In the early socialist years of the State, business was a dirty word. Israelis were expected to build, farm, and manufacture, to provide housing, food, and essential products. Buying and selling, brokerage, making profits, and earning commissions were viewed with disdain. Real estate agents were regarded as parasites. There was a tax on travel, and with the advent of TV in Israel color was wiped off all programs before transmission, so that there wouldn’t be some people with color and others without.
As time passed attitudes changed. With successive right-wing governments, the privatization of many government industries and services (today even kibbutzim are talking about privatization), the ambition and resourcefulness of the Israelis, and the impact of globalization, Israel became part of the wider world.
There is a strong awareness of dress in Israeli business circles, and to make a good first impression you should tend toward the formal to show seriousness of intent and respect for your host. Later on, take your cue from your host. Female visitors should dress modestly. A revealing outfit could be misinterpreted.
As everywhere, dress codes are determined by occupation. Bankers, lawyers, accountants, real estate developers, and senior hoteliers are at the top end of formality, wearing suits and ties even in summer. Industrialists and those employed in the service industry are less formal. Real informality is most likely to be found in the high-tech industries.
Israelis notice a lack of color coordination, and especially the state of people’s shoes. It wasn’t so long ago that Israelis wore sandals to their business meetings—but you should wear good shoes in perfect condition.
Because Israelis come from so many backgrounds it is difficult to predict their business styles. However, most of the people you are likely to meet will conduct themselves in a British or American manner. Israelis are avid learners. They will have been on business trips themselves and will have picked up on the right way to behave.
Israeli businessmen tend to have bilingual business cards, or separate cards in Hebrew and in English or another language. For visitors an English-language card will suffice.
Unless the visitor and his Israeli host speak some other common language, negotiations will be carried out in English. Presentations will be made in English and contracts drawn up in English, or in Hebrew with certified English translations. All state-of-the-art audio-visual presentation technology is available in Israel.
Israelis tend to be more physical than their overseas counterparts. An Israeli host may very well sit next to his guest rather than on his own side of the desk. Israelis are often unaware of intruding on someone else’s space. They are, however, poor at introductions, so if there are people present in the meeting whom you haven’t met it is perfectly acceptable to offer your hand, say, “Shalom,” and introduce yourself.
Israelis believe in the importance of establishing good personal relations in a business context, so there is every chance that they will invite the visiting guest for dinner, either at home or at a restaurant. Everything we have learned about gift giving, religious and secular attitudes, and manners naturally applies here as well.
Noncontroversial topics of conversation such as movies, books, travel, and sports, particularly soccer, are appropriate. Refrain from criticizing anything to do with Israel, even if your host himself does so. Don’t even concur. Be noncommittal, and if possible change the subject.
If your host is an Arab Muslim you may be expected to take off your shoes before entering his home. Follow his lead. Also remember that Muslims consider the left hand unclean, so use your right hand for eating, for instance when scooping hummus from a communal plate with pita bread, even if you are left-handed. Leave a little food in front of you at the end of a meal to show your host that his fare was most satisfying.
There are too many Israeli negotiating styles to enable one to generalize, depending as they do on the nature of the transaction, the age, level of experience, education, and background of the negotiator, the size and prestige of the business he represents, and his status in it. There are, nevertheless, elements that are common to all.
The fact that Israelis value good personal relations in their business dealings is a manifestation of their openness and directness and of the wish to make a good impression. They understand the long-term benefits of establishing trust and rapport. They are also great risk takers, even when entering into and maintaining business relationships.
The Israeli negotiator will be gracious and polite, although his concept of politeness may not always coincide with that of the foreign visitor. His basic survival instincts may lead him to use tactics that can seem rather over-assertive, to give himself the upper hand.
Whether or not he takes outside calls during a meeting, invites his guest out for lunch or home for dinner, or offers help of a general nature, will depend on the above factors. But even the most uncompromising or brash Israeli will only depart unwittingly from the norms of polite behavior.
Although the English Law of Contracts applies in Israel, with modifications, Israelis tend to regard verbal commitments, including binding verbal agreements, with less seriousness than written contracts. Certain transactions in Israel must be in writing, for example, the purchase and sale of land and fixed property. The exception to this attitude is the diamond industry, where the traditional handshake is still held sacred.
One of the reasons for this distrust of verbal agreements is the common experience that unknowns, such as taxes and bureaucratic surprises, can change the nature of the deal and become an impediment to its fulfillment. In addition, the courts in Israel are overburdened and cases can take a long time to be heard, so unless there is written evidence supporting the claim, the prospects of success are slim. Many disputes, including those involving substantial claims, are resolved through arbitration. There are also the Small Claims courts where the procedure is less formal and the process is quicker and simpler.
In general, Israeli businessmen act in good faith, have no hidden agendas, and have every intention of complying with their contractual obligations. If there are obstacles en route Israeli businessmen tend to believe that personal relations will help to overcome them.
Although the number of women in the Israeli workplace is large, very few pursue dedicated careers. Many of those who do, however, reach high positions in business and the professions. One of the wealthiest heiresses in the world, with holdings in Israel, is an Israeli woman. An Israeli woman has built a cosmetics empire, and another an international swimwear fashion house. Others are leaders in fashion, food production, insurance, banking, and in the arts and entertainment.
If a visiting businessman finds that his Israeli counterpart is a woman, the relationship should be kept on a strictly professional level—although common courtesies such as opening the door for her would in most circumstances be appreciated. Israeli businesswomen have not discarded their femininity.