Although many Asian businessmen may not openly recognize the role that Confucian ideology still plays in their day-to-day operations, most Asian businesses are still very much run on patriarchal lines.  This demonstrates that the Confucian ideology of “family, hierarchy, hard work and discipline” is still alive and well.    

In Asian business, obedience is key, and one does not openly question one’s elders.  Moreover, the patriarch runs the business and passes on his wealth, wisdom and contacts to the eldest son of the family.   Consequently, more than 70% of all publicly listed companies in Hong Kong are essentially family controlled, and in Indonesia, Thailand and the Philippines, the percentage may be even higher.   

Protecting the family and their business interests at all costs is a fundamental tenet of doing business in Asia.  It is not unusual for businessmen in Asia to lie, cheat, be economical with the truth or undertake illegal acts wholly to protect their family interests.  This may seem irrational to Western thinking in general, but it is a way of life here.  

Business patriarchs are unlikely to seek the requisite outside management expertise to help run their businesses.  A western corporate executive might immediately contact a qualified consultant and ask the consultant to evaluate a problem and suggest a solution.  This is not likely from an Asian company.  An Asian businessman would be seen as weak or incompetent if he were to seek outside assistance.  

Asian businesses are set up along very strict hierarchical lines.  Only specific persons within the organization can make certain decisions for the organization.  You have to approach the right person or you are wasting your time.  If you approach initially someone who is too junior in the hierarchy, you may damage your credibility and then be unable to deal with someone higher up.  Developing close Business Relationships is much more important in Asia, than in other business cultures.  Trust may take a longer time to be gained, but once the bond has been established it will last through thick and thin, as long as neither side breaks that trust.  

In Japan, for instance, introductions are made through third parties.  If you want to do business with someone, you seek out some third party who is known and respected to both of you and can act as a go-between.  If you act dishonorably in the transaction, not only will you damage the business relationship, but you will also bring shame on the third party who introduced you.

Japan also has the concept of “on” and “geri”.  These two words encompass a very delicate set of values in which you wind up owing someone a favor if you ask them to do a favor for you.  If they have done you a favor at your request, like providing an introduction, and they come to you with a favor, you must accommodate them.  To refuse to do so would imperil your business standing in the local community.  The same type of unwritten reciprocal arrangements exist among Chinese business communities, but are less formal. 

The issue of “face” plays another important part in the Asian business culture.  Loss of face is considered deeply problematic and something to be avoided at all costs throughout the Asian business world; and indeed, in every aspect of life.  

As a good example of this, a major Japanese corporate client lost several hundred million dollars invested in a failed infrastructure project in Thailand.  Most of these funds were misused by the Thai partners who used the money to prop up failing real estate empires and other businesses.  We discovered great information about how and where the funds had been diverted, and sat back expecting our client to move against the Thai partner.  Nothing happened.  I later discovered that Japanese management was more concerned with the prospect of the Japanese managers who had granted the loan losing face than they were with recovering part or all of the money!   

This is one of the reasons that many of the Asian economies fell as fast as they did.  Financial decisions, especially in the banking sector, were being made for reasons of “face” or “connections” rather than due to good sound economic judgment.  

Many westerners have been confounded after a business meeting with Asians to find out that what he thought was a good meeting of the minds turned out to be no meeting of the minds.  Most Asians, in business matters, are not very confrontational.  They are unlikely to tell you directly if they don’t like your product or service.  They will be polite, not give offense and then do what they want to do. 

A collateral issue involving face is time.  This is a hasty generalization, but business people in some parts of Asia do not necessarily operate on the same time schedule as westerners.  In the west, if we set a specific date and time for something to happen, it is expected that it will happen then.  In Asia, this is not always true.  Asian cultures do not place extreme emphasis on time or timeliness. Trying to force the client to make a decision or a source to produce information in a timely manner will most likely achieve the opposite result.  

Buddhism considers someone who is angry as someone who does not have the requisite control of his/her emotions to be considered worthy of trust.  No matter what you think is going on and no matter what the potential outcome may be, never get angry.  This does not mean passivity or surrender, it simply means that anger is a useless emotion which is self-defeating in Asia. 

Another factor that is prevalent is the Asian business culture is Corruption, which in parts of Asia is endemic.  If you play in their ballpark, you play by their rules or you get out.  In the People’s Republic of China, as an example, it is not unusual for companies to have to pay law enforcement officials to perform their sworn duty.  In Thailand, it is perfectly legal to pay law enforcement officials a bonus if they are successful in doing their job.  Moreover, the bonus scale is set out as a legal statute. This places many investigators in a very awkward position vis a vis the laws of their native countries, in addition to some laws of the host country.  Americans, for example, have to be careful not to run afoul of the Foreign Corrupt Practices Act.  

Another problem of corruption is that some large criminal operators have paid informants everywhere in the various arms of government, notably those charged with enforcement.  In some countries, police provide escort and protection for criminal activity.  At best, many of them turn a blind eye to the criminal problem and feign ignorance.  

In some Asian nations, there is a chance of physical danger to the investigator.  If the investigator, out of ignorance or stupidity, steps on the wrong toes, the investigator might be subject to physical harm or false allegations which could result in prison time, or worse.  In certain loosely organized third world nations, the environment is completely lawless.  The police are as big a part of the problem as the criminal gangs.  And, in fact, the police are often in the pay of the criminal gangs.   There may be no one you can turn to for help if you get in a jam.  If they want to make your life difficult they can make it very difficult and very painful.  Don’t depend on your embassy to get you out even assuming they know you are in custody and can find you. 

There is generally a lack of Transparency in the Asian business scene which has for too long been dominated by the family managed business.  Asian businesses are very competitive and, therefore, very secretive.  They give trust very grudgingly and then only after a long period of association.  It simply is not in their way of thinking to allow a completely unknown outsider access to their business secrets.  Thus, a rapid reaction to a problem that requires an outside consultant is not going to happen. 

Also, there is almost a complete lack of the type of public record and on-line information that exists in the U.S. and Western Europe.  In China, Vietnam, Laos and Cambodia, virtually no public records exist, and those that do are almost completely unreliable.  It is not in the general business interest to have information easily accessible.  

Another common problem is that what appear to be official documents in Asia are sometimes fakes.  It is very easy and costs very little money to obtain a document which purports to be official, but is completely worthless.  In many countries in Asia, official seals are for hire.  Any document must be looked at askance until there is absolute verification that it is real.  Letterheads, seals, bills of lading, etc are all available for a price.

So what does all this mean to those of us who actually conduct Investigations in Asia?  Well, each country is quite different.  In China, each province has its own food, customs and spoken language.  In that sense, it is much more similar to Europe than the U.S.   

If you are not linguistically qualified to operate in a certain area and require the use of an interpreter, pick one very carefully.   Make sure the interpreter says exactly what you are saying and not giving a general feeling of the words.  

The current trend in many western cultures is to force gender, race and other sensitivities on the work environment.  Well, like it or not many of these sensitivities have not come to Asia, nor are they likely to in the near future.  Asia is very male dominant in nature.  Women in many Asian cultures have traditionally been in a subservient role and not allowed to occupy senior positions in business.   Men will often not talk to a female or reveal confidences to a female.  The reason is simply that business is man’s work and women are for entertainment.  

Contrarily, a man approaching women in some cultures will be looked upon with great suspicion and the women will refuse to have anything to do with him.  Additionally, the male members of the family may take great umbrage at the fact that they were not approached first and think that the male investigator is trying to molest their women.  

Now the good news.  If you do have an Asian client or business associate and they finally give you their trust, you are pretty well hooked up forever, unless you do something to rupture the trust of the relationship.  Trust is long in coming and is in place for a long time after it is given.  Trust is earned through competence, knowledge, cultural sensitivity, language and service.