Business Practices in Chile

Hierarchy in Chile tends to be vertical, and the decision-making process is done by senior managers, although middle-level executives may become involved during subsequent meetings. Observing the chain of command is important when dealing with Chilean companies.

Personal relationships are essential to doing business in Chile. Introductions from banks and consulting firms may facilitate business negotiations. Family and friendships also play an important role in establishing trust.

When presenting, any pressure tactic must be avoided as negotiations are often carried out more slowly than in Europe or North America. As not all Chilean businesspeople speak English, it is appreciated to be able to speak Spanish.  Accepting compromise shows that we value the relationship more than the financial aspects of the agreement. Also, make sure to always get written agreements as confirmation of what was negotiated. Contracts must be witnessed by a public notary to be valid.

Communication is usually indirect. Emotions and feelings are not hidden. A professional business attitude with a bit of humour is appreciated. One must expect to be interrupted, which is not considered rude, but a way to show interest and enthusiasm. Establishing constant eye contact is important. Feelings and emotions play an important role in negotiation. Communication tends to involve more physical contact than in most Western countries, and distance between people when talking is closer.

Business lunches are long and paid for by whoever invited. European-style table manners are used. Both hands must always be kept above the table, not on your lap. Conversation is also expected from guests after a meal is finished. Avoid topics such as comparing Chile to the U.S., politics or human rights. Also, favour conversations on family life.