Modern but not westernized

Modern but not westernized

By Daniel Lindgren and Rob Goodfellow

The following is an excerpt of a paper presented at a seminar
at the Faculty of Economics of the Islamic University of
Indonesia, the International Program, in Yogyakarta on Dec. 18.

YOGYAKARTA: Despite the present crisis, Indonesia can expect a
massive increase in foreign investment as we move into the next
century. Recent research by Prof. John Glynn of the Sydney
Business School strongly suggests that foreign investors are
poised to reenter Indonesia once true democratization takes place
and the essentials of "the rule of law", "bureaucratic
transparency" and "policy predicability" are established.

In fact, there is every likelihood that given the requirements
of international capital and the Indonesian peoples' high level
of general education and aspirational values, that Indonesia will
take its place as the fifth most-industrialized economy in the
world by 2020.

In this move toward global economic integration, market
research will play a vital roll. This is particularly relevant to
Indonesia because at this moment, most of the multinational
corporations who left Indonesia during the worst days of the
krismon (monetary crisis) are preparing to reestablish themselves
and to expand their influence.

This move should be welcomed, as it will speed up the process
of modernization. However, this comes with a grave warning. Can
Indonesia modernize without becoming Western?

In fact it is likely that some of the worst aspects of Western
commercialism may be inevitable here unless careful attention is
given to the way foreign companies integrate their practice into
Indonesian culture.

The ethical and egalitarian value set of Islam, for example,
means that Indonesians expect to be treated in a particular way
-- fairly, with a sense of equality in the context of a general
rise in living standards for everyone: adil (just), makmur
(prosperous), and sejahtera (wellbeing).

However, it should also be said that these are considered
universal values. Modernization is not so much about "us" and
"them" but about people learning from each other and about mutual
benefit.

While these represent core values, which most Indonesians can
relate to, they are often disregarded by Western companies eager
to expand their markets. The reason for this is that some Western
businesses pride themselves on being amoral. Value systems are
sometimes seen by multinationals as subjective and, therefore, an
impediment to cold, clinical decision-making and profit taking --
particularly in their operations abroad. However, the situation
is very different in the West.

In the West, the customer is "king" because consumers are
educated and understand what should be the underlying ethical
principles of business practice. In fact, ordinary consumers will
take swift action if companies do not play by the rules. This may
not be taking place in Indonesia because consumers have been
taught to believe that "Western" equals "modern" and, therefore,
must be good.

This, of course, is wrong. Perhaps the question should be
asked, should Indonesians sacrifice their value systems to the
"god" of Western consumerism?

Or rather, should it be a case of Indonesia adopting
international best practice and, therefore, becoming modern in a
uniquely Indonesian way?

An example of international best practice is the formal
establishment of common ground rules where Western as well as
Indonesian companies can compete fairly. This is particularly
relevant to the field of market research.

Market research should be based on the willing cooperation of
both the public and the business community. It should be
confidential (neither the client nor the respondent can be
disclosed unless specifically asked to give their full consent),
and be carried out with honesty, objectivity and without
intrusion.

Specifically, market researchers are responsible for
collecting and analyzing data without trying to influence public
opinion or with the concealed intention of selling.

One of the core principles in this important field is the
distinction between market research and direct marketing. While
market research is an activity of collecting and analyzing data,
direct marketing is a form of selling.

In most Western business communities it is now widely
recognized that there must be a clear distinction between the
two. Failure to make this distinction always leads to unethical
practice.

One such problem is "push-polling". This is where highly
biased questions are systematically used to influence the opinion
of the respondent. The other is called "disguised selling". This
is where there is an intention to sell products or services under
the banner of market research without the informed consent of the
respondent. Such activities are not acceptable in the West and
are, therefore, not acceptable in Indonesia.

To avoid such problems, market research companies voluntarily
submit to an international code of practice that protects both
the client and the community. Research standards, education and
member services, and the informing of the community is usually
regulated through a national research body. Acceptance of the
adopted code is a condition of membership. Failure to comply
leads to expulsion. It is, therefore, in everyone's interest to
adopt ethical standards.

To our knowledge, there is no such organization in Indonesia
at present. If so, in the short-term, market research will have
to self-regulate. Researchers will need to take a stance as
mediators between the business community and the consumer.

However, what is clearly needed is to establish an Indonesian
national market research organization, possibly with a
secretariat based at a prominent and respected Indonesian
University.

This should be a high priority. Education of what should be
accepted research practices can likewise play an important role.
It is here that tertiary education through formal memorandums of
understanding, such as those that exist between the University of
Wollongong, Australia, and Gadjah Mada University and the Islamic
University of Indonesia, both in Yogyakarta, can assist.

It is through this type of best-practice cooperation that
Indonesia can find its way clear to adopt modern research
practice -- not necessarily "Western" practice.

In fact, there is no reason why Indonesia cannot lead the
international field and influence the West in ethical market
research because clearly, given the research of Prof. John Glynn,
by 2020, Indonesia will be a global center for commerce, trade
and industry.

Daniel Lindgren is manager of marketing research at IRIS
Research, which is based on the Campus of the University of
Wollongong, Australia. He is a sessional lecturer in the
International Program at the Islamic University of Indonesia
(UII), Yogyakarta.Rob Goodfellow is an Australian-based
researcher, author and cultural consultant who teaches business
ethics under Dr. M.A. Adnan at UII.