Understanding local values, social norms, religious observances, and attitudes toward work and hierarchy is essential for building trust and achieving sustainable success in global markets. This brief report provides an analysis of the key cultural and religious aspects that must be considered when planning international business expansion outside your domestic market.
Author: Michał Zgórzak, Defence Institute
Africa
Africa’s business environment is profoundly shaped by its religious and cultural diversity. Islam dominates North Africa, while Christianity and traditional beliefs prevail in Sub-Saharan regions. Business relies heavily on personal trust, kinship networks, and community-based decision-making. Hierarchies are generally respected, yet collective well-being often outweighs individual ambition.
Religious observances such as Ramadan in Muslim-majority countries or Christian Easter and Christmas periods significantly affect business schedules. Respecting local customs, gift-giving traditions, and community events can enhance relationships and credibility.
Case Study: Nigeria
A European energy company successfully improved employee engagement by adjusting work schedules to accommodate both Muslim and Christian holidays. This inclusive approach built loyalty and reduced absenteeism during major religious periods.
Asia
Asia is a mosaic of cultures and religions, including Buddhism, Hinduism, Islam, Confucianism, and Christianity. Business practices are shaped by values such as respect for hierarchy, harmony, and collective responsibility. In East Asia, maintaining social balance (wa in Japan, guanxi in China) is critical to success. In South Asia, religious pluralism demands sensitivity to dietary laws, holidays, and social norms.
Case Study: Japan
A European corporation entering Japan faced challenges integrating its direct management style. Employees valued harmony and consensus, prompting a shift toward participatory leadership that respected seniority and avoided confrontation.
Australia and Oceania
Business culture in Australia and Oceania values equality, transparency, and work-life balance. In New Zealand, respect for Māori culture is embedded in business etiquette, with a focus on community consultation and environmental stewardship.
Case Study: Australia
An Asian technology firm adapted its hierarchical structure to promote teamwork and autonomy in Australia, achieving higher satisfaction and productivity.
Europe
Europe exhibits strong cultural diversity, with Christianity as the historical foundation but growing secularism in the West. Business values emphasise punctuality, privacy, and strategic planning. Communication tends to be direct in the North and West, while Southern Europe places more emphasis on relationships and flexibility.
Case Study: Germany
An Asian company entering Germany initially struggled with expectations of precision and formal communication. By adopting clear timelines and structured reporting, the company aligned successfully with German business norms.
Middle East and Maghreb
The Middle East and Maghreb region is defined by Islamic culture, where religion deeply influences business ethics, daily routines, and social interactions. Trust, honour, and personal relationships are the foundation of commercial dealings. Observance of prayer times, fasting during Ramadan, and gender considerations affect workplace practices.
Negotiations often progress slowly as personal rapport is prioritised over contractual formality. Western companies should demonstrate respect for religious values by avoiding meetings during prayer or Iftar times and understanding the significance of festivals such as Eid al-Fitr and Eid al-Adha.
Case Study: United Arab Emirates
A European consulting firm improved its client relationships by aligning meeting schedules with local prayer times and acknowledging Ramadan practices, resulting in stronger partnerships and improved market access.
North America
The United States and Canada prioritise individualism, innovation, and efficiency. Religion plays a lesser role in business, though the Protestant work ethic continues to influence notions of merit and productivity. Communication is open, and decisions are data-driven and fast-paced.
Case Study: United States
A Middle Eastern firm adapted to American business culture by hiring local managers familiar with direct communication and rapid decision-making, facilitating smoother integration.
South America
Latin American cultures emphasise family ties, emotion, and interpersonal relationships. Catholicism strongly shapes social values, with holidays such as Easter and Christmas affecting business operations. Hierarchies are respected, and trust-building is essential before concluding deals.
Case Study: Brazil
A European construction firm secured long-term partnerships in Brazil by investing in social interactions and personal relationships, demonstrating cultural respect.
Religion significantly shapes professional ethics, interpersonal relations, and management expectations. Understanding these spiritual foundations helps businesses align practices with local values.
Christianity
Emphasizes the »Protestant work ethic« — diligence, responsibility, and self-discipline. Catholic traditions place stronger focus on community and social solidarity. Honesty and loyalty are key workplace values in Christian-majority countries.
Easter, Christmas, All Saints« Day – times when offices close or reduce activity.
Islam
Integrates faith with daily life. Work is seen as an act of worship if done ethically and sincerely. Observance of prayer times, Friday congregational prayers, and Ramadan fasting must be respected. Trust and personal integrity are vital in Muslim-majority markets.
Ramadan (fasting), Eid al-Fitr, Eid al-Adha, and Friday prayers affecting schedules.
Judaism
Views work as a divine duty and means of serving the community. Ethical business conduct and social responsibility are central. The Sabbath (from Friday evening to Saturday evening) affects scheduling in Jewish communities.
Buddhism
Promotes balance, mindfulness, and compassion. Work is seen as a path to personal and communal harmony. The »Middle Way« discourages excessive competition and stress, favoring cooperation and self-improvement.
Vesak (Buddha’s birthday), Magha Puja – focus on reflection and mindfulness.
Confucianism
Confucianism shapes work ethics by promoting values such as respect for hierarchy, loyalty, humility, and collective responsibility, fostering disciplined and harmonious workplaces.
Key observances include Confucius« Birthday (Teachers« Day in many East Asian countries) and Qingming Festival (Tomb Sweeping Day). Both are occasions for honouring ancestors and teachers, reflecting the Confucian values of respect, filial piety, and moral duty.
Shintoism
Focuses on harmony, purity, and loyalty to the group. In Japan, these values translate into discipline, teamwork, and dedication to the organization’s well-being.
New Year (Shogatsu) and local Matsuri festivals – strong community involvement.
Hinduism
Defines work as dharma — a moral and spiritual duty. While caste distinctions historically influenced labor roles, modern India emphasizes merit and devotion.
Diwali, Holi, Navaratri – celebrated across India with reduced business operations.
Other Traditions
Indigenous and animistic beliefs, particularly in Africa and Oceania, associate work with communal responsibility and spiritual continuity. In Southeast Asia, Buddhist, Confucian, and animist elements combine to create ethical systems grounded in harmony and respect.
Case Study: A US company from the retail sector in Germany – Cultural and Ethical Misalignment
When a US company from the retail sector entered the German market in the late 1990s, it aimed to replicate its successful American business model: low prices, high efficiency, and strong corporate culture. However, the company underestimated the deep-rooted cultural and ethical norms of German society — a misjudgement that ultimately led to its withdrawal after nearly a decade of losses amounting to over one billion dollars.
Cultural intelligence and sensitivity to local moral and religious norms are not optional — they are strategic imperatives. Success abroad depends not on exporting corporate culture, but on harmonising it with local values and expectations.
Case Study: a French multinational retail and wholesaling corporation in China – Cultural Missteps and Religious Tensions
A major French retailer entered China in the mid-1990s and initially became one of the most successful Western retailers in the region. However, in the early 2000s, a combination of cultural misjudgements, poor political awareness, and insensitivity toward local sentiments led to nationwide boycotts that almost destroyed the brand’s reputation in China.
Business Lesson: In markets where religion, nationalism, and cultural identity are deeply interconnected, success requires not only market analysis but also emotional and symbolic intelligence. Respect for collective values and timely, culturally aligned communication are essential to maintaining trust.
Religion and culture remain vital factors influencing global business environments. Companies that recognize the spiritual and cultural context of work practices are more likely to achieve organizational harmony, employee engagement, and long-term success.
References and Sources
Religion and culture – critical yet underestimated factors influencing business success abroad – Defence24.com
ByEric Djirackor
Nov 8, 2025