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Japanese Business Etiquette

Japan’s business etiquette is encapsulated in a number of key terms that I call “cultural code words” because their meanings are impregnated with the values and goals that define and control how the Japanese do business. Here is a selection of some of the most important of these terms with explanations of how they function.

The All-Important Introduction

紹介 Shōkai (shohh-kie)

This is the Japanese word for “introduction”—something that is especially important in establishing new relationships in Japan because the Japanese have been culturally conditioned for centuries to avoid dealing with people they do not know. Historically, in their close-knit family and group-oriented society becoming involved with strangers not only complicated their lives, it also represented a possible danger.

The only way to circumvent this cultural-bound limit when business and other considerations required them to develop new relationships was to depend on introductions from friends, classmates, professors or trusted institutions who would take responsibility for the character and behavior of the people being introduced.

The custom of depending on shōkai thus became deeply embedded in Japanese culture, and remains today an important tool in both social and business etiquette.

Letter of Introduction

紹介状 Shōkai-jō (shohh-kie johh)

A shōkai-jō is a written introduction from an individual or from an institution attesting to the character of the bearer, and asking the third party to do whatever they can for him or her. An introduction from a well-known person or institution carries a lot of weight in Japan, and is highly recommended. “Cold calls” and self-introductions are not taboo in Japan, but a shōkai-jō will get you much further and faster because it gives you instant “face.”

The Indispensable Advisor

相談役 Sōdanyaku (sohh-dahn-yah-kuu)

Sōdan means consultation, conference, talk and advice. A sōdanyaku is the Japanese word for consultant or advisor. Sōdanyaku can be extraordinarily valuable to foreign businesspeople who are considering their first foray into Japan on a relatively large scale—or need to make fundamental changes in existing organizations in Japan.

Foreign companies planning on going into Japan should consider retaining sōdanyaku well before the date of the initial contact because there are many things they should do in preparing for the venture—things they generally would not know about if they have not done considerable research or already had hands-on experience in Japan. [And doing a few hours of research on Google or Yahoo doesn’t count!] The use of sōdanyaku is a well-established custom in Japan.

The Indispensable Go-Between

仲介人 Chukaisha (chuu-kie-shah)

This term may be literally translated as “middle-meeting-person” and refers, of course, to a “middleman”—a person who serves as an agent of one party to another in presentations and negotiations, particularly when the matter at hand is sensitive. Chukaisha have traditionally played a vital role in political and business affairs in Japan because Japanese culture did not support important dialogue between parties who did not already have a connection.

Chukaisha are generally chosen because they know both parties in a situation and are trusted by both sides, or they have a public reputation as a skilled go-between who can be trusted to be impartial and fair to both parties. Chukaisha are also retained to initiate and help establish new relationships between companies and other types of organizations. In this case, an experienced chukaisha is far superior to a shōkai-jō. Again, chukaisha play critical roles in situations where there is a major conflict between two parties because the Japanese will always opt for mediation over litigation.

The Indispensable Business Card

名刺 Meishi (may-she)

The first use of meishi—name cards or business cards—was apparently in China, when eunuchs serving at the Imperial Court began using them more than 1,000 years ago. Their cards were large in size and came in bright colors… and the original Chinese ideograms used to write meishi meant “Famous Gentleman.”

Meishi were introduced to the emperor’s court in Japan soon thereafter but they did not become common until well after the fall of the Tokugawa shogunate government in 1868. Now, it is commonly said in Japan that you are nobody if you don’t have a name or business card. It goes without saying that foreigners doing business in Japan [and in some cases ordinary visitors to Japan] should have business cards—and they should be bilingual; Japanese on one side and the bearer’s native language on the other side.

The manner of presenting business cards in Japan is now much less formal than it used to be [using both hands and bowing slightly], but it pays to be a little formal, and if you are going to be engaging in sit-down discussions after the card exchange, put the ones you received on the table in front of you so you can refer to them during the proceedings. In Japanese, exchanging name cards is 名刺交換 meishi kokan (may-she koh-kahn).

[A growing number of people in sales positions in Japan now put their photographs on their name cards—a custom this writer originated in the early 1960s.]

The Indispensable Greeting Ritual

挨拶 Aisatsu (aye-sot-sue)

The literally meaning of aisatsu is “greeting,” but its cultural nuances and uses go far beyond the connotations of this English word. Aisatsu incorporates the behavior that is a key part of the foundation of the culturally approved interpersonal relationships of the Japanese, including the hierarchical [senior-junior] status of individuals, the obligations that one owes to others, and the process of sustaining and nurturing relationships.

All Japanese are obligated to pay aisatsu visits to people who have helped them in the past to express their thanks and appreciation, and particularly when they want to ensure that they continue to benefit from the goodwill and help of the individuals concerned. In the business world, aisatsu visits to customers, potential customers, suppliers, etc., are a vital part of keeping the relationships on track.

There are many congratulatory-type occasions when aisatsu are called for, from managerial promotions to the introduction of new products. The period between about the 4th and 7th of January each year could be called “Aisatsu Season,” because that is the period when people as a whole— especially businesspeople—pay their respects to benefactors.

When an aisatsu visit involves a middle or senior manager or executive, appointments are advisable because they normally receive many visitors during this New Year’s period.

Top Man in a Department

部長 Buchō (buu-chohh)

Bu (buu) means department or division, and cho (chohh) means “the chief” or “the head.” Buchō therefore means department chief or division chief. [The terms department and division may be interchangeable in smaller companies and organizations, but the larger the group the more likely it may be referred to as a division.]

In any event, the buchō in Japanese companies is an important individual, and in larger organizations may be comparable to a vice-president in Western terminology. In military terms, buchō are the equivalent of company commanders in smaller organizations and battalion commanders in larger firms. They are the front-line managers in the operation of the company, and it is therefore vital for outsiders wanting to do business with a Japanese company, or already doing business with a firm, to establish and sustain a close relationship with all of the buchō in the firm who have anything to do with the product or service involved.

Another reason why it is important for foreign businesspeople to build and nurture close relations with department managers is that some of them will move up in the company hierarchy and become directors. Traditional etiquette calls for people doing business with a company to pay courtesy visits to key buchō every other month or so—not to talk business but to show their face.

Key Man in a Section

課長 Kachō(kah-chohh)

Departments (and smaller divisions) in Japanese companies are made up of several ka (kah) or sections, consisting of as few as six or eight individuals to as many as two or three dozen. The head or chief of a section is a kachō. Again using military terms, a kachō is like a squad leader… and in business in Japan as in war it is the kachō who are on the frontlines, who, in fact, oversee virtually all of the administrative work that is done in companies.

The directors, the vice-presidents and the buchō in Japanese companies play important roles, but it is the kachō who see that the work gets done. It is therefore vital for foreigners who want to do business with or are already doing business with Japanese companies to develop and maintain close relations with all of the kachō concerned with the product or service. They can determine if a project succeeds or fails.

Part of the etiquette of developing and nurturing good relations with section chiefs is to invite them and one or two of their top staff out for an evening of drinking and dining. In the natural order of things they will one day become a buchō and it pays to have had good relations with them for several years.

“Root Talk” in a Japanese Company

根回し Nemawashi (nay-mah-wah-she)

The literal meaning of nemawashi is “revolving or turning the roots” of a plant being transplanted. As is well-known the roots of a plant in a box or pot become balled up as the plant grows. In the transplanting process the roots must be spread out for the plant to grow properly.

This concept has become a key word in Japan’s business vocabulary, referring to the details of a newly proposed project or relationship with another company being spread out among individuals in the company for them to discuss; and to the “lobbying” actions of individuals within companies who are advocating or opposing something. New projects proposed by outsiders invariably go through the nemawashi process.

The possibility of a project being accepted can be significantly enhanced by the person who proposed the project doing some nemawashi of his or her own with individuals in the company who would be responsible for its implementation—the buchō and the kachō. The etiquette—or process if you will—of developing a relationship with Japanese companies invariably includes a period of internal nemawashi that can take from weeks to months.

The Imperative of Trust

信用 Shin’yō (sheen-yohh)

In pre-modern Japan there was no body of laws that established or controlled business practices similar to what we are now familiar with. The national laws that did exist were decreed by the shogunate government and were primarily designed to ensure the survival of the government and the feudal system of fiefs and lords.

Fiefs, however, did have a system of laws the pertained to business, but in both essence and practice business relationships in Japan were based on shin’yō, or “trust,” between the parties concerned.

Since the only thing that the parties could depend upon was unqualified trust, developing the feelings of trust to the point that the parties were bonded was a lengthy and detailed process.

Still today Japanese businesspeople are more concerned with shin’yō than with laws, and establishing an acceptable level of trust is their first goal in considering new business relationships. To succeed in Japan foreign businesspeople must give the same high priority to developing and maintaining shin’yō-based relationships with their suppliers and customers.

Whether or not one follows proper etiquette in dealing with a Japanese company is taken as a sign of his or her trustworthiness.

When “Difficult” Means “No”

難しい Muzukashii (muu-zuu-kah-she-e)

The very common word muzukashii means hard, difficult and troublesome... and it is also a “cultural code word” that has an altogether different meaning. When Japanese businesspeople are presented with projects in which they don’t have the slightest interest—and this happens by the thousands annually—they will almost never say “no, thank you” outright.

They will listen politely enough, often nodding (which doesn’t mean acceptance of anything, it just means they are listening), but in the end they will typically say the project would be muzukashii… usually with a strained and uncomfortable look on their face. This means “no, it’s not going to happen, forget it.”

Unless the foreign presenter is aware of this meaning of muzukashii he or she will also typically repeat the main points of the presentation, after saying it would be worth it even if it was difficult, and then leave, saying they look forward to hearing from the company. It is deep-seated Japanese etiquette to use such circumlocutions rather than refuse or decline anything directly.

Beware of Hidden Meanings!

善処します Zensho Shimasu (zen-show she-mahss)

This phrase, which means “I will take proper measures; I will do my best,” has caused foreign businesspeople (also diplomats and the heads of foreign governments) who do not know the hidden meaning of the phrase more loss of face and more trouble than can be imagined.

Generally, there is no sense of real commitment or promise in this comment. It is almost always a ploy to avoid saying “no” outright and causing the petitioning party to get upset and/or lose face. Once this comment has been made at the end of presentations, the Japanese side seldom if ever takes any action. Again, this is an example of Japanese etiquette that is designed to avoid upsetting anyone in face-to-face confrontations.

The Power of Cultural Intuition

直感 Chokkan (choke-kahn)

One of the first lessons that foreign businesspeople should learn about Japanese culture is the role played by chokkan, “intuition, intuitive power,” in business and all other relationships. The natural intuitive powers of the Japanese—those common to people everywhere—have been dramatically enhanced by their culture, to the point that often they cannot be separated, and in many cases they take precedence over rational or logical thinking based on facts.

The Japanese have a special word that refers specifically to the use of their combined cultural wisdom and native intuition: 腹芸 haragei (hahrah-gay-e), which translates as “the art of the stomach.” In virtually all of the occasions when foreigners cannot understand the rationale of business decisions made by the Japanese the answer lies in their chokkan.

Most of Japan’s leading tycoons—Idemitsu, Matsushita, Honda, etc.— credit their amazing success to guidance provided by their chokkan.

The principle of haragei in business in Japan accounts for much of the emotional content of Japanese etiquette.

The Power of Tradition

方 Kata (kah-tah)

This is one of the most important words in the Japanese language, and is the key to understanding all of the traditional and most of the modern behavior of the Japanese. Kata means “form” and the physical process of doing things.

In Japan’s traditional culture there was a specific kata for virtually everything the Japanese did: yari-kata (way of doing things/working); tabekata (way of eating); nomi-kata (way of drinking); hanashi-kata (way of talking); aruki-kata (way of walking); yomi-kata (way of reading); kakikata (way of writing), and so on. There was also a specific kata for all forms of Japanese etiquette.

The actions of each kata were precise, and were taught to children from infancy on. Deviations were not allowed. This homogenization of Japanese behavior had a fundamental impact on their mindset, making everyone extremely conscious of how people behaved, and determining many of the rules of etiquette that developed over the millennia.

The power of the kata in present-day Japan is much less than what it was until the 1970s and 80s, but it remains a force in society in general and especially in the work-place, where corporate cultures prescribe acceptable etiquette. There is no way foreigners can fully understand the Japanese without knowledge of the ongoing role of kata in the culture. [Read more about kata from my book—details on page xxi’s footnote.]

Making Things “Fit” for Japan

日本的 Nihon-teki (nee-hoan-tay-kee)

Japanese things have a distinctive look that clearly identifies them as “Japanese,” and is one of the facets of Japanese culture that is especially attractive—in a very sensual way—to most foreigners, especially Westerners.

This distinguishing element, which derives from the material things are made of and their design, is referred to in Japanese as Nihon-teki. Nihon means “Japan,” and teki means “suitable, fit, compatible, conforming to,” or “similar to.”

The workmanship and the design concepts that make a thing Nihon-teki go back some 1,500 years, and are a reflection of Shinto concepts of beauty and Zen concepts of refined simplicity.

The distinctive nature of things Japanese is so deeply embedded in the mindset of the people that they do not have to strive to create it. It comes naturally to them, without them having to think about it. When it is missing, as it is in most non-Japanese products, they recognize its absence instantly.

This is the reason why many foreign products have not been acceptable in Japan until they were “Japanized.” Foreign businesses proposing to introduce a new product in Japan should first give it the Nihon-teki test, to see if it is suitable, fit, and compatible with Japanese tastes.

All Japanese etiquette must also meet the same test. If it is not instantly recognized as Nihon-teki it smacks of something foreign. A few forms of foreign etiquette, like the hand-shake, have been incorporated into Japan’s culture, but the traditional お辞儀 O’jigi (oh-jee-ghee), or bow, continues to be a vital part of the etiquette of present-day Japanese in many formal situations and when groups or large numbers of people are involved.

The Japanese Do-or-Die Syndrome!

頑張る Gambaru! (gahn-bah-rue)

Gambaru is one of the most commonly used words in the Japanese vocabulary—in business, in sports, in any endeavor that is taxing in the least. It refers to what I call the “Japanese never-give-up never-say-die” syndrome. It means “stand fast, stand firm, hold out, never give up,” and is the term that the Japanese use when encouraging people to do their absolute best in whatever it is they are engaged in or are going to undertake.

The number of daily situations in which gambatte (gahn-bahn-tah) is used as a rallying cry are virtually uncountable. It is called out to people engaged in sports, when a business colleague departs for an overseas assignment, when someone starts a test of any kind, when anybody undertakes anything new, when a baby tries to stand up the first time, and on and on.

The cultural implications of gambatte are deep and abiding, and reflect the built-in drive that the Japanese have to succeed in whatever they set out to do and to do things better than anyone else can. Foreigners should make use of this word whenever an occasion arises because it indicates an intimate knowledge of Japanese culture.

Use of the term is such a spontaneous response that it has become an integral part of the national etiquette.

Japan’s Fabled Night-Time Trades

水商売 Mizu shōbai (mee-zoo shoh-bye)

Mizu shōbai is an old term that refers in particular to Japan’s huge and important night-time entertainment trades made up of hundreds of thousands of bars, cabarets and nightclubs and an impressive number of surviving geisha inns.

Alcoholic drinks have played a vital role in Japanese culture since the dawn of civilization—first used in Shintō rituals aimed at pleasing the various gods. Shrines often had their own fields for growing the rice to be turned into 酒 sake (sah-kay) mash, and as time passed into liquid sake.

From this stage drinking came to be used as a lubricant when socializing and especially to mark special occasions, including new business deals, and to develop and sustain relationships. Drinking then became an integral part of after-hours business (and political) negotiations because the only time it was possible to break the strict formal patterns of behavior that controlled their normal daytime behavior was when they were drinking.

Virtually all foreigners who do business in Japan are entertained in the mizu shōbai, and all should be familiar with its role in business and use it as the Japanese do. It is a vital part of the etiquette of doing business in Japan—and those foreigners who shy away from it because they don’t drink and/or don’t want to spend time in the evenings in bars or other clubs are foregoing one of the main elements in developing and nurturing relationships in Japan.

The role of the mizu shōbai in Japan is not likely to diminish significantly in the foreseeable future. It has thrived since the age of gods (among whom there were a number of famous party-goers!).

Keeping Your “Flattery Filter” Online

胡麻擂り Gomasuri (go-mah-suu-ree)

Japan’s social etiquette has traditionally been based on an extraordinary degree of formality and ritualistic ceremony that permeated the culture from top to bottom, making it essential that individuals spend a great deal of time learning and following the protocol that applied to virtually every aspect of their daily lives, and particularly so in all of their interactions with people of rank and in the need for maintaining harmonious relations with everyone.

This led to the profuse use of what came to be known as gomasuri, which literally means “grinding sesame seeds,” but in its present-day colloquial usage it means “flattery.”

In the old days sesame seeds were ground in earthenware mortars that would cause stray seeds to fly in all directions, clinging to the sides of the bowl “in a cringing way,” reminding the Japanese of the ingratiating behavior they had to assume to stay on the good side of the upper class, particularly arrogant samurai.

The use of flattery became so deeply embedded in the culture that it continues today to be a defining characteristic of the Japanese, especially where foreigners are concerned. They have found Westerners to be especially vulnerable to gomasuri and make great use of it to manipulate them in many ways—some that turn out to be fun and others that turn out to be seriously disadvantageous.

Westerners dealing with the Japanese should therefore have their flattery filter engaged at all times, and not lower their standards, expectations or requirements as a result of being smothered with gomasuri.

For a more detailed discourse on these terms, plus over 200 other key Japanese words, read the author’s book Japan’s Cultural Code Words—233 Key Terms that Explain the Attitudes and Behavior of the Japanese [Tuttle Publishing]. Also, read his book, Kata—The Key to Understanding & Dealing with the Japanese [Tuttle Publishing.]