In Hawaiʻi, cultural traditions are more than heritage; they define how businesses operate, how communities interact, and how tourism impacts local culture. Business owners in Hawaiʻi have a strong sense of values based on their home.
As stated in the well-known 2003 report, Planning for Sustainable Tourism in Hawaiʻi, “the preferred business model … is a model that makes preserving the dignity and cultural outlook of the place as the most important element.” This statement is as true today as it was 22 years ago.
As a business in Hawaiʻi, with the goal of maintaining local customs, attracting tourists, and remaining compliant, a proper risk management strategy can be difficult to plan and execute. Betraying local traditions can create considerable risks, including reputational damage or a loss of community trust.
For businesses in Hawaiʻi, maintaining culturally sensitive social expectations and practices is just as important as efficient operations in maintaining a modern and effective risk management strategy.
Use this quick read to review how to be considerate of local traditions and values when developing a risk management strategy for your business.
What Is Cultural Liability?
Cultural liability is the risk that businesses face when their messaging, operations, or other practices conflict with local customs or beliefs. Even when these practices are legal, they can lead to public backlash, loss of local trust, and other disruptions.
Examples of cultural liability include scheduling business events on culturally significant days, appropriating imagery or language for marketing purposes, or misusing sacred sites for business purposes.
While legal liability results in fines, lawsuits, or other concrete consequences, cultural liability is not as clear-cut. Businesses may experience social media backlash, community boycotts, loss of important partnerships, or damage to their local customer loyalty.
Why Cultural Sensitivity Matters in Hawaiʻi
Even businesses that follow every legal rule can run the risks of cultural liability. One of the reasons is that Hawaiʻi has a very distinct identity, one that local people are proud to continue supporting. Recognizing shared cultural values such as “Aloha” (compassion) or “Malama ʻĀina” (respect for the land) is just the start of conducting a successful business in a place where culture is highly valued by its people.
Cultural sensitivity helps businesses build community trust and customer loyalty. For example, regularly consulting with local cultural practitioners can help the business earn respect from other businesses and residents. On the other hand, businesses that ignore land protocols and sacred traditions may face protests, delays, backlash, or legal consequences.
In modern-day Hawaiʻi, cultural sensitivity is not an optional or extra practice. It is a mandatory consideration for any business to reduce reputational risks and maintain community trust.
Incorporating Cultural Awareness Into Risk Management
How can businesses incorporate cultural awareness into their risk management strategies? These 5 steps can provide a useful starting point:
1. Engage with Community Partners
Businesses should connect with local leaders, elders, and cultural advisors before rolling out new policies, events, or construction plans. Including the local community voices in decision-making can improve the standing of the business.
2. Conduct a Cultural Impact Assessment
A risk management strategy should include a cultural impact assessment that gauges how the operations of the business, messaging, or other practices may affect local traditions. As part of this assessment, advisors should identify scenarios where the business may cause a cultural offense that could lead to financial or reputational damage.
3. Include Cultural Risk in Your Risk Management Plan
Any business operating in Hawaiʻi should add cultural engagement to their risk analysis framework. This means addressing possible community backlash in the crisis response plan of the business.
4. Provide Cultural Competency Training
The risk management strategy should also include training personnel on how to identify cultural values and respond to potential liabilities. The values native to Hawaiʻi, such as Aloha and Kuleana, should be well-known to all personnel and used to inform customer service and marketing efforts.
5. Review Vendors and Partners for Alignment
The business itself is not the only cultural liability risk. Any partners or third-party providers can reflect poorly on the reputation of the business by failing to share important cultural values. Businesses can plan ahead by including cultural standards in their vendor agreements.
Common Scenarios Where Cultural Liability Arises
Businesses of all sizes in Hawaiʻi can experience cultural liability risks. Common scenarios where cultural liability commonly arises include:
- Planning events or functions near sacred sites without proper community consultation
- Conducting tourism-related activities that exploit cultural symbols or language
- Branding or advertising that misuses cultural events or symbols
- Starting construction or land-use projects without consulting local authorities
Frequently Asked Questions
What’s the difference between cultural liability and legal liability?
Legal liabilities result in legal consequences, such as fines. Cultural liabilities may not be illegal, but they can result in boycotts, protests, or reputational damage with equal or greater financial impact than fines.
How can businesses avoid cultural missteps in Hawaiʻi?
Businesses in Hawaiʻi should prioritize listening to and consulting with local leaders, cultural experts, and community liaisons before making decisions.
What are the signs that a business needs to reevaluate its cultural approach?
Businesses should be aware of the signs that their cultural approach is falling short of local expectations, including complaints from community members, negative press or social media coverage, and high turnover rates related to cultural conflicts.
Does addressing cultural liability really impact the business?
Yes. Cultural misalignment can lead to lost revenue, costly delays, damaged brand trust, legal fees, higher turnover rates, and operational shutdowns.
Partner with Local Experts to Prevent or Repair Cultural Risks
Cultural liability is an essential concern for businesses in Hawaiʻi. The people of Hawaiʻi hold their cultural traditions, values, and sites very closely. Friction or conflict between the practices of a business and local traditions can lead to a loss of community trust, a damaged reputation, and many more risks.
At Atlas Insurance, our team is dedicated to serving the best interests of our business clients in Hawaiʻi. Unlike nationwide chains with Hawaiʻi branches, our team has been local for nearly a century. We are in tune with local practices, community leaders, and cultural guidelines. This allows us to help businesses consider, identify, and mitigate cultural liabilities on a daily basis.
Contact our team today to learn how cultural advice from experienced insurance experts can mitigate cultural liabilities in your Hawaiʻi business today.