The German term Kulanz conveys the concept of goodwill adjustment; voluntary concession without legal obligation. It is culturally significant because seen as a gesture of fairness, but not something to be expected.
stable, predictable
After World War II, the German government implemented strict price controls to stabilize the economy during the Wirtschaftswunder. The emphasis on fair pricing was institutionalized as a mechanism to prevent profiteering and ensure equitable access to essential goods. These post-war regulations reinforced the idea that prices should be stable, predictable, and based on objective calculations rather than speculative market fluctuations. The German social market economy emphasizes balancing free market principles with social welfare, including fair pricing practices that prevent consumer exploitation.
War of Currents
Despite its name, the Current War is not happening now, but took place primarily in the late 1800s. It was a war fought between Serbian-born, American-immigrant Nikola Tesla and the American Thomas Edison.
Tesla had difficulty convincing the American public to use his alternating electric current to power their homes and businesses. Alternating current (AC) had the ability to provide electricity over long distances much better than Edison’s direct current (DC), which required power stations to be built close together.
Nevertheless, despite the demonstrable superiority of AC to the spread-out American public, Tesla had great difficulty convincing people to use his system of AC over Edison’s DC. This is because Edison was much better at marketing to the American public. He sold himself as well as his product, and also attempted to discredit AC by incorrectly claiming that it was more dangerous, which he demonstrated by publicly electrocuting stray animals using AC.
As a result of Edison’s marketing campaign DC was the standard electric current for many years. However, this began to change after George Westinghouse, an American engineer and entrepreneur, acquired Tesla’s patents for AC and the induction motor.
Westinghouse was much better at selling AC to Americans than Tesla had been, and the first major victory for Tesla’s current occurred during the Chicago World’s Fair in 1893, in which General Electric, using DC, bid to electrify the fair for $554,000, but lost to Westinghouse, who bid $399,000 using AC.
Shortly after this, Niagara Falls Power Company awarded Westinghouse a contract to begin harnessing the power of the waterfall for use, and on 16 Nov 1896 Buffalo, New York began to be powered by AC from Niagara Falls. General Electric also switched to AC, and it wasn’t long before AC destroyed DC. Even Edison eventually switched to the more productive AC.
Konrad Adenauer
Konrad Adenauer, the first Chancellor of West Germany, navigated the complex negotiations for the Marshall Plan. He emphasized economic stability and long-term growth, insisting on clear frameworks for fund allocation, reflecting a commitment to planning and accountability.
Gesellschaftsvertrag
The German cultural Gesellschaftsvertrag reflects a deep-rooted social contract philosophy that traces back to the Middle Ages. Historically, German nobility saw themselves as responsible caretakers of their people. In exchange for loyalty, work, and taxes, they provided security and social stability. This legacy shaped German business ethics, emphasizing that companies are not purely profit-driven entities focused solely on shareholder value.
In contemporary German business culture the Gesellschaftsvertrag or social contract signifies that the primary responsibility of companies is first to their employees—to keep them employed and protected. The next priority is serving and contributing to the wider society, followed closely by fulfilling duties to customers and suppliers. Only after these responsibilities are met do shareholders’ interests come into priority. This hierarchy illustrates an ethos where social responsibility and care for people underpin business decisions.
This cultural framework aligns with German business values such as social responsibility, corruption-free operations, formal structures, clear roles, long-term relationships, and sustainability. German companies often adopt a collaborative approach with strong legal and ethical boundaries. Corporate social responsibility is taken seriously, encouraged by both internal company practices and external regulations.
The German Gesellschaftsvertrag embodies a traditional and modern blend of legal structure and ethical social obligations—a social contract where business success is tied fundamentally to the well-being of employees, society, and sustainable partnerships, not just shareholder profits. This perspective is a distinctive and influential part of Germany’s corporate culture and legal business environment.
Treaty of Versailles (1919)
After World War I, Germany was forced to sign the Treaty of Versailles, which imposed heavy reparations and territorial losses. Despite being in a weakened position, German negotiators insisted on a detailed, point-by-point examination of each clause, challenging the fairness of the reparations. They employed a structured, fact-based approach, attempting to justify why certain demands were excessive. The treaty’s severe terms were perceived as a violation of the principle of fairness in agreements – a lasting grievance in the German psyche.
Buddenbrooks
In Thomas Mann’s novel Buddenbrooks, the titular family, representing the German bourgeoisie, conducts business with a strict emphasis on maintaining dignity and decorum. Negotiating prices is depicted as undignified and beneath the family’s status, reflecting a broader cultural aversion to haggling in professional settings.
Fristsetzung
The German term Fristsetzung conveys the concept of deadline setting; defining clear time limits. It is culturally significant because used in contracts and offers to ensure predictability.
Effi Briest
In Theodor Fontane’s Effi Briest, characters engage in structured, formal interactions, where price discussions are avoided to maintain social decorum and politeness.
Surviving the Germans’ extreme online privacy
Moving from Israel to Germany, DW’s Dana Regev was surprised to learn just how seriously Germans take their privacy. Here’s how she survived.
Before scolding me for this headline alone, allow me to stress that I fully support people’s efforts to protect their own data, and gain control over how their personal information is being used by organizations, businesses or governments.
Apple, for example, is currently facing harsh criticism by European privacy activists who say the company uses software that tracks the behavior of iPhone users.
A Vienna-based group called NOYB has even asked data protection authorities in Germany to examine the legality of unique codes that they say amount to tracking without users’ knowledge or consent, a practice banned under strict European Union privacy rules.
But if you’re used to less strict privacy rules, you might be in for a surprise around Germans.