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.