Business culture in Brazil

Brazil is one of South America's economic giants, known for its world-class mining, manufacturing, and agricultural industries, and is the region's largest oil producer. However, doing business successfully here depends on understanding and respecting the country's unique business norms and culture.

Meeting and Greet

The first contact with your Brazilian counterparts can be initiated by email followed by a phone call. Calls are the recommended form of contact until a face-to-face meeting can be arranged. Meetings should often be scheduled several weeks in advance and confirmed in writing several days in advance.

Official business hours in Brazil are 9am to 6pm. If possible, plan to travel outside of the peak hours of 7am to 10am and 5pm to 8pm. Allow an extra 30 minutes for driving within cities. Also allow 15 minutes to clear security at the building's reception area.

Expect a relaxed approach to punctuality - 10-15 minutes late is acceptable in most cases. While you should always try to be on time, be prepared to wait for your Brazilian partners.

Meetings begin with a long handshake and casual conversation before getting down to business. When meeting someone for the first time, it is customary to say "muito prazer" ("it's my pleasure"). "Como vai" and "tudo bem" can also be used as greetings if you already know someone.

Initial contact is fairly formal, and distinctive titles such as "Senhor", "Doutor", or "Engenhero" are commonly used, depending on age and qualifications. Single women and younger women are addressed as "Senhorita". It is best to learn about your contacts before you meet them so you know how to address them.

Exchanging business cards is an important ritual in Brazilian business culture. In addition to your name, title, and contact information, each card should have a Portuguese translation on one side and the same information in your native language on the other.

If you are giving a presentation, it is recommended to keep it short (30 minutes or less). You should be prepared to be interrupted with questions frequently, as Brazilian meetings can be energetic and noisy. Presentations require you to be confident, eloquent, and willing to explain in detail. If a follow-up meeting is required, be sure to schedule it in person or by phone.

Dress Code

Brazilian business attire is generally formal, but the climate allows for a little more flexibility and style. Depending on where you are in the country, it can be warm and humid all year round, so you need to balance business attire with comfort.

Men often wear suits, but ties may be optional, especially in more informal industries, while women typically stick to formal dresses or suits.

Communication Styles

Many senior and mid-level executives in Brazilian business culture speak excellent English. However, English is not widely spoken, and when communicating with people outside of major commercial centers, knowing how to speak Brazilian Portuguese will be extremely helpful. (Try to avoid using Spanish, as it can be seen as culturally disrespectful. Brazilians pride themselves on being unique in South America as non-Spanish speakers.) If you are doing business in Brazil for the first time, find out if you will need an interpreter.

Verbal communication in Brazil can often be seen as theatrical and overly emotional in cultures that place a high value on maintaining professional reserve in all situations. In a country like Brazil, if you feel something strongly, you show it.

Using a significant amount of exaggerated body language (by the standards of less tactile cultures) plays an important role in normal communication. Brazilians are very tactile - even across genders - and work in close proximity. They also display a high level of eye contact when speaking to people. This combination of tactility, proximity and intense gaze can be intimidating to some, but it is important that you adapt to these characteristics as quickly as possible, otherwise your own reserve may be misinterpreted as unfriendliness.

Hierarchy and Decision Making

As in most of South America, many Brazilian companies tend to be organized hierarchically, with information flowing up and down the various chains of command in a highly structured manner.

As is typical in structured hierarchies, most key decisions are made at the highest levels of the organization, and all international negotiators are well advised to try to understand the corporate structure of any potential partner, as much time and resources can be wasted trying to get a decision from someone who does not actually have the necessary level of authority.

Trying to decipher the exact structure of your contact's organization is quite a challenge. The organizational chart you are shown may not reflect how power actually flows, due to the complicating factor of the strength of personal relationships. Business organizations are riddled with internal politics, where loyalty to an individual may be considered more important than any lines of authority in the organizational chart.

Negotiating

Negotiating in Brazil requires flexibility and respect. Brazilians view negotiations as opportunities for mutual benefit and networking. Come prepared with clear goals and constraints, but also be prepared to adapt and find creative solutions that benefit both parties. Patient and non-irritable negotiation is respected and can lead to a successful deal.

Relationships are paramount, and Brazilians want to be sure they know who they are doing business with, not just what they are doing. Remember that initial enthusiasm does not necessarily lead to results. Brazilians can be slow to make decisions, and you may need to constantly monitor the project if you want to see that goals are being met.

In terms of behavior, eye contact is recommended. Do not be offended if the other party answers the phone during your meeting; this is not considered a sign of disrespect. Expect negotiations to be conducted in Portuguese. Ideally, allow the other party to raise business issues. Remember that interruptions are a sign of interest in the topic in Brazilian culture. If you use humor, make sure it is done in a light and friendly manner.

Brazil views negotiations as an extension of a partnership. After a deal, communication is essential to future trust and openness in the company. Brazilians prioritize long-term relationships over short-term gains, so maintaining them can lead to more opportunities and a better partnership.

The Concept of "Jeito"

Also known in Brazilian Portuguese as "jeitinho brasileiro", this term translates as "finding a way" or "getting around" an obstacle. It is used to describe a way to get around a formal rule without "breaking" it. If a Brazilian cannot achieve something through formal means, a "jeito" is usually found. A jeito will depend on friends and other important contacts with power and influence. However, the concept of jeito also has everyday applications, such as finding a way to skip a line. Sometimes, all it takes is mentioning the name of a mutual friend.

Brazilian "despachante"

Also known as the "indispensable go-between", a "despachante" is someone who will find the way (jeito) through the bureaucratic maze. A despachante charges a flat fee for their services, depending on the complexity of the task at hand. They can handle a lot of bureaucratic matters, especially any paperwork that involves complex and often inefficient government agencies. They are indispensable in Brazilian social life, as many people do not have time to wait in line for long periods of time or return to the same government office multiple times.

The concept of "jeitinho brasileiro" influences discussions and decision-making. Flexibility and creative problem-solving are crucial to this Brazilian approach. Using this mindset can be advantageous. Respect for local practices can help identify solutions that a by-the-book approach would miss.

Gifts

Gift-giving is common and encouraged; just make sure your gift is appropriate for the occasion - pens or simple objects work well for trade fairs and other common situations. However, with key contacts, a more personalized gift is a good idea, especially if you are dealing with high-ranking officials. While you don't have to spend a lot, try to choose something that isn't mass-produced.

If you're invited to dinner at someone's home, send flowers and a thank-you note. Or you might want to give a gift upon arrival - sweets, wine, and champagne are popular.

Table Etiquette

Business dinners in Brazil are often informal events, where there is less discussion of work and more personal conversation and getting to know each other better. While it is normal to ask questions about people's families, hobbies, and lives, it is best to avoid potentially controversial topics such as politics or religion.

Conversation about popular sports such as soccer, which is an integral part of Brazilian culture, is another way to build relationships.

Business dinners usually last for several hours, with relaxed etiquette. Wait for the host to begin the meal, and make a toast before you begin eating.

Public Holidays

• New Year's Eve - January 1st
• Carnival - 4 days until Ash Wednesday
• Good Friday (Friday before Easter) - March/April
• Day - May 1
• Ascension - May
• Independence Day - September 7
• Our Lady of Aparecida - October 12
• All Souls' Day - November 2
• Proclamation of the Republic - November 15
• Feast of the Immaculate Conception - December 8
• Christmas - December 25
• Saint Sebastian's Day in Rio de Janeiro - January 20
• Foundation of the city of São Paulo - January 25
• Our Lady of the Sailors in Porto Alegre - February 2

Periods when companies usually close

• Carnival - one or two weeks
• Christmas and New Year - one or two weeks