Introduction

Culture in the business world is not the same as general culture. Even native

speakers of the language learn business manners and practices, and cooperative

culture when they actually engage in a real life setting. The purpose of this report

is to study how culture norms affect business practices in Japan to the aspects of

religion, language, non-verbal communication, contrasting cultural values and

negotiation techniques within a business context.

Religion

Japanese religion is not directly involved in business aside from annual holidays

and corporate gift giving. Yet indirectly, religion plays a major role in business in

a number of aspects.

Japanese religion is unique in that many Japanese hold to more than one religion

simultaneously. This differs from the approach most others take toward religions

as being absolute. Thus in the United States, for example, it is not customary that

a person could at the same time be a Jew, a Roman Catholic and a Moslem; in

Japan, such a combination would be more conceivable. At the very least, Japanese

religion is mixture of multiple theological influences. To some extent, one can

argue that this has helped create the Japanese business tendency to be at least

temporarily comfortable with multiple interpretations of a situation (as opposed

to the European and American tendencies to demand resolution of conflicting

views as they occur).

Japan's indigenous religion, Shintoism, is limited to Japan and focuses on the

spiritual forces of nature and of specific mountains, trees, bodies of water,

streams, and other geographic spots imbued with religious significance. This has

led to, among other practices, sangaku shinko (worship of mountains), and chinju

no kami (local tutelary deities). Perhaps more significantly for business,

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Shintoism leads most Japanese to respect for nature in its own right, where both

humans and kami (spirits) coexist and must find their proper place. This

contrasts with the North American and north European view that people control

nature to their own profit. Finally, the Shinto belief that stating negative

outcomes may encourage their realization has limited the "what if problem-

solving technique so widespread in American and European brainstorming

strategies.

Missionaries from the Asian mainland brought Mahayana Buddhism to Japan in

the Middle Ages. The religion evolved during the centuries of Japanese isolation

into peculiarly Japanese formulations, such as Zen, with its belief in sudden

enlightenment and Shingon Buddhism, with its belief in sokushin jobutsu

(literally "Buddhahood in this very body"), a sort of organic pantheism stressing

enlightenment as both a bodily and spiritual process. This philosophy may

influence the way business is conducted in Japan, as expressed through a greater

acceptance of intuitive decision-making as one legitimate criterion for action.

Language

The country’s official language is Japanese. Most local businesspersons, even

younger ones, do not speak and understand English well. The understanding of

written text is better than that of spoken English, so it is always a good idea to

bring written proposals and confirm key points of oral communications in

writing. Make frequent pauses and give the Japanese side time for translation

and discussion. Verify through diplomatic questions whether your counterparts

understood you. Since saving face is so important, people will not openly admit it

in front of others if they do not understand what you are saying. If in doubt, try

writing down key points on paper or on a white board.

In some cases, it is necessary to have an interpreter. Politely inquire beforehand

whether an interpreter should be present at a meeting. However, keep in mind

that even interpreters may not always speak and understand English at a fully

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proficient level. Also, realize that in this strongly relationship-oriented culture,

an independent interpreter hired by you for a meeting is viewed an as out- sider

by the Japanese side, so your counterparts may be reluctant to speak openly. At

the same time, interpreters may feel no allegiance with you, so they may be

telling you what they think you want to hear rather than what the other side

said. It is highly recommended to use someone from within your company as a

negotiation team member who can translate, or correct the translator on missed

key points. If that is not an option, it is better to ask the Japanese side whether

they can provide someone within their team to handle translations. When

communicating in English, speak in short, simple sentences free of jargon and

slang. Pausing as often as you can gives people a better chance to translate and

understand what you said. Also, allow for frequent side discussions in Japanese.

Because the concept of face is pivotal in this culture, communication is generally

extremely indirect, even more so than in other Asian countries. When

responding to a direct question, the Japanese may answer ‘yes’ only to signal that

they heard what you said, not that they agree with it. Responding to a question

or request with a direct ‘no’ is rarely an option in Japan. The strongest

expression you may hear is ‘that may be very difficult,’ which is a clear-cut ‘no.’

Alternatively, they may give seemingly ambiguous answers such as ‘I am not

sure,’ ‘we will think about it,’ or ‘this will require further investigation.’ Each of

these indicates serious problems that need to be resolved.

Non-verbal communication

Gestures are usually very subtle in Japan. It is strongly advisable to restrict your

body language. Non-verbal communication is very important, though, and you

should carefully watch for others’ small hints, just as they will be watching you.

Do not make physical contact with other people except for handshakes. Do not

use your hands when speaking since it may distract the Japanese. The American

OK sign, with thumb and index finger forming a circle, means money in Japan.

Pointing at people or objects is very impolite. Instead, wave your open hand

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toward the object. When referring to themselves, people put an index finger on

their nose rather than pointing at their chest as Westerners do. Sucking in air

through the teeth indicates that there is a serious problem. If the person puts a

hand on the back of the neck at the same time, it signals, ‘This is impossible.’

Scratching the back of one’s head, frowning, or scratching the eyebrow indicate

apprehension or rejection. Moving the open hand in front of the face in a fanning

motion, with the palm facing left again signals a negative response. Do not blow

your nose in public since people find this repelling.

Unless strong personal relationships exist with a person, eye contact should be

infrequent. Lowering one’s eyes is a sign of respect. However, there may be

intensive eye contact between friends or long-term business partners. If

someone closes his or her eyes during a discussion, presentation, or speech, the

Japanese assume that the person is listening attentively, while Westerners may

erroneously assume that he or she is taking a nap. Smiles and laughter do not

always indicate friendliness, amusement, or approval. They may mask a lack of

understanding, embarrassment, disapproval, and other feelings of distress.

Accordingly, Westerners may sometimes observe Japanese people smiling or

laughing at what they might consider inappropriate moments.

Culture values between American and Japanese

American Japanese

Nature Control over nature Harmony with nature

TimePresent and short time

future orientation

Past and long-time future

orientation

ActionDoing for the sake of

success

Doing and Being part of

an organization

Low context High context

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Communication

SpacePrivate space Public space

PowerEquality emphasis Hierarchy emphasis

IndividualismHigh individualism Low individualism

CompetitivenessCompetitive Cooperative

StructureLow structure High structure

FormalityInformal Formal

The Japanese put their highest social priority on harmony because 1) Japan’s

geographical characteristics—a country surrounded by an ocean—emphasizes

its isolation; 2) Japan has the densest population per square foot of any country

in the world, which creates an unavoidable close proximity of persons to each

other; and 3) Japan is a homogeneous society. Fulfilling one’s position in a

harmonious way, or in other words, not destroying the harmony of the society by

taking an in- appropriate position in relation to others, is important for Japanese

people. The Japanese try to avoid conflict between parties in order to keep

harmony. Also, Japanese society is described as a strong vertical society. Sempai-

Kohai [senior- junior] relationships determine the role of a person in most

situations, and this hierarchical system controls Japanese social life and

individual activity.

Equality, a horizontal relationship, is strongly valued in the United States but it is

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less important in Japan. Americans emphasize equality of power, therefore there

are fewer adherences to hierarchy, and rank levels may be bypassed to get the

work done more effectively or efficiently. On the other hand, the Japanese see

power in the context of hierarchy. When the Japanese conduct a business

negotiation, the first thing that they do is to find out their position. They want to

know who has the higher social status and where they themselves need to fit in

among the people involved in the negotiation. The relative power relationship is

first determined by the size of the companies. If the companies have a similar

status, they move on to see who has the higher title, and they want to know who

is older. There are clear lines drawn among social levels in Japanese culture. The

Japanese do not feel comfortable until they find out where they stand in terms of

relative power, therefore they have a hard time accepting the concept of equal

power between the parties in the business scene.

The concept of time also varies from culture to culture. For instance, Americans

think in a time frame that emphasizes the present and the short-term future,

while the Japanese think in a long-term range. These conceptual differences

cause different perspectives between CEOs in the United States and in Japan.

American CEOs try to improve and maximize their companies’ profits in their

limited time frame of contract terms with a company rather than considering

long-term cooperation as success. On the other hand, Japanese CEOs see

companies as eternal structures, and consider themselves as history-makers for

companies. They even imagine how companies will be in a hundred years. This

does not mean that the Japanese do not care about making immediate or short-

term time profits. However, they see current profits as a long-term benefit rather

than in a one-time-only benefit.

Fundamental social structures make the Japanese language an other- controlled

and other-controlling language. Japanese is often cited as an “indirect language,”

unlike English, which is a self-controlled language. Indirectness is not only

important, but in fact critical for Japanese people in order to maintain harmony

and/or save face. Even though the Japanese have strong opinions, views, and

issues on a topic, they usually avoid stating them directly, preferring to use

roundabout phrases and softened statements. By leaving room for the other side

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to disagree with issues and to take those disagreements into account in making

their own statements, the Japanese avoid offense.

Americans think that the Japanese spend more than enough time exchanging

information, as mentioned before. For Americans, standards of cooperation and

assertiveness are not the same as for the Japanese. In other words, the Japanese

do not think that an American’s maximum cooperative effort is sufficient when

compared to their own acceptable level of cooperation. The term collaboration

may also be interpreted and handled in different ways between the two cultures

even though both American and Japanese negotiators like to use a collaborative

style. It is also true that the Japanese interpret American assertiveness as

aggressiveness, since an American’s standard of assertiveness is stronger than

what the Japanese consider reasonable.

Japanese Negotiation Techniques

The methods of negotiation vary with culture. Some people may adopt a more

direct or simple method of communication, whereas others may adopt a method

that is more indirect or complex. Each culture has its own standards, and one

behavior that has a certain meaning in a certain culture could be interpreted

differently in another.

Establishing the relationship of negotiations: Japanese possess unique ways of

negotiations. They are considered to be “tough in negotiations” or “the knights of

the round table”. Japanese believe that good human relationships help facilitate

business interactions and development. They value human relationships very

much. Human relationships and the degree of trust determine the establishment

of business relationships with Japanese. Japanese also believe that a certain form

of introduction is beneficial to faster establishment of business relationships

between both parties. Therefore, Japanese businessmen will try to find someone

or a company they have worked with to be the introducer before any negotiation

is started. For further exploring the information about their rivals, Japanese

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businessmen often invite them to a hotel or other places.

Decision-making program: in a decision-making program or process, Japanese

always make each member involved in a negotiation feel important about his or

her participation. There are two features: first, it is from lower level to higher

level. The higher level makes an approval. The lower level or subordinates make

discussions over a certain project before submitting it to a higher level for

making a final decision. This process works on a basis of sufficient discussions,

which lead to easy implementations. However, poorer efficiency is shown due to

excessive time for decision-making. Second, the agreement on a negotiation goes

before group decision-making. Japanese businessmen often divide their

members into several groups in the process of negotiation. No one is held

responsible for the overall process of negotiation. The decision requires the

opinions given by all of the members. Any decision will be carried out only when

all of the members reach to an agreement.

Concept of time: it takes longer time for Japanese businessmen to make

decisions since group decision-making comes after overall agreement. Japanese

businessmen are often criticized by the foreigners involved in the same

negotiation. It is not practical to hastily reach a consensus in the process of

negotiating with Japanese. Japanese businessmen do not pay attention to

deadlines or limited time. They carry out the negotiations in a peaceful and calm

manner under the pressure imposed by their rivals. In addition, it requires a lot

of time to develop private relationships with Japanese in order to freely express

their opinions in negotiations.

Ways of communications: Japanese businessmen value “face” pretty much.

They do not like to have conflicts in a public place. They usually communicate

with people in an indirect and tactful manner. The way they express themselves

is mostly clear and understandable. However, some replies, which sound

affirmative, may be negative in reality. Such indirect communications may

mislead their rivals. Once Japanese agree to a proposal and make their decision,

it would be very difficult to change. They often stick to their arguments.

Changing a decision requires the agreement reached by all of the members

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taking part in the negotiations.

Attitude toward contract: Japanese businessmen have their own set of

standards and principles. They think mutual trust is the most essential part

while doing business and it is not necessary for them to sign detailed contracts.

Such concept has been changing recently. However, even if there is a written

form of contract, the contents in it are simple and brief. They mostly depend on

oral agreement. A written agreement only serves as a reference when disputes

arise therefrom.

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