Iceland has a low distinction between social classes, age, sex, generation and status. Members of the society expect and accept hierarchy that is more consultative and democratic. People relate to one another more as equals regardless of formal positions. Subordinates expect the right to contribute to and criticise the decision making of those in power without the risk of anyone losing face in that exchange.
Iceland is based on a culture that pays attention to rules and regulations to minimize uncertainty and keep control over unexpected circumstances.
Icelandic people are highly independent but great emphasis is placed on relationships and the quality of life. It is normal for individuals in Iceland to be quite reserved, informal and direct in their speech which should not be taken offensively. Icelanders do not use titles when addressing one another.
Icelanders like to combine business with pleasure. Establishing a friendly and personal relationship is a good way to do business. Business dinners are the preferred form of entertainment. It is considered appropriate to talk business over a meal.
First names are the names by which people are known, and Icelanders will not feel that you are being too familiar if you call them by their first names. It is normal for individuals in Iceland to be direct in their speech; no offence should be taken where none is meant.
It is expected that you dress smartly for any formal occasion while doing business in Iceland. An informal social event like a business dinner calls for a suit.