Doing Business in the Philippines | Navigating Business Culture

Each month we offer our clients, learners and friends in the industry, free briefings and expert advice for living and working in different cultures.  We'll email each monthly cultural newsletter directly to you, all you have to do is subscribe.

The Philippines is an archipelagic country in Southeast Asia, consisting of over 7,000 islands bordered by the Philippine Sea, the South China Sea, and the Celebes Sea. Its bustling capital, Manila, lies on Luzon Island and is part of Metro Manila, the country’s largest urban region and economic hub. The city has a blend of historic landmarks and modern skyscrapers, reflecting its rich history and vibrant culture. Across the archipelago, around 47% of the population lives in urban areas, with cities like Cebu and Davao serving as key commercial and cultural centres.

The Philippine Islands became a Spanish colony in the 16th century and remained under Spanish rule for over 300 years. Following the Spanish-American War, the islands were ceded to the United States in 1898. In 1935, the Philippines became a self-governing commonwealth, with Manuel Quezon elected as its first president. He was tasked with preparing the nation for full independence after a 10-year transition period. During World War II, the Philippines fell under Japanese occupation in 1942, but Filipino and American forces fought together to liberate the islands in 1944–45. Finally, on July 4, 1946, the Republic of the Philippines gained full independence, marking the end of colonial rule.

The Philippines has a large population of around 119 million inhabitants. The official languages of the Philippines are English and Filipino, a standardised dialect of Tagalog. However, many other languages and dialects are spoken as well.

Most Filipinos are Roman Catholic and people attend church regularly with Christian holidays and celebrations observed. The phrase "Bahala na" is a common expression in the Philippines, often translated as "Come what may" or "Leave it to fate." In business, this sense of fatalism implying a reliance on divine guidance means that employees are expected to be flexible and adaptable. While "Bahala na" suggests a willingness to face uncertainty, it is more about resigned acceptance and risk-aversion, preferring stable and time-tested practices. However, the younger generation, can display higher risk tolerance, influenced by modern entrepreneurship and working in global companies.

Family plays a significant role in Filipino culture and is viewed as a source of strength and support and family values plays an important role in business dynamics and decision-making.

Society tends to be hierarchically structured as in most Asian countries but is more informal than countries such as Japan or Korea. In most large Filipino companies’ decisions are made at the top and it is imperative to have good contacts at this level. Management style tends towards the paternalistic.

People are careful to ensure that others do not suffer embarrassment or any sense of shame (hiya) because of their own actions. Hiya reflects a deep awareness of how one's actions affect others and how they are perceived in a social context. For example, a person might avoid speaking out or challenging authority to avoid disrupting unity. The benefit is that it fosters politeness, respect, and a sense of accountability, which strengthens social bonds, however, excessive hiya can hinder assertiveness, stifle innovation, or prevent individuals from pursuing opportunities for fear of failure or judgment.

Hiya is closely tied to pakikisama (smooth interpersonal relationships), as both emphasise maintaining harmony and avoiding actions that disturb group dynamics. Filipinos therefore tend to be non-confrontational and go out of their way to help other team-members and to be seen to be helping.

Filipinos are known for their resilience and ability to adjust to changing circumstances. This adaptability often translates into a relaxed attitude towards time, where plans can shift depending on what feels most important in the moment. Additionally, in a collectivist society such as the Philippines, waiting for others or adapting plans to accommodate group members is seen as more important than strictly adhering to individual timelines.

Filipinos can be enthusiastic conversationalists. However, people generally speak softly and loud and boisterous behaviour is perceived as a lack of self-control. Listen carefully when another person is talking. Interrupting others may be considered offensive. Also, Filipinos are more likely to be indirect and tactful than direct and straightforward. Look out for non-verbal cues, such as facial expressions and body language, that may be communicating the real message.

Many Filipinos have Spanish names because of a 19th-century Spanish decree that required them to use Spanish surnames, or last names. Names are usually given in the order of first name, family names. Upper-class Filipinos often have two family names, the first one from their father and the other from their mother. Use Mr./Mrs./Miss plus the (father’s) family name. If a person has an academic or professional title, use it instead, fol­lowed by the father’s family name. Don’t be surprised if you meet a person who appears to have different ‘formal’ and ‘casual’ names – the use of nicknames is widespread, and Filipinos may even show their nickname on their business cards.