Australian Corporate Lawyer - Autumn 2017

acla.acc.com
LEAD YOUR ORGANISATION TO SUCCESS
IN ASIA-PACIFIC WITH A GLOBAL MINDSET
As organisations increasingly pursue
opportunities in the Asia-Pacific
region; how can the legal department
participate in leading the organisation to fast,
efficient and lasting success?
The consequences of missing the legal
perspective in market entry and growth
situations early on or well into establishing
the international presence are well known
to many famous Western businesses ranging
from Mattel and Glaxo Smith Kline in China
to Apple in South Korea. Some of these
businesses failed to enter the expected
growth, others faced many painful legal
battles costing their businesses as well as
their countries unacceptable amounts in the
form of financial and reputation cost, and
others again had to leave the market either
due to local legal issues or conflicts with the
home legal mentality and laws. Clearly, the
in-house counsel has an essential leadership
role to play in organisations wanting to grow
in foreign markets.
Cultural Understanding Builds Trust
Working in countries like Indonesia, Singapore,
Malaysia and China where many companies
have growth aspirations requires an
understanding of the regulatory landscape,
the factors that may put the company at risk
within the local market as well as in the home
country of the company, and the culture in
these markets.
Although one needs to be very aware of
diversity factors especially in Singapore
and Hong Kong as in each specific Asian
country, cultural studies indicate that people
in Asia value long-term relationships and
observe social hierarchies significantly. They
also value group harmony and may express
themselves much more indirectly than in
Western cultures. “Communication is culture”
said Edward Hall, an American anthropologist,
and internationally working executives need
to be aware that much of communication
happens in the nonverbal sphere in all
cultures. A symbol, ritual or tradition may
have totally different meanings in a foreign
culture compared with the home culture.
The Australian fans may not have had the
intention to offend the Malaysian people or
authorities when they wanted to celebrate
Daniel Ricciardo’s success at the 2016 Grand
Prix but found themselves having done so
leading to having to face legal consequences.
Culture influences how we communicate
and hence many business skills ranging
from selling to conflict management and
negotiations. But most critically, it influences
how we build trust. In her book the “Culture
Map”, Erin Meyer differentiates between
cognitive and affective trust building. She
writes “Cognitive trust is based on the
confidence you feel in another person’s
accomplishments, skills and reliability. It is
often built through business interactions: we
work together, you do your work well, and
you demonstrate through the work that you
are reliable, pleasant, consistent, intelligent,
and transparent. Result: I trust you. Affective
trust, on the other hand, arises from feelings of
emotional closeness, empathy or friendship.
This type of trust comes from the heart. We
laugh together, relax together, and see each
other at a personal level, so that I feel affection
or empathy for you and sense that you feel
the same for me. Result: I trust you.“ Meyer’s
research shows that task-based operating
cultures like Australia and the U.S. tend to rely
mainly on cognitive trust building in work
relationships. Relationships are built around
tasks, projects, new ventures. They tend to
be practical and are often summarised in
contracts. People in China on the other hand
may perceive the inability to build trust in
cognitive and affective ways at the same time
as a lack of sincerity and loyalty. The deep
personal relationship may be the contract, the
“yes” to a new venture or the insurance policy
in case of a crisis.
Whirlpool approached the Asia
Market with a Global Mindset
“The adoption of a global mindset begins
at home for multinational corporations
as colleagues interact across borders and
therefore cultures.” said Deborah Vaughn, the
Chief Legal Officer of Whirlpool Corporation.
She continued “Our Asia Pacific law
department based in Shanghai and Delhi has
a team of 15 lawyers and non-lawyers with the
capability to speak six languages. In search of
the next learning, our dispersed and diverse
team is curious and open to the differing
views across our region”.
Unlocking the innovative potential of
the team is also a matter of navigating
cultural sensitivities. Although it varies from
company to company, compared to the
West, the relationship between supervisor
and direct report in India is generally more
formal and hierarchical; and decisions being
Şirin Köprücü
Having lived and worked in Turkey, the UK,
Switzerland, and Germany and gained degrees
in two countries, Sirin is fluent in three languages
and is a true citizen of the world. As the owner
of StrategicStraits, Inc., an international business
training and consulting firm in Washington,
DC., she has facilitated programs to help
internationally growing clients achieve fast,
efficient and lasting growth through the
development of a global mindset and effective
business skills.
Deborah Vaughn
Having worked in the US, Europe and Asia,
Deborah is the head of Whirlpool Corporations
legal function in the Asia Pacific region. She is a
member of Whirlpool’s Global Legal; Asia North
and Asia South Executive Leadership teams and
sits on the Board of Directors of the Shanghailisted
Whirlpool China Limited. Deborah is
admitted to practice in New York, England and
Wales, Singapore, and Malaysia.
VOLUME 27, ISSUE 1 – AUTUMN 2017
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