Japanese Conducting a Business

                    Conducting Business

                                                         Negotiations

         

         As I previously mentioned before, the Japanese are non-confrontational. Therefore when it comes to negotiations they have a difficult time saying 'no', so you must be vigilant at observing their non-verbal communication. It is best to phrase questions so that they can answer yes. For example, do you disagree with this? When it comes to business negotiations, group decision-making and consensus are important, written contracts are required when a business is negotiated and is to be conducted. 

        The Japanese often remain silent for long periods of time, so it is advisable to be patient and try to understand what was said during a business negotiation. Japanese prefer broad agreements and mutual understanding so that when problems arise they can be handled flexibly during a business negotiation. We must never lose our temper or raise our voice during negotiations as this is a sign of disrespectful. Some Japanese close their eyes when they want to listen intently and foreigners often mistook as a sign of boredom in a negotiation. The Japanese seldom grant concession, they expect both parties to come to the table with their best offer when it comes to business negotiation or any other form of negotiation. They do not see contracts as final agreements so they can be renegotiated.



                                          Meeting and Greeting
      

       When it comes to business meetings, appointments are required and, whenever possible, should be made several weeks in advance. It is best to telephone for an appointment rather than sending a letter, fax or email. Punctuality is very important in Japanese business meetings, the Japanese arrive on time for meetings and expect us to do the same. In a Japanese meeting, the most senior Japanese person will be seated furthest from the door, with the rest of the people in descending rank until the most junior person is seated closest to the door. 

          It may take several meetings for your Japanese counterparts to become comfortable with you and be able to conduct business with you. It is advisable to be prepared for a group meeting even if you think you will be meeting one person only. Besides that, this initial of getting to know you time is crucial to laying the foundation for a successful relationship as the Japanese are from a high context culture background. You may also be awarded with a small amount of business as a trial to see if you meet your commitments. If you respond quickly and with excellent service, you prove your ability and trustworthiness to the Japanese. Whenever conducting a business meeting with Japanese, never refuse a request, no matter how difficult or non-profitable it may appear, this is because the Japanese are always looking for a long term-relationship. Lastly, always give a small gift, as a token of your esteem, and present it to the most senior person at the end of the meeting. Your Japanese contact can advise you on where to find something appropriate.

                                                         President Obama bowing

      The bow is an integral part of Japanese society. It is used when meeting, greeting, to show gratitude, to express sympathy or as an apology. When conducting business in Japan as a foreigner, you would not be expected to bow and most likely be greeted with a handshake combined with a slight nod of the head. After a proper greeting, you should introduce yourself with your full name followed by your company name. It is important to use proper titles when addressing someone, so always establish the position of the other person during  a greet.
       
     

      

     Before the start of a business meeting, the exchanging of business cards takes place during the greeting ceremony. The exchanging of business cards when doing business in Japan involves a degree of ceremony. The card is seen to represent the individual, so it shold be treated with respect. Always ensure you have ample cards and have one side translated into Japanese. This include your position within the company on it. Invest in a carry case to store cards and keep this in the inside pocket of a suit jacket.
      
      When exchanging, offer your card with both hands or just the right hand. Present Japanese side up. Ensure there is no barrier between you and the recipient such as a table,chair or plant. When accepting always use both hands as this shows deference.                                 

Japanese and Non-Verbal Communications

                     Non-Verbal Communication  

   Japan is a high-context culture and the Japanese society rely heavily on non-verbal communication such as gestures. In Japan, even the smallest gestures carries great meaning. Non-verbal communication is very vital in Japan and therefore it is advisable to be careful when conducting a business with the Japanese or in Japan. Some of the non-verbal communication and gestures by a Japanese individual are listed below.

                                                              

                                                                  Eye Contact

   In Japan, making an eye contact with another person is considered rude, it leads to uncomfortableness and can be considered as a sign of aggression. When speaking to or approaching a Japanese individual, be sure to make a very brief eye contact to signal the individual, but then maintain appropriate eye level, such as the individual's neck.

                                                                    Gestures

 Here is a list of the common and not-so-common body gestures used by the Japanese.

Itadakimasu and Gochisohsama

Itadakimasu is said before eating     a meal and Gochisohsama is said after eating a meal

Ojigi

This is also known as bowing. Japanese does not have the custom of shaking hands, Japanese practices bowing, this is a form of greeting apart of hand shakes.

Onegai! Gomen.

This is a gesture used when saying "sorry" or when accepting something while feeling apologetic for having inconvenienced the other person.

The above pictures are a few common gestures performed by the Japanese society. For more info about gestures you are welcomed to visit the source where these were taken Japanese Gestures

                                      A simple guide to Japanese gestures video

                                                       Personal Appearance

      

     In Japan, men should wear dark conservative attire, business suits are most suitable. Casual dress is never appropriate in a business meeting. Women's dress should be conservative. Little emphasis should be placed on accessories and they should be minimal. Women should not wear pants in a business situation because Japanese men tend to find it offensive. Women should only wear low-heeled shoes to avoid towering over man. Pointing is not acceptable in Japan and it is not recommended to blow your nose in public. The Japanese are not uncomfortable with silence. They use it to their advantage in many situations. Allow your host to sit in silence.

Japanese Social Customs

                                                 Social Custom

                                    Concept of time and space
    

  People in Japan are always on time for any meetings. If someone doesn't come on time, then he or she is considered an unreliable person. It is considered impolite because Punctuality is important in Japan. Furthermore, Japanese decisions are reached through a process of consensus-building meetings. So, Time is an essential element of the relationship building process and it is required to build a strong relationship with Japanese in order to open up their opinions in negotiations. 

  

                                                                       Value

  

    Harmony is a value in Japan society. Because harmony is the guiding philosophy for the Japanese in family and business settings and in society as a whole. For an example, Japanese children are taught to act harmoniously and cooperatively with others from the time they go to pre-school. Because the Japanese educational system emphasizes the interdependence of all people, and Japanese children are not raised to be independent but rather to work together. This need for harmonious relationships between people is reflected in much Japanese behaviour and they see working in harmony as the crucial ingredient for working productively.

                                            Belief

    Public Sphere

  

     Public Sphere is about order and status. It states that hierarchy is natural. A big tool in social interaction in the Japanese lifestyle is the business card. They are often exchanged and are very useful on the level of social interaction because they offer an ample amount of information about one another for a normal social exchange.

   Private Sphere

   Private sphere is about goals and self. In Japan it is admirable if a person is viewed as sincere. But along the lines of individualism--that is viewed negatively. They believe it shows selfishness.

                                                                 Manners

    There are a set of rules in Japan. For example bowing, bowing in Japan shows the respect for person or things you are bowing to. There are few way of bows to show respect or humble yourself in front of another person.
The nod-bows , 5 degrees : This is just a small nod of your head. Make sure your head goes forward. The nod-bow is for pretty good friends, and is the most casual bow of them.

Greeting Bow, Eshaku, 15 Degrees: This bow is for greetings, mostly for people you already know or are equals with. The “nod-bow” above is similar, but for when you know someone a lot better. This bow is probably for people you have met before and are familiar with, but not familiar enough to just go for the nod.

Respect Bow, Keirei, 30 degrees: This is where bowing gets respectful.  This bow is reserved for your boss orother people who are higher ranking than you.

Highest Respect Bow, Saikeirei, 45 degrees: This bow is when you make you an accident and you need to apologize.  

                                                    Respect for Authorities

Age and status is important in Japan.   Everyone has a place in the Japanese hierarchy be it in the immediate family, extended family, friends, social settings and even business settings. For an example , children are taught to call their senior as " senpai" , their junior as "kohai" and their teacher as "sensei". Furthermore, the oldest people is always respected especially in social setting such as dinner, the oldest people will be served first. This shows a form of respect and acknowledges the principle of Japanese hierarchy.


Business and Social settings

  
    In Japan businesses, double-sided Japanese & English business cards is a must. They show potential partners that you are serious, and that you understand and respect their culture.  Japanese business card (Meishi) have a much greater significance in Japan than in Western culture. In a society where an individual is less important than the group to which he or she belongs, Meishi provides access to its bearer's identity. There are a few to dos and what not to dos when exchanging a business card:

i) It is best to stand up when exchanging Japanese business cards. It shows respect to       another person.

ii) Exchange Japanese business cards one-by-one, individual-to-individual, and use both hands where practical.

iii) On receiving a person's Japanese meishi, accept it with both hands and then study carefully what is written on it. Very often Japanese business cards will have Japanese on one side and English on the reverse, so carefully examine each side where applicable. 

iv)  Check the name or title on the Japanese side, even if your Japanese knowledge is limited. Note the title of each person you meet. You will sometimes meet two people in the same division with the same title. In this case, by checking the Japanesekanji, you can often determine who is senior as there may be additional titles, subtitles or words in Japanese.

v) DO NOT shove the card into your back trouser pocket. 

vi) DO NOT write comments on another person's business card, in their presence. You may write on your own name card to add information such as email or phone number.


vii)  NEVER place a stack of your cards on the table and offer others to take a card from the stack.

Here is a video showing the process of exchanging the business card in Japan

  
  

  

   

   

     

Japanese Legal and Ethics

LEGAL AND ETHICS

     

     
     The Japanese legal system is a civil law system. The basic civil and commercial laws were first introduced towards the end of the nineteenth century, using as models the laws of various European countries, including Germany and France. There are six major Codes.

1. The Constitution
2. Commercial Code
3. Civil Code
4. Code of Civil Procedure
5. Code of Criminal Procedure

     There are also various individual laws, which cover more limited fields, such as the Securities and Exchange Law and the Labour Standards Law.

                                                            Court System

Japan Supreme Court 

The Constitution of Japan ranks the highest in the Japanese law. Furthermore, the Constitution of Japan provides that all judicial power in Japan is vested in the Supreme Court and in such inferior courts as are established by law. There are five types of courts in Japan established by the Court Organization Law. The courts are listed in order of judicial authority, from highest to lowest.

1. Supreme Court
2. High Courts
3. District Courts
4. Family Courts
5. Summary Courts

Business Entities

There are a number of different business entities and structures available to foreign corporations intending to operate a business in Japan. The main business entities or structures available are:

1. Corporation ("KK company")
2. Limited liability company ("YK company")
3. Registration of the foreign corporation as a branch
4. Repersentative office
5. General and silent partnerships

It is important to consider the foreign corporation's objectives for setting up a business entity or structure in Japan to determine which of these forms of business structure is appropriate.

                                              Ethics

                                                       Agreements

   

    Japan is a very traditional country, with strong business ethics being a major foundation. These traditions are seen to have many positive effects because traditions are associated with the harmony of people.Strong relationships are created through a lifetime agreement, and learning is seen to exponentially grow with these arrangements. Another strong point of agreements is the finalizing of proposals. It is respectful in Japanese business to say "yes" many times when listening to a proposal. Though this is noted to not be an acceptation of contract terms. The respectfulness of listening is important, and the agreement will be accepted or declined upon the final proposal. 

                                                             Authority

   

    A person’s authority is very important in Japanese business due to respect. This authority is generally shown through a business card. Business cards are a pretty important exchange in meetings. A card shows the employees significance to a company, and how much respect they must receive in a meeting when speaking. Also, before dealing with the business aspects of a meeting, it is customary to socialize with everyone who is taking place in the agreement. The Japanese believe that if a social connection cannot exist then the business atmosphere will suffer. 

                                                                   Gifts

   

   While most western countries consider gift giving a form of bribery, it is seen as a type of sentiment in Japan. A gift’s value is generally appropriated to the type of position the receiver holds. The most acceptable forms of gifts are generally food or alcohol. Although it is a strong tradition, gift giving is starting to decline due to the business world’s views on the practice.