Category : Business | Sub Category : economy Posted on 2023-11-28 10:18:36
Japanese
business culture and etiquette:
Japan’s unique
culture has been shaped by trends and forces from within and outside the
country. An understanding of these and how they have shaped Japanese society
will help you in your dealings with Japanese people, businesses and society in
general.
The Japanese
have been very effective at adapting religions and schools of thought from
outside the country. Confucianism and Buddhism came to Japan through China and
Korea, with the Japanese taking these teachings and adapting them to local
conditions and sensibilities. Following more than two centuries of self-imposed
exclusion, the Japanese did the same again with Western ideas and institutions
from the 1860s onwards with great success. Modern Japanese culture can be seen
as the mutual reinforcing of ancient Shinto, Buddhist and Confucian traditions
overlaid with modern institutions.
For Australian
businesses seeking to launch in the Japanese market, it is crucial to gain an
understanding of some fundamental Japanese cultural practices, particularly as
they apply within the business context.
Age and status
Respect for age
and status is very important in Japanese culture, with hierarchy affecting all
aspects of social interactions. The Japanese are most comfortable interacting
with someone they consider their equal. Status is determined by a combination
of someone’s role in an organisation, which organisation they work for, which
university they went to and their marital situation.
Business cards
The exchange of business
cards (meishi) is an essential part of initial meetings in Japan and follows a
strict protocol. It allows the Japanese to quickly determine their
counterpart’s all-important position, title and rank. While still standing, you
should politely hand a business card over with two hands, and receive one in
return. A slight bow as a form of respect when exchanging is usually performed.
Do not simply drop the card into a pocket; instead take a few seconds to review
names and titles, commenting on them if time permits. If you are sitting down,
place it on the table in front of you for the duration of the meeting. If
possible, place the most senior counterpart’s card at the top with their
subordinates’ below or to the left.
Japanese names
As in many parts
of Asia, Japanese family names come first, and are followed by the given name.
For example, if someone is introduced as Tanaka Hiroshi, Tanaka is the family
name and Hiroshi is the given name. It is usual to address someone by their
family name followed by the honorific san, Tanaka-san for example. While san is
similar to Mr, Mrs and Ms in English, san is more versatile in that it can be
used for both genders and goes perfectly well with a family name or given name.
But do not use san when referring to yourself. For Australians doing business
in Japan, the family name followed by san will usually be sufficient. Always
address people by their family name until you have been invited to call them by
their given name.
Bowing and
handshakes
Bowing is an
important part of everyday life in Japan, including in the business context.
Japanese bow to those senior to them both as a greeting and a show of respect.
The junior person initiates the bow, bending from the waist to an angle of
between 30 and 45 degrees from vertical. Men keep their arms by their sides and
women may cross their hands or fingers at thigh height. A less accentuated bow,
usually about 15 degrees, is returned as acknowledgment from the more senior
person. It is considered bad manners and aggressive to hold eye contact with
someone when you are bowing to them; this is usually done by competitors in
martial arts before they fight. Greet the highest-status individual first,
followed by the oldest when meeting a group of Japanese. For Australian
business people, extending a simple handshake when greeting and taking leave is
fine; just don’t shake hands and bow at the same time. Choose one and stick
with it.
Building
relationships
Japan is a more
relationship-oriented culture than Australia, particularly when it comes to
doing business. Japanese want to know and trust someone before they do business
with them. Relationships are developed through informal social gatherings and
generally involve a considerable amount of eating and drinking.
Dress code
Appearance is
very important, and Japanese people tend to dress more formally than
Australians. Business attire is conservative, with an emphasis on conformity
rather than individual expression. Men should wear dark-coloured business suits
with ties and white shirts. Jewellery for men should be kept to a minimum – a
watch and a wedding ring would be fine. Women should also dress conservatively
and in subdued colours.
Modesty
Japanese culture
values modesty and humility. Speaking in a quiet tone and not gesticulating too
much will go some way towards giving a modest, calm and humble impression.
Want to learn
more? Explore our other Indonesia information categories or download the Japan
Country Starter Pack.
Banking and Finance in Japan:
Japan’s banking
system is comparable to those in other industrialized countries – it is stable
and well regulated, and offers many options for business and personal accounts.
Some, but not all banks provide English- language services. The Banking Act
details the obligations and regulations for the banking sector, while the
Financial Services Agency is the regulatory body.
City banks
City banks
(Toshi ginko) are the largest banks in Japan, providing domestic and
international banking services. Headquartered in Tokyo and Osaka with branches
across the country, they also have offices in other countries. Banks in this
category are:
Japan Post Bank
is not categorized as a city bank, however, it is also one of the largest banks
in Japan.
Regional banks
and regional II banks
Regional banks
and regional II banks (Chiho ginko) are smaller than the city banks and are
headquartered in towns and cities other than Tokyo and Osaka. Their business is
mainly in the prefectures where they are located, and they may offer advantages
for doing business in those locations, but are usually limited in some services
compared to the city banks.
Trust banks
Trust banks
(Shintaku ginko) are authorised to carry out business for trusts in addition to
their normal banking business. They combine financing services with asset
management services.
Foreign banks
Foreign banks
(Gaikoku ginko): There are currently 53 foreign banks operating in Japan.
Foreign banks that have their headquarters in Japan in cooperation with
Japanese banks (such as Citibank Japan) are not counted in this category and
are treated as Japanese banks.
If you have a
business in Japan, you will need to open a business account. Documentation
requirements vary between banks, but as a general rule smaller banks require
more proof of assets and may even request to inspect your offices. For an
international business in Japan, opening an account with a larger ‘city’ bank
or with a foreign bank in Japan that offers corporate accounts may be an easier
option. Japanese banks will want proof that your business is legitimate and may
ask for such things as brochures or a link to your business’ website. All
account holders must comply with each bank’s policy on Anti-Social Forces.
Note that banks
can refuse to open a business account for you, even if your business is
properly registered in Japan.
Most companies
also create a banking seal. Companies also usually have a square seal (kaku-in)
which is often attached to invoices and receipts to make things look official,
even though it carries no legal weight.
Australian banks
operating in Japan
Australian banks
operating in Japan include ANZ, Commonwealth Bank and National Australia Bank.
All are located in Tokyo and offer a range of services mainly to institutional
clients. ANZ and National Australia Bank also have branches in Osaka.
International
banking
To send money
overseas: The most popular way to send money out of Japan is by bank transfer.
This can be done online or in person at a bank branch. If you transfer more
than JPY 1 million (AUD 11,000), Japan Customs needs to be notified.
Currency
exchange
The Japanese yen
is one of the world’s most traded currencies and is easily convertible to other
currencies, including the Australian dollar. There are no laws or regulations
limiting the convertibility of the yen.
