Definition
Custom refers to the usual business or individual practice, habitual tendency, or traditional policy. It represents the ingrained behaviors or policies that are followed regularly and are considered standard within a particular context. Customs can significantly influence organizational behavior, cultural norms, and individual or communal practices.
Examples
- Closed for Business on Sunday: Many businesses, particularly in certain cultures and regions, follow the custom of remaining closed on Sundays.
- Holiday Bonuses: It is a customary practice for many companies to give employees bonuses during the holiday season as a recognition of their work throughout the year.
- Greeting Customers with Respect: In Japanese business culture, it is customary to bow when greeting customers or important guests.
- Siesta Time: In countries like Spain, taking a midday break or siesta is a traditional custom, affecting business hours.
- Dress Codes: Certain industries, like finance and law, often have customary dress codes that dictate business attire.
Frequently Asked Questions (FAQs)
What is the importance of custom in business?
Customs can establish standards of behavior, enhance corporate culture, and ensure consistency in how business operations are conducted. They can also influence client expectations and employee behavior.
How does custom differ from law?
While laws are formal rules enacted by governing bodies and enforced by legal authorities, customs are informal practices upheld by tradition or habitual practice. Non-compliance with customs usually doesn’t carry legal penalties but may affect social or business relationships.
Can customs change over time?
Yes, customs can evolve based on changing social norms, technological advancements, and shifting economic conditions. Continuous re-evaluation can lead to adapting or abandoning old customs.
How do customs impact international business?
Customs play a key role in international business as they reflect cultural differences. Understanding and respecting local customs can help build better business relationships and avoid misunderstandings.
What are examples of customs in the workplace?
Customs in the workplace might include regular team meetings, annual performance reviews, celebrating employee birthdays or work anniversaries, and specific protocols for communication.
- Tradition: Practices or beliefs passed down through generations within a culture or group.
- Norm: An accepted standard or a way of behavior that most people agree with and follow within a group or society.
- Habit: A routine or practice performed regularly, often without conscious thought.
- Etiquette: Conventional rules of polite behavior in society or among members of a particular profession or group.
- Culture: The ideas, customs, and social behaviors of a specific group or society.
Online Resources
Suggested Books for Further Studies
- The Culture Map by Erin Meyer
- Business Etiquette: 50 Ways to Success at Work by Ann Marie Sabath
- Gung Ho! by Ken Blanchard and Sheldon Bowles
- The Custom of the Country by Edith Wharton
Fundamentals of Custom: Business Practice Basics Quiz
### What does the term 'custom' primarily refer to in the context of business?
- [x] Usual business or individual practice
- [ ] New market trends
- [ ] Legal obligations
- [ ] Strategic framework
> **Explanation:** In business, 'custom' refers to the usual practices, habitual tendencies, or traditional policies that a business or individual follows.
### Which of the following is an example of a custom in business?
- [x] Closing the firm for business on Sunday
- [ ] Filing annual tax returns
- [ ] Developing a marketing strategy
- [ ] Creating a business plan
> **Explanation:** Closing the firm for business on Sunday is an example of a customary practice followed by some businesses out of tradition or habit.
### What is the key difference between customs and laws?
- [x] Customs are informal practices, whereas laws are formal rules enforced by authorities.
- [ ] There is no difference.
- [ ] Customs are more powerful than laws.
- [ ] Laws are flexible, while customs are rigid.
> **Explanation:** Customs are informal practices upheld by tradition or habit without legal enforcement, whereas laws are formal rules implemented by governing bodies.
### Why is it important to understand customs in international business?
- [ ] To enforce personal belief systems
- [x] To build better business relationships and avoid misunderstandings
- [ ] To create advertising campaigns
- [ ] To develop new product lines
> **Explanation:** Understanding local customs is crucial in international business to foster respect, build relationships, and avoid misunderstandings that could negatively impact business dealings.
### Which term best describes the transmission of practices through generations within a culture?
- [ ] Habit
- [ ] Etiquette
- [x] Tradition
- [ ] Norm
> **Explanation:** Tradition refers to practices or beliefs passed down through generations within a particular culture or group.
### In which industry is a customary dress code particularly common?
- [ ] Technology
- [ ] Retail
- [x] Finance and Law
- [ ] Hospitality
> **Explanation:** The finance and law industries commonly have customary dress codes that dictate business attire.
### How do changing social norms and technological advancements impact customs?
- [x] They can lead to the evolution or abandonment of old customs.
- [ ] They keep customs static.
- [ ] They create legal issues.
- [ ] They have no impact on customs.
> **Explanation:** Changing social norms and technological advancements can result in the evolution, adaptation, or abandonment of old customs.
### What aspect of corporate culture can be heavily influenced by custom?
- [x] Consistency in business operations
- [ ] Stock market performance
- [ ] Legal frameworks
- [ ] Automated processes
> **Explanation:** Customs help maintain consistency in how business operations are conducted, affecting the overall corporate culture.
### What is a habitual practice performed regularly, often without conscious thought?
- [ ] Norm
- [ ] Etiquette
- [ ] Tradition
- [x] Habit
> **Explanation:** A habit is a routine or practice performed regularly, often without conscious thought.
### How can customs affect client expectations in business?
- [x] By setting a standard behavior that clients expect from the business.
- [ ] By enforcing legal frameworks.
- [ ] By ensuring product quality.
- [ ] By affecting market competition.
> **Explanation:** Customs establish expected standards and behaviors, thereby shaping client expectations regarding how businesses should operate and interact.
Thank you for embarking on this journey through the comprehensive topic of customs in business. Continue exploring to deepen your understanding and rigorously apply this knowledge in professional contexts!
