Entertainment and Gift Giving in Business

Cultural differences in business entertaining include issues such as who one entertains and where, and how one entertains.  In countries in which status is important, it is not advisable to invite people of different statuses to the same dinner party.  Americans will often invite people to their homes, whereas in some societies the home is considered too private, unworthy, or embarrassingly small to serve as an appropriate forum for business entertaining.  In some countries there is a “help yourself” approach to entertaining done in the home.  This approach does not work well when entertaining people whose culture teaches them to wait to be asked three times before accepting an offer of food.  In one instance, a Chinese guest went an entire evening without eating though he was quite hungry because he was too embarrassed to take food after only being asked to do so once.  In another case, an American woman executive was being entertained at tea in London.  After having the tea served, the American woman helped herself to cream and sugar rather than waiting to be served.  The English woman was embarrassed by the implication that she was not serving quickly enough.  In many countries in Asia, it is common to go out after work and have a meal and a few drinks in order to establish and maintain harmonious relationships.
Gift giving has its own set of protocols.  As a general rule, a small gift from your home country is appreciated.  A gift that is tied to the particular interest of the individual is especially appreciated.  Gifts for children are also well received.  Be careful that the “hometown” gift you are bringing to Singapore was not made in Hong Kong.  Because many gifts carry symbolic meanings (such as, clocks imply death in China), it is always best to seek the advice of a cultural informant before selecting gifts.  The giving of large gifts, or payments for special services, should only be undertaken after consulting the legal department in the home and host culture.  The provisions of the U.S. Foreign Corrupt Practices Act, hold an employee liable for acts committed on behalf of his or her employer.  Companies can be fined up to $2,000,000 and individuals can be fined up to $100,000 and imprisoned up to 5 years.  Individual fines cannot be paid by the company.