Modern but not westernized<\/p>\n
By Daniel Lindgren and Rob Goodfellow<\/p>\n
The following is an excerpt of a paper presented at a seminar
\nat the Faculty of Economics of the Islamic University of
\nIndonesia, the International Program, in Yogyakarta on Dec. 18.<\/p>\n
YOGYAKARTA: Despite the present crisis, Indonesia can expect a
\nmassive increase in foreign investment as we move into the next
\ncentury. Recent research by Prof. John Glynn of the Sydney
\nBusiness School strongly suggests that foreign investors are
\npoised to reenter Indonesia once true democratization takes place
\nand the essentials of \"the rule of law\", \"bureaucratic
\ntransparency\" and \"policy predicability\" are established.<\/p>\n
In fact, there is every likelihood that given the requirements
\nof international capital and the Indonesian peoples' high level
\nof general education and aspirational values, that Indonesia will
\ntake its place as the fifth most-industrialized economy in the
\nworld by 2020.<\/p>\n
In this move toward global economic integration, market
\nresearch will play a vital roll. This is particularly relevant to
\nIndonesia because at this moment, most of the multinational
\ncorporations who left Indonesia during the worst days of the
\nkrismon (monetary crisis) are preparing to reestablish themselves
\nand to expand their influence.<\/p>\n
This move should be welcomed, as it will speed up the process
\nof modernization. However, this comes with a grave warning. Can
\nIndonesia modernize without becoming Western?<\/p>\n
In fact it is likely that some of the worst aspects of Western
\ncommercialism may be inevitable here unless careful attention is
\ngiven to the way foreign companies integrate their practice into
\nIndonesian culture.<\/p>\n
The ethical and egalitarian value set of Islam, for example,
\nmeans that Indonesians expect to be treated in a particular way
\n-- fairly, with a sense of equality in the context of a general
\nrise in living standards for everyone: adil (just), makmur
\n(prosperous), and sejahtera (wellbeing).<\/p>\n
However, it should also be said that these are considered
\nuniversal values. Modernization is not so much about \"us\" and
\n\"them\" but about people learning from each other and about mutual
\nbenefit.<\/p>\n
While these represent core values, which most Indonesians can
\nrelate to, they are often disregarded by Western companies eager
\nto expand their markets. The reason for this is that some Western
\nbusinesses pride themselves on being amoral. Value systems are
\nsometimes seen by multinationals as subjective and, therefore, an
\nimpediment to cold, clinical decision-making and profit taking --
\nparticularly in their operations abroad. However, the situation
\nis very different in the West.<\/p>\n
In the West, the customer is \"king\" because consumers are
\neducated and understand what should be the underlying ethical
\nprinciples of business practice. In fact, ordinary consumers will
\ntake swift action if companies do not play by the rules. This may
\nnot be taking place in Indonesia because consumers have been
\ntaught to believe that \"Western\" equals \"modern\" and, therefore,
\nmust be good.<\/p>\n
This, of course, is wrong. Perhaps the question should be
\nasked, should Indonesians sacrifice their value systems to the
\n\"god\" of Western consumerism?<\/p>\n
Or rather, should it be a case of Indonesia adopting
\ninternational best practice and, therefore, becoming modern in a
\nuniquely Indonesian way?<\/p>\n
An example of international best practice is the formal
\nestablishment of common ground rules where Western as well as
\nIndonesian companies can compete fairly. This is particularly
\nrelevant to the field of market research.<\/p>\n
Market research should be based on the willing cooperation of
\nboth the public and the business community. It should be
\nconfidential (neither the client nor the respondent can be
\ndisclosed unless specifically asked to give their full consent),
\nand be carried out with honesty, objectivity and without
\nintrusion.<\/p>\n
Specifically, market researchers are responsible for
\ncollecting and analyzing data without trying to influence public
\nopinion or with the concealed intention of selling.<\/p>\n
One of the core principles in this important field is the
\ndistinction between market research and direct marketing. While
\nmarket research is an activity of collecting and analyzing data,
\ndirect marketing is a form of selling.<\/p>\n
In most Western business communities it is now widely
\nrecognized that there must be a clear distinction between the
\ntwo. Failure to make this distinction always leads to unethical
\npractice.<\/p>\n
One such problem is \"push-polling\". This is where highly
\nbiased questions are systematically used to influence the opinion
\nof the respondent. The other is called \"disguised selling\". This
\nis where there is an intention to sell products or services under
\nthe banner of market research without the informed consent of the
\nrespondent. Such activities are not acceptable in the West and
\nare, therefore, not acceptable in Indonesia.<\/p>\n
To avoid such problems, market research companies voluntarily
\nsubmit to an international code of practice that protects both
\nthe client and the community. Research standards, education and
\nmember services, and the informing of the community is usually
\nregulated through a national research body. Acceptance of the
\nadopted code is a condition of membership. Failure to comply
\nleads to expulsion. It is, therefore, in everyone's interest to
\nadopt ethical standards.<\/p>\n
To our knowledge, there is no such organization in Indonesia
\nat present. If so, in the short-term, market research will have
\nto self-regulate. Researchers will need to take a stance as
\nmediators between the business community and the consumer.<\/p>\n
However, what is clearly needed is to establish an Indonesian
\nnational market research organization, possibly with a
\nsecretariat based at a prominent and respected Indonesian
\nUniversity.<\/p>\n
This should be a high priority. Education of what should be
\naccepted research practices can likewise play an important role.
\nIt is here that tertiary education through formal memorandums of
\nunderstanding, such as those that exist between the University of
\nWollongong, Australia, and Gadjah Mada University and the Islamic
\nUniversity of Indonesia, both in Yogyakarta, can assist.<\/p>\n
It is through this type of best-practice cooperation that
\nIndonesia can find its way clear to adopt modern research
\npractice -- not necessarily \"Western\" practice.<\/p>\n
In fact, there is no reason why Indonesia cannot lead the
\ninternational field and influence the West in ethical market
\nresearch because clearly, given the research of Prof. John Glynn,
\nby 2020, Indonesia will be a global center for commerce, trade
\nand industry.<\/p>\n
Daniel Lindgren is manager of marketing research at IRIS
\nResearch, which is based on the Campus of the University of
\nWollongong, Australia. He is a sessional lecturer in the
\nInternational Program at the Islamic University of Indonesia
\n(UII), Yogyakarta.Rob Goodfellow is an Australian-based
\nresearcher, author and cultural consultant who teaches business
\nethics under Dr. M.A. Adnan at UII.<\/p>",
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"sponsor": "Okusi Associates",
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