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Japanese business culture and etiquette:

カテゴリー : Business | サブカテゴリー : economy 投稿日 2023-11-28 10:18:36


Japanese business culture and etiquette:

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.

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