Building Trust In International Business Across Cultural Divides

Trust as a Two-Way Street

I consulted on a US Army Corps of Engineers (USACE) project in a city beyond Baghdad, one I was not familiar with. Knowing that Baghdad is just one representation of Iraqi culture, I immersed myself in my new surroundings, determined to get to know the local customs. For example, I was surprised to learn that all the shops were run by women (which would be unusual in Baghdad). It turned out that the men were all working on the USACE project nearby, leaving the women to manage day-to-day commerce.

When I went into the city, I did not take a big fancy car. I ate the local food. I talked to the people. The women would tell me about their sons, husbands, or nephews working on the engineering site, and I carried these connections back to the site, getting to know the workers. They were happy to work with us as facilitators and would feel comfortable approaching us to ask, “Hey, do you have a job for my son/brother/cousin?” Of course, we could not hire everyone, but when it made sense, and a role was available, we obliged.

These gestures built trust in my international business, which was not forgotten by the local community. One day, a worker called me: “There’s a long line to get into the base today. You should wait to come here.” Engineering sites had strict security protocols—everyone checked in and out. “Why is there a long line?” I asked. He didn’t know but insisted I delay my arrival, suggesting it could be risky—the long line created a crowd, an easy target for potential attacks.

Sure enough, shortly after, a bomb was detonated at the checkpoint. I was lucky to not be there when it happened. By taking the time to learn about the community and play an active role in it, we had earned their trust. And we were thus able to put our trust in them. It turned out to be potentially lifesaving.

Ways to Build Trust in International Business

Extreme as this example may be, it speaks to a universal truth: trust in international business benefits both sides. It’s up to leaders to set the tone and nurture that trust, especially when they come into a foreign context as “the outsider.” In my experience, there are a few things leaders can do to help this process—starting with simply breaking the ice. Simple actions like learning the language and participating in local customs can go a long way.

Local partners can also prove invaluable, especially when there is a significant linguistic and/or cultural gap. In Iraq, for example, locals can provide context on area tribes and their influence over business in the region. In my experience, you have to proactively seek information from these contacts; you can’t expect them to spoon-feed it to you.

Finally, beyond simply participating in the local culture, consider contributing to it. I have seen multinational companies go about this in many different ways in Iraq, from investing in education (which also helps train a future workforce) to building hospitals. Even something as simple as supporting local events—for example, by providing foods to religious pilgrims, as I’ve seen companies do in Iraq—can make a difference.

Trust and Be Trusted: Not an Overnight Process

Building trust in international business takes time. Grand gestures or impressive credentials won’t do the trick. Instead, invest in small acts of goodwill—participate consistently, integrate as much as possible, and contribute in meaningful ways. Just as importantly, put your trust in the people you meet along the way. You can’t expect them to trust you without it.