Historical Timeline

A critical way to show respect for another person's culture is to have knowledge of their country's history and current affairs. Table 8.1 on page 154 outlines a few key events related to Japan, together with concurrent world events.⁷

^* International Rugby Board article, “Japan 2019 to be a World Cup for all of Asia,” dated April 17, 2012, http://www.rugbyworldcup.com/rugbyworldcup2019/news/newsid=2061811.html#japan+2019+world+cup+asia (accessed November 15, 2014).

Full Country Name and Location

Japan, known domestically as Nihon or Nippon, is an archipelago extending along the eastern coast of Asia with over 3,000 populated islands. The four main islands, north to south, are Hokkaido, Honshu (mainland), Shikoku, and Kyushu. Okinawa Island is about 380 miles southwest of Kyushu. Japan is slightly larger than Germany and slightly smaller than the State of California in the U.S.

Government/Political Structure

Japan has a parliamentary government with a constitutional monarchy. The parliament, or Diet, is a bicameral legislature made up of the House of Councilors and the House of Representatives. A Prime Minister is designated from within the Diet to serve as head of government, and the Emperor, born from the ruling line, serves as symbolic head of state. Japan's 47 prefectures provide local administration.

Population and Economic Centers

Japan has a population of 127 million people, according to 2014 estimates.⁸ The main ethnic group is Japanese (98.5 percent), and minorities include Korean (0.5 percent), Chinese (0.4 percent), and other (0.6 percent).⁹ Approximately 91.3 percent live in urban areas.¹⁰

The major business centers and populations (2012) are shown in Table 8.2 on page 156.¹¹

Economy

Japan is ranked 29th out of 189 economies in terms of ease of doing business, according to the World Bank Group's Doing Business 2015 report.¹² Japan's business environment is ranked number one in the world for Business Sophistication.¹³.

Its 2013 GDP was ranked 3rd by the World Bank,¹⁴ and the composition of its GDP by sector was services (73.2 percent); industry (25.6 percent); and agriculture (1.1 percent).¹⁵

Corruption Perceptions Index

Japan ranked 18th least corrupt out of 177 countries and territories with a score of 74 out of 100.¹⁶ This annual index, compiled by Transparency International, measures perceived levels of public sector corruption. The Fair Trade Commission, National Police Agency, National Tax Administration Agency, and the Public Prosecutors Office are anti-corruption agencies that conduct investigations in Japan.

Human Development Index

Japan ranked 17th out of 187 countries and territories.¹⁷ The HDI, compiled by the United Nations Development Programme, is a composite index of life expectancy, education, and income statistics.

Global Gender Gap Index

Japan ranked 104th out of 142 countries in terms of gender equality with a score of 0.6584.¹⁸ This annual index, compiled by the World Economic Forum, assesses gender gaps based on economic, political, educational, and health-based criteria.

Climate

Climate in Japan varies dramatically, from tropical in the southern islands to cool in the northern islands. The summer months of June to September are hot, rainy, and humid. The winter months of December to April are mild, drier, and have less humidity. Honshu and Kyushu receive occasional snowfall at lower elevations with the mountain regions receiving significant snowfall during winter. Hokkaido's severe winters include heavy ice and snow. Japan's snow country consistently ranks among the top 10 snowiest places on earth.¹⁹ Okinawa and the southern islands are semi-tropical.

Languages

Nihongo or Japanese is the official language and lingua franca. English is a required subject in high school.

Belief Systems, Philosophies, and Religions

The country breakdown is as follows: Shintoism (83.9 percent), Buddhism (71.4 percent), Christianity (2 percent), Other (7.8 percent).²⁰ The total exceeds 100 percent because many Japanese practice more than one belief system.

For an overview of belief systems, philosophies, and religions, please refer to Chapter 4, pages 64–65.

Time Zones/Daylight Savings

Japan has a single standard time, Japan Standard Time (JST). To calculate time in Japan add nine hours to GMT/UTC. It does not operate under Daylight Savings Time.

It is 14 hours ahead of U.S. Eastern Standard Time (13 hours ahead in Daylight Savings Time).

For more information, see www.timeanddate.com/worldclock.

Telephone Country Code and Internet Suffix

Japan's telephone country code is 81 and the Internet suffix is .jp.

Currency

Yen (JPY). One yen is divided into 100 sen.

Fiscal Year

The Japanese fiscal year runs from April 1 to March 31. Dates are written month/day/year; for example, April 1, 2020 is written 04/01/2020.

Working Week

The structure of the typical Japanese working week is outlined in Table 8.3.

Holidays and Festivals

When a national holiday falls on a Sunday, the following Monday is also considered a holiday. Japanese companies and government offices traditionally close during the New Year holiday season (December 29 through January 3), Golden week (April 29 through May 5), and O-Bon Festival (August 13 through August 15). Common Japanese holidays and festivals appear in Table 8.4 on page 160.

Business Dress/Appearance

First impressions are crucial in business circles, so it pays to look good. Wealth is admired. Men and women wearing well-made suits are seen as successful. For men, suits, white shirts, and understated ties are appropriate; avoid black ties. For women, modest suits, dresses, or skirts with low two-inch heels. Lightweight suits are appropriate during the summer and in southern regions. Wear high quality, minimal accessories to harmonize with the crowd. Wardrobe for professional men and women is tailored clothing in dark, subdued colors, including black, navy blue, and charcoal. Avoid vivid colors. Wear neutral stockings or black tights in winter. Avoid patterned or seamed stockings. Men and women both carry sleek, designer shoulder bags.

News Sources

Common news sources in Japan include the following:

• Nikkei Asian Review: http://asia.nikkei.com
• The Mainichi Daily News: http://mainichi.jp/english

Business Cards

Exchanging business cards has a specific protocol. In Japan, business cards are called meishi²¹ and are given and received with both hands. Bring classic cards (avoid color), printed in both English and Japanese. When exchanging, present yours with the Japanese print facing the recipient. When receiving a card, do not write on it or place it in your pocket or wallet. Examine it carefully and ask questions as a sign of respect. Place it on the table, or in a card case or portfolio.

Technology

According to Akamai Technology's State of the Internet Report, Japan has the second-fastest average Internet connection speed in the world.²² Latest figures rank Japan 3rd in the world for the number of Internet users, with over 99 million Japanese online,²³ and 2nd in the world for the number of Internet hosts.²⁴ When riding in public transportation, or the bullet train (shinkansen), mobile phones must be turned to silent mode, or manner mode.²⁵ Driving while talking on a mobile phone is against the law.

Gifts

Gifts (omiyage, or honorable presents) are a crucial element and expected on almost all business occasions. Omiyage are an affirmative way to express appreciation to your host in anticipation of the courtesies to be extended to you during your visit. Regional gifts from government gift shops are appropriate choices. Quality is important; expense depends on the particular situation and relationship with your counterpart. Wrapping must be done professionally and the gift will not be opened in your presence unless it is elegantly packaged sweets or cookies to be shared by the group.

Introductions, Greetings, Personal Space, and Eye Contact

In Japan, the traditional greeting is the bow, which has different meanings depending on the depth of the bow—15, 30, 45, or 90 degrees—as well as the length. In a casual eshaku²⁶ bow, for example, which is used when thanking someone or when passing someone of a higher status, the waist is bent at a 15-degree angle, and the bow is accompanied by a head nod. The keirei bow, used in business, involves a 30-degree waist bend, and is done when entering rooms, greeting others, and making introductions. The saikeirei, or most polite bow, consists of lowering the top half of the body 45 degrees; it's used to apologize or to express deep feelings of gratitude. People of equal rank bow to the same depth, and for the same length of time. If one person is of higher rank, however, the other bows deeper and longer. The Japanese avoid eye contact in crowds; direct eye contact is considered rude, aggressive by the Japanese.²⁷

Useful Phrases

Useful phrases for travelers to Japan are shown in Table 8.5 on page 163.

Names

Japanese name order is last name (surname), then first name (given name).

Without regard for gender, Japanese usually add -san (SAHN) to the person's last name as an honorific (in place of courtesy titles such as Mr., Ms., or Mrs.).

Meetings and Negotiations

The Japanese are formal in scheduling and conducting meetings.²⁸ When arranging meetings in Japan, emailing the request several weeks—or even a month—in advance is recommended. Send high-quality meeting materials in advance. Last-minute changes to schedule or location are not appreciated, so be consistent with all arrangements and be prompt.

Negotiations begin with mid-ranking managers. Senior-ranked members will join later, after the relationship-building and trust begins.

Presentation Styles, Conversational Topics, and Humor

When conducting presentations, present facts in an objective manner and avoid a high-energy style with overly-demonstrative gestures. Ruben A. Hernandez recommends beginning your presentation with an explanation of your business or your relationship to Japan. Explain what you know about Japan, or the enterprise you're addressing, and express your respect for Japan. In public speakers, the Japanese value composure and subdued gestures, and they prefer systematic thinkers who use a presentation outline and agenda. Schedule a question-and-answer session at the conclusion.²⁹

Gestures

Common gestures in Japan include the following:

• Bows, ranging from a simple head nod to waist bends of 15, 30, 45, and 90 degrees, have a variety of meanings.
• A single clap of the hands in front of the face expresses thanks for a meal, asks for forgiveness, or requests a favor.
• Nodding acknowledges that someone is speaking (and does not mean agreement).
• Waving the hand back and forth with the palm out in front of the face means ‘no.’
• A smile may indicate or mask sadness, confusion, embarrassment, happiness, or anger.
• A surprised expression can be used as a form of flattery and courtesy.
• A blank, know-nothing expression (a poker face) may be worn to avoid involvement.
• Extended eye closing, as if in a short nap (means concentration).

Notable Foods and Dishes

Main dishes may include seafood, beef, chicken, pork, or tofu. Rice is a staple with every meal. Popular noodles include udon, soba, and somen, which are common in soups with protein, vegetables, and spices.

Dining Etiquette

Itadaki-masu (“enjoy your meal”) is said at the beginning of a business meal,³⁰ and Gochisou-samadeshita (which shows appreciation and says “thanks for the meal”) is said at the end. Chopsticks are used to dine; if you are not proficient, however, you may be a source of amusement. Sip soups out of the bowl; noodles and vegetables may be enjoyed with chopsticks. Use both hands simultaneously to pass or receive items, and to present your glass for refills.

Drinking and Toasting

A popular drink is sake, or nihonshu, which can be served hot, chilled, or at room temperature. Each person receives a carafe and small cup. The custom is to refill your neighbor's cup, never your own. A helpful phrase when you have had enough to drink is kekko desu meaning “I have had enough.”

During a meal, after all attendees have been served, the host may offer the first of many toasts. Sometimes the toast is said by all in unison. Honored guests reciprocate toasts. Kampai means “cheers.”

Tipping and Bill-Paying

Tipping is not customary, and may be considered an insult or a loss of face and refused. A gratuity is included in most restaurants. International hotels may add a 10- to 15-percent service charge to your bill, in which case no additional gratuity is required. If you must tip—say, to reward special service—place the yen in an envelope; do not hand currency to the server directly.

Taboos

Cultural taboos in Japan include:

• Yawning, winking, or whistling in public
• Laughing without a hand vertically placed to cover the mouth and teeth (women only)
• Crossing legs at the ankle or knee (women only) (Instead, keep your feet flat on the floor.)
• Public nose-blowing or throat-clearing
• Using a linen handkerchief (use privately)
• Sticking both chopsticks upright in rice
• Even numbers and the numbers 4, 9, 14, and 44
• Openly displaying currency (Use an envelope instead.)
• Interrupting silence or finishing someone else's sentence
• Using a mobile phone in hotel lobbies, restaurants, trains, or crowded places
• Pouring a drink for yourself, and not your dining companion

Heroes and Sports

Knowing about another country's heroes and sports offers opportunities to incorporate culture-specific references into your conversations and presentations.

1. How Do the Japanese Prefer to Act: Individually or as a Group?

A single arrow is easily broken, but not 10 in a bundle.

The stake that sticks out gets hammered down.

—Japanese proverbs

Spend time in the financial or technology districts of Tokyo or any other major city in Japan, and you are likely to get a sense of déjà vu. This is not Groundhog Day but Salaryman Day! During her most recent visit, Sharon saw many Japanese men identically dressed in dark suits, white shirts, subdued ties, and black shoes, each carrying leather shoulder bags. If ever there was a classic example of group harmony in Japan, it is the way the Japanese dress for business.

The same emphasis on harmony and team spirit—in Japanese, the concept of wa—pervades business dealings. Discussing the importance of group consensus in Japanese business, Yuki Ochiai, the vice-consul general of Japan in Houston, explained the concept of nemawashi or advance planning. This gardening phrase refers to the importance of pruning and transplanting trees so they don't go into shock.

When applied in a business context, Mr. Ochiai said this process involves explaining a project or idea in a pre-meeting with any office colleagues who will be attending the full meeting or later negotiations. Nemawashi provides an opportunity for the roots of any challenge to surface, be discussed, and watered or smoothed over. The goal of this prior consultation is to achieve group consensus in order to avoid friction, disagreement, and confrontation in the actual meeting. Ever attended a meeting with Japanese businessmen and wondered why you have the sense that their decision has already been made? These preliminary discussions help explain how the Japanese reach consensus before a meeting starts.

Japanese society reflects many of the characteristics of a collectivist society, including placing harmony of the group above the expression of personal opinion. People have a strong sense of shame for losing face. However, Japan is not as collectivistic as most of her Asian neighbors (See Chapter 2, page 15) with an individualism score of 46.

2. How Are Power and Authority Viewed in Japan?

The highest goal is not distinctions, but synthesis and harmony

—Alan MacFarlane

Japan is an ascription-oriented culture, meaning that status is based on gender, age, and connections, as well as the universities attended.³¹ Most prestigious Japanese companies recruit candidates from the best universities, as U.S. American companies do, but according to more than just academic credentials—the Japanese also consider a candidate's social and interpersonal skills. The reason why this is important is two-fold.

First, until relatively recently, joining a Japanese company was seen as a lifetime commitment. Prospective employees were judged on how quickly and easily they were likely to fit into this new social group—the Japanese company or kaisha,³² as opposed to their family group.

Second, Japanese organizations are hierarchical, and maintaining order and structure is crucially important to their management style. Kaisha³³ decision-making is a bottom-up process in which approval is sought in layers, each a stepping stone to the final decision maker.

As Jerald Wrightsil, CEO of Eco-Merge USA, with 11 years of experience living and working in Japan, advised: “Your direct superior in traditional Japanese companies gives you direction, because they are answering to someone else; the chain of command is mission-critical—don't break the chain of command. You don't really go above your direct supervisor's head. That is just taboo. And you don't try and cozy up with the president before the vice president or before the kacho or the bucho or the honbucho. You've got to work step-by-step.”

In some ascription-oriented cultures, power is held over people. In others, including many of the Asian countries included in this book, power is participative.

For example, as Michael DeCaro, a former Dell executive who lived in Japan, explains: “Western leaders that arrive on the scene and simply announce decisions without getting everyone involved have a much greater likelihood of finding it difficult to achieve their objectives in Asia. For example, in Japan, a position of authority customarily empowers a leader to take the initiative for developing and gaining consensus as to what the ultimate decision will be.”

This means that Westerners should have patience.

3. How Do the Japanese Compare Rules and Relationships?

I believe most international business executives would agree that, with the Japanese model, there is no contract agreement without a relationship, and that it may take years to develop.

—Thomas Conry, International Advisor in Public Affairs, Communications & Protocol

On March 11, 2011, Japan experienced the most powerful earthquake in its history, followed by a tsunami that damaged several nuclear reactors, devastated millions of homes, and killed almost 16,000 people.³⁴ Although it represents only 1/400th of the world's land mass, the Japanese archipelago includes a full tenth of the world's active volcanoes (including the spectacular Mt. Fuji).³⁵ Some 1,500 seismic events—each with the potential to result in earthquakes, tsunamis, and typhoons—occur there every year.³⁶

When you consider this in light of the fact that Japan's population density (337 people per square mile) is ten times that of the U.S. (32 people per square mile) and that 91 percent of people in Japan live in urban areas, you begin to get a sense of the mindset that shapes Japanese lives—including business. Indeed, you cannot truly understand how people think and behave until you consider the environment in which they live. The concept of group harmony is so important in Japan largely because of the natural instabilities with which the Japanese live every day.

This also helps explain why establishing trust in long-term relationships is crucial for the Japanese—that trust reduces business risk, and there are few business risks the Japanese can control. As formal and rule-oriented as the Japanese tend to be, trusted relationships built over a long period of time are valued. Japan is ‘one of the most uncertainty-avoiding countries on earth³⁷’ with a high ranking of 92 in uncertainty avoidance, and is a culture that tries to avoid risks.³⁸

Failing to appreciate this Japanese aversion to risk while seeking a quick return on an investment is one of the biggest mistakes Westerners make.

Jerald Wrightsil offers this advice: “Developing a relationship, whether it's at the entry level or mid-level, may mean years of not doing anything. I've gone back and forth sometimes with no return on my investment, at least from a travel perspective, just to visit my colleagues—not necessarily for karaoke but maybe yakitori and always bringing an omiyage (honored gift) with me. I'll stop by just to say, ‘Good to see you. If you guys ever need…’

“Then, when I do call and ask ‘What do you think about this?’ they will be prepared to talk further. They trust me because I have made the effort to understand their practices. Most of the time you don't get to develop a relationship at the senior level until you can gain their trust by your performance.”

He adds, “Even if you miss the mark, if you have the right prior relationship you will still have the relationship and may get a second opportunity. But without that foundation, you don't get a second chance most of the time.”

This may mean taking on a small project for your Japanese customers or partners without having a contract in place beforehand. This can seem counter-intuitive to the Western mindset, which tends to believe that relationship-building should occur only during the course of making money. Certainly the Japanese are conscious of the fact that Westerners are seeking to make money, just as the Japanese themselves are when operating overseas, but, from a Japanese perspective, this doesn't constitute relationship-building—it's superficial.

4. How Do Japanese Business People Regard Time?

Decision making may seem slow due to the time involved with consensus building; implementation occurs rapidly.

—Joel Momberger

Arriving 30 minutes early for her appointment to interview an executive at a high-tech company in Tokyo, Sharon sat in the lobby—without being announced—in order to observe and listen. She and Thomas Conry, a 23-year veteran of JETRO, the Japan External Trade Organization, had recently had a discussion about the ways the Japanese view time. Thomas had pointed out the tendency of Japanese management to wait until the exact time of an appointment to receive a guest, regardless of whether they were free to meet earlier.

At 11:50, the floodgates opened: For the next 10 minutes, workers began departing the company elevator in a steady stream. Sharon's meeting began promptly at noon and lasted exactly 60 minutes (possibly allowing her interviewee a half hour nap at her desk before resuming work). This kind of routine and punctuality occurs on a daily basis in the Japanese business environment.

The Japanese put a tremendous amount of effort into meetings, negotiations, and long-term planning; this is perhaps not surprising in a country where time is considered a crucial part of the smooth running of everyday life.³⁹

As the senior business development manager of a Fortune 500 manufacturer in Tokyo explained, “The Japanese are highly structured on their budgets. Their fiscal year runs April through March. I can't forecast anything for my company in Japan until roughly mid-February to March, which is when they start talking to you. Other than that, if it's not in the budget, there is unlikely to be any more business unless you come in with something revolutionary that gives them a huge ROI and saves them a ton of money.”

He illustrated the relationship between time and commitment in Japan by relating how he and his manager tried to give the purchasing director of an electronics company some disappointing news. The Japanese director was unequivocal: “This is what you've committed to do on these tools. If they're not delivered, you're going to impact my revenue.” The director's underlying message was that if the supplier didn't meet the deadlines, future orders would go to another company.

His strategy? “If I can't commit to that, I don't open my mouth. I just say, ‘We'll work on it.’ But the minute I say, ‘I commit to giving you these systems by this date. You will have them,’ my word is considered my bond. Unless some major catastrophe justifies missing that date, the Japanese are not going to be willing to do business with you in the future unless they absolutely have to. When you commit to something with the Japanese, unless an act of God delays it, you have to meet your commitments.”

Time, commitment, and planning are important here. The Japanese prepare well in advance, and their relationship to time is another example of their risk-averse mindset. If you commit to delivery at a certain time and don't meet your obligations, the impact on their fiscal year may be felt throughout their organization.

5. How Direct Is Communication in Japan?

“It is frequently the most obvious and taken for granted and therefore least studied aspects of culture that influence behavior in the deepest and most subtle ways.”

—Edward T. Hall, Beyond Culture

A.L., who is experienced in negotiating business in Japan, recently accompanied a client on a trip to Tokyo to lay out a potential business deal with a major Japanese organization. Prior to the trip, A.L. outlined for his client some of the basic cultural differences between the U.S. and Japan, such as the fact that the Japanese observe business etiquette and prefer long-term business relationships. A.L. also emphasized the importance of seating in meetings, in addition to other, more general advice on the Japanese concept of kao tateru or saving face. In the U.S., in a traditional corporate structure, A.L.'s client could expect to sit at the head of the table to emphasize his position of power as CEO, but A.L. encouraged him to sit elsewhere on their trip to Japan. During the meeting, A.L. advised, the client should sit in the middle of the table so as to facilitate communication with his Japanese counterpart, who would be seated across from him.

At the meeting, after business cards were exchanged, the U.S. client, ignoring A.L.'s advice, sat down at the head of the table.

This was strikes one through three in a single move. Luckily A.L., who is fluent in Japanese, gave the necessary apologies for this inappropriate behavior. The meeting continued, with A.L. seated in the position his client should have taken. All went well—until the next blooper.

As A.L. explained: “In Japanese culture, if your direct contact invites you to dinner after the meeting that is a good sign. It signals that the Japanese are willing to take business dealings to the next level, to ‘consummate the relationship,’ so to speak.”

When the Japanese president extended a dinner invitation, then, the U.S. CEO should have been excited. Instead, he impolitely declined the offer, saying that he was jet-lagged and in any case wanted to go to dinner with other Japanese business associates. A.L's reaction was unequivocal: “I thought, wow, I can't fix that one!”

From that point, the deal was dead in the water, despite the fact that the U.S. company had something the Japanese wanted, and the Japanese knew it would mean an 80-percent return on their investment.

A.L. was not able to help his client recover from that cultural faux pas because the CEO stubbornly focused on what he wanted and gave no consideration to the concepts of face, respect, and honor that are so important to Japanese communication.

The Japanese consider saying no to be impolite, preferring instead to use words like chaigau or chigau masu, which mean not quite or not exactly. If you ever hear your Japanese counterpart say kangaete okimasu⁴⁰ (“I'll think about it”) during negotiations, you can be almost certain he is saying no.

In A.L.'s case, his U.S. CEO client was never told directly that his proposal was unsuccessful. But A.L.'s strong ties with his Japanese counterpart, achieved over many years, enabled him to read between the lines during their post-meeting one-on-one dinner and drinks. The CEO's plan did not move forward.

6. How Formal or Informal Do Business People in Japan Tend to Be?

“My demeanor is always formal in approaching Japanese individuals, and I am reluctant to respond informally until the relationship has developed.”

—Thomas Conry, International Advisor in Public Affairs, Communications & Protocol

In Japan, the focus on Wa, means harmonious, good feelings; the Japanese are formal yet warm. If you've ever been in a Japanese taxi, you may have noticed that the seating of passengers was different than the seating in a western taxi. In Japan, the customer is seated directly behind the driver because it is the safest position in the event of an accident. With groups, the most important visitor (the VIP) sits behind the driver, the second most important sits next to the VIP, and the host sits closest to the driver so he can more easily pay. This exemplifies the formality of Japanese culture, especially where the comfort and safety of customers are concerned.

Formality and the strong emphasis on respect ensures the ongoing homogeneity of Japanese culture. For example, as Ms. Saiko Motonaga of Hitachi High-Tech in Tokyo pointed out, after beginning her employment, she and the other new recruits participated in a business manners course to ensure they could always deliver a high level of service and comfort to customers. The Japanese are the ultimate diplomats, speaking with others in neutral terms (tatemae), regardless of whether they hold a different opinion privately (honne).⁴¹

Be aware that the Japanese will take your business manners into consideration before they will do business with you. This includes your abilities to listen with focus during discussions, to take copious notes, and to accept silences with reflection rather than trying to fill them. Demonstrating gracious social skills and humility are highly valued. These skills include diplomatically cooperating with colleagues, observing silence, and referring to our company instead of my company me or I.

As Thomas Conry pointed out: “My demeanor is always formal in approaching Japanese individuals and I am reluctant to respond informally until the relationship has developed. For example, I would never presume to use the first name of a Japanese contact unless I was specifically invited to do so, and it's often when the individual has acquired a Western name to use, like ‘Ken,’ or has abbreviated his or her name to a nickname status. Initial introductions are usually kept formal. Socialization can be the path to an informal context.”

7. How Aligned Are Japanese Social and Business Lives?

We do not work together with anyone we cannot trust as a person.

—Mr. Motokatsu Sunagawa, CEO, Eco-Merge Philippines

Japanese social and business lives reflect strict rules of etiquette and behavior. Their deeply ingrained social system prevents colleagues from showing individuality or developing personal relationships during office hours. To offset this, the Japanese allow for short rule-breaking times known as bureiko (without etiquette or informal parties). These times include New Year's celebrations, athletic events, and after-hours drinking sessions.

After-hours socializing can be especially important for Western or international business people, who can be viewed as gaijin (a somewhat derogatory word meaning outsiders or non-Japanese) or gaijin-no kata (a more polite term meaning foreign-person). The Japanese phrase hame wo hazusu means to ‘pull out all of the stops’ by ‘letting one's hair down’ or in other words to take part in unrestrained nighttime drinking with work colleagues. If you cannot hame wo hazusu, you may be thought of as untrustworthy, arrogant, inauthentic, or lacking in sincerity.

This presented a challenge for one senior development manager who was traveling to Japan with an associate. His story highlights the importance of socializing in developing deep business relationships:

“I was working with a Japanese conglomerate. There were fifteen Japanese and the two of us at dinner. My colleague was sitting next to me with hot tea due to an alcohol allergy; his face would flush and he'd pass out. Everybody else was drinking, toasting, and smoking cigarettes. My colleague was just sitting there like a bump on a log; he didn't want to be there. So, my customer gravitated toward me and I created a relationship. But they didn't talk to my colleague, who's a Ph.D. and a hundred times smarter than me in this technology.”

The difference in approach had a significant impact. The senior business development manager's Japanese colleagues later greeted him with a huge smile “Oh, we had a great time at the steakhouse. Oh, I remember that. Great to see you again!” One night out was all it took to get the relationship started. His colleague, on the other hand, was greeted with a brief “Hello.”

When socializing, however, remember to consider what level in the organization you're working with. CEOs are unlikely to join in on hame wo hazusu. “If you're traveling to Japan and interact at the director level with decision makers, you have to be aware of what you're getting into because lack of discretion could impede your customer relationship. It could be a simple dinner with a nice bottle of wine when you talk about your family life and social structure and then you go back to your hotel. Or, you could be dragged out later where it gets a little more crazy and rowdy. You need to know what you can expect, because lack of foresight could impede your success,” the senior development manager told us.

8. How Is the Concept of Women in Business Handled in Japan?

When visiting Japan as a female business executive or lead negotiator, emphasize your standing within your own company hierarchy by asking your male team members to follow your lead, stand back and wait to enter the room after you have done so.

—Reina Sawada

Japanese women are increasingly making their mark in the workforce, a sign that government efforts to help working mothers have been successful.⁴² Indeed, Prime Minister Shinzo Abe has said he is determined to make better use of Japan's potential female workforce. Additionally, the U.S. Ambassador to Japan, Caroline Kennedy, is known as a strong supporter of women's rights.

Through welcome changes like these, international businesswomen can expect to succeed in Japan and to enjoy the experience. Reina Sawada of Showcase-tv in Tokyo emphasizes the importance of research in smoothing your path to success: “An awareness of the past and current status of women in Japanese business culture is important. It is essential to research your Japanese business contacts' background before trying to cultivate those connections. Knowing about the people you may be asking to act as intermediaries and accompany you to meetings and negotiations is a mark of respect. Learning a few Japanese greetings will be appreciated and helps break the ice.”

Another key point women travelers should be aware of is the Japanese culture's adherence to certain protocols and etiquette. Says Arii Aoi: “When visiting Japan as a female business executive or lead negotiator, emphasize your standing within your own company hierarchy by asking your male team members to follow your lead, stand back and wait to enter the room after you have done so. This will communicate your elevated position to your Japanese hosts. Be sure that you maintain that status by avoiding actions associated with a lower status, such as passing out materials or serving coffee.”

Finally, as Ms. Aoi and Ms. Sawada both reiterated, women in Japan visibly signal credibility through their attire, and also maintain harmony among their peers. Saiko Motonaga of Hitachi High-Tech in Tokyo, told Sharon that professional appearance in Japan is all about harmonizing. High, thin, or stiletto heels are not appreciated in the Japanese business world and vivid colors are too surprising for the Japanese. Be sure to read and follow the advice given in the Business Dress/Appearance section of this chapter for ways to make a good first impression.