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Russia
The only things that can be relied upon are close personal relationships within the business environment
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Russia is a fragmented society, undergoing a radical period of change and readjustment. The old order has been swept away, leaving a political and economic void. It is, therefore, true to say that things in Russia change on a day-to-day basis and that, in such a disparate country, what is true for one region might be untrue in the next.
Certain universal truths do, however, typify the Russian approach to business and life in general. Firstly, it is always worth bearing in mind that for centuries (long before the advent of the Soviet system), the state has always been seen as an organ of oppression and repression. Laws and statutes are therefore seen as the 'enemy' and to be avoided and evaded at all costs. Contracts are valid only if supported by a close personal friendship and taxes are left unpaid on both a corporate and personal level.
Secondly, the only things that can be relied upon are close personal relationships within the business environment. Networking and extended interpersonal allegiances are essential to successful business and the importance of resource allocation to ensure the development of good quality relationships should not be underestimated.
Thirdly, the legal status of many Russian companies is very dubious, being incorporated under the old laws of the Soviet Union which no longer have validity. Who actually owns the assets of an organisation? The laws are being rewritten constantly and are, in any case, virtually unenforceable. Thus, most agreements have to be made on a trust basis - a strong element of which has to be clearly identifiable self-interest. The legal basis of any arrangement will probably mean very little once the relationship breaks down.
Certain universal truths do, however, typify the Russian approach to business and life in general. Firstly, it is always worth bearing in mind that for centuries (long before the advent of the Soviet system), the state has always been seen as an organ of oppression and repression. Laws and statutes are therefore seen as the 'enemy' and to be avoided and evaded at all costs. Contracts are valid only if supported by a close personal friendship and taxes are left unpaid on both a corporate and personal level.
Secondly, the only things that can be relied upon are close personal relationships within the business environment. Networking and extended interpersonal allegiances are essential to successful business and the importance of resource allocation to ensure the development of good quality relationships should not be underestimated.
Thirdly, the legal status of many Russian companies is very dubious, being incorporated under the old laws of the Soviet Union which no longer have validity. Who actually owns the assets of an organisation? The laws are being rewritten constantly and are, in any case, virtually unenforceable. Thus, most agreements have to be made on a trust basis - a strong element of which has to be clearly identifiable self-interest. The legal basis of any arrangement will probably mean very little once the relationship breaks down.