Japanese Business Etiquette and Culture

A Guide to doing business with the Japanese | Paul Smith, Director, Shinka Management

Understanding and respecting Japanese business etiquette is important for anyone looking to establish successful business relationships in Japan. This guide provides a comprehensive overview of the key aspects of Japanese business etiquette, drawing on my own experience in living and working in Japan, leading kaizen tours to Japan, and working together with the Shinka Management team in supporting companies in doing business with the Japanese.

This guide to Japanese business etiquette and culture will prove a useful reference for:

• Foreign companies with a presence in the Japanese market or considering market entry
• Japanese multinational organizations with foreign staff seeking to understand and build relationships with their Japanese colleagues
• Companies that have or will be acquired by a Japanese organization
• Companies that are looking to engage representatives or partners in Japan
• Individuals seeking employment in Japan or with a Japanese multinational

Table of Contents

Introduction to Japanese Business Etiquette and Culture

Navigating Japanese business etiquette can feel like stepping into another world. Although it may seem daunting at first, with a little insight and practice you can be effective in your relationships with your Japanese counterparts.

The reality is that Japanese business etiquette is a topic that is difficult even for Japanese business professionals themselves! Visit a typical bookstore in Tokyo and you will find multiple shelves in the business section devoted to books on business manners, meeting etiquette, polite business language, and a myriad of other topics to support Japanese professionals with their business interactions.

Most Japanese, on embarking on a career in Japan, will experience extensive formal training in etiquette and hospitality as part of their orientation period. This is a common practice across Japanese industry, due to the importance of ensuring employees understand how to communicate and behave in the presence of senior co-workers, customers and society in general.

It can be difficult for most foreigners to master Japanese business etiquette without living in Japan or working within a Japanese company. To add to the difficulty, we should remember that we are dealing with a culture that values harmony and face-saving – most Japanese will be quite forgiving (at least on the surface) of a faux pas and will avoid embarrassing the unwitting foreigner by pointing out their blunder. As such we can’t rely on learning from our mistakes – in most cases we will be oblivious to them.

Whilst mastery might be some years away, it is possible to develop a sufficient knowledge and awareness of business customs and manners in order to greatly improve your effectiveness in interacting with Japanese counterparts.

The following is the guide I wish I had during my first years living in Japan. I hope to provide you with the essential knowledge required to successfully navigate the intricacies of Japanese society and business culture, and avoid the many mistakes that I have made over the past three decades of living, working and doing business with the Japanese.

Understanding the Fundamentals of Japanese Business Culture

The following concepts are fundamentals of Japanese business culture, a comprehension of which will go a long way towards understanding many of the rules and behaviours that you will encounter when dealing with the Japanese.

Hierarchical Structure

Much like Japanese society in general, Japanese companies typically have a hierarchical structure where seniority and age are highly respected. One’s position within the hierarchy is typically determined based on a mix of the year of entry into the company and one’s position or title.

A hierarchy also exists between companies, the most important being that of the relationship between a service or product provider and its customer. As is the case in most cultures, customer is king – and one’s behaviour and action must reflect this.

Hierarchy, and one’s place within it, impacts almost all aspects of interaction – including how one is addressed, the level of politeness of language used, seating arrangements, physical movement, attentiveness, and agreement.

Spoken Language

In Japan, language is carefully tailored to show politeness towards others and humility for oneself.

Honorific language in Japanese is referred to as keigo. There are three main forms of keigo:

• Sonkeigo: Respectful language used to elevate the status of the person being spoken to or about, and to show politeness to them.
• Kenjougo: Humble or modest language used to lower the status of the speaker or the speaker’s group/colleagues relative to the listener or the listener’s group/colleagues. It is used to express humility about one’s own actions or the actions of one’s group.
• Teineigo: Polite language used for general formality, regardless of the social status or relationship between the speaker and listener. It is used to show respect and politeness in a neutral manner and is suitable for most social interactions.

The default expectation in a professional setting is to use polite language (teineigo) unless a difference in status indicates otherwise. Most learners of Japanese as a foreign language will first learn to speak using teineigo as it is the most used form of polite speech in Japanese.

There is also a form of Japanese used for casual speech in informal situations, such as with friends and family. This form is also commonly used when addressing members of a group that are lower in one’s hierarchy, such as subordinates.

Group Orientation and Consensus

Japan is a collectivistic society, and its business culture places a strong emphasis on group harmony and consensus. Decisions are often made collectively, and individual opinions are often subordinated to the group’s interests.

Whilst this approach has the benefit of fostering a sense of unity and minimizing conflict, there are several potential downsides that non-Japanese often struggle with when dealing with this aspect of Japanese business culture:

• Slow decision making and inefficiency
• Suppression of dissent
• Limited individual initiative
• Difficulty in adapting to change
• Tendency towards groupthink resulting in irrational or dysfunctional decision-making outcomes

Although these downsides can be significant, many Japanese companies balance consensus decision-making with other strategies to mitigate these issues, ensuring they can still operate efficiently and remain competitive.

Further, although a consensus-building approach to decision making can take time, often this is more than compensated by the smoothness and speed achieved in implementation once a consensus has been reached.

Importance of Relationships

Building strong, long-term relationships is fundamental in Japanese business. Trust and mutual respect are valued, and business dealings are often preceded by social interactions to establish a solid foundation of trust.

The emphasis on long-term partnerships means that business interactions are not just transactions but part of a broader commitment to mutual success and understanding. This approach contrasts with some Western business practices, which may prioritize immediate gains over long-term relationships.

Foreign companies seeking to enter the Japanese market or establish relationships with Japanese partners are well advised to be patient in investing time into relationship development. Often an initial meeting may have the purpose of introductions or just “getting to know” each other. A company may choose to flag their intentions at this meeting, but may wish to wait for a subsequent meeting before putting forward a formal proposal or request.

Risk Aversion

Japanese businesses tend to be risk-averse and prefer stability and predictability. This cautious approach is reflected in their consensus-based decision-making processes (involving such concepts as ringi and nemawashi), which can be slower, and may involve more extensive research, data sharing and planning compared to Western standards.

Preparing for a Business Meeting in Japan

Successfully navigating a business meeting in Japan requires preparation, attention to cultural nuances, and a respectful approach. Understanding the expectations and norms in Japanese business culture can make a significant difference in building strong relationships and achieving favorable outcomes.

Research and Preparation

Thorough preparation is important for a successful business meeting in Japan. Research your counterparts, their company, and their culture. Understanding their business practices and market position will demonstrate your commitment and respect.

It can be good practice to understand exactly who you will be meeting with (names, titles, relative hierarchy) ahead of time, and it is generally not disrespectful to request the name and title of participants prior to a meeting. Such information helps to better tailor a meeting’s content (including presentations) to suit the roles of those in the room.

Personally, I have made the mistake of not following this advice and experienced on more than one occasion walking into a meeting room in Japan expecting a discussion with two or three participants from the hosting company, only to be confronted with a much larger group of participants expecting a formal presentation.

From a practical perspective, knowing names and titles ahead of a meeting can also help avoid stumbles with pronunciation or difficulties in identifying the hierarchy amongst your hosts.

Scheduling Meetings

Schedule meetings well in advance and confirm them a few days prior to attending.

When it comes to attending the meeting, punctuality is highly valued. Be prepared to arrive on time, or preferably a few minutes early, to show respect for your host’s time. A well-known and followed concept in Japan is that of “5-minute prior action” (５分前行動) which emphasizes punctuality and preparedness. This principle involves arriving at a scheduled event, such as a business meeting, class, or social gathering, at least five minutes before the appointed time. It demonstrates respect for others, allows for preparation, shows reliability and reduces stress associated with any potential delays.

Meeting Venue

Business meetings can take place in various settings, including offices, restaurants and cafes, or even traditional settings such as tea houses. The choice of venue will be made by the host and can reflect the formality and purpose of the meeting.

If attending a meeting in Japan, it can make sense to confirm your understanding of the meeting location well ahead of time. It can sometimes pay to visit a meeting location prior to the actual meeting time or day to ensure a proper understanding of the location and travel time. Google Maps is widely used in Japan and has up-to-date location data, Street View images, and public transport information.

Online Meetings

Online meeting etiquette with the Japanese is similar to that of live meetings. If you are hosting the meeting, it is good practice to open the online meeting room five to ten minutes early. Do not be surprised if Japanese attendees join the meeting early.

In almost all cases we recommend you prepare yourself in a meeting room or a quiet location and have your video feed active throughout the meeting, as it is commonly believed in Japan that showing your face is a sign of sincerity and face-to-face talks help build trust. In my experience with online meetings with clients and partners around the globe, it is the Japanese that most frequently participate in online meetings with their video feeds active. In fact, it is a rare occurrence to have a Japanese attendee not share their video feed.

During the pandemic it was common for Japanese attending online meetings to wear a face mask (even if sitting alone in an enclosed meeting room!). With the worst of the pandemic behind us, this is no longer the case – although do not be surprised if a mask is worn by a participant suffering from cold or flu.

Japanese Business Meeting Etiquette

Seating Arrangements

In a formal meeting, seating arrangements are determined by hierarchy. The most senior person sits at the head of the table, while others are seated according to their rank.

In the case of a meeting between two companies, generally the hosts will seat the guests on the side of the room furthest from the entry. This side is considered the kamiza, or place of honor. As a guest, generally you should wait to be seated by your host rather than taking up this position.

Opening Remarks

Meetings often begin with polite small talk to establish rapport. Avoid jumping straight into business discussions. Instead, engage in light conversation about non-controversial topics such as the weather, travel or recent events.

Presentation Style

If delivering a presentation at a meeting, your presentation should be clear, concise, and well-organized, bearing in mind that your audience is from a different culture and are non-native users of English. Use visual aids, such as slides or handouts, to support your points and aid in comprehension. Be prepared for detailed questions, as Japanese counterparts appreciate thoroughness.

On many occasions it can be useful to have presentations professionally translated into Japanese. Presentations, especially those of a technical nature, are often difficult to comprehend even when viewing in one’s native language. This difficulty is compounded when using English as a second language, and trying to comprehend verbal (presenter’s speech) and written (slide content) communication simultaneously. Avoid relying on automated or AI-based translation, as often these services struggle with context when translating slide content comprised of dot points and incomplete sentences.

The presenter(s) should be chosen based on a mix of seniority and relevance, as would be the case in your home country. However, in my experience, it also pays to identify those within your group that are talented at presenting using slow, clear, easy to comprehend language (this takes experience and practice!).

When working with our clients in preparing pitch decks or presentation slides for a Japanese audience we always advise them to avoid the temptation to use their existing presentation slides as-is, but instead work with them to simplify and shorten the content, and where appropriate, add Japanese to the slides or completely translate the content. This is usually followed by practice and coaching in presenting the content – and working with presenters to help them slow down and simplify their language.

If working with a consecutive interpreter, presentation content will typically need to be shortened to close to half of that of a presentation delivered directly in English, to allow for the time required for interpreting.

Careful! The Most Vocal Person in the Room is not Necessarily the Decision Maker

During a meeting, it can be tempting to focus your attention or deference on the person who speaks the most or asks the most questions. However, this does not necessarily mean they are the key decision-maker or the highest in the hierarchy. Often, this individual may simply be the most fluent in English (often one of the younger members of the team). Keep this in mind when making farewells, presenting gifts, or writing follow-up emails to ensure you are addressing the appropriate individuals respectfully and effectively.

I have attended many meetings where the key decision-maker appeared to be asleep – leaning back in their chair with arms folded and eyes closed. However, they are usually still listening and may re-engage in the conversation when something of interest catches their attention.

Follow-Up Actions After a Meeting

Following up after a business meeting with Japanese counterparts is crucial to maintaining the relationship, demonstrating respect, and ensuring a common understanding of discussion points and responsibilities.

This follow up should usually be in the form a thank-you email sent within 24 hours of the meeting, expressing gratitude for your counterpart’s time and hospitality, and noting any key discussion points or decisions made during the meeting. Follow up, when done well, can also help catch any misunderstandings related to agreed action items, the party responsible for those actions and deadlines. A follow-up email can also be a good opportunity to provide further information, including clarification or answers to questions that were not adequately addressed during the meeting.

Greetings and Introductions

Bowing

Bowing is the traditional Japanese greeting. The depth and duration of the bow depend on the level of respect and the relationship between the parties. A deeper and longer bow indicates greater respect.

In a business setting it can be a nice touch for non-Japanese to use a simple bow when greeting Japanese counterparts for the first time, when exchanging business cards, showing gratitude for a gift or when farewelling guests.

In most cases, there is no need to make this bow overly long or deep in a professional setting – and foreigners not experienced in conducting business in Japan should avoid overdoing bowing which can sometimes come across as a little comical. As a foreigner there is no expectation for you to act as if you are Japanese, and trying too hard can sometimes have the opposite to your intended effect.

Handshakes

While bowing is customary, handshakes are becoming more common in business settings, especially with foreigners. Combine a slight bow with a handshake for a respectful greeting.

Exchanging Names

When introducing yourself, use your full name followed by your company name and title. It is common to address a Japanese counterpart by their family name followed by “san” (e.g., Tanaka-san) to show respect.

Be careful never to place “san” after your own name. In general you should be humble not only with regards to yourself, but also those within your group (i.e. company, organization, etc.) and for this reason you should also avoid using “san” after the names of your colleagues when introducing them to others or making reference to them – even if your colleague is higher in status than yourself.

Business Card Etiquette in Japan

Business cards, or “meishi“, are an essential part of Japanese business etiquette. They are a representation of one’s identity and company, and exchanging them is a formal process. Although there is a trend in some countries to move away from the use of physical, paper-based business cards, I’ve seen little evidence of this occurring in Japan.

If you plan on visiting Japan for business – be sure to bring more business cards than you think you will need, and if you don’t already own a business card holder – this can be a worthwhile investment.

Translating your Business Card into Japanese

At Shinka Management, we often recommend translating business cards into Japanese to those visiting Japan for the purpose of market entry – especially for senior executives and sales and marketing personnel.

The purpose for translating the card is not to your Japanese counterparts with comprehension. Although many Japanese struggle with spoken English, most have no trouble at all reading details on an English business card.

The real purpose for translating one’s business card is to demonstrate preparation and to provide a subtle indication of a commitment to the Japanese market. This will differentiate yourself from other foreigners who may have visited in the past with no follow up or continued relationship.

Despite the rapid progress with AI-based translation capability, we always recommend having a native Japanese prepare the translation and check the artwork (including choice of font, spacing, etc.) prior to printing. Translation and proofing of business cards is a service that we include as part of our Japanese business cultural training program at Shinka Management, and we almost always need to ask our clients’ graphic designers to make adjustments to their artwork to avoid copy-paste mistakes or inappropriate design choices.

Presenting Your Business Card

Present your business card with both hands, holding it by the corners with the text facing the recipient so they can read it immediately. If you have a Japanese side to your business card, this should be facing up. Accompany the presentation of your business card with a slight bow and a polite introduction.

Receiving a Business Card

Receive a business card with both hands, taking note of your counterpart’s name, title, and other relevent information.

Avoid putting the card away immediately; instead, place it on the table in front of you during the meeting. Treat the card with respect, as it symbolizes the person and their company. Avoid writing on the card or placing other items on top of it.

At the end of a meeting be sure to place the business cards that you have received into your business card holder. Never place business cards in pockets below your waist.

Japanese Business Communication Etiquette

While written English is widely understood in international business, many Japanese business professionals can struggle with verbal communication unless they have experience living or working abroad.

When dealing with the Japanese using English, it is important to remember that your counterparts are using English as a second language, and for this reason there is often a need to slow down and simplify your language, and take various steps to help your counterparts with comprehension.

Hiring an interpreter for important meetings can also facilitate communication and show your commitment.

Although unlikely to help with comprehension, learning basic Japanese phrases can be a useful approach to demonstrate respect and effort.

Non-Verbal Communication

Non-verbal cues, such as body language and facial expressions, play a significant role in Japanese communication. Pay attention to subtle gestures and expressions to understand the full context of the conversation. Most foreigners meeting with Japanese will struggle to fully comprehend non-verbal communication during meetings and will need to work together with an interpreter or Japanese colleague to read the room.

Politeness and Indirectness

Politeness and indirectness are key aspects of Japanese communication. Avoid confrontational language, and express disagreements or negative feedback in a gentle and indirect manner. Phrases like “It’s difficult” or “We will consider it” often imply a negative response.

Working with Translators and Interpreters

When conducting business in Japan, especially if you are not fluent in Japanese yourself, working with a professional translator or interpreter can be invaluable. Choose someone with experience in your industry to ensure they understand the specific terminology and context.

Briefing Your Interpreter

Provide your interpreter with detailed information about your business, the meeting objectives, technical terms or jargon that may be used, presentation slides and other relevant documents.

Providing this information several days ahead of an assignment will help your interpreter convey your message accurately and effectively. Your interpreter will thank you for your consideration in supporting their preparation.

During the Meeting

Speak clearly and at a moderate pace to allow the interpreter time to translate accurately. Pause frequently to give the interpreter a chance to convey your message. Address your Japanese counterparts directly, rather than speaking to the interpreter.

After the Meeting

Review the meeting’s key points with your interpreter to ensure mutual understanding. This can help clarify any misunderstandings and reinforce the main messages. Providing feedback to your interpreter can improve future interactions. You may also wish to seek feedback from your interpreter as to how they felt the meeting went, and to check any visual cues they may have picked up.

Dress Code

Business Attire in Japan

Conservative and professional attire is the norm in Japanese business settings. Men typically wear dark suits, white shirts, and ties, while women wear formal business suits or dresses.

Recently I have noticed a slight shift, especially in the period following the pandemic, towards slightly less formal dress amongst Japanese in favor of more comfortable options – notably more men choosing to refrain from wearing a necktie when attending the office. When attending business meetings in Japan, however, I would still recommend dressing formally in most cases.

Seasonal Considerations

Dress appropriately for the season, considering Japan’s hot and humid summers and cold winters. Lightweight and breathable fabrics are suitable for summer, while layers and warm clothing are necessary for winter.

Summer especially can be challenging in Japan. In 2005, the Government of Japan introduced the Cool Biz campaign in an effort to reduce energy consumption during the summer months. The program mandated government workers to dress appropriate to summer conditions, removing the need for suit jackets and ties. Thankfully this approach has since been adopted by the vast majority of Japanese organizations.

You may still wish to dress formerly for initial meetings when visiting Japan in summer, however for repeat visits after a relationship has been developed, for most industries it is perfectly appropriate to dress according to Cool Biz guidelines.

Gift Giving Etiquette in Japan

Gift giving is a common practice in Japanese business culture, especially during initial meetings or to celebrate successful collaborations.

If attending a meeting at the premises of a Japanese client, partner or supplier, I recommend preparing a gift and having a read of this guide to Japanese gift giving etiquette. In a B2B context, a gift is usually provided by the visitor or guest. The host reciprocates this kindness by providing hospitality during the visit.

Choosing the Right Gift

The purpose of providing a gift is to show respect, gratitude, and a desire to develop the relationship. There is no need to prepare an overly extravagant gift, and in many cases such a gift can be perceived as inappropriate. Common gifts include high-quality food items, traditional crafts, or items from your home country. Boxes of chocolates, sweets, or savoury items that can easily be shared, can be a good default when choosing a gift to take to a meeting.

One gift per group that you are meeting with is usually sufficient and can be provided to the most senior person amongst your hosts.

Gifts are almost always prepared wrapped and presented within a gift bag.

Presenting the Gift

When attending a meeting, keep your gift either on the meeting table out of the way, or on an empty seat or table nearby. Avoid placing the gift on the ground, especially if it contains food.

The gift is presented at the end of a meeting after standing up to leave. Approach the most senior person (avoid having a table between you) and present the gift with both hands, accompanied by a slight bow. Don’t make a big deal out of the gift – instead say something like “here’s a little something from back home.”

Japanese Dining Etiquette

If you are invited to a business meal, it is an opportunity to build relationships with your Japanese counterparts. It is often during dining, or when out drinking following a dinner, that more personal relationships can be developed. Frequently it is during such opportunities that information or opinions are shared that might be difficult, sensitive or otherwise inappropriate to raise during formal meetings with a larger group.

Seating

As with business meetings, seating arrangements for dinners are often dictated by hierarchy, often with guests seated further from a restaurant’s entry or on the side of a room opposite the door. If being hosted by Japanese, wait for your host to invite you to sit – they will usually gesture for you to take a seat on the “higher” side of the table.

Ordering and Eating

Allow your host to order first and follow their lead. In many cases meals are pre-ordered or a set menu is chosen for all. It is polite to try a bit of everything offered to you. Any dietary restrictions are best communicated at the time of scheduling a dinner, as catering for allergies, religious customs or vegetarian/vegan preferences can be difficult once at a restaurant in Japan.

Use chopsticks correctly and avoid pointing or stabbing food with them. Placing chopsticks upright in a bowl of rice is considered bad luck and must be avoided.

Toasting and Drinking

Toasting is common in Japanese dining. The host usually initiates the first toast, often saying “kanpai” (Cheers). Wait for the toast before drinking. When pouring drinks for others, hold the bottle with both hands and fill their glass. It is polite to reciprocate by allowing others to fill your glass – and holding your glass with two hands.

Paying the Bill

In business settings, the host usually pays the bill. It can be polite to offer to contribute, but if the host insists, graciously accept their hospitality.

Building Relationships

Socializing Outside of Work

Building personal relationships outside of work is a useful practice in Japanese business culture. Engage in social activities such as dinners or sports to strengthen your bond with your counterparts. These interactions help build trust and facilitate smoother business dealings.

Long-Term Commitment

Japanese businesses value long-term commitments and loyalty. Demonstrate your dedication by maintaining regular contact, following up on agreements, and showing interest in their company’s well-being. Consistency and reliability are key to building strong relationships.

Sending a New Year’s Card to Japanese companies each year can be a nice touch to maintain the relationship in-between visits.

Handling Conflict

Conflicts are generally avoided in Japanese business culture. If disagreements arise, address them discreetly and respectfully. Focus on finding mutually beneficial solutions and avoid direct confrontation.

Often conflict can arise purely out of misunderstanding or miscommunication, and if left unresolved can lead to mistrust – ultimately putting the relationship at risk.

FAQ – Japanese Business Culture and Etiquette

The following are based on questions that we have received during or following our Japanese Business Etiquette training program.

Have a question on Japanese Business Etiquette not covered in this guide? Feel free to contact us with a question and we will do our best to answer it.

Good Luck!

Navigating Japanese business etiquette requires an understanding of cultural nuances, respect for traditions, and a commitment to building strong relationships. By adhering to these guidelines, you can foster trust, enhance communication, and increase your chances of success in the Japanese business environment. Remember that patience, politeness, attention to detail and genuine intention are essential qualities that will help you thrive in Japan’s unique business culture.

Japanese Business Etiquette Training

Looking to improve your effectiveness with your Japanese colleagues?

Over the past 15 years Shinka Management has supported thousands of professionals from over 70 countries through our Japanese Business Etiquette and Culture Training Program. Contact us via the form below for further information about running a dedicated program for your staff.