Business Practices and Social Customs in Russia

In response to your request for information regarding business practices and social custom in Russia, I have compiled this memo to help train and give our employees an idea of what to expect and how they should conduct themselves while traveling to Russia next week. Although the list of business practices and social customs that differ between the United States and Russia is very long, I have selected a group of topics that are most important.

Greetings

Upon first greeting, you will always shake their hand (shake with right hand and put your left hand on forearm to show respect for guests and elders) and introduce yourself. You always call the other person by their full name (first name, patronymic, and last name). Until you establish a personal relationship with the person, you will keep your distance (similar to the U.S.) and avoid any touching besides the handshake. Also, you never sit first, but always wait for the person to offer you a seat (Greg Morrissette, personal interview, April 15, 2014).

Relationship-focused

Russia’s business components deal strictly on relationships. “When it comes to business once the relationship is established, everything revolves around it (Oleg Petrenko, personal interview, April 24, 2014).” In Russia, the phrase “it’s not what you know, but who you know” is taken very seriously. “90% of business in Russia is done face-to-face. You build your business on personal relationships (Gesteland, 1999, p. 187).” Russia seems to be relationship-focused; however, they differ from most other relationship-focused cultures in respect to: verbal communication. “For example, where Asians (relationship focused) would be indirect, with high-context communication, Russians will be very direct, with low-context ...

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...uct yourself properly while visiting Russia for business. Begin establishing rapport upon your first greeting; make sure to follow guidelines given to you. Take your finest clothing, as attire is formal, and shows respect. Be patient during negotiating and never fight back, but instead stay calm and be patient. Read company policy on ethics before traveling and follow your gut when an ethical dilemma arises.

References

Gesteland, R. R. (1999). Cross-cultural business behavior: marketing, negotiating, and managing across cultures (2nd ed.). Copenhagen: Copenhagen Business School Press.

Gesteland, R. R. (2012). Cross-cultural business behavior: a guide for global management

(5th ed.). Copenhagen: Copenhagen Business School Press.

Wilson, D., & Donaldson, L. (1996). Russian etiquette & ethics in business. Lincolnwood, Ill.: NTC Business Books.