Business Culture

Learn more about some elements of Japanese business culture that could benefit you when doing business here

Few Japanese expect foreign business people to know and master the various Japanese customs of greetings, the correct way to lift a rice bowl, or indeed to have any knowledge of the “correct” Japanese behaviour. In most cases your Japanese connection would rather accept your foreign etiquette in a respectful way than a clumsy attempt to imitate Japanese behaviour. To this end, it should also be pointed out that despite their formal business behaviour, the Japanese are generally very social and friendly people.

Nevertheless, there are some specific aspects of Japanese business practices, which are beneficial to know when trying to establish relationships in Japan. This includes knowledge about the culture regarding language, business cards, arranging meetings, gifts and dress code. Read more in the specific sections below.

Language

Larger Japanese companies often have English-speaking employees, but this is often not necessarily the case for SMEs. It is the visiting business person who must be prepared to communicate in Japanese if necessary. It may therefore be necessary in many cases to use an interpreter.

Excellent Japanese-to-English and English-to-Japanese interpreters are available, but it can be difficult to find interpreters who speak sufficiently good Danish to handle actual negotiations satisfactorily.

Examples of companies that offer interpreting:

Business cards (Meishi)

Business cards ("meishi" in Japanese) are an important part of the Japanese business world. If a visitor fails to offer a business card at the first meeting, it is considered bad business etiquette or lack of interest to the counterpart. The business card helps to build a network of personal connections ("jinmyaku").

With a little effort you can easily show respect for a Japanese when receiving a business card. You should give and receive the business card respectfully with two hands. Be sure to take a careful look at your counterparts card. It is considered impolite to put it away as soon as you have received it. Therefore, it is customary to place the business card in front of you on the table during the meeting. This also makes it easier to remember the names of the participants during the meeting. After the meeting, the business card should be placed in your breast pocket ("close to the heart"), which again signals respect.

It is important to consider having one side of the business card in Japanese and the other in English (or possibly in your mother tongue). By having your company, name and title in Japanese it helps locals better understand your position and to give an idea of the pronunciation of the name, which is important as the Japanese take pride in pronouncing your name correctly.

Personal introduction

Contacting a Japanese company or ministry without knowing anyone in advance often ends without results. The Japanese often have considerable hesitation to complete strangers. Thus, it is common practice in Japan to be introduced through business contacts. A possible way of introduction may be through Japanese subsidiaries abroad, trade or business contacts, embassies or other organisations. The Trade Council at the Royal Danish Embassy in Japan can also help your company in this regard.

Meeting arrangements

Meeting appointments, particularly with larger companies, should be organized weeks in advance. All business meetings in Japan are quite formal and the visitor should always prepare thoroughly. Before the meeting, it is advisable to send an email on the purpose of the meeting and the details you wish to discuss at the meeting itself. This will give the Japanese host a chance to discuss the issues with his colleagues before the meeting and perhaps send a preliminary response. Although the Japanese are reluctant to turn down a meeting in advance, the preliminary response may give good signals about the chances of success at the meeting itself.

When you arrive at a meeting in Japanese companies, you are often shown to the meeting room by a staff member. If more than one person arrives, it is requested that they enter the meeting room in order of rank, where they are also greeted by Japanese meeting participants in order of rank. Business cards are then exchanged, also in order of precedence. From time to time, it may be difficult to determine whom of the Japanese contacts that ranks higher, but often age and charismatic authority will give good clues.

Decision-making

The Japanese decision-making process is based on consensus. Therefore, you will often find, for example at a business meeting, that the Japanese delegation is much larger than the foreign one. This is because the Japanese delegation will usually include representatives from many different departments. Furthermore, final decision-making is also to a large extent still based a lot on hierarchy. Although Japanese culture - like all cultures - is constantly changing, seniority is still the main basis for promotion. Therefore, a person's position in the company organisation is closely linked to his or her age.

Patience is a virtue

Often Japanese prefer to deal with individuals rather than the whole company, which means that spending time with business contacts in Japan is very important. Establishing close business relationships in Japan can take a long time. Similarly, be prepared that it may take a Japanese company a long time to formulate a response to an enquiry or similar. To avoid misunderstandings and unnecessary pressure on the Japanese company, foreign business people should be aware of the organisational issues that often create a long decision-making process.

Japanese companies are often based on hierarchical structure, consensus and harmony. In order to build consensus and harmony within the company, business proposals are often circulated within the organization to relevant individuals and departments at various levels. These can express their opinion and position on the matter. No response should be expected until this decision-making process has been completed and everyone has been consulted.

Yes or no?

The use and meaning of yes ("hai") and no ("iie") by the Japanese puzzles many foreigners. Since Japanese prefer not to appear dismissive of other people, it is very difficult for them to express a - in Western terms - clear no. Moreover, "hai" is used as a verbal sign of listening and understanding, not necessarily of agreement.

A no can take the form of "Yes,., but ..., if ...". On the other hand, when a Japanese company has reached an agreement, it usually means a thoughtful and serious yes - and often the beginning of a fruitful collaboration.

Clothing

When in doubt about what to wear, it's best to go conservatively. Japanese business men generally dress nobly in dark suits and ties. For evening parties, the general rule is dark clothes for men and plain evening dresses, possibly skirt and blouses for ladies. Tuxedos are used to a limited extent, jackets on ceremonial occasions, white tie extremely rarely and uniforms not at all. It is possible, but expensive, to rent a jacket or dress in Tokyo.

Spring and autumn on the Pacific side of Japan, which includes Tokyo and the Osaka area, are milder than in Denmark, and daytime outerwear is rarely needed at these times of year. In the winter months of December-February, a light winter coat is often required.

Cool Biz: The initiative of “Cool Biz” has been implemented by the Japanese government to loosen up the dress code during the warm and humid months. It means that mainly government institutions months encourage short-sleeved shirts without ties and thin fabric as part of work attire while keeping air conditioning at 28 degrees.

Shoes and footwear: Always remove shoes and put on slippers before entering private homes, temples or ryokan (Japanese inn). You leave your own shoes outside.

Bowing

The Japanese bow when greeting and saying goodbye, but not in busy shops or large hotels. People do not usually shake hands in Japan, although you may see a few who do so to foreigners.

Names

Japanese people are usually introduced and called by their surname. When speaking to each other, a "san" (equivalent to "Mr") usually follows the surname. Among the Japanese, it would be extremely impolite to omit "san", so foreigners are also advised to address Japanese people as "san" or alternatively as Mr./Ms.

Gifts

Receiving and giving gifts has an important social function in Japan. It is therefore a good idea to bring gifts (preferably from Denmark) the first time you meet friends, acquaintances, business associates, etc. Gifts are accepted with both hands and a bow.

Traditionally, the he gift is not opened in front of the giver, so it is important to send a greeting to thank them for the gift and the visit. However, if you are invited to open the gift, you can do so.