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Business Russia
A Russian
Culture Overview
Fact file
Official name - The
Russian Federation
Population - 143,782,338* (July 2004
est.)
Official Language - Russian
Currency - Russian rouble (RUR)
Capital city - Moscow
GDP - purchasing power parity $1.287
trillion* (2003 est.).
GDP Per Capita - purchasing power
parity $8,900* (2003 est.).
Overview
Russia, the largest country in the world, has a rich cultural
identity that has been shaped and moulded by its distinguished
history and vast geography. For those organisations wishing
to develop a successful penetration strategy for the Russian
business market or employees tasked with working in Russia,
an understanding of Russian social and business culture is
key to your success.
Russian culture - key concepts and
values
Collectivism -
Throughout its notable history, Russia has assumed a strong
communal spirit that is still reflected in Russian business
practices today. Russia's severe climatic conditions have
also meant that co-operation and collaboration, rather than
competition, have been vital for survival. This sense of
togetherness is one of the traits that distinguish Russians
from many Westerners. Russian collectivism dates back to
the peasant farmers, who lived in agricultural villages known
as 'mirs' or 'obschina' and worked together
in an organised and self-managed community.
Egalitarianism -
An important concept related to the village milieu is 'egalitarianism',
the social philosophy that supports the removal of inequity
and promotes an equal distribution of benefits.
In Russian business terms, this equates
to important strategies of equality, reciprocity and mutual
advantage. Russians are very status conscious and believe
in co-equals. A "deal" is
often thought of from the perspective of equally shared benefit.
Dusha -
The famous and enigmatic Russian 'dusha' or 'soul' remains
central to everyday Russian behavior and as a result when
building successful business relationships with Russians
you will find that mutual liking and emotion will from a
strong basis.
Russia is a vast and diverse nation that after several decades
of communism continues to evolve politically and economically.
With the world's largest resource of raw materials, oil and
gas revenues heavily support Russia's economy. Recently, within
the big cities, a consumer economy has been established. This,
along with an improvement in the country's financial position
has raised business and investor confidence in Russia's economic
prospects. However, in order to conduct business successfully
in Russia, there are a number of important issues to take into
consideration both before and during your time there.
Russia business Part 1 - Working in Russia (Pre-departure)
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Working practices in Russia
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The Russians attitude to time means that
a few minutes delay on their part is of little importance.
However, they will expect you to be punctual.
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Faxes and emails are the best way to communicate
in Russia, as the post can often be unreliable. It
is customary before making a trip to Russia to inform
the prospective company of your intended business proposals
and objectives.
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Paperwork and putting pen to paper is
an essential part of all working practices in Russia.
In general, they have little faith in unsigned documents.
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Structure and hierarchy
in Russian companies
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The hierarchical
structure in Russian business practices means that
the decision makers higher up have authority over their
subordinates. However, the nature of the collective
good often encourages a flexible and democratic work
ethos.
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Showing respect
for seniority and recognising the hierarchical structure
is vital for establishing and maintaining strong business
relationships.
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Working relationships in
Russia
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Personal and informal contact is a central
part in doing business in Russia.
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Physical contact during business meetings, for
example a simple hand on the arm or even embracing
is a positive sign. There is no word for 'privacy' in
Russia; therefore the notion of social space is much
closer in Russia.
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In situations of conflict try to avoid taking
an official stance and remember that Russians are 'people
orientated' and will respond to a more personal approach.
Russia business Part 2 - Doing
business in Russia
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