Professional Documents
Culture Documents
Global Leadership
Strategies
Communication in the Philippines is high context. Pay
close attention to nonverbal signals, as much may be
communicated without the use of words.
Business and social relations are intertwined; an indirect,
polite communication style helps to avoid conflict and
protect relationships.
Most Filipinos dislike using the word "no" in direct
response to a request. This is a way to maintain a good
working relationship without causing anyone to suffer a
loss of face. When you hear a "yes" from a Filipino, be
sure to watch for cues that indicate whether the
affirmative answer is being said with enthusiasm or with
caution.
Filipinos often smile to hide unhappiness or nervousness,
so it is important to look beyond the smile to discover the
Establishing Credibility
Establishing credentials
In the Philippines, credibility is closely tied to the personal
relationships one is able to build. Reputation accompanies
relationships, and consequently the best method of
establishing credibility is to develop and foster relationships
with key people.
Using a "bridge" person (or "go-between") to arrange
introductions can greatly enhance a foreign businessperson's
credibility. This trusted third party may be a mutual friend, or a
bank or trading firm that is respected by each side. A bridge
person can be helpful throughout the building of business
relationships, and in maintaining relationships that are already
established.
Communicating credentials can also be done through a
bridge person. This person can communicate the foreign
businessperson's credentials subtly and in a manner
appropriate to the Philippine culture. Modesty is highly valued
in the Philippines, so communicating one's own credentials
may be seen as arrogant.
While in-person introductions from trusted third parties are
preferable, a call, a letter, or even a reference on a business
card may be acceptable in some cases.
Introductions to people at the highest possible level in an
organization can be key to establishing credibility. High-level
approval will often trickle down, providing the opportunity for
further discussions within the organization as a whole.
Making a good first impression
Modesty is an important characteristic in making a good first
impression and building relationships. In general, Filipinos do
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not respect individuals who oversell their credentials and
accomplishments. Many foreign businesspeople have earned a
reputation for arrogance. To overcome this perception, it can
be effective for foreign businesspeople to demonstrate humility
immediately.
For example, a businessperson who arrives in the Philippines
with the assurance that he or she knows the right way to get
things done, or the mindset that business should be conducted
in the Philippines as it is in his or her home country, will only
foster a sense of distrust and resistance among associates.
On the job
People in the Philippines tend to respect coworkers and
managers who work alongside each other, without a clear
emphasis of hierarchical differences. For example, a manager
can build credibility by working among the employee ranks to
demonstrate his/her intentions and expectations. See also:
Effective Leadership Styles
Such interactions are especially important for foreigners
working in the Philippines. Some have made the mistake of
separating themselves from their Filipino colleagues by
working primarily in their offices or by associating only with
other foreign businesspeople. This creates distance and
ultimately serves as an obstacle to establishing solid, trusted
relationships.
"Follow through" is another essential aspect of establishing
credibility for foreign businesspeople. Some Filipinos may wait
to see if foreign colleagues will honor commitments and follow
through on what they have promised. Failure to follow through
can greatly damage a businessperson's credibility.
Attitudes toward local culture/people
An open and receptive attitude is important in the Philippines.
Combined with a sense of humility, it can help foreign
businesspeople to build relationships with their Filipino
colleagues.
Since humility and modesty are highly-valued in the
Philippines, foreign businesspeople may occasionally feel as
though they are being placed on a pedestal. In this context, it
is particularly important for foreign businesspeople not to
respond to this humility with a sense of superiority. Careful
listening, close collaboration with Filipino colleagues, and
demonstrating respect for Filipino culture are effective methods
for building credibility. See also: Core Values — Group
Strategies
Invest time building relationships and establishing trust
with colleagues. Your credibility will be closely connected
with the strength of your relationships.
Introductions are best made by a trusted "bridge" person
— a mutual friend, bank, or trading firm. Use a bridge
person to convey your qualifications whenever possible.
Credibility is tied to relationships, especially those made
at the highest levels of an organization. Gaining approval
at a high level first will increase your credibility as you
subsequently arrange transaction details with different
levels of the organization.
Get introduced in person if possible. If face-to-face
interactions are not possible, a call, a letter, or even a
reference on a business card from a bridge person may be
acceptable in some cases.
Show humility in your first interactions with colleagues
and do not boast about accomplishments.
Work among your colleagues without emphasizing
hierarchical differences. If you are a manager, work
among the employee ranks and demonstrate your
intentions as well as your expectations.
Have a receptive and open attitude when forming
relationships with colleagues and subordinates. Do not
respond to Filipino modesty with a sense of superiority.
Show interest in and respect for the Filipino culture.
Follow through on all promises. Your tendency to honor or
fail to follow through on promises may be monitored and
will greatly impact your credibility.
Obtaining Information
Information sharing
In the Philippines, information, especially information that is
sensitive in nature, is often only shared between people with
established, trusting relationships. Many Filipinos feel that trust
is essential in order to believe that the information will be
handled sensitively and that its use will not reflect poorly on
the provider. Information perceived as negative or damaging
will often be closely guarded in order to prevent direct
Strategies
Build relationships and establish trust with people before
requesting sensitive information.
Establish credibility by demonstrating the behaviors and
attitudes worthy of trust from the outset.
If there has not been time to build strong relationships,
gain the endorsement of a trusted intermediary, or
"bridge," when seeking sensitive information.
Pay attention to nonverbal cues and the context in which
you are requesting information.
Learn to interpret the various meanings of silence or
reserved responses by a Filipino.
Persuading Others
Preferred style
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Preferred style
Although many organizational systems in the Philippines are
based on a hierarchical structure, sharing information and
negotiating with various levels in an organization is essential to
the persuasion process.
In many situations, Filipinos prefer to build internal consensus
among key players first. Asking for advice is one of the most
effective ways this is done. Successful persuaders often try to
learn as much as possible by asking questions such as "What
do you think we should do?" and "How can we best convince
others?" By collecting information and allowing key players to
present proposals to local colleagues, both formal and informal
communication structures are used effectively.
What to expect
In general, Filipino businesspeople may hesitate to participate
in high-risk decisions and major changes, especially if they are
not at the highest levels of an organization. Security within
one's designated role is often highly valued; changes or
proposals that push boundaries may be met with some
reluctance.
Consequently, persuading coworkers to support or adopt
proposals, particularly those involving changes in accepted
procedures, may require a substantial amount of finesse. See
also: Making Decisions
Strategies
Understand that in the Philippines, upper management
has traditionally been responsible for initiating and
implementing major organizational changes.
Build internal consensus by asking for advice from key
players.
Begin with minor recommendations and work up to more
major changes. Once a foreign businessperson has had
the opportunity to prove him/herself through the effective
implementation of incremental change, larger changes are
more likely to be accepted.
Open and clear communication is essential when
persuading others. Describe each situation and
recommendation in detail, and provide as much
information as possible.
Clearly explain expectations and predictions regarding
both outcome and the participation of colleagues.
It is best to adopt a two-pronged approach in which
Presenting Ideas
Preferred style
Style. In general, Filipino audiences respond well to highly
visual presentations and, to a certain extent, some
entertainment is also expected. High-tech presentations tend
to be very popular, as do presenters that use culturally
appropriate humor by incorporating stories and jokes to engage
the audience.
Substance. In addition to showmanship, solid facts and
reasoning are essential to an effective presentation. Actual
proof, as well as demonstrating the logic of proposals, should
not be neglected in favor of theatrical effects.
Once a decision has been made — usually by a top-ranking
individual in the organization — the ideas corresponding to that
decision are often readily accepted and implemented. However,
even though many final decisions may be made at the top of
the organization, it is still important for ideas to be regularly
presented to employees in lower-ranking positions for their
input. Presenters who build trust and credibility by sharing
ideas and keeping members of the team informed tend to be
more successful in building the consensus necessary to
champion new proposals and ideas.
What to expect
When hearing new ideas, Filipino businesspeople tend to be
most comfortable if they are given an opportunity to reflect on
what has been said without being pressured for an immediate
response or decision. Attempting to rush the decision-making
process will often not be effective.
Managing Meetings
Strategies
Distribute a meeting agenda and supplementary materials to meeting
participants ahead of time.
Confirm meeting times the day before and again the day
of the meeting.
Arrive promptly to show respect even if the meeting
ultimately starts late.
In both business and informal contexts, wait for your host
to seat you.
Begin meetings with a period of casual conversation about
topics such as sports and family. If asked questions you
consider to be overly personal, respond with humor.
If you are the senior representative on the hosting side,
make opening remarks that include thanks for previous
communications or efforts.
Allow enough time for a meeting to extend into a shared
meal.
Confirm beforehand the availability of equipment that you
will need to conduct the meeting or make a presentation.
Ask someone to provide you with the names and titles of
the people who will be present at the meeting so that you
can properly acknowledge and address them if you are
asked to make a speech. This is especially important when
meeting with government officials, who sometimes send
proxies to attend meetings.
Virtual Communication
Infrastructure
The Philippines telecommunications system has strong and
well-developed infrastructure. Mobile telephones are used
more commonly than fixed-line telephones. Internet access is
widespread, especially in urban areas.
Preferred modes of communication
Filipinos tend to be very personable people; they often prefer
to do business with people they know. For business
Key Points
Note that all forms of electronic communication are widely
accepted, including conference calls for international
business use.
Filipinos generally prefer face-to-face communication over
any kind of virtual or written communication.
Mobile phones and text messaging are popular.
Be aware that some Filipinos find the use of voicemail
awkward.
Do not rely solely on e-mail or other written
communication. It cannot take the place of meeting in
person.
Be careful to use appropriate titles in written
communication.
Avoid any style of writing that could be interpreted as too
direct or conveying anger. Filipinos generally dislike
conflict, and may not reply to a message that is too
harshly worded.
Conversation Topics
Appropriate topics
Casual conversation tends to be an important aspect of doing
business in the Philippines. Such conversations tend to be
friendly and personal in nature. See also: Communication
Styles
Before getting down to business, it is common to discuss topics
such as family, mutual acquaintances, local sights to see, and
general business observations.
Inappropriate topics
"Face" is an important factor in the Philippines, and people
tend to avoid saying anything that would embarrass another
person present, or cause them to lose face. Blunt comments
(even if truthful) are not appropriate in most settings and can
lead to profound setbacks in a relationship.
Topics best avoided include politics, local social and economic
conditions, foreign aid, religion, and corruption. If such topics
arise in conversation, it is usually advisable to be indirect and
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arise in conversation, it is usually advisable to be indirect and
nonjudgmental.
Advice
Appropriate topics
Family
Mutual acquaintances
Local tourist sights
General business topics
Inappropriate topics
Politics
Local social and economic conditions
Foreign aid
Religion
Corruption
Any topic that causes others to lose face; avoid making
blunt comments
Diversity variables
Regional and linguistic. The Philippines is made up of over
7000 islands and many Filipinos have a strong sense of
regionalism. Strong ties bind those who come from the same
province or those who speak the same dialect. They support
each other because they consider themselves as "brothers or
sisters."
In Metro Manila, businesses and settlements may be organized
in groups by people's area of origin, ethnic group, or language.
Although most Filipinos can converse in Tagalog (the basis of
the national Filipino language), the majority of Filipinos grow
up speaking other Malay-based dialects.
Group orientation
There are several concepts key to the culture of the Philippines
that emphasize the importance of the group.
Bayaníhan, or cooperation. Bayaníhan refers to the spirit of
community cooperation, working together for mutual benefit,
and giving assistance without compensation. This concept also
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and giving assistance without compensation. This concept also
applies to business organizations. This spirit of cooperation can
be highly effective, invoking great effort from both work
groups and teams.
Pakikisáma, or comradeship. Pakikisáma refers to the
bonding process which leads to the building of harmonious
interpersonal relationships, the ability to get along with others,
and group obligation. This concept sometimes requires an
individual to sacrifice as necessary for the welfare of the
family, community, or business group. In the business context,
pakikisáma may be used by a group of employees to win the vote of a
dissenter in a decision. On the other hand, because of the importance of
pakikisáma in the culture, there may be hard feelings if an individual separates
him- or herself from the group by standing out in any way.
Relationships
Pakikirámay, or sympathy. Particularly in the course of
establishing relationships in the Philippines, foreign
businesspeople can build strong relationships through their
pakikirámay for others. This concept translates roughly into
demonstrating sympathy or helpfulness for others — going out
of one's way to assist without being asked.
Acceptance of fate
In the Philippines, success and failure are often attributed to
fate. For example, bahala na, roughly translated as "God wills
it" or "accept what comes" is a common Tagalog expression.
Other common phrases convey the sense that "it can't be
helped" or "it was my fate."
Implications
Be aware that the Philippines is a very diverse country;
communities are often organized by people's area of
origin, ethnic or linguistic group. Filipinos may feel
strongly connected to others in their group.
The group is typically valued above the individual in
Philippine culture, and cooperation, community, harmony,
and reciprocity can be effective approaches in many
aspects of business.
Be aware that relationships come with obligations. If a
colleague does a favor for you, you will often be expected
to return the favor in the future.
Protect the "face" of yourself and others when working in
the Philippines. Causing a loss of face can cause serious
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the Philippines. Causing a loss of face can cause serious
damage to a relationship.
Use "bridges" to gain introductions and to help navigate
complex situations in the Philippines. Bridges can help
protect people's face and self-respect in many situations.
Understand the lines of authority in your work group and
demonstrate proper respect for those at the top of the
hierarchy.
Demonstrate sympathy to colleagues. An empathetic
demeanor will help you build and maintain relationships.
Be aware that many people in the Philippines have an
acceptance of fate and may not feel that all situations are
within their control.
Business Protocol
Greetings
Greetings
Handshakes are the typical greetings among business
associates in the Philippines. People typically shake hands upon
introduction and at subsequent meetings. However, it is best to
wait to shake a Filipino woman's hand until she first offers it.
Filipinas generally greet each other with a kiss on each cheek.
A common form of greeting among Filipinos is to raise one's
eyebrows and then let them fall as eye contact is made. This
nonverbal greeting is usually accompanied by a smile, or
between men, a handshake.
Names & titles
Names in the Philippines are generally constructed as follows:
first name, mother's maiden name, followed by father's
surname. Many Filipinos have nicknames, but it is best for
foreign businesspeople to use their counterparts' surnames
until permission has been given to use first or nicknames.
Once permission has been given to use nicknames, it can be a
good idea for the foreign colleague to reciprocate by providing
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a shortened form of his/her own name.
Titles. In business and formal settings, many people use titles
professional designations, such as Professor Bautista or
Engineer Delgado. Foreign businesspeople should address
counterparts with a title and their surname. If the person does
not have a title, Mr., Mrs., or Miss followed by their surname
should be used.
Hierarchical distinctions. There is generally a distinction in
forms of address between superior or subordinate
relationships. Typically superiors may be addressed as "Sir" or
"Ma'am." The wife of an important person is sometimes
addressed as Mrs., followed by her husband's title (e.g., Mrs.
Mayor).
Advice
Shake hands when greeting; wait for a woman to extend
her hand first. Women may greet each other with a kiss
on each cheek.
Eyebrows are often raised in greeting, accompanying the
handshake or a smile.
Address most people with a professional or an honorary
title and their surname. If they do not have a professional
title, use "Mr.," "Mrs.," or "Miss" and their surname.
Avoid using nicknames and first names until you have
been invited to do so; respond by offering your own.
Address your superiors as "Sir" or "Ma'am."
Business Cards
Card exchange
The exchange of business cards is less ceremonial in the
Philippines than in many other nations. Cards may be offered
at the beginning or end of a meeting.
On occasion, Filipino businesspeople may choose to write their
home or mobile telephone number on their card. This is
considered a sincere invitation to call them at home.
Advice
Business cards are exchanged regularly, but there is no
special ceremony for their exchange. It is advised to carry
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cards with you regularly.
Filipinos who write their home or mobile phone number on
their card are sincere. Do not hesitate to call that person.
Gifts
Local norms
It is common to give gifts in the Philippines, but the ceremony
of gift giving is less formal than in many other Asian countries.
Christmas is an important holiday in the Philippines. At
Christmas time, it is customary for business colleagues to
exchange token gifts. Attention is often paid to differences in
rank and status. This includes employees, service personnel,
and any of the intermediate contacts who assist with business
interactions (e.g., a customer's secretary).
Appropriate gifts
For business associates, the following gifts are appropriate:
An item related to one's home country
A nice pen
Stationary or other items with the organization's logo
Flowers and food are common gifts when visiting someone's
home.
Inappropriate gifts
It is best to avoid bringing alcohol or a substantial dish to
someone's home, as this implies they may not be capable of
providing an adequate meal or refreshment.
Gift-exchange protocol
Gifts are often not opened in front of the giver. The focus is not
on the gift itself but on the thought behind the gift.
Thank-you notes are appreciated after a dinner at someone's
home. A small thank-you gift is also acceptable in this situation.
Advice
While gift giving is important in Filipino business, the
ceremony of gift giving is less formal than in many other
Asian countries.
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Christmas giving is customary for nearly everyone with
whom you do business, but pay attention to differences in
rank and status.
Gifts are often not opened in front of the giver.
Flowers and food are common gifts to bring when you are
invited to someone's home; however, avoid bringing
alcohol or a substantial food dish to someone's home.
Business Hours
Key Points
The standard Philippine workweek is officially 48 hours,
extending from Monday through Saturday.
Official business hours extend from 8:00 to 17:00 (5 pm),
Monday through Friday. Some offices are open Saturday
mornings from 8:00 to 12:00.
Many businesses close between 12:00 and 13:00 (1 pm)
for lunch; however, managers and executives may take
up to two hours for lunch.
Business Attire
Advice
Business attire tends to be somewhat casual. Business
jackets are not always worn at the office.
As a foreigner, dress conservatively at first.
On "casual Fridays," employees may wear denim pants
and sport shirts; however, shorts, sleeveless t-shirts, and
flip-flops are not appropriate.
Men and women may wear more formal outfits to business
meetings. Follow your host's lead before removing a
jacket.
Even outside the office, Filipinos generally refrain from
wearing very short shorts or skirts and tops that are too
revealing, and it is best to follow suit.
Scheduling appointments
In the Philippines, a trusted "bridge" person is often used to
help make introductions for newcomers. When trying to set up
an initial meeting with a new business contact, a bridge person
can provide a letter of introduction for the foreign
businessperson. This can be very helpful in securing the
appointment.
Appointments are typically made well before the desired
appointment date, sometimes up to one month in advance.
Appointments are usually confirmed one to two days in
advance and again on the day of the appointment, particularly
when the meeting is with a government employee or top
executive.
Senior-level executives in the Philippines often have a secretary
or executive assistant who controls the executive's calendar. A
friendly and courteous relationship with a secretary or assistant
can be very valuable when trying to connect with these
individuals.
Particularly for those calling from overseas, initial contact will
often be made with a secretary who is largely in charge of
screening unwanted calls. In order to avoid being screened, it
is important for foreign businesspeople to identify not only
themselves but also the name of the person making the
referral. This connection, or reference to a pre-existing
relationship, will assist greatly in the efforts to connect with the
right person.
Advice
Make appointments well ahead of time, up to a month in
advance.
Confirm both a day or two before and the day of your
appointment.
Gain introductions through a trusted bridge person.
Use a good reference to arrange your appointment, and
bring a letter of introduction from your reference.
Cultivate good relations with secretaries or executive
assistants.
When arranging a first appointment through a secretary,
identify not only yourself, but also the person referring
you.
Entertaining
Food is an important part of relationship building in the
Philippines, as dining together is a natural setting for building
rapport and getting to know associates. In this context, it is
customary to celebrate the closure of a business deal by
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customary to celebrate the closure of a business deal by
inviting business partners out for a meal.
Etiquette
When invited out to dinner, it is important to express pleasure
and appreciation for the meal. The person who issues the
invitation pays the bill.
Visiting someone's home
It is also common for Filipino businesspeople to invite their
colleagues and business associates to their homes. These
gatherings may also include other people, including aunts,
uncles, cousins, and other family members. Guests often bring
a small gift for the hosts, such as a bouquet of flowers or
chocolates. It is also a sign of good manners for a guest to
send a thank-you note for the hospitality.
As in many countries, Filipino families of secure financial
means often employ household help. In these instances, it is
often the household employees that will prepare the meal for
large gatherings.
Advice
Use business dining as a means of reinforcing
relationships with your counterparts.
Celebrate closing a business deal by inviting your business
partners out for a meal.
If you issue the invitation, make sure you are the one who
pays the bill.
If you are invited out to dinner, express pleasure and
appreciation for the meal.
If you are invited to a Filipino home, be prepared for it to
be a somewhat large gathering including members of your
host's extended family.
Bring a gift when visiting someone's home. Flowers,
candy, or chocolates are appropriate gifts. Express your
appreciation for the hospitality by sending a thank-you
note.
Tipping
Advice
Even when a restaurant bill includes a service charge,
leave an extra gratuity.
Porters, taxi drivers, beauticians, swimming pool
attendants, and similar service providers will expect a tip.
In most cases, ten percent or more is an acceptable tip.
Conversation Topics
Appropriate topics
Casual conversation tends to be an important aspect of doing
business in the Philippines. Such conversations tend to be
friendly and personal in nature. See also: Communication
Styles
Before getting down to business, it is common to discuss topics
such as family, mutual acquaintances, local sights to see, and
general business observations.
Inappropriate topics
"Face" is an important factor in the Philippines, and people
tend to avoid saying anything that would embarrass another
person present, or cause them to lose face. Blunt comments
(even if truthful) are not appropriate in most settings and can
lead to profound setbacks in a relationship.
Topics best avoided include politics, local social and economic
conditions, foreign aid, religion, and corruption. If such topics
arise in conversation, it is usually advisable to be indirect and
nonjudgmental.
Advice
Strategies
Filipinos tend to be accepting, welcoming, and hospitable
toward foreigners.
Some foreigners, particularly Caucasians, should be
aware that some Filipinos believe they are exceptionally
wealthy, and misunderstandings can result from this
perception.
As a visiting foreign businessperson, be receptive, open,
and humble when approaching your Filipino counterparts.
Beware of appearing arrogant or overly confident in
business and social settings.
Status of business
Successful businesspeople in the Philippines enjoy respect from
the community, and the opinions of business leaders are highly
regarded by the government and the private sector. Business
and politics are often tied together in Philippine society, and
corporate social responsibility is an important area for
businesses people who wish to gain recognition in society.
High salaries and prestigious business positions are status
symbols in the Philippines. The younger generation of Filipino
businesspeople is also often more impressed with people who
have achieved wealth through hard work than those who have
inherited wealth.
Attitudes toward work
Filipinos are typically hardworking people and fast learners who
are generally pleasant to work with. For many people,
economic circumstances force Filipinos to work hard not just to
support their immediate families, but also to support other
relatives. Much of the workforce has a "work-to-live" attitude,
meaning they are satisfied if a job enables a good quality of life
and provides a pleasant working atmosphere and camaraderie
with coworkers.
Key Points
Top business executives are accorded high regard in the
Philippine society.
Corporate social responsibility should be given high
priority by businesses in the country.
Filipinos are typically hard workers who appreciate a nice
work environment with a strong sense of community
among colleagues.
High salaries and titles are status symbols, although other
perks may be equally, if not more, important to
employees.
Those with high-level positions are sometimes expected
to demonstrate their accompanying wealth through
owning a nice car, gadgets, clothing, accessories, etc.
Women in Business
Strategies
Relationship building is the key to effectiveness in most
business interactions.
Foreign businesswomen are advised to avoid conflict if
confronted with macho attitudes in the workplace; it is
best to let the behavior pass without reacting.
Women are highly respected in the Philippines, and
foreign businessmen should avoid any condescending
attitudes toward Filipino women, or any suggestion that
they prefer to discuss matters with male counterparts first.
Female colleagues should not be expected to entertain
foreign visitors with after-dinner drinks or at clubs.
Unchaperoned out-of-town trips with local female
colleagues are likewise taboo and should not be suggested.
Business Ethics
Perception of corruption
According to the Corruption Perceptions Index compiled by
Transparency International in 2016, business in the Philippines
is significantly affected by corruption. On a scale of 1-100,
(with 100 being a country with no corrupt influences), the
Philippines scored 35.
Attitudes toward corruption
Traditionally, businesses in the Philippines have been
somewhat resigned to corrupt practices, mainly because it is
often difficult to know for sure at what level corruption starts
or ends. Some businesses do not wish to damage existing
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or ends. Some businesses do not wish to damage existing
relationships with the government if a decades-old process is
challenged or questioned. However, with the rise in popularity
and influence of social media, it is now easier for average
citizens to expose corrupt practices they witness. The media,
general public, and government are focused on stopping
high-level corruption. In recent years, processes have become
more transparent than in the past.
Forms of corruption
Although the situation has improved, "creative" business
practices are still somewhat common. This is especially true
when dealing with branches of government where salaries are
legislated and are often quite low when compared with the
private sector.
Lagay is a term sometimes described as "persuasive
communication" although it typically refers to a payment of
some sort to expedite a process. Lagay does not officially exist.
Publicly, it is vehemently declared immoral and it is technically
illegal.
In reality, kickbacks, commissions, and "rebates" are often
required by middlemen, frequently called "influence peddlers."
There are many opinions regarding the best way to navigate
these complex situations. Foreign businesspeople often
approach each situation on a case-by-case basis, and work to
cultivate their own connections within the influence "system."
See also: Building Relationships
Advice
Be aware that kickbacks, commissions, "rebates," and
other forms of "lagay" are sometimes required by
middlemen, frequently called "influence peddlers."
Expect delays in the processing of licenses or permits due
to the "lagay" system. Time frames for processing
documents published on websites are almost always
best-case scenarios, so be prepared to make the
necessary schedule adjustments.
Establishing relationships with people at offices you
frequently deal with can be beneficial. Much business is
done through relationships in the Philippines.
Always ask your colleagues for assurance that all
transactions are legal and follow proper procedures.
When you sense that a person or entity is unreasonably
delaying a process, do not attempt to confront that
person. Seek the assistance of a local to mediate and
Legal status
In the Philippines, same-sex sexual relations are legal in
private. However, certain acts and displays of affection in
public may be subject to arrest. For example, in Marawi City,
men are forbidden to cross dress or to exhibit "feminine
behaviors."
Same-sex marriage is not legally recognized in the Philippines,
and homosexual couples do not have the right to become
joint-adoptive parents. Same-sex couples, however, do have
the right to legally step-adopt one partner's children.
Discrimination
There are no national antidiscrimination laws protecting gays
and lesbians. However, in 2013, a bill that would ban
discrimination against LGBT individuals was introduced in the
House of Representatives. (It should be noted that
antidiscrimination bills have been introduced before, but never
passed into law.) While there are no national protections, many
regions of the country including Quezon City, Cebu City, and
Albay province have their own ordinances prohibiting
discrimination against LGBT individuals.
A high number of serious hate crimes have been committed
against gays and lesbians. According to a human-rights report,
from 1996 to 2012, a total of 163 LGBT individuals were
murdered. In addition, the same report accuses the Philippine
state of "inciting homophobia." Speaking about HIV in 2012,
the Filipino secretary of health said that "parents should rein in
their homosexual children and get them tested." There are
reports of gay and lesbian children being bullied and physically
abused.
Societal attitudes
The Philippines is a predominantly Catholic country, and the
church exerts great influence in shaping somewhat socially
conservative attitudes. Despite being a matriarchal society,
Copyright © 2018 Aperian Global. All Rights Reserved Page 31 of 51
somewhat "macho" culture is also common throughout the
country.
Nevertheless, the Philippines has a thriving gay scene,
especially in Manila, where the pride parade — Asia's oldest —
has drawn as many as 1,500 participants. The country's very
popular talk-show host, Boy Abunda, is openly gay, and the
Philippines has the world's only "dedicated gay political party,"
Ladlad. The party's chairperson says that in general, Filipinos
have a "passive tolerance" for gays and lesbians. As long as
traditional family hierarchies are not challenged, many say,
LGBTs usually find acceptance in Philippine society. While much
progress has been made, many people in the LGBT community
prefer not to openly defy established cultural norms.
Note: The abbreviation LGBT stands for Lesbian, Gay, Bisexual, Transgender.
Advice
Homosexuality has long been legal in the country.
However, discretion is recommended in public, where
certain acts/displays of affection are prohibited.
There is no same-sex marriage in the Philippines, nor do
homosexual couples have the right to become adoptive
parents.
There are no national antidiscrimination laws that protect
members of the LGBT community, though many localities
have antidiscrimination ordinances.
LGBT individuals are generally accepted by Filipinos.
However, one should avoid challenging traditional cultural
institutions relating to family and the Catholic Church.
Ethnic Demographics
Ethnic groups
Tagalog 30%
Cebuano 24%
Ilocano 10%
Copyright © 2018 Aperian Global. All Rights Reserved Page 32 of 51
Ilocano 10%
Chinese 10%
Hiligaynon Ilonggo 9%
Bikol 6%
Waray 4%
Other 7% (2004 estimate)
Source: Philippines Statistics Authority
Literacy rate
Definition: age 15 and over can read and write
Total population: 96.3%
Male: 95.8%
Female: 96.8% (2008 est.)
Population
100,998,376 (2015 est.)
Source: The World Factbook
Language
Religion
Government structure
The Philippines is a constitutional republic. The President is
both chief of state and head of government, and is elected to a
six-year term. See also: History
The Philippines has a bicameral congress (Kongreso),
consisting of the Senate (Senado) and the House of
Representatives (Kapulungan Ng Mga Kinatawan). The Senate
has 24 seats. One-half are elected every three years with
six-year terms. The House of Representatives has 212
members representing districts plus 24 sectoral party-list
members, elected for three-year terms. The Philippine
Constitution restricts the House of Representatives to fewer
than 250 members.
Key Points
The Philippines is a constitutional republic.
The president is the chief of state and head of
government.
The Congress (Kongreso) has a Senate (Senado) and
House of Representatives (Kapulungan Ng Mga
Kinatawan).
Degree of influence
The trend in the Philippines has been toward economic growth
benefiting a larger percentage of the population, support of
general business development, the elimination of monopolies,
Key Points
The Philippine government has become increasingly
supportive of economic growth and general business
development.
Governmental bureaucracy can still require complex
transactions, which should be handled by a local
employee, sometimes someone hired specifically for the
purpose.
If you are a non-Philippine, do not try to handle the
government bureaucracy by yourself; to do so may in fact
hinder success.
History
Copyright © 2018 Aperian Global. All Rights Reserved Page 35 of 51
History
Capital
Manila
Location
The Philippines is located in
southeastern Asia. It is an
archipelago between the
Philippine Sea and the South
China Sea, east of Vietnam.
Total Area
300,000 sq. km
Land: 298,170 sq. km
Water: 1,830 sq. km
Climate
The Philippines has a tropical marine climate. The northeast
monsoon lasts from November to April, and the southeast
monsoon lasts from May to October.
[Source: The World Factbook]
Holidays
January 2,
Public Sector Holiday Government
2018
February 16,
Chinese Lunar New Year
2018
March 30,
Good Friday (Biyernes Santo)
2018
March 31,
Black Saturday
2018
August 21,
Eid'l Adha
2018
August 21,
Ninoy Aquino Day
2018
November 2,
Additional Public Holiday
2018
December
Additional Public Holiday
24, 2018
December
Christmas Day (Pasko)
25, 2018
December
Rizal Day (Araw ni Rizal)
30, 2018
Safety
Money
Passport/Visa
Health
Legal status
In the Philippines, same-sex sexual relations are legal in
private. However, certain acts and displays of affection in
public may be subject to arrest. For example, in Marawi City,
men are forbidden to cross dress or to exhibit "feminine
behaviors."
Same-sex marriage is not legally recognized in the Philippines,
and homosexual couples do not have the right to become
joint-adoptive parents. Same-sex couples, however, do have
the right to legally step-adopt one partner's children.
Discrimination
There are no national antidiscrimination laws protecting gays
and lesbians. However, in 2013, a bill that would ban
discrimination against LGBT individuals was introduced in the
House of Representatives. (It should be noted that
antidiscrimination bills have been introduced before, but never
passed into law.) While there are no national protections, many
regions of the country including Quezon City, Cebu City, and
Albay province have their own ordinances prohibiting
discrimination against LGBT individuals.
A high number of serious hate crimes have been committed
against gays and lesbians. According to a human-rights report,
from 1996 to 2012, a total of 163 LGBT individuals were
murdered. In addition, the same report accuses the Philippine
state of "inciting homophobia." Speaking about HIV in 2012,
the Filipino secretary of health said that "parents should rein in
their homosexual children and get them tested." There are
reports of gay and lesbian children being bullied and physically
abused.
Societal attitudes
The Philippines is a predominantly Catholic country, and the
church exerts great influence in shaping somewhat socially
conservative attitudes. Despite being a matriarchal society,
somewhat "macho" culture is also common throughout the
country.
Nevertheless, the Philippines has a thriving gay scene,
especially in Manila, where the pride parade — Asia's oldest —
Copyright © 2018 Aperian Global. All Rights Reserved Page 49 of 51
has drawn as many as 1,500 participants. The country's very
popular talk-show host, Boy Abunda, is openly gay, and the
Philippines has the world's only "dedicated gay political party,"
Ladlad. The party's chairperson says that in general, Filipinos
have a "passive tolerance" for gays and lesbians. As long as
traditional family hierarchies are not challenged, many say,
LGBTs usually find acceptance in Philippine society. While much
progress has been made, many people in the LGBT community
prefer not to openly defy established cultural norms.
Note: The abbreviation LGBT stands for Lesbian, Gay, Bisexual, Transgender.
Advice
Homosexuality has long been legal in the country.
However, discretion is recommended in public, where
certain acts/displays of affection are prohibited.
There is no same-sex marriage in the Philippines, nor do
homosexual couples have the right to become adoptive
parents.
There are no national antidiscrimination laws that protect
members of the LGBT community, though many localities
have antidiscrimination ordinances.
LGBT individuals are generally accepted by Filipinos.
However, one should avoid challenging traditional cultural
institutions relating to family and the Catholic Church.
Electricity
Voltage: 220 V
Frequency: 60 Hz
Plugs: Type A North American/Japanese plug with two flat
blades, the Type B American plug with two flat blades and a
round grounding pin, or the Type C European-style two round
pin plugs
Common Titles