BABEȘ-BOLYAI UNIVERSITY

FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION

CLUJ-NAPOCA

Irish Business Culture

Project realised byANDRA IOANA LAZ ĂR

23rd April 2014

ContentsThe International Business Culture in Ireland.......................................................................3

Characteristics of the Irish Society...........................................................................................3

A Short Introduction into the History of the Irish Business Culture.......................................................4

The Great Famine..............................................................................................................................4

Corporate social responsibility..........................................................................................................5

The Celtic Tiger..................................................................................................................................6

The Recession....................................................................................................................................6

The Business Etiquette.................................................................................................................7

Greetings................................................................................................................................7

Conversation.........................................................................................................................7

Language...............................................................................................................................7

Particularities about the Irish Business Culture...................................................................8

In the Irish business culture titles don’t matter.................................................................................8

The Pub Culture.................................................................................................................................8

Round System..................................................................................................................8

Ireland according to Geert Hofstede’s Cultural Dimensions............................................8

The Irish business culture, shaped by multinationals and start-ups................................................10

Punctuality.......................................................................................................................................10

Business Dress Code........................................................................................................................11

Closing the deal...............................................................................................................................11

References and introductions vs. cold calling..................................................................................11

Taboos in the Irish business culture.......................................................................................12

Ireland and Northern Ireland...........................................................................................................12

Religion............................................................................................................................................12

Sexual orientation............................................................................................................................13

The Irish Business culture – a rewarfing challenge...........................................................13

Bibliography:...........................................................................................................................14

The International Business Culture in Ireland

There is no secret that every country has its own unique approach towards doing business.

Therefore, it is only natural that the local culture and customs will influence the international

business culture as well. As an entrepreneur or as a simple employee, there are some

unspoken rules that need to be taken into consideration.

To completely understand the full extend of these characteristics regarding the Irish business

culture, a first step would be finding their roots.

Characteristics of the Irish Society

To begin with, the Irish society is surprisingly unique. In one way or another, every

characteristic of the Irish society shapes the overall business culture. From values to leisure

and from history to nowadays influencers, everything seems to have left a mark on the way a

business is run in Ireland. Because of this reason it is important to dive into the Irish culture

first and understand the uniqueness of this society.

“Relationships and family are hugely important to the Irish. This can be traced back to the

agricultural nature of Irish employment, where large families were necessary to maintain

farms. This is one of the biggest points of difference between Ireland and other fast-paced

Western European countries. Therefore, when conducting business with the Irish it is

important to bear in mind that family and relationships are as significant as the business itself.

Using this knowledge can help you overcome many difficulties and ensure that you achieve a

successful outcome in your business negotiations.”1

1 Business Etiquette, available at http://businessculture.org/northern-europe/ireland/business-etiquette/, accessed on 5 April 2014

A Short Introduction into the History of the Irish Business CultureThe Great Famine

The Great Famine was a tragic episode in the Irish history. Lasting between 1845 and 1852, it

represented a period of mass starvation, disease, and migration.

The politico-economic situation at the time was part of the reasons that led to the starvation.

“The dominant economic theory in mid-nineteenth century Britain was laissez-faire, which

held that it was not a government's job to provide aid for its citizens, or to interfere with the

free market of goods or trade. The Corn Laws were another of the factors which led to this

economic situation. Food prices in Ireland were beginning to rise, and potato prices had

doubled by December, 1845. Meanwhile, the Irish grain crop was being exported to Britain.”2

“Shamefully, during this time there were abundant harvests of wheat and dairy produce – the

country was producing more than enough grain to feed the entire population and it’s said that

more cattle were sold abroad than there were people on the island.”3

The Famine let to the death of over 3 million people as well as to mass migrations, with over

1 million Irish emigrating to North America or to parts of England. The depopulation affected

the economy due to the loss in the workforce. On the long term, money started coming back

to Ireland from the Irish people working in the US, who were trying to help their families

back home.4 The migration towards the US led also to an American influence into the Irish

business culture as well as to an Irish influence in the American society.

The Great Famine shaped the Irish business culture as we know it today. Due to the difficult

times that the Irish had been through, the county is very keen to help those in need. Most of

the Irish people donate their time, volunteering for different causes and 79% of Irish people

donate money to charities. “Out of all European countries, Ireland has been named as the

most charitable for the second year in a row and as the second most charitable nation in the

world. Yvonne McKenna, CEO of Volunteer Ireland, said: “It’s in our nature. The research

highlights the remarkable generosity of spirit that continues to thrive in Ireland throughout

difficult times. Connecting with people is something that is inherent to our culture in Ireland

and this is reflected in the statistics.”5

2 James Mullin, The Great Irish Famine, 1996, pg. 83 Fionn Davenport, Catherine Le Nevez, Etain O’Caroll, Ireland, Lonely Planet, 2012, pg. 7014 Chris Trueman, The Great Famine of 1845, on http://www.historylearningsite.co.uk/5 Amy Croffey, Ireland is the most charitable country in Europe, in The Journal, published on 20th December 2013, available on http://www.thejournal.ie/ireland-is-the-most-charitable-country-in-europe-724412-

Also, beyond the impact the Famine had over the Irish society, this part of history led to a

growing importance in terms of Corporate Social Responsibility.

Corporate social responsibility

Some of the issues that the CSR campaigns are trying to solve in Ireland are: alcohol in

society, environment, community investment. As an example for the CSR initiatives in

Ireland, we can talk about the CSR project of one of the biggest Irish based companies: the

beer factory, Guiness. The Arthur Guinness Projects are amongst the most famous CSR

initiatives, representing a major new cultural initiative which will enable entrepreneurs and

innovators to develop their ideas. Another example of CSR activities comes from a

multinational, running its operations in Ireland. “Corporate responsibility at Intel Ireland

reflects our deep respect for people and for the communities around us at both a local and a

national level and our employees are committed to positive ongoing contributions to them.”

At Intel, the main focus areas in terms of corporate responsibility are: education,

environment, citizenship and girls and women.

Numerous CSR campaigns join the Government’s efforts to provide equal rights and a

comfortable living for the disabled and for the disadvantaged people. Also, as mentioned

before, giving back to the society is important for the Irish, which means that companies are

also using their CSR initiatives to attract and upkeep employees.

The companies in Ireland, both local and international, small-medium enterprises or

multinationals, understand that giving back to the society plays a very important role in the

Irish culture. Therefore, in order to address these expectations most of the companies invest

plenty of money and time into CSR strategies that come up with solutions for the biggest

issues that the Irish society is facing, such as obesity, alcohol consumption or the

environment.

The Celtic Tiger

Dec2012/ accessed on 10th April 2014

Ireland managed to transform from the starving nation of the 19 th century into one of the most

start prosperous countries in the world, due to a new economic system which has undergone a

dramatic revolution.

One of the first steps towards The Celtic Tiger6 was becoming a member of the European

Economic Community (EEC), which brought an increased measure of prosperity thanks to the

benefits of the Common Agricultural Policy, which set fixed prices and guaranteed quotas for

Irish farming produce. The next step in the Irish economic growth was joining the European

Union. The Europen Union membership brought along huge sums of money which were

invested in the education and infrastructure. Altogether, the policy of low corporate tax rates

coupled with attractive incentives made Ireland very attractive to high tech businesses, such

as Google, Facebook, Microsoft, Twitter or LinkedIn.

“In less than a decade, Ireland went from being one of the poorest countries in Europe to one

of the wealthiest: unemployment fell from 18% to 3.5%, the average industrial wage

somersaulted to the European top and the dramatic rise in GDP meant that the country laid

claim to an economic model of success that was the envy of the entire world.”7

The Celtic Tiger brought along different work ethics, and slightly different business etiquette.

With some of the biggest multinationals on the market the business environment has changed.

One of the major differences was that these companies needed professionals from around the

world. So especially the population of Dublin started being more international like never

before.

The Recession

The Celtic Tiger found its end sooner than anyone expected it. Starting with 2002, the Irish

economy was kept on a high tide by a construction boom that was ignoring the economical

predictions. “The out of control international derivatives market flooded Irish banks with

cheap money, who lent it freely. Then Lehmann Bros and the credit crunch happened. The

Irish banks nearly went to the wall, but were bailed out at the last minute, and before Ireland

6 “Ireland’s ‘Celtic Tiger’ period from the mid-1990s was characterized by strong retail demand, good commercial profitability, low interest rates, readily available international credit, high employment, a rising property market with good yields and a huge growth in the volume and value of both commercial and residential property developments” (Banking & Property in ‘Celtic Tiger’ Ireland available at: http://wp.sme.ie/ireland-2/leadership-and-integrity/banking-property-in-%E2%80%98celtic-tiger%E2%80%99-ireland/, accessed on 22nd April 2014

7 Fionn Davenport, Catherine Le Nevez, Etain O’Caroll, Ireland, Lonely Planet, 2012, pg. 703

could draw breath, the International Monetary Fund and the European Union held the chits of

the country’s mid-term economic future. Ireland found itself again confronting the demons of

its past: high unemployment, limited opportunity and massive emigration.

Nevertheless, in the summer of 2013, Ireland exited bailout, being the first European country

to do so. This opened the gates, once again, to foreign investments and to new multinationals

entering the Irish market. Ireland takes advantage, once again, of it main benefit of being

located on one of the major sea and air routes between northern Europe and North America.

This gives Ireland a competitive advantage in terms of import & export and is portrayed as

the bridge between the American and European business cultures.

The Business Etiquette

The Irish Business Etiquette is normally largely informal. Still, at a business meeting you

need to take into consideration some unspoken rules of etiquette.

Greetings

Shake hands with men and women when meeting for the first time and when saying

goodbye. Irish expect a firm handshake with eye contact. Female friends are greeted

with a single (air) kiss.

Conversation

Generally friendly but often reserved. The Irish avoid conversations that might

embarrass. They are deeply mistrustful of ‘oversharers’. A good ice-breaker at the

beginning of a meeting would be a conversation about weather or about sport.

Language

The Irish speak English quickly and strong accents can often be indecipherable. Don’t

take offence at indiscriminate bad language; many Irish unconsciously pepper their

speech with curse words, which are intended only to be empathetic.

Particularities about the Irish Business

Culture

In the Irish business culture titles don’t matter

“Professional titles are not prevalent in the Irish business culture, and are usually seen as

arrogant. It’s best not to try to introduce your professional credentials early on in the

conversation, as they will generally be ignored and unease will descend.”8

The Pub Culture

“The Pub – every town and hamlet has one: no matter where you go,

you’ll find that the social heart of the country beats loudest in the pub.”9

For the Irish people the pub (short from Public House) is a place where you can socialise,

meet new people or bond everlasting friendships. Naturally, the business sector adapted to the

culture and took advantage of the benefits it provides. For example, the pub proves to be a

proper environment not only to have a beer with an old friend or business partner, but also to

network with like-minded professionals or to close a deal.

Round System

As mentioned above, there’s no surprise if a business meeting will take place in a pub.

But if you are having a conversation in a pub with an Irish person, you need to take

into consideration the “round system”. The Irish generally take it in turns to buy a

‘round’ of drinks for the whole group and everyone is expected to take part. The next

round should always be bought before the first round is drunk. You should also

contribute with a round by the end of the night, otherwise you will be considered

rude. 10

Ireland according to Geert Hofstede’s Cultural Dimensions

One of the most accurate tools in terms of describing a culture is the one developed by Geert Hofstede. The Dutch psychologist discovered the 6 essential dimensions that can be used in order to caractherise a culture. The main dimensions are: the power distance (PDI), individualism versus collectivism (IDV), masculinity versus feminity (MAS), uncertainty avoidance (UAI).

The Power Distance index measures the extent to which the less powerful members of the society or of organisations are relating to authority. This index also relates to the inequalities in the society.8 Mary Ellen Sweeney, Irish Culture, available at bellaonline.com, accessed on 5 April 20149 Idem, pg. 610 Ibidem, pg. 19

“At 28 Ireland sits in the much lower rankings of PDI – i.e. a society that believes that

inequalities amongst people should be minimized. Within Irish organisations, hierarchy is

established for convenience, superiors are always accessible and managers rely on individual

employees and teams for their expertise.  Both managers and employees expect to be

consulted and information is shared frequently.  At the same time, communication is

informal, direct and participative.“11

Moving further, individualism is the dimension that analyses the relationship between an

individual and larger social groups.

“At a score of 70 Ireland is an individualistic culture. In the business world, employees are

expected to be self-reliant and display initiative.  Also, within the exchange-based world of

work, hiring and promotion decisions are based on merit or evidence of what one has done or

can do.”12

The third dimension: masculinity vs. feminity analyses on one side, traits as ambition,

acquisition, wealthy and differentiated gender roles (masculinity) and on another side: the

importance of family, gender equality and environmental awareness (feminity).

“A low score (feminine) on the dimension means that the dominant values in society are

caring for others and quality of life. A feminine society is one where quality of life is the sign

of success and standing out from the crowd is not admirable. The fundamental issue here is

what motivates people, wanting to be the best (masculine) or liking what you do (feminine).

At 68 Ireland is a masculine society – highly success oriented and driven. Behaviour in

11 Geert Hofstede, What about Ireland, available at: http://geert-hofstede.com/ireland.html, accessed on 22nd April12 ibidem

school, work, and play are based on the shared values that people should “strive to be the best

they can be” and that “the winner takes all”. The Irish are proud of their successes and

achievements in life, and it offers a basis for hiring and promotion decisions in the

workplace. Conflicts are resolved at the individual level and the goal is to win.”13

The Irish business culture, shaped by multinationals and start-ups

One of the reasons why Ireland is considered one of the best hubs for startups is because

entrepreneurship and the creation of new small-medium enterprises is of major importance

for the Irish Government. The Government identified the main pillars of an effective startup

ecosystem as: innovative “can-do” culture, mentorship and peer learning, vibrant hotspots of

activity, access to talent, access to finance, public policy.14

Punctuality

The Irish people are not famous for their punctuality. Generally they are not very time

conscious and very often they are late for business meetings or for informal gatherings. Most

of the times, they are not more than 15 minutes late. However, no matter the nature of the

meeting, you should arrive on time to prove your respect and consideration.

“The Irish relaxed attitude to time also has an impact on delivery deadlines. For the Irish

there is no shame in missing a delivery date so it is essential to keep this in mind and allow

for some latitude here. With effective planning and communication these issues can easily be

resolved.”15

Business Dress Code

“The standard business dress in Ireland is smart and conservative. Formal suits work best in

most situations, however, in general, dress tends to be less formal than in Western Europe.

13 Geert Hofstede, idem14 Entrepreneurship in Ireland, in http://www.enterprise.gov.ie/, available at: http://www.enterprise.gov.ie/en/Publications/Report_of_the_Entrepreneurship_Forum_PDF_17_5MB_.pdf accessed on 18th April15 Business Etiquette, available at http://businessculture.org/northern-europe/ireland/business-etiquette/, accessed on 5 April

The traditional style is represented by tweeds, wools and subdued colours. Particularly

unsuitable are flashy colours and styles.”16

Closing the deal

When meeting Irish businessmen, do not jump into business. Irish people like to get to know

the people they could possibly collaborate with. As mentioned before, an ice-breaking

discussion about weather or sport can be a good start.

“Do not expect to do a deal in a hurry. The Irish buy from the Irish primarily, and secondarily

from within their circle of network contacts. As a foreigner, it's very hard to break into these

networks. It takes time and persistence until such time as a] you are trusted and b] you have

something to offer that they cannot get from an Irish supplier. As the years progress, this is

changing slowly, but this is still the experience you should expect as the norm. Even if you

do take the plunge and set up shop here, expect to do it the Irish way.”17

“Aggressive sales techniques are generally disliked. Since they value directness,

presentations of any kind should be straightforward, with an emphasis on both the positive

and negative outcomes. However, expect to haggle and negotiate over prices.”18

References and introductions vs. cold calling

Expect to spend a good while getting to know people in order to get into a network. Once

you're in, you will be referred on repeatedly [providing you deliver on the deal.] (…)

introductions from people within the network are goldust. Always follow up an introduction

if you are given one, because it's likely that the person who gave it will check up. If you don't

follow up, you will be perceived to be a time waster. Introductions are not given lightly--

they're the currency that makes Irish business go around.19

16 ibidem17 Lorna McDowell, Ireland: Let's Make a Deal!, in Ireland, available at http://www.executiveplanet.com/index.php?title=Ireland, accessed on 5 April 2014

18 ibidem19 Lorna McDowell, idem

Taboos in the Irish business culture

Ireland and Northern Ireland

“If a subject that is inappropriate is introduced, your Irish counterpart will be quick to point

this out.  As a golden rule, it is essential to keep in mind that Ireland and Northern Ireland are

two completely separate countries and political entities, since many conversational issues

arise from this difference. Although under certain circumstances it may be acceptable, the

topic of Anglo-Irish relations should be avoided in business conversations. Despite the

approval of the Good Friday Agreement in 1998, the notion of the Anglo-Irish struggle still

lives on in Irish society. By discussing it, the speakers put themselves  on very thin ice and

may endanger otherwise harmonious relationships.”20

Religion

Religion is taboo in the majority of the countries. It is general knowledge that religion is a

sensitive topic, one that stood at the foundation of bloody wars, of nations breaking apart and

of individual discrimination.

Ireland is one of the countries where religion played a big role in some of the major conflicts.

This issue is portrayed even in one of their most important national symbols, the flag. The

Irish tricolour represents peace and tolerance. “The tricolour was not adopted as the official

flag of Ireland until after the country became a free state on 6th December 1921. The green

had long been the colour used in flags by the Catholic majority in their fight to gain

independence from Britain. The orange of the tricolour represents the Protestant minority

who were settled into Ireland by the British monarchy from the mid-1550s. The tricolour

made its first public outing at the Wolfe Tone Confederate Club on 7th March 1848. The

twenty-four-year-old nationalist Thomas Meagher, son of the city's mayor, made a speech to

explain the symbolism of the three colours. He said: "The white in the centre signifies a

lasting truce between the Orange and the Green, and I trust that beneath its folds, the hands of

20 Irish Business Culture, in Business Culture.org, available at: http://businessculture.org/northern-europe/ireland/, accesed on 18th April 2014

the Irish Protestant and the Irish Catholic may be clasped in generous and heroic

brotherhood."21

Sexual orientation

Even though Ireland is a firm supporter of the gay community, constantly fighting for equal

rights, sexual orientation remains a taboo. It is not considered adequate to start a discussion

about someone’s sexual orientation, however, if a gay collaborator starts talking about this

topic you should not consider it abnormal.

The Irish Business culture – a rewarfing challenge

As stated on multiple occasions before, the Irish people are warm and welcoming. They are

charitable and helpful to foreigners. But it’s never easy to be a foreign entrepreneur in

Ireland. Doing business with the Irish is always a challenge. Even though very welcoming, it

takes a long time and a lot of perseverance for the Irish to invite you in their private life.

Family is very important or them and they don’t like mixing it with business. Also, the Irish

have their priorities set, and most of the times family is in the first place. So from time to

time, they might seem cold and distant, the first conversations might seem a bit superficial,

but if you’re lucky enough to gain the trust of an Irish friend, it might turn out to be the most

meaningful friendship you ever bonded.

21 The flag of Ireland as a Symbol of hope and peace, Irish Genealogy, available at: http://www.irish-genealogy-toolkit.com/flag-of-Ireland.html accessed on 18th April

Bibliography: 1. Amy Croffey, Ireland is the most charitable country in Europe, in The Journal,

published on 20th December 2013, available on http://www.thejournal.ie/ireland-is-

the-most-charitable-country-in-europe-724412-Dec2012/

2. Banking & Property in ‘Celtic Tiger’ Ireland available at:

http://wp.sme.ie/ireland-2/leadership-and-integrity/banking-property-in-

%E2%80%98celtic-tiger%E2%80%99-ireland/

3. Business Etiquette, available at

http://businessculture.org/northern-europe/ireland/business-etiquette/

4. Chris Trueman, The Great Famine of 1845, on http://www.historylearningsite.co.uk/

5. Entrepreneurship in Ireland, in http://www.enterprise.gov.ie/, available at:

6. http://www.enterprise.gov.ie/en/Publications/

Report_of_the_Entrepreneurship_Forum_PDF_17_5MB_.pdf

7. Fionn Davenport, Catherine Le Nevez, Etain O’Caroll, Ireland, Lonely Planet, 2012

8. Geert Hofstede, What about Ireland, available at:

http://geert-hofstede.com/ireland.html

9. Irish Business Culture, in Business Culture.org, available at:

http://businessculture.org/northern-europe/ireland/

10. James Mullin, The Great Irish Famine, 1996

11. Lorna McDowell, Ireland: Let's Make a Deal!, in Ireland, available at

http://www.executiveplanet.com/index.php?title=Ireland

12. Mary Ellen Sweeney, Irish Culture, available at bellaonline.com

13. The flag of Ireland as a Symbol of hope and peace, Irish Genealogy, available at:

http://www.irish-genealogy-toolkit.com/flag-of-Ireland.html accessed on 18th April