QUERY: “How can the law have any place in a society that is not rule-based?”

Rules or relationships.

Where is the emphasis placed in your culture? Which is valued more?

Identifying where your values lie will tell you whether you’ve grown up in a relationship-based culture or a rule-based culture.

Once you discover what grounds you, you may wonder how these values impact the mechanics of your culture and your own decision-making and moral perspective.

Let’s take a look.

A Query in Context

I recently received an email query about rule-based versus relationship-based cultures.

The anonymous author wrote:

“I’m a lawyer in the USA, and I tend to be more black/white and rule-based. I’ve encountered attorneys and judges that don’t seem to care about the rules (aka the law) and it can be frustrating…

When I think about it, how can the law have any place in a society that is not rule-based? Your example of lying to protect your friend from criminal prosecution for killing someone in a school zone by speeding in a relationship-based society flaunts the law. It supports the whims of men, which may change from time to time much faster than the law. It destroys expectations…

How can I plan for the future when some bureaucrat may decide the law doesn’t apply to my adversary, contract counterparty, tortfeasor, etc? It supports dishonesty and bribery, as is common, at least more overtly, in the rest of the world.

What about judicial and lawyer ethics codes? How can those matter if you live in a non-rule-based society? It’s OK that I lied to the court to protect my client/brother? Really? That can’t be ‘right.’ Moral relativism must have a stopping point…”

Let’s see if we can clear a few of these questions up.

Rule of Law in Culture

The post anonymous is referring to is Rule of Law in Culture: Are Laws More Important Than Relationships?

It describes a study in which U.S. and Venezuelan managers were surveyed about the hypothetical scenario described.

U.S. participants more heavily leaned toward testifying against their friend who broke the law, while two thirds of Venezuelan managers said they would lie in their testimony to cover for the friend.

The scenario illustrates where each cultures values lie.

But just because a culture prioritizes relationships over rules does not mean the rules don’t exist or apply.

All societies have rules. Sometimes those rules are relationship-based, as described in my post, Relationship- vs. Rule-Based Cultures: Socially-Based Control vs. Individual Autonomy.

The post illustrates how the Shona society is ruled by a hierarchy based on familial relationships. It’s a fundamental part of their culture.

Unlike some cultures, where laws strive to be objective, the laws of the Shona society are shaped by relationships. Still, the rules exist.

This is just one example, but perhaps the misunderstanding is in what these two terms mean.

What “Rule-based” and “Relationship-based” Truly Means

Do the terms “rule-based” and “relationship-based” imply there are no rules (and no application of these rules) in the latter and no relationships in the former?

No.

It’s a matter of priority – i.e. do you break rules because of relations, or do you stick to rules, despite harming your relationships?

In rule-based cultures, an individual’s priority is, more often than not, on the law, while in relationship-based cultures, relationships take priority.

This does not mean there is no place for rule of law in relationship-based cultures. In regard to the study example, it wasn’t that the law or the legal system, the lawyer or the judge, was prioritizing relationships; it was the witness – an individual in the relationship-based society – prioritizing them.

The example about lying to protect your friend from criminal prosecution was not to indicate whether doing so is “right” or “wrong.” As we’ve also discussed in this blog, one culture’s “right” is always another one’s “wrong,” and such ideologies are shaped by primary socialization.

Anonymous questions this, writing, “Moral relativism must have a stopping point.” 

In other posts, we’ve described this stopping point. We’ve outlined what active tolerance is, how to accept conflicting cultural values, and when to personally arrive at this “stopping point” when working cross-culturally.

You might choose to draw the line of moral relativism at harm, as described in our post: “tolerance ends where harm begins.”

In this instance, your stopping point might be that your friend should be in prison. Or it might be that your friend’s life and your shared relationship is more important.

Whether or not valuing relationships over rules “flaunts the law” or is unethical is both for the society to decide and for you – on a personal level – to decide.

Prioritizing Relationships Over Rules

In a cross-cultural sense, understanding the rationale behind another culture’s priorities is the best you can do to make that decision for yourself and know where you draw the line.

To see the logic, you must empathize and understand the mechanics of the culture, which are based on the values it upholds.

Once you achieve that understanding, it’s easy to see why those who value relationships might wish to support the relationship over the law. 

Cultural Differences in Business Communication,” by John Hooker, describes exactly why one’s priority might lie with the relationship:

“In relationship-based cultures, the unit of human existence is larger than the individual, perhaps encompassing the extended family or the village. Ostracism from the group is almost a form of death, because one does not exist apart from one’s relatedness to others.”

If you’re part of a clock, do you remove the minute hand?

No.

Just as every part in a clock has a relationship to the other parts, so do the people in a relationship-based society.

When destroying that relationship means death, you’d agree that even the law is less important.

As with Victor Hugo’s Les Miserable, the concept of flaunting the law – stealing bread rather than letting your family starve to death – brings that idea to the fore.

What would you do? Is what you’d do “right” or “wrong”? And how does your choice reflect your values?

Prioritizing Rules Over Relationships

And, in the other vein, you can understand why those cultures who value rules might stand by the law instead of the relationship.

Rule-based cultures are usually individualist and don’t have the same level of relationship connectedness as collectivist, relationship-based cultures.

Because of this, the mechanics of the society don’t work the same.

You might remove and replace the minute hand of the clock, because it kept getting stuck.

Just as you might testify as a witness against your speeding friend, as you believe him to be a danger to society.

More importantly, your rule-based society won’t ostracize you for telling the truth, because most view justice in the same way as you do; in fact, you’ll likely even be praised for putting the rule of law over your relationship, as this is a difficult decision to face.

In both societies, rules exist. But the individual chooses where to place their loyalty, which is all based on cultural conditioning and the reciprocal relationships between individuals in a culture.

Whether or not anonymous (or anyone in a rule-based society) believes putting relationships over rules is unjustified or unethical, this doesn’t necessarily mean doing so is “wrong” or there isn’t logic and reason in such societies.

What is the Point of Law?

Anonymous ends with the question,

“So what is the point of law and lawyers in non-rule-based societies? How does it work? Is it more about manipulation, sales, and gamesmanship than seeking objective truth?”

There are benefits and costs to both types of governance.

John Shuhe Li’s article, entitled “The Benefits and Costs of Relation-based Governance: An Explanation of the East Asian Miracle and Crisis,” provides some examples of these costs/benefits.

Li first emphasizes that agreements can only be enforced through rules or relationships. If neither exist, governance resorts to violence.

Li then outlines the benefits of relationship-based governance compared to rule-based governance, writing:

“When relation-based governance works, given two transaction partners, it can enforce all mutually observable agreements (by the two parties). When one party deviates from a mutually observable agreement, the other party can punish the deviator by playing (for example) tit-for-tat strategies. In contrast, given two transaction partners, rule-based governance can only enforce a subset of the mutually observable agreements that can also be observed by third parties. Thus, perhaps a large part of monitored-activities, which are mutually observable by the monitor and the monitee but are not verifiable by a third party can be enforced by relation-based governance, but not by rule-based governance.”

He also describes how a small relationship-based market can lower transaction costs over the larger fixed cost in a rule-based market. There are some limitations in this, however, including the small number of partners one can force relations agreements with. 

Rule-based governance has its benefits, as well.

Li writes,

“In contrast, there exist economies of scale in rule-based governance; thus a firm can resort to rule-based governance to enforce contracts (impersonal agreements) with an unlimited number of partners, including strangers.”

The activity coordination of the transaction parties can result in the sharing of more technical information (information not directly related to enforcement) in relation-based governance, which is another advantage. Moreover, without all the bureaucracy, renegotiations in relation-based governance can be less costly.

Lastly, when it comes to business, the fact remains that some economies are catching-up economies and can’t rely on rule-based governance.

Li writes,

“In catching-up economies…relation-based governance is the only available mechanism to enforce agreements. Thus, investing in relations can be profitable and rational, especially in developing countries.”

While this refers to business rather than criminal law, you can see that there is a point of law and lawyers in relationship-based societies; the rules simply lean more heavily into relying on relationships to enforce the rules of an agreement and keeping relationships on good terms.

And across cultures, those terms vary.

Contracts in China: How Relationship-Based Cultures View Contractual Obligations

When you do business in China, you may come across a common contractual clause.

This clause stipulates that if issues arise, the contracted parties will discuss them and the contract may potentially be redrafted.

China is a relationship-based culture.

Someone from a rule-based culture, like most Western societies, will likely take issue with this clause.

Contracts are supposed to be black-and-white. They are supposed to be unambiguous. They are supposed to regulate specifically every aspect of the business relationship.

Contracts exist to effectively end the negotiation stage and begin working together.

The clause makes it clear that the contractual agreement may be renegotiated at any time. That means, for instance, when the parties do face a dispute, it might not go to court in the city in which the contract stipulates, but rather in a city court where the established law may work in the other party’s favor.

So, why even negotiate a contract in China? If it’s so ambiguous, what does the contract stand for?

Relationship-based Values vs. Rule-based Values

The relationship-based culture of China values a mutually beneficial and respectful business relationship. The contract is symbolic as such.

The contract signifies that personal relationships exist amongst the parties, therefore future disagreements may be negotiated.

While in Western cultures, a signed contract might mark the end of the negotiation process, in China – and in other relationship-based cultures – it marks the beginning.

You might think you’ve nailed down prices, but even those can be renegotiated days or weeks after signing.

Although those from Western cultures might see such a contract as pointless, its signing is still very important in relationship-based cultures.

In fact, it’s so important, that a contract signed with a Chinese company traditionally involves a luncheon or ceremony when making it official.

As soon as a contract is signed, it signifies that the two parties – especially the leaders – are publicly friends and will be respectful of their business relationship.

Relationships-to-Home Life

Relationship-based societies also view work life and personal life as inseparable to the point that “personal relations” and “business relations” are concepts that don’t exist in these societies.

That’s because company rules are dominated by relationships, particularly if an employee’s in-group is their family or tribe.

This means that if you have a conflict with an employee, it can often extend to a conflict with his/her family, kin, or any other member of his/her in-group.

Next week, we’ll discuss how this situation might manifest, along with other conflicts that crop up in business in relationship-based cultures.

The Do’s & Don’ts of Cross-Cultural Management: Unite

Imagine someone from another country was brought in to manage your office.

This manager, instead of adapting to your culture, tries to impose his own.

He enforces rules in the office that make no sense to you; rules which go against your values and norms.

How would you respond to this management style? Would you conform or rebel against it?

Last week, we talked about how social control is exercised through relationships in relationship-based cultures and how rule-based cultures believe in individual autonomy.

This week, we’ll discuss how a little understanding about these cultural intricacies goes a long way in business management.

Rules of Engagement

Successful cross-cultural managers know the do’s and don’ts of cross-cultural environments. Below are the basics.

Do:

Don’t:

  • Divide
  • Try to alter cultural values/norms
  • Be inconsiderate about cultural differences
  • Confront colleagues about these differences
  • Press upon touchy subjects

As with the scenario mentioned in the intro, when you are the monkey, you’re entering a culture as an outsider. Your focus shouldn’t be on magnifying your differences, but rather, trying to understand them. 

Uniting, not dividing.

Just as in the intro scenario, place yourself in the shoes of the worker being managed.

When confronted with a culturally insensitive manager, you wouldn’t appreciate some outsider coming in to change things that have been done a certain way for many years.

Maybe even hundreds or thousands of years.

Step 1 of Uniting: Win Over the Leaders

In a relationship-based society, you manage groups, not individuals.

But that does not mean there aren’t important individuals amongst these groups.

To win over the group, you must win over the leader.

So, the first step is to identify the leader(s).

Next, you must build up your relationships with that leader.

By zeroing in on the important person(s), establishing a relationship with him/her, and cultivating that relationship, you’re essentially doing the same with the entire group in a relationship-based culture. The person(s) at the top of the hierarchy is the most respected and influential.

It’s pretty simple: win over the leaders, and you win the followers.

You can do this by:

  1. Winning their trust
  2. Winning their respect
  3. Motivating them
  4. Inspiring them

We’ll talk more about dealing cross-culturally in relationship-based cultures next week.

Relationship- vs. Rule-Based Cultures: Socially-Based Control vs. Individual Autonomy

Imagine living in a culture where the village and the individual are one and the same.

That’s how the Bantu cultures of sub-Saharan Africa see things: an individual’s welfare is dependent on the village’s and vice versa.

One example of the way this manifests in the culture’s social norms is in their greeting.

The Shona people greet others with Maswere sei (“How is your day?”).

The response is Ndiswera maswerawo (“My day is OK if yours is.”).

Relationships are a fundamental part of the culture, so social control is exercised through relationships.

Last week, we talked about how cultures differ in their views of rules and relationships.

In the Shona society, certain relative figureheads are in authoritarian roles over subordinates in the family. Wives are subordinate to husbands, children to parents, younger siblings to older siblings, and all to the village elders.

The culture sees this subordination as natural. Subordinates don’t buck against the hierarchy, because it is the way of life, and the society’s baobab roots are formed and interconnected by relationships.

In contrast, rule-based cultures don’t see rules and relationships this way.

Human Beings as Autonomous Individuals

Rule-based societies view human beings as autonomous (i.e. having no natural authority over others).

As we saw in last week’s post, the authority in such cultures is rather embodied in the rules – rules that are applied to everyone.

This Western cultural concept can be traced back to God and the Ten Commandments.

God is seen as a lawmaker. He governs using universal rule of law.

The Greeks also influenced the West’s rule-based values, as they saw individuals as generally rational and rules as generally logical.

This idea is the basis of “homo economicus,” a principle in which a prosperous society is based on a logical and rational people.

It follows then that, in rule-based cultures, management and behavior is based upon the culture’s respect for rules.

Both cultural types have rules, but they differ in their relation to these rules in two ways:

  • In relationship-based cultures, the authority of rules is directly related to the authority of the person who lays down the law, while in rule-based cultures, rules are respected for their sake.
  • Moreover, in relationship-based cultures, supervision and shame ensure compliance with rules, while in rule-based cultures, fear of punishment and guilt are used for the same.

How This Difference Affects Business Relations

These complex differences can sew distrust between business partners.

Each culture views their own perspective on rules and relationships as just and right. In turn, they view the other’s perspective as corrupt.

Imagine this scenario, adapted from Riding the Waves of Culture:

A manager in a relationship-based culture offers his nephew a lofty position in the company, despite the fact that this nephew is unqualified.

A rule-based colleague of this manager tells his counterparts:

“They’ll always help their friends and family over more qualified candidates. It’s nepotism. They cannot be trusted.”

On the opposite side, the relationship-based manager sees his rule-based colleague pass up a friend for a position in lieu of a more qualified candidate.

He tells his team:

“He will not even help a friend? How can we trust him?”

In this way, cross-cultural business relations can be easily damaged or decimated, when the motives of other cultures are not understood.

Next week, we’ll talk about how to avoid this misunderstanding.

Rule of Law in Culture: Are Laws More Important Than Relationships?

A hypothetical scenario:

Your best friend is picking you up to head out on the town. As you head into the city center, you notice your friend is driving quite fast; 40 mph in a 20 mph zone down a crowded street.

You see a pedestrian take a step off the sidewalk ahead of your friend’s car. “Look out!” you shout. But it’s too late. Your friend accidentally hits the pedestrian.

An ambulance is called, paramedics try to save the victim, but he doesn’t make it. He dies on the way to the hospital.

Weeks later, you are called to court as a witness to the fatal accident. You know your friend was driving well over the speed limit, but if you tell the truth, he’ll go to prison. If you lie for your friend, he’ll walk away.

Would you lie? Or would you tell the truth?

Survey: Venezuela vs. USA

This was the exact scenario given in a survey sent to 46,000 managers in 40 different countries in a study by Fons Trompenaars and Charles Hampden-Turner.

As a preface, Hofstede’s cultural dimensions define the US is a rule-based society; Venezuela is a relationship-based society.

Knowing this, which society do you think would choose to be truthful in this matter? And which do you think might lie to protect a friend?

As you can see below, the results were exactly as you’d expect.

additional_charts_CMYK-02

96% of American citizens surveyed said that, when confronted with this situation, they would tell the truth and abide by the law. Only 34% of Venezuelans agreed.

The majority of those from the relationship-based society of Venezuela would protect their friend above the law, while the overwhelming majority of Americans would put their societal responsibility before their friend’s fate.

Everyone is Equal in the Eyes of the Law

Western cultures are largely rule-based or “universalist.” Generally, they believe that, in order to be just, established rules and laws should be applied universally.

According to the purest form of justice, all people – friend or stranger, rich or poor, black or white – should be treated equally in the eyes of the law. And, with that perspective, most people in a law-based society would strive toward the rule.

Rules and laws are also seen, more or less, as a black and white matter.

A red light at a pedestrian crossing illustrates the seriousness of law in a rule-based culture.

In Germany or Switzerland – both strict rule-based cultures – place a foot out of line when the pedestrian crossing light is red, and you will see the reaction. Those around you will make it clear – albeit, likely with only a frown – that they’re not happy with your disobedience, albeit likely just with a frown. Even if it’s 2 in the morning.

Laws in a rule-based society are also considered essentially permanent.

For instance, a law that is a law today is unchangeable; it will be the same tomorrow (unless, of course, it’s changed through an often lengthy democratic process that involves party votes and public opinion).

Not even the highest office in the country has the right to change the law in an instant; neither is this highest office immune to the laws.

Beyond the Individual

While rule-based cultures often align with a high degree of individualism, relationship-based cultures walk hand-in-hand with collectivism. This results in a different prioritization of social norms in individualist vs. collectivist cultures.

One Confucian ideal puts this in perspective: care for one’s parents/grandparents comes first; then comes care for one’s children; then, for oneself.

Collectivists see human existence as reaching beyond the individual; rather an individual’s existence is a symbiotic relationship with extended family, the tribe, the village, society. One’s connection to others is part of his/her existence. Existing apart from this is a form of death.

As such, relationships are highly important; oftentimes, more important than rules. The alternative is ostracism which is, again, death.

Imprisonment is a form of ostracism. Should you confess that your friend broke the law, thereby sending him to prison, you are virtually putting him to death.

In this way, you can see the stark and dramatic difference the truth would make in this matter.

In this way, you can see the difference in perspective between relationship-based and rule-based cultures.

In this way, you might begin to understand motivations across cultures.