What is Customary business practice?
Customary business practice refers to the established and widely accepted methods, procedures, and behaviors that are commonly followed within a particular industry or region. These practices are not necessarily written down in law but are based on tradition, experience, and common understanding among business professionals. In Switzerland, customary business practices play a crucial role in shaping the way companies interact, negotiate, and operate within both domestic and international markets.
Key Features of Customary Business Practice
- Industry Standards: Customary business practices are often influenced by industry-specific standards and conventions. For example, in the Swiss financial sector, there are certain norms regarding client confidentiality, which are understood and adhered to by companies in the industry.
- Cultural Influence: In Switzerland, customary practices can be shaped by cultural norms, including punctuality, directness in communication, and respect for hierarchy, which are important in maintaining smooth business relations.
- Negotiation Styles: In international trade, customary business practices may affect negotiation tactics. Swiss companies, for example, often engage in negotiations with an emphasis on thorough preparation, detailed contracts, and mutual respect for long-term relationships.
Legal and Ethical Implications
While customary business practices are not laws, they often align with legal frameworks and ethical standards in Switzerland. For instance, business practices such as fair competition, non-discrimination, and transparency in dealings are not only customary but also legally required. Understanding these practices is essential for businesses to build strong relationships and avoid legal conflicts in both domestic and cross-border operations.