Japanese business culture and etiquette

Japan’s unique culture has been shaped by trends and forces from within and outside the country. An understanding of these and how they have shaped Japanese society will help you in your dealings with Japanese people, businesses and society in general.

The Japanese have been very effective at adapting religions and schools of thought from outside the country. Confucianism and Buddhism came to Japan through China and Korea, with the Japanese taking these teachings and adapting them to local conditions and sensibilities. Following more than two centuries of self-imposed exclusion, the Japanese did the same again with Western ideas and institutions from the 1860s onwards with great success. Modern Japanese culture can be seen as the mutual reinforcing of ancient Shinto, Buddhist and Confucian traditions overlaid with modern institutions. 

For Australian businesses seeking to launch in the Japanese market, it is crucial to gain an understanding of some fundamental Japanese cultural practices, particularly as they apply within the business context. 

Age and status

Respect for age and status is very important in Japanese culture, with hierarchy affecting all aspects of social interactions. The Japanese are most comfortable interacting with someone they consider their equal. Status is determined by a combination of someone’s role in an organisation, which organisation they work for, which university they went to and their marital situation. 

Business cards

The exchange of business cards (meishi) is an essential part of initial meetings in Japan and follows a strict protocol. It allows the Japanese to quickly determine their counterpart’s all-important position, title and rank. While still standing, you should politely hand a business card over with two hands, and receive one in return. A slight bow as a form of respect when exchanging is usually performed. Do not simply drop the card into a pocket; instead take a few seconds to review names and titles, commenting on them if time permits. If you are sitting down, place it on the table in front of you for the duration of the meeting. If possible, place the most senior counterpart’s card at the top with their subordinates’ below or to the left.

Japanese names

As in many parts of Asia, Japanese family names come first, and are followed by the given name. For example, if someone is introduced as Tanaka Hiroshi, Tanaka is the family name and Hiroshi is the given name. It is usual to address someone by their family name followed by the honorific san, Tanaka-san for example. While san is similar to Mr, Mrs and Ms in English, san is more versatile in that it can be used for both genders and goes perfectly well with a family name or given name. But do not use san when referring to yourself. For Australians doing business in Japan, the family name followed by san will usually be sufficient. Always address people by their family name until you have been invited to call them by their given name.

Bowing and handshakes

Bowing is an important part of everyday life in Japan, including in the business context. Japanese bow to those senior to them both as a greeting and a show of respect. The junior person initiates the bow, bending from the waist to an angle of between 30 and 45 degrees from vertical. Men keep their arms by their sides and women may cross their hands or fingers at thigh height. A less accentuated bow, usually about 15 degrees, is returned as acknowledgment from the more senior person. It is considered bad manners and aggressive to hold eye contact with someone when you are bowing to them; this is usually done by competitors in martial arts before they fight. Greet the highest-status individual first, followed by the oldest when meeting a group of Japanese. For Australian business people, extending a simple handshake when greeting and taking leave is fine; just don’t shake hands and bow at the same time. Choose one and stick with it.

Building relationships

Japan is a more relationship-oriented culture than Australia, particularly when it comes to doing business. Japanese want to know and trust someone before they do business with them. Relationships are developed through informal social gatherings and generally involve a considerable amount of eating and drinking.

Dress code

Appearance is very important, and Japanese people tend to dress more formally than Australians. Business attire is conservative, with an emphasis on conformity rather than individual expression. Men should wear dark-coloured business suits with ties and white shirts. Jewellery for men should be kept to a minimum – a watch and a wedding ring would be fine. Women should also dress conservatively and in subdued colours.

Modesty

Japanese culture values modesty and humility. Speaking in a quiet tone and not gesticulating too much will go some way towards giving a modest, calm and humble impression. 

Want to learn more? Explore our other Indonesia information categories or download the Japan Country Starter Pack.