Gitana, I was wondering if you could help me out. I am now looking for
an organization in South America that would be a global organization.
Then I need to identify an ethical issue for the company. Could you
explain common buriness practices and customs that exist in Venezuala
or South American in gneral.

Dear CLVH, 

Thanks for another great question.  

Petroleum has long been the source of both prosperity and conflict in
Venezuela.  In pursuit of the stuff that makes everything in the world
go around, the actions of the government and foreign investors give
rise to many ethical issues.

For example, consider the conflict between British Petroleum and the
Warao, the indigenous people of northeastern Venezuela

http://www.oneworld.org/ips2/mar/venezuela.html

In this regard a current issue has to do with the construction of a
petroleum pipeline through the Orinoco delta.  The following site
provides information on the delta region:

http://www.think-venezuela.net/english/p_delta.htm


The pipeline project promises jobs and development while
simultaneously threatening the ecosystem and way of life of the Warao.

Venezuelan owned petroleum interests and Conoco, a multinational
corporation, are working together on this project, funded by
Citigroup, another multinational corporation.

For information on Conoco’s global interests see:
http://www.conoco.com/about/major/index.asp
 
This seems like a perfect example of an ethical problem facing two
large international companies.

Citigroup’s take on the pipeline issue:

“Our role as Financial Advisors for Petrozuata was completed on 1997.
The Petrozuata project is part of a major effort by Venezuela to make
the best use of its oil & gas revenues…….This company also creates
jobs and strengthens our ties with the people of Venezuela…..Since
beginning of their operation, Petrozuata has shown a great interest
for the environment conservation and development of their community.”

(scroll down for article on Venezuela)
http://www.citigroup.com/citigroup/citizen/environment/questions.htm

Rainforest Action Network’s take on the issue:

“In the mangrove forests of the Orinoco River Delta in
Venezuela,Citigroup sponsored the financing of a $2
billion oil drilling and pipeline project for DuPont ’s
Conoco and Venezuela ’s Petróleos de Venezuela
(PDVSA).The project has caused irreversible pollution
of the sensitive mangrove ecosystem,
threatening the lives and culture of
local inhabitants, including the
traditional Warao people.”

http://forests.org/archive/brazil/oppinfra.htm


***************************************************

Regarding the business practices of Venezuela, I don’t have any
insider experience in the Venezuelan business world so I researched
this subject and e-mailed some of my uncles for verification.

The following site outlines the general business environment in
Venezuela
Venezuelan business structures:

http://strategis.ic.gc.ca/SSGF/dc91927f.html


The following sites discuss the business culture of Venezuela:

http://www.ibrc.bschool.ukans.edu/Cultural_Perspectives/venezuela/dw_venezuala.htm

http://www.executiveplanet.com/business-etiquette/Venezuela.html

Integrating this information with my own cultural experience, I have
these comments:

It is very true that Venezuelans tend to stand close to one another
while conversing.    This may be disconcerting for western business
visitors.

As I believe I mentioned in an earlier answer, businesses often close
for 2 to 3 hours for lunch.  This and the slower pace of life in
Venezuela may frustrate visitors who are accustomed to more efficient
practices.

In an earlier answer I also mentioned the importance of status. The
above sites mention that business men and women should dress well. 
This is probably true in most cultures and the Venezuelan elite pay
close attention to the details of design, for example:  quality
jewelry rather than costume jewelry and watches; wool, linen and silks
rather than polyester or blends; tailoring and designer labels.

Women are expected to wear makeup, hose and heels.

Though one of the sites mention the “abrazo” (handshake and backslap
half hug) as an appropriate greeting, I would reserve this practice
until one is better acquainted (perhaps the second or third meeting)
and stick with the basic handshake on first meeting.

In keeping with an earlier answer, who one knows can be helpful in
developing a business relationship (again, this is probably true in
most cultures, but more so in Latin America).  For example, if one
mentions that he played soccer with so and so’s brother in law or that
his daughter went to school with so and so’s best friend then one will
be better received when trying to make business contacts.

The above sites also suggest avoiding any discussion of politics or
the United States’ influence in / domination of Latin America.  I
would recommend this in any developing relationship with Venezuelans,
business or otherwise; stick to the topics of sports and
entertainment.

Visiting business people should also expect to mix business with
pleasure.  That is, business meetings will often extend to dinner and
drinks.  Those who don’t indulge may be looked upon with suspicion.  A
good sense of humor is also important.

Many of these aspects of business culture are also relevant to the
rest of Latin America.  The above sites include links to practices in
other countries in the region.

Argentina:

http://www.executiveplanet.com/business-etiquette/Argentina.html

Chile:

http://www.executiveplanet.com/business-etiquette/Chile.html




I hope this has been helpful.  If anything is unclear, please feel
free to request a clarification.

Saludos, 
gitana

Excellent job! Again a wealth of information. Puts a lot of good
insight into the issues