Understanding Global Cultures

Aakash Lonkar- A009Sunny Pawar – A010

PTMBA(SE) - Second Year School of Business Management

NMIMS (2013-14)

ContentSr. No. Topics

1 Introduction

2 Form of government

3 Political structure

4 Socio Economic Challenges

5 Cultural Life

6 Hofstede’s Dimension

7 Business Etiquettes

8 Case I- Fight for Peace

9 Case II- SITAWI

10 Conclusion

11 Bibliography

Introduction• Brazil : Federative Republic of

Brazil• Capital: Brasilia• Country named after “Brazilwood”

a red wood tree commonly found along coast of Brazil.

• Largest country in South America. 5th largest country in the world.

• Population: 199.321 million • 5th most populous country in the

world• 4th largest democracy• Language: Portuguese• Religion: Roman Catholic (73.6%)

Pentecostal (15.4%), Others (11%)

Form of government• Brazil has Federal Republic Presidential type of

government.• The head of their country is called president which is

elected by the people. • Since its independence in 1822 the form of government in

Brazil has technically been a Democracy. • This type of ruler-ship means that those in power are

elected by the residents of the country, who will vote in formal elections for one from a number of different political parties.

• At present, voting is compulsory for all Brazilian residents that are literate and between the ages of 18 and 69 years. Anyone that is 16, 17 or over 69 years of age, or is illiterate can choose to vote, but is not under obligation to do so.

Political structure

The government of Brazil is divided into:

•Executive Branch

•Legislative Branch

•Judicial Branch

There are 27 states and more than 5,500 individual municipalities, each of which is

run by a mayor.

Socio Economic Challenges

×Socioeconomic inequalities & Poverty

×Lack of Education

×Crime

×The Infant Mortality Rate (IMR)

Culture• Core culture of Brazil is derived from the Portuguese Culture because of

colonization. Portuguese language, Roman Catholic and colonial architectural styles are the main derivatives of Portuguese culture.

• Some aspects like religion, cuisine, music, dance of Brazilian culture were influenced by the contributions of  Africans, Italians, Germans, Japanese, Jewish and Arab immigrants who arrived in large numbers in the South and Southeast of Brazil.

• Religion: Roman Catholic is the main religion in Brazil (almost 75%). Brazil has the largest number of Catholics in the world. Brazilians enjoy complete freedom to practice their own religious beliefs.

• Ethnic groups: 55% whites, 38% mestizo, 7% blacks, amerindians and Asians• Language: Only country in America speaking Portuguese. • Important part of Brazilian national identity and giving it a national culture distinct

from those of its Spanish-speaking neighbors. • Virtually the only language used in newspapers, radio, television, and for business

and administrative purposes• LIBRAS – sign language also used in education and government services• Learning secondary language (English/Spanish) compulsory till 12 th grade.• 180 Amerindian languages, spoken in remote areas

Culture• Family values: • Big, extended families• Women play a equal role in family. Patriarchal society – Men – provider, Women –

support family• Folkways: • Address to colleagues and supervisors is informal—the use of first names is very common• Eye contact is important in communication – sincerity and interest• A touch on the arm or a pat on the back is common in normal conversation• Clothing – conservative• Punctuality is expected but people are often late, delayed and casual.• Mores:• Issues like corruption, poverty, crime are sensitive• Brazilians are hot blooded; they display their emotions openly and don’t hold back their

feelings• It’s common to see young couples kissing, hugging, and exhibiting passionate behavior in

public places• The "OK" sign used in North America (thumb and index finger joined in an "o") closely

resembles an offensive Brazilian hand gesture. In Brazil the "thumbs-up" sign is used to indicate approval.

Hofstede’s Dimension

Power Distance Individualism Masculinity Uncertainty Avoidance

Pragmatism Indulgence0

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BRAZIL

Series1

Business EtiquettesInformality shapes communication.

Before working together Brazilians need to know who they are doing business with

Face-to-face meetings are preferred to written communication, although when it comes to business agreements-Brazilians value detailed legal contracts

Normally the highest-ranking person is the one who makes the decisions-Power Distance

When a person is criticized, he/ she loses face with the others in the meeting. The one who makes the criticism also loses face, as an unwritten rule has been disobeyed.

Brazilians negotiate with People, rather than companies

During introductions at a meeting, business cards are exchanged with everyone.

Social Enterprise Landscape in Brazil

Interest in social entrepreneurship is growing widely in Brazil. Several developed countries have stepped forward to develop policies to support this area not only as a tool to fulfill the government failures such as poverty, health, education, unemployment among others, but also because of all the benefits that social enterprises have in relation to society. Social enterprise is becoming a part of the norm in Brazil, a valid option for starting or growing a business.

Fight for Peace

Fight for Peace

Fight for Peace works with youths most

adversely affected by or involved in crime,

gangs or violence; ex-offenders; not in

education, training or employment (NEET) or

those who have been excluded from school. It

uses boxing & martial arts combined with

education and personal development to

realize the potential of young people in

communities that suffer from crime and

violence.

Fight for Peace works with youths most

adversely affected by or involved in crime,

gangs or violence; ex-offenders; not in

education, training or employment (NEET) or

those who have been excluded from school. It

uses boxing & martial arts combined with

education and personal development to

realize the potential of young people in

communities that suffer from crime and

violence.

Five Pillars:• Boxing & Martial Arts: Fight for Peace believes that boxing & martial arts

offer a broad appeal and important values to young people: discipline, respect, self-control, identity, a feeling of belonging and pride, amongst others.

Education: The Education pillar offers support and new opportunities for learning to young people who find themselves out of education or with learning difficulties.

Employability: All members of Fight for Peace have the opportunity to be trained and prepared for the job market.

 Youth Support Services: Fight for Peace’s Social Support team individually accompanies all the young people who are members at the Rio and London academies.

Youth Leadership: Fight for Peace creates new leaders inside and outside of the organization, by giving its members responsibilities and influence.

Values of FFPThe organization believes in the values of

AcceptanceChampionSolidarity Inspiring & Being Fearless.

The objective of all the projects is to allow these young people to reach the greatest potential of their personal development.

Fight for Peace- Organization support model

FFP has been working since 2000.

Founder Luke Dowdney has been helping young people in the Maré favela to realize their full potential for more than a decade.

His academy has grown from helping 10 disadvantaged young people in its first year, to training and educating more than 2,500 every year.

Although it started with boxing, over time it has expanded to help children in other ways. Now it runs a range of classes, giving the young people an education and a sense of purpose.

The brand became so strong in the favela that people started stealing FFP T-shirts from washing lines.

Recognizing the power of the brand, and looking for ways to continue funding the work of FFP, Dowdney and his team set up a sports clothing social enterprise called  Luta.

As Luta's "We give half" slogan suggests, 50% of all profits go directly back to helping Fight for Peace and the communities it works with.

Social Impact

The University of East London published an external evaluation of our organization which found that young people at Fight for Peace:

– Resist becoming involved in crime and desist from criminality and drug trafficking

– Contribute to overcoming divisions and create positive relationships in local communities

– Learn and practice conflict resolution and peace-making skills

– Attend education course and take examinations

– Improve their fitness and to lead a healthy lifestyle so that they can improve their boxing and martial arts skills, and get fitter

– Train harder and to a high standard

2012 IMPACT HIGHLIGHTS

FFP International secured a £1.2m grant from the IKEA Foundation to deliver the Global Alumni Programme to 120 CBOs over the next three years.

It is making a real difference to young people both here in Rio and at the academy in London.

British Olympic Boxing Gold Medalists Anthony Joshua & Nicola Adams visit the Rio Academy, calling it “a humbling experience to meet the people involved with FFP” (Anthony) and “an inspiring project making a huge difference to young people and their communities” (Nicola).

Of the Rio Academy’s Pathways education project participants, since joining Fight for Peace: •99% want more from their lives; •91% have a better relationship with their family and •87% find it easier to do things alone.

CASE II - SITAWI • Condition of Social Sector in Brazil:

• Social sector in Brazil has undergone a growth spurt• The current estimate is that Brazil is home to more than 400,000 non-profits,

excluding religious ones• 74 % of nonprofits, including hospitals and universities, have no paid

employees and only 6 percent have more than 10 staff.• Even though social sector is booming there is a concern about sustainability

and effectiveness

• SITAWI (Flourish or develop in Swahili) – Social sector fund

• Goal: supporting projects with a focus on social impact

• Social lending• Positioning: Between a Foundation and a bank Strategic support—much more than a bank but

less than many foundations’ capacity-building programs

Integrate this support through the provision of below-market loans

• Market-rate loans in Brazil have interest rates of 35 to 50 percent

• Not affordable to target clients due to lack of collateral

•Founder - CEO •Leonardo Letelier•Ashoka’s full economic initiative director in Brazil•Senior engagement manager at McKinsey & Company.Founded in 2005

CASE II - SITAWI • Provided strategic consulting services to

companies, foundations, and larger nonprofits, offering advice on “social impact with a business mindset” to make payroll.

• Focus was to provide midsized loans ($50,000 to $250,000) to organizations for which social impact is a core mission and business is the supportive engine

• Social enterprises are nonprofits and are less comfortable working with a for-profit fund or bank

• SITAWI structured its fund as non profit, also helped in foundation and donor support

CASE II - SITAWI • First Loan: Daspu, a clothing brand owned by Davida, a

prostitute rights association that needed to finance its winter 2009 collection

• Solidarium, a social enterprise that provides business support and market access to small artisan associations, which had a large order from Wal-Mart Stores

• Simple working capital loans given from the pocket at rates of 1 percent a month and were repaid within three months.

• In 2009, as the financial crisis hit Brazil, several commitments to fund SITAWI were withdrawn

• Avina Foundation granted $250,000, enabling SITAWI to formally start the fund

Social Impact• Provided loans to nonprofits with business units and for-

profits with a clear social mission that promote civil rights and provide health care, social services, and income opportunities benefiting more than 10,000 people

• Other enterprise funded by SITAWIMicrocredit institution ICC/Banco do Povo ($250,000): to

allow it to expand its reach to more people developing small businesses

community bank Banco Palmas ($140,000): to enable it to fund new loans to its best customers

São Paulo poverty alleviation and social service agency Caspiedade ($330,000 in two separate loans): to make up for delays in payments from government contracts

SITAWI – Current focus• Estimated 20,000 social enterprises and nonprofits

for which sales of products or services generate more than 20 percent of income

• Market-building efforts will create a demand to launch a for-profit fund with the same strong social mission focus

• New financial products tailored to the social sector, such as loan guarantees, performance contracts, and hybrid products.

Challenges

NGOs linked to politicians involved in corruption

Tax and legal structure in social sector is weak

Tax benefits for donations to art and sports but not for NGOs supporting social organizations

Conclusion• The economic growth miracle of Brazil has not translated into equitable income

distribution or poverty eradication. The countless problems of poverty and gross income inequality exist largely because of very high concentration of wealth and rampant official corruption

• Brazil is a land of contrasts. The richest 10% of people in Brazil have access to over 40% of the country’s income. On the other hand, the poorest 10% receive about 1% of the income. This paints a grim picture for those with little or no financial stability.

• Its cities combine modern skyscrapers, suburban houses, and impoverished slums- favelas. Home to as many as 25 million people.

• A life of crime is often the only alternative for unemployed youth with no economic opportunities.

• Brazil with the rest of the BRIC nations have a long way to go before their current economic development translates into benefits for the majority of the population.

Bibliography • Brazil.org.za. 2014. Brazil Politics - Intro. [online] Available at:

http://www.brazil.org.za/politics-intro.html#.UyGLedIW1H8 [Accessed: 14 Mar 2014].• Brownsdon, R. 2013. Brazil's social entrepreneurs are making the most of safer favela

conditions. [online] Available at: http://www.theguardian.com/social-enterprise-network/2013/jul/12/opportunities-social-entrepreneurs-rise-brazil [Accessed: 14 Mar 2014].

• CHALLENGE EVENTS AT FIGHT FOR PEACE LONDON. 2014. Fight for Peace, [blog] 18 February 2014, Available at: http://www.fightforpeace.net/challenge-events-at-fight-for-peace-london [Accessed: 14 Mar 2014].

• Fightforpeace.net. 2014. Pathways | Fight For Peace. [online] Available at: http://www.fightforpeace.net/projetos/novos-caminhos [Accessed: 14 Mar 2014].

• Frommer, A. 2014. Etiquette in Brazil | Frommer's. [online] Available at: http://www.frommers.com/destinations/brazil/707706#ixzz2vmOvsmqa [Accessed: 14 Mar 2014].

• Kofas, J. 2014. BRAZIL: ECONOMIC GROWTH AND SOCIOECONOMIC INEQUALITY. WORLD EVENTS, CULTURE & CIVILIZATION, [blog] 11 May 2011, Available at: http://jonkofas.blogspot.in/2011/05/brazil-economic-growth-and.html [Accessed: 14 Mar 2014].

• Library of Congress. 2014. Brazil Structure of Government - Flags, Maps, Economy, History, Climate, Natural Resources, Current Issues, International Agreements, Population, Social Statistics, Political System. [online] Available at: http://www.photius.com/countries/brazil/government/brazil_government_structure_of_governm~236.html [Accessed: 14 Mar 2014].

• http://www.ssireview.org/articles/entry/journey_into_brazils_social_sector

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