Japanese Business Etiquette: A Step-by-Step Guide to Successful Business Interactions
By Greg Rodgers
Asia Travel Expert
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Conforming to Japanese business etiquette during a lunch or meeting can make even the most confident executive shake in their
loafers. While there are many rules, customs, and traditions, your hosts will probably forgive all but the worst faux pas anyway.
Demonstrating a small knowledge of Japanese culture and traditions shows that you have a genuine interest in the success of the
meeting. If nothing else, your friends and colleagues will be impressed!
Japanese Greetings and Introductions
The toughest and most complicated challenge comes at the very beginning of the meeting. Bowing is extremely important in Japan,
however, your hosts realize that Westerners are unaccustomed to bowing and may offer you a handshake instead.
If you wish to return a bow, do so with your back straight and your hands at the sides. The longer and deeper the bow, the more
respect that is shown. Bows are often repeated over and over, getting slightly less formal with each iteration. Sometimes a bow and a
handshake are combined; if this happens, turn slightly to the left to avoid bumping heads.
Although the few minutes immediately following formal introductions can be a time for nerves to set in, avoid putting your hands into
your pockets; doing so shows boredom or lack of interest.
Although your hosts will surely speak English, knowing a few simple expressions in Japanese will get smiles and help break the ice.
Japanese Etiquette for Receiving Business Cards
Even the exchanging of business cards follows a protocol in Japan. Japanese business cards -- known as meishi -- are treated with
utmost respect. If conducting business, carry your cards in a nice case so that you don't hand your counterpart a frayed and buttwarmed card out of your wallet. The quality and condition of your business card speaks much about how you intend to conduct
yourself and business.
When receiving a business card, thank the other person and offer a quick bow. Take the card with both hands and hold it by the top
two corners; examine it closely with respect. Avoid covering the person's name on the card with your fingers.
If cards are exchanged while already seated, place the card atop your case until you leave the table. Attention is even given to the
order that cards are placed on the table. Put the highest ranking person's card on your case so that it is higher, with the subordinates'
cards beside it on the table.
The worst thing that you can possibly do in Japanese business etiquette is to cram someone's business card into a back pocket or wallet
in front of them!
Removing Your Shoes
The number one rule to remember when entering a home or sitting area: remove your shoes! A wooden threshold or change in the
flooring -- along with a pile of provided slippers -- will indicate where you should remove your outside shoes. Place your shoes on the
provided rack or off to the side.
Going in only socks is acceptable in informal situations, however, bare feet are rarely acceptable. If you wear sandals, bring a small
pair of white socks with you for wearing so that your bare feet do not touch the provided slippers. If conducting business, make sure
that you don't have any visible holes in your socks!
Do not wear your hosts's slippers into the restroom -- which may be a squat toilet; a different set of "toilet" slippers should be waiting
by the entrance. Even the slippers are removed when walking or sitting on the tatami mats.
If unsure when to remove your shoes, simply follow your hosts' lead and do as they do!
Things to Avoid in Japanese Business Etiquette
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Keep your hands out of your pockets while speaking to someone.
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Being invited to someone's home is a great honor. If one of your hosts extends an invitation, accept wholeheartedly.
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Unlike in China where people openly clear their noses onto the street, blowing your nose in public is generally frowned upon
in Japanese etiquette. Excuse yourself to the toilet or go outside to clear your nose. Sniffling to avoid blowing the nose
actually is acceptable.
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Avoid pointing at people with a finger to make a point. Pointing, whether with fingers or chopsticks, is considered especially
rude in Japan.
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The numbers "4" and "9" are considered unlucky in Japanese culture. The word for four ( shi ) is the same as the word for
death, while the word for nine ( ku ) can mean suffering. Avoid giving gifts or anything else in sets of four or nine.
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Many rules of Japanese business etiquette follow the rules of saving face. Avoid causing someone to "lose face" by pointing
out their mistakes or shortcomings in front of others.
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Tipping is not customary in Japan, and is sometimes considered rude. Read more about tipping in Asia.
Japanese Table Manners: After all introductions are made and cards have been exchanged, it's time for the fun part: the food!
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Returning Bows
Knowing how much to bow is often pretty hard. It’s sort of a game of “guess who” where you try to figure out the other
person’s age, status, company, etc., to figure out how much you need to humble yourself at their expense. There’s a few
good ways to do this, though you’ll often find yourself just doing something in between (or overly respectful, just in case)
because you don’t know enough about the other person. First though, here are some rules on bowing:
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You should bow back to people who bow at you (with a couple exceptions… i.e. people who greet you at stores /
people who try to hand you things on the street).
Try to get the other person’s business card (people hand out their business card like nothing in Japan). On it
should be their company and title, which will give you an idea about where they are in the world.
Try to guess how old they are. Chances are, if they’re older than you, they’re above you in almost every way.
Treat your elders with respect.
Facts about Japan
In 1603, a Tokugawa shogunate (military dictatorship)
ushered in a long period of isolation from foreign
influence in order to secure its power. For more than two
centuries this policy enabled Japan to enjoy stability and a
flowering of its indigenous culture. Following the Treaty
of Kanagawa with the US in 1854, Japan opened its ports
and began to intensively modernize and industrialize.
During the late 19th and early 20th centuries, Japan
became a regional power that was able to defeat the forces
of both China and Russia. It occupied Korea, Formosa
(Taiwan), and southern Sakhalin Island. In 1931-32 Japan
occupied Manchuria, and in 1937 it launched a full-scale
invasion of China. Japan attacked US forces in 1941 - triggering America's entry into World War
II - and soon occupied much of East and Southeast Asia. After its defeat in World War II, Japan
recovered to become an economic power and a staunch ally of the US. While the emperor retains
his throne as a symbol of national unity, elected politicians - with heavy input from bureaucrats
and business executives - wield actual decisionmaking power. The economy experienced a major
slowdown starting in the 1990s following three decades of unprecedented growth, but Japan still
remains a major economic power, both in Asia and globally.
Geography of Japan
Location:
Eastern Asia, island chain between the North Pacific Ocean and the Sea of
Japan, east of the Korean Peninsula
Coordinates:
36 00 N, 138 00 E
Area:
total: 377,835 sq km
note: includes Bonin Islands (Ogasawara-gunto), Daito-shoto, Minami-jima,
Okino-tori-shima, Ryukyu Islands (Nansei-shoto), and Volcano Islands
(Kazan-retto)
water: 3,091 sq km
land: 374,744 sq km
Area comparative: slightly smaller than California
Land boundaries: 0 km
Coastline:
29,751 km
Maritime claims:
contiguous zone: 24 NM
territorial sea: 12 NM; between 3 NM and 12 NM in the international straits La Perouse or Soya, Tsugaru, Osumi, and Eastern and Western Channels of
the Korea or Tsushima Strait
exclusive economic zone: 200 NM
Climate:
varies from tropical in south to cool temperate in north
Terrain:
mostly rugged and mountainous
Elevation
lowest point: Hachiro-gata -4 m
extremes:
highest point: Mount Fuji 3,776 m
Natural resources: negligible mineral resources, fish
Natural hazards: many dormant and some active volcanoes; about 1,500 seismic occurrences
(mostly tremors) every year; tsunamis; typhoons
Environment
air pollution from power plant emissions results in acid rain; acidification of
current issues:
lakes and reservoirs degrading water quality and threatening aquatic life;
Japan is one of the largest consumers of fish and tropical timber, contributing
to the depletion of these resources in Asia and elsewhere
Geography - note: strategic location in northeast Asia
Population of Japan
Population:
Age structure:
127,288,416 (July 2008 est.)
0-14 years: 14.2% (male 9,309,524/female 8,849,476)
15-64 years: 65.7% (male 42,158,122/female 41,611,754)
65 years and over: 20% (male 10,762,585/female 14,772,150)
Median age:
42.9 years
Growth rate:
0.02%
Infant mortality: 3.24 deaths/1,000 live births
Life expectancy at total population: 81.25 years
birth:
male: 77.96 years
female: 84.7 years
Fertility rate:
1.4 children born/woman
Nationality:
noun: Japanese (singular and plural)
adjective: Japanese
Ethnic groups:
Japanese 99%, others 1% (Korean 511,262, Chinese 244,241, Brazilian
182,232, Filipino 89,851, other 237,914)
note: up to 230,000 Brazilians of Japanese origin migrated to Japan in the
1990s to work in industries; some have returned to Brazil (2004)
Religions:
observe both Shinto and Buddhist 84%, other 16% (including Christian
0.7%)
Languages:
Japanese
Literacy:
definition: age 15 and over can read and write
total population: 99%
Government
Government type:
Capital:
Administrative
divisions:
constitutional monarchy with a parliamentary government
Tokyo
47 prefectures; Aichi, Akita, Aomori, Chiba, Ehime, Fukui, Fukuoka,
Fukushima, Gifu, Gumma, Hiroshima, Hokkaido, Hyogo, Ibaraki, Ishikawa,
Iwate, Kagawa, Kagoshima, Kanagawa, Kochi, Kumamoto, Kyoto, Mie,
Miyagi, Miyazaki, Nagano, Nagasaki, Nara, Niigata, Oita, Okayama,
Okinawa, Osaka, Saga, Saitama, Shiga, Shimane, Shizuoka, Tochigi,
Tokushima, Tokyo, Tottori, Toyama, Wakayama, Yamagata, Yamaguchi,
Yamanashi
Independence:
660 BC (traditional founding by Emperor Jimmu)
National holiday: Birthday of Emperor AKIHITO, 23 December (1933)
Constitution:
3 May 1947
Legal system:
modeled after European civil law system with English-American influence;
judicial review of legislative acts in the Supreme Court; accepts compulsory
ICJ jurisdiction with reservations
Suffrage:
20 years of age; universal
Executive branch: chief of state: Emperor AKIHITO (since 7 January 1989)
head of government: Prime Minister Taro ASO (since 24 September 2008)
cabinet: Cabinet appointed by the prime minister
elections: Diet designates prime minister; constitution requires that prime
minister commands parliamentary majority; following legislative elections,
leader of majority party or leader of majority coalition in House of
Representatives usually becomes prime minister; monarch is hereditary.
Legislative
bicameral Diet or Kokkai consists of the House of Councillors or Sangi-in
branch:
(242 seats - members elected for six-year terms; half reelected every three
years; 146 members in multi-seat constituencies and 96 by proportional
representation) and the House of Representatives or Shugi-in (480 seats members elected for four-year terms; 300 in single-seat constituencies; 180
members by proportional representation in 11 regional blocs)
Judicial branch:
Supreme Court (chief justice is appointed by the monarch after designation
by the cabinet; all other justices are appointed by the cabinet)
Political parties
Democratic Party of Japan or DPJ [Ichiro OZAWA]; Japan Communist Party
and leaders:
or JCP [Kazuo SHII]; Komeito [Takenori KANZAKI]; Liberal Democratic
Party or LDP [Junichiro KOIZUMI]; Social Democratic Party or SDP
[Mizuho FUKUSHIMA]
Economy
Government-industry cooperation, a strong work ethic, mastery of high technology, and a
comparatively small defense allocation (1% of GDP) helped Japan advance with extraordinary
rapidity to the rank of second most technologically powerful economy in the world after the US
and the third-largest economy in the world after the US and China, measured on a purchasing
power parity (PPP) basis. One notable characteristic of the economy has been how manufacturers,
suppliers, and distributors have worked together in closely-knit groups called keiretsu. A second
basic feature has been the guarantee of lifetime employment for a substantial portion of the urban
labor force. Both features have now eroded. Japan's industrial sector is heavily dependent on
imported raw materials and fuels. The tiny agricultural sector is highly subsidized and protected,
with crop yields among the highest in the world. Usually self sufficient in rice, Japan must import
about 55% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets
and accounts for nearly 15% of the global catch. For three decades, overall real economic growth
had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average
in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the
after effects of overinvestment and an asset price bubble during the late 1980s that required a
protracted period of time for firms to reduce excess debt, capital, and labor. From 2000 to 2001,
government efforts to revive economic growth proved short lived and were hampered by the
slowing of the US, European, and Asian economies. In 2002-07, growth improved and the
lingering fears of deflation in prices and economic activity lessened, leading the central bank to
raise interest rates to 0.25% in July 2006, up from the near 0% rate of the six years prior, and to
0.50% in February 2007. In addition, the 10-year privatization of Japan Post, which has
functioned not only as the national postal delivery system but also, through its banking and
insurance facilities as Japan's largest financial institution, was completed in October 2007,
marking a major milestone in the process of structural reform. Nevertheless, Japan's huge
government debt, which totals 182% of GDP, and the aging of the population are two major longrun problems. Some fear that a rise in taxes could endanger the current economic recovery.
Debate also continues on the role of and effects of reform in restructuring the economy,
particularly with respect to increasing income disparities.
GDP:
GDP growth rate:
GDP per capita:
GDP composition
by sector:
Inflation rate:
Labor force:
Labor force - by
occupation:
Unemployment:
Budget:
Electricity
production by
source:
Industries:
Agriculture:
Exports:
Export partners:
Imports:
Import partners:
Currency:
$4.272 trillion (2007 est.)
2.7%
$31,500
agriculture: 1.7%
industry: 25.8%
services: 72.5%
-0.3%
66.4 million
agriculture: 4.6%
industry: 27.8%
services: 67.7%
4.4%
revenues: $1.429 trillion
expenditures: $1.775 trillion
fossil fuel: 60%
hydro: 8.4%
other: 1.8%
nuclear: 29.8%
among world's largest and technologically advanced producers of motor
vehicles, electronic equipment, machine tools, steel and nonferrous metals,
ships, chemicals, textiles, processed foods
rice, sugar beets, vegetables, fruit, pork, poultry, dairy products, eggs, fish
transport equipment, motor vehicles, semiconductors, electrical machinery,
chemicals
US 22.9%, China 13.4%, South Korea 7.8%, Taiwan 7.3%, Hong Kong
6.1%
machinery and equipment, fuels, foodstuffs, chemicals, textiles, raw
materials
China 21%, US 12.7%, Saudi Arabia 5.5%, UAE 4.9%, South Korea 4.7%,
Australia 4.4%, Indonesia 4%
yen (JPY)
SOURCES: The CIA World Factbook, U.S. Department of State, Area Handbook of the US
Library of Congress