The Philippine business environment is highly personalized. While many U.S. businesspersons think that time is money and want to get to the point immediately, the Filipino business culture tends to be indirect with emphasis on "saving face" and personalized relationships. What follows are several tips from the U.S. Department of Commerce for doing business in the Philippines.

• Arranging meetings. In setting up appointments, especially in government offices, it is best if a "go-between" or someone with previous connections to that office can make some form of introduction on behalf of the requesting party. Mid-morning or afternoon meetings are preferred, and a follow up call to confirm the meeting a day before is recommended. Allow for at least fifteen minutes leeway before your Filipino contact arrives for an appointment. For VIPs, waiting time could be longer.



• Importance of "saving face." Filipino contacts prefer an atmosphere of calm and restraint, avoid direct confrontation, and would typically offer a polite reply coupled with a smile rather than an outright negative feedback to the other party's ideas. A "yes" may mean a lot of things therefore be aware of the subtleties of a particular conversation.



• Show of respect. Filipinos usually address people by their titles (i.e. Architect Romero) although the professional might request a more informal approach after the formal introduction. In dealing with high-ranking government and military officials, it is best to address them by their formal titles (i.e., Secretary Santos).



• Business cards. Handing out business cards (preferably including your position or title) is standard procedure, although the manner in which the cards are exchanged tends to be rather informal as compared with other cultures. If a Filipino contact gives you a personal number (i.e., home or mobile) aside from what is indicated on the business card, it is usually an invitation to call.



• Let someone else deal with the bureaucracy. Customs, for instance, requires many signatures to clear air cargo. The Filipino approach to the problem is to use staff capable of moving through the bureaucracy. Whether getting a driver's license or registering a car, the U.S. business executive will benefit by delegating the chore to a someone able to negotiate through a sea of desks.



• Observing office etiquette. When reprimanding employees, take them aside and do it privately. Be as gentle as possible to make them feel they are still part of the team and that the criticism is not personal.



• Communication - verbal and nonverbal. Although English is the official business language, among Filipinos it is common to hear "Taglish" (a combination of Tagalog, a regional dialect from which the Filipino language is largely based, and English, or shifting back and forth between the two languages) during informal conversations. Body language and hand gestures are also integral to how Filipinos express themselves.



• Business meals. Business lunches and dinners are usually arranged personally over the phone and confirmed by the secretary. The person who invites customarily pays. A guest does not order the most expensive items on the menu, unless the host insists otherwise. It is also customary to have a drink before sitting at a dining table. Business is not usually discussed until after establishing a warm ambience.

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