business world.

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REFERENCES

Business values and etiquette in Germany. (n.d.). InterNations: Connecting global minds.

Retrieved from: http://www.internations.org/germany-expats/guide/15987-jobs-business/german-

business-culture-15990/business-etiquette-and-values-in-germany-2

Germany - language, culture, customs and business etiquette. (n.d.). Kwintessential, The

translation company. Retrieved from: http://www.kwintessential.co.uk/resources/global-

etiquette/germany-country-profile.html

Hoferle, C. (2013, October 14) German culture explained. Southeast Schnitzel. Retrieved from:

http://southeastschnitzel.wordpress.com/2013/10/14/german-culture-explained-in-short-videos/