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.