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Cultural Perspective on Doing Business in
 Brazil
                         Brazil: An Inside View
                         Charles Kirschbaum

                          November 26th, 2012



Cultural Perspective   Omnium 9                   Charles Kirschbaum
Some major themes in the Brazilian Studies of Culture


 Clientelism
 Formalism
 “Jeitinho” (cut some slack)


Cultural Perspective   Omnium 9              Charles Kirschbaum
Hofstede Benchmark...




Cultural Perspective       Omnium 9       Charles Kirschbaum
CAVEAT: IT IS A BIG COUNTRY!!!




Cultural Perspective      Omnium 9            Charles Kirschbaum
Topics

      Power and Authority
      Conflict
      Individualism and Collectivism
      Formality, Informality, and Ambiguity
      Planning and Improvisation


Cultural Perspective   Omnium 9          Charles Kirschbaum
Topics

      Power and Authority
      Conflict
      Individualism and Collectivism
      Formality, Informality, and Ambiguity
      Planning and Improvisation


Cultural Perspective   Omnium 9          Charles Kirschbaum
Cultural Perspective   Omnium 9   Charles Kirschbaum
Cultural Perspective   Omnium 9   Charles Kirschbaum
Cultural Perspective   Omnium 9   Charles Kirschbaum
Cultural Perspective   Omnium 9   Charles Kirschbaum
Cultural Perspective   Omnium 9   Charles Kirschbaum
Topics

      Power and Authority
      Conflict
      Individualism and Collectivism
      Formality, Informality, and Ambiguity
      Planning and Improvisation


Cultural Perspective   Omnium 9          Charles Kirschbaum
Cultural Perspective   Omnium 9   Charles Kirschbaum
Cultural Perspective   Omnium 9   Charles Kirschbaum
Cultural Perspective   Omnium 9   Charles Kirschbaum
Topics

      Power and Authority
      Conflict
      Individualism and Collectivism
      Formality, Informality, and Ambiguity
      Planning and Improvisation


Cultural Perspective   Omnium 9          Charles Kirschbaum
Cultural Perspective   Omnium 9   Charles Kirschbaum
Brazilian Strong Collective Ties

 Family
 Neighborhood




Cultural Perspective   Omnium 9    Charles Kirschbaum
Connection with “Clientelism”

 Clientelism: individuals are able to access resources via
  personal relationships, beyond and in spite of the formal
  rules
 Family and friends are needed for emotional support, but
  also for securing access to resources
 Success is due to collective support
 Strong personal ties criss-cross economic domain


Cultural Perspective   Omnium 9          Charles Kirschbaum
Topics

      Power and Authority
      Conflict
      Individualism and Collectivism
      Formality, Informality, and Ambiguity
      Planning and Improvisation


Cultural Perspective   Omnium 9          Charles Kirschbaum
Cultural Perspective   Omnium 9   Charles Kirschbaum
Cultural Perspective   Omnium 9   Charles Kirschbaum
Cultural Perspective   Omnium 9   Charles Kirschbaum
Marble...




Cultural Perspective   Omnium 9           Charles Kirschbaum
...or Myrtle?




                         Pe. Antonio Vieira, Sermão do Espírito Santo, 1657 (cited by Viveiros de Castro)
Cultural Perspective      Omnium 9                                    Charles Kirschbaum
Exploring “Formalism”: two ideas

 Formalism: production of laws and formal rules prior to the concrete
  situation, resulting in institutions disconnected from reality
 First idea: formalism emerges as a way of sustaining social
  inequality, as individuals with better access to resources are able to
  receive more flexible treatment
 Second idea: formalism emerges as developing countries try to copy
  practices, anticipating social conflict
   – Hence, in the long run it should disappear


Cultural Perspective    Omnium 9                 Charles Kirschbaum
Exploring Ambiguity and Formalism

 Skepticim towards formal institutions and rules might be surprinsingly be
  accompanied by easy acceptance but difficult conformity

 If it is possible to decouple practice from discourse, it is also possible to change
  discourse without affecting daily life




Cultural Perspective          Omnium 9                      Charles Kirschbaum
Topics

      Power and Authority
      Conflict
      Individualism and Collectivism
      Formality, Informality, and Ambiguity
      Planning and Improvisation


Cultural Perspective   Omnium 9          Charles Kirschbaum
Cultural Perspective   Omnium 9   Charles Kirschbaum
Cultural Perspective   Omnium 9   Charles Kirschbaum
Connection with “Jeitinho”

 Jeitinho: act of asking for a favour, specially
  related to bending rules
 If in order to survive a “rigid” system one must
  employ “jeitinho”, then Brazilian culture
  fosters improvisation


Cultural Perspective   Omnium 9   Charles Kirschbaum
Current Trends




Cultural Perspective   Omnium 9         Charles Kirschbaum
Is it changing? Outsiders’ peeping...
 Chu & Wood               “Brazilians are too seduced by power” “They never defy hierarchical
      (2008)
                           superiors” “They hate conflict”
                          “You make decisions really fast. Brazilians are used to change; they
                           love cutting corners”
                          “They are really respectful to whatever comes from abroad... Although
                           they are at the same time a bit skeptical that it will really work here”
                          “There is no way in advancing here without some politics”
                          “I love the working habits here. So many things are decided over a
                           coffee, in a very informal way; I think it really improves my
                           productivity”
                          “In Brazil, everything is informal; it is pretty much a bumpy road”
                           “Message is never clear”
                          “Nowadays, Brazilians are much more results oriented”
                          “Planning is becoming stronger”
                          “Brazilians do not delay for meetings, as before. But meetings have no
                           ending time”
Cultural Perspective                  Omnium 9                       Charles Kirschbaum
Thanks!
charlesk1@insper.edu.br
Cultural Perspective      Omnium 9   Charles Kirschbaum

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Brazilian Culture

  • 1. Cultural Perspective on Doing Business in Brazil Brazil: An Inside View Charles Kirschbaum November 26th, 2012 Cultural Perspective Omnium 9 Charles Kirschbaum
  • 2. Some major themes in the Brazilian Studies of Culture  Clientelism  Formalism  “Jeitinho” (cut some slack) Cultural Perspective Omnium 9 Charles Kirschbaum
  • 3. Hofstede Benchmark... Cultural Perspective Omnium 9 Charles Kirschbaum
  • 4. CAVEAT: IT IS A BIG COUNTRY!!! Cultural Perspective Omnium 9 Charles Kirschbaum
  • 5. Topics  Power and Authority  Conflict  Individualism and Collectivism  Formality, Informality, and Ambiguity  Planning and Improvisation Cultural Perspective Omnium 9 Charles Kirschbaum
  • 6. Topics  Power and Authority  Conflict  Individualism and Collectivism  Formality, Informality, and Ambiguity  Planning and Improvisation Cultural Perspective Omnium 9 Charles Kirschbaum
  • 7. Cultural Perspective Omnium 9 Charles Kirschbaum
  • 8. Cultural Perspective Omnium 9 Charles Kirschbaum
  • 9. Cultural Perspective Omnium 9 Charles Kirschbaum
  • 10. Cultural Perspective Omnium 9 Charles Kirschbaum
  • 11. Cultural Perspective Omnium 9 Charles Kirschbaum
  • 12. Topics  Power and Authority  Conflict  Individualism and Collectivism  Formality, Informality, and Ambiguity  Planning and Improvisation Cultural Perspective Omnium 9 Charles Kirschbaum
  • 13. Cultural Perspective Omnium 9 Charles Kirschbaum
  • 14. Cultural Perspective Omnium 9 Charles Kirschbaum
  • 15. Cultural Perspective Omnium 9 Charles Kirschbaum
  • 16. Topics  Power and Authority  Conflict  Individualism and Collectivism  Formality, Informality, and Ambiguity  Planning and Improvisation Cultural Perspective Omnium 9 Charles Kirschbaum
  • 17. Cultural Perspective Omnium 9 Charles Kirschbaum
  • 18. Brazilian Strong Collective Ties  Family  Neighborhood Cultural Perspective Omnium 9 Charles Kirschbaum
  • 19. Connection with “Clientelism”  Clientelism: individuals are able to access resources via personal relationships, beyond and in spite of the formal rules  Family and friends are needed for emotional support, but also for securing access to resources  Success is due to collective support  Strong personal ties criss-cross economic domain Cultural Perspective Omnium 9 Charles Kirschbaum
  • 20. Topics  Power and Authority  Conflict  Individualism and Collectivism  Formality, Informality, and Ambiguity  Planning and Improvisation Cultural Perspective Omnium 9 Charles Kirschbaum
  • 21. Cultural Perspective Omnium 9 Charles Kirschbaum
  • 22. Cultural Perspective Omnium 9 Charles Kirschbaum
  • 23. Cultural Perspective Omnium 9 Charles Kirschbaum
  • 24. Marble... Cultural Perspective Omnium 9 Charles Kirschbaum
  • 25. ...or Myrtle? Pe. Antonio Vieira, Sermão do Espírito Santo, 1657 (cited by Viveiros de Castro) Cultural Perspective Omnium 9 Charles Kirschbaum
  • 26. Exploring “Formalism”: two ideas  Formalism: production of laws and formal rules prior to the concrete situation, resulting in institutions disconnected from reality  First idea: formalism emerges as a way of sustaining social inequality, as individuals with better access to resources are able to receive more flexible treatment  Second idea: formalism emerges as developing countries try to copy practices, anticipating social conflict – Hence, in the long run it should disappear Cultural Perspective Omnium 9 Charles Kirschbaum
  • 27. Exploring Ambiguity and Formalism  Skepticim towards formal institutions and rules might be surprinsingly be accompanied by easy acceptance but difficult conformity  If it is possible to decouple practice from discourse, it is also possible to change discourse without affecting daily life Cultural Perspective Omnium 9 Charles Kirschbaum
  • 28. Topics  Power and Authority  Conflict  Individualism and Collectivism  Formality, Informality, and Ambiguity  Planning and Improvisation Cultural Perspective Omnium 9 Charles Kirschbaum
  • 29. Cultural Perspective Omnium 9 Charles Kirschbaum
  • 30. Cultural Perspective Omnium 9 Charles Kirschbaum
  • 31. Connection with “Jeitinho”  Jeitinho: act of asking for a favour, specially related to bending rules  If in order to survive a “rigid” system one must employ “jeitinho”, then Brazilian culture fosters improvisation Cultural Perspective Omnium 9 Charles Kirschbaum
  • 32. Current Trends Cultural Perspective Omnium 9 Charles Kirschbaum
  • 33. Is it changing? Outsiders’ peeping... Chu & Wood  “Brazilians are too seduced by power” “They never defy hierarchical (2008) superiors” “They hate conflict”  “You make decisions really fast. Brazilians are used to change; they love cutting corners”  “They are really respectful to whatever comes from abroad... Although they are at the same time a bit skeptical that it will really work here”  “There is no way in advancing here without some politics”  “I love the working habits here. So many things are decided over a coffee, in a very informal way; I think it really improves my productivity”  “In Brazil, everything is informal; it is pretty much a bumpy road” “Message is never clear”  “Nowadays, Brazilians are much more results oriented”  “Planning is becoming stronger”  “Brazilians do not delay for meetings, as before. But meetings have no ending time” Cultural Perspective Omnium 9 Charles Kirschbaum