United States – Page 90 – understand-culture

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.

Why Schäuble sees too many Germans going it alone

Wolfgang Schäuble has been a member of the Bundestag for exactly 50 years, making him the sole record holder. For the anniversary, the CDU politician will basically be with Markus Lanz. He criticizes Germany’s “know-it-all” on many issues, which means that Germany is met with a lack of understanding from many international partners and allies.

As an example, Schäuble cites the discussion about the “One Love” armband at the World Cup in Qatar. This moral exaggeration does not fit the federal government’s gas deal with Qatar. Germany needs this relationship right now. And don’t stick to what other countries would like to dictate.

But even in the debate about the raid in the “Reichsbürger” milieu, an internal contradiction becomes clear. Such a successful search is only possible thanks to a certain level of surveillance of suspects, for example by wiretapping communications. Here Germany must find the right balance between freedom and security. And between security and morality.

It is similar for Schäuble in energy policy. Germany has been going its own difficult path here since Nord Stream 1. But with Nord Stream 2 at the latest, they have moved far too far away from the other Europeans and the Americans.

Tom Buchanan

In F. Scott Fitzgerald’s The Great Gatsby, Tom Buchanan’s confrontational business dealings reveal a willingness to negotiate aggressively, reflecting a broader American acceptance of price negotiation as a sign of power and influence.

Aphorisms

Wissen ist Macht, aber Macht ist auch ohne Wissen Macht. – Knowledge is power, but power is power even without knowledge.

Wissen ist Macht? Aber Macht isst Wissen. – Knowledge is power? But power eats knowledge. (Elmar Schenkel (*1953), Anglicist, author, translator, painter)

Für die Feinde ist das Wissen Macht, für uns ist die Macht Wissen! Ohne Macht kein Wissen! – For enemies knowledge is power, for us knowledge is power! Without power there is no knowledge! (Wilhelm Liebknecht (1826 – 1900), German journalist and politician)

Wissen ist Macht. Wissen von der Macht, noch ein wenig mehr Macht. – Knowledge is power. Knowledge of the Force, a little more power. (Martin Gerhard Reisenberg, *1949), qualified librarian and author)

Wissen ist die Macht zu wissen, was man besser nicht macht. – Knowledge is the power to know what is better not to do. (Gerhard Uhlenbruck, *1929), German immunobiologist and aphorist)

Wenn Wissen Macht ist, dann macht Nichtwissen ohnmächtig. – If knowledge is power, then ignorance makes you powerless. (Robert Kroiß, *1949, German writer)

Honesty is the best policy

Ehrlich währt am längsten. Honesty is the best policy. Integrity and sincerity are considered important principles in Germany—even if they can lead to longer negotiations. The goal is to gain the trust of your negotiating partners in the long term.

What Are Organizational Silos?

For a business to be successful, it’s important for employees to share ideas and work well together. Organizational silos can affect how employees interact with one another. As a manager, understanding the pros and cons of organizational silos can enable you to communicate effectively with every member of your team. In this article, we discuss the definition of organizational silos and how you can dismantle them.

Kant and Pricing

The concept of objective pricing aligns closely with Immanuel Kant’s philosophy, which emphasizes rationality, structure, and universal principles. Kant argued that truth can be determined through reason, and that objective reality is knowable through structured analysis. Kant’s emphasis on universal principles suggests that there is a correct or just price that can be logically deduced, independent of market forces or subjective negotiation. Kantian ethics also emphasize duty and moral principles over personal gain. Thus, establishing a fair, objectively justified price is considered a moral obligation, rather than a transactional opportunity.

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.

precision and standardization

The German emphasis on precision and engineering excellence extends to pricing as well. In manufacturing and engineering, precise calculations and standardized cost structures are central to determining product prices. German manufacturing culture emphasizes detailed cost accounting, ensuring that prices reflect the actual costs of production, labor, and materials, rather than perceived market value. The tendency toward precision and standardization fosters the belief that there is a correct price for every product or service, calculable through objective analysis and engineering specifications.

Besserwisser

Wikipedia: A know-it-all is colloquially referred to as a person who expresses their opinion in an instructive and intrusive manner and thus gives the impression that they have more knowledge or education in certain (or in all) matters or can judge better than others.

People take offense at the behavior of such know-it-alls – not so much because they are envious of their knowledge (alleged or actual), but because they teach others uninvited, but are closed to the opinions, arguments and knowledge of other people.

This creates an air of arrogance and lack of tact. Exaggerated competitive behavior is also perceived as unpleasant by people who are discussing less out of interest in the topic than to be right.

Besserwisser literally besser, better + wisser, from wissen, to know. Better-knower.