Week 10: Arab Cultures and Sub-Saharan Africa

Last class we had the presentation on Arab cultures and Sub-Saharan Africa. I liked it very much because I just know few things about these regions, so I learned a lot. I got quite interested in the values promoted in their cultural systems and how they can be applied to business environment. The two most relevant points, for me, in the presentation were the Ubuntu, and Islamic Banking.  

Ubuntu is a philosophy and ethical principles prevalent in Southern Africa. The term is derived from the expression: “umuntu, nigumuntu, nagamuntu“, that means a person exists because of others. I have already heard about it, and it seems interesting to me because it evidences the collectiveness implicit in these people’s minds, as defined by the Liberian activist Leyma Gbowee: “I am because we are”. Therefore, the existence of the individual makes sense because it coexists with others; I see this principle as the confirmation of Aristotle’s famous quote “Man is by nature a social animal”. Even though, it is one of the most beautiful cultural values I’ve seen so far, many others argue this has become an obstacle for Africa’s development. We held a debate in class about this issue, but in the end is not easy to come up with a final answer.

The second point was about Islamic Banking. I had already read a couple of times in the Bible about the charging of interest as usury but I did not know it was actually applied today. Many people defending banks argue that interest is banks’ gains so it is completely right to charge it. However, the huge growth Islamic banking system has experienced, is defying savage capitalism. And going deeper, all this is based in a principle of ethical investment and risk-sharing.

 Knowing these rooted cultural values is very important in my opinion because this is how you really identify the essence of a culture. But also they are very useful tools when interacting with people from these regions because you can kind of anticipate their behavior and be prepared regarding the way they perceive things. All this can really make a difference between success and failure if trying to establish a relationship with a person or a company in those countries.

Research Question: Has Ubuntu proved to be successful when implemented as a management style?

One of the most successful cases in the implementation of Ubuntu culture is the African Bank Miners Credit, which since 1993 provides access to financing and financial services to South African miners. In 2003, the company decided to start work in the Investors in People (IPP) recognition, as Tom Mile, the National Manager, says: “Some of our people lacked sufficient formal education and we felt that if we spoke about Investors in People, it might be quite difficult for some of them to understand. This swayed our decision to implement Investors in People, using the uBuntu philosophy. Irrespective of which ethnic group they belonged to, we knew all South Africans understood the concept of uBuntu, and they would therefore, be able to identify with the concept very easily”. The company’s management identified five key business areas: growth, security, equality, social responsibility and safety in the workplace. All of the work and strategy was communicated to every person in the organization through the use of music, stories and sharing sessions where Ubuntu measure was promoted. The commitment achieved from the entire organization led them to finally obtain the IPP recognition.

Reference

Mangaliso, M. (2003). "Building Competitive Advantage fro Ubuntu".  Academy of Management Executive, 15(3), 23-33. Retrieved from EBSCOhost.

Bedoya, J., Chaverra, S. & Bustamante, L. (2014) Case Study Analysis. Retrieved from: https://es.scribd.com/doc/219150807/Case-Study-O-C