Etiquette in Japanese Business: A Nonsense-Free Guide
v2.0 (2006.07.20)
T. Tuttle

http://www.paccess.com

The notes below are a beginning collection of etiquette and business tips for persons traveling to Japan. The notes are by no means complete, and only touch upon the most commonly-noted points for travelers.

General Etiquette

No tipping needed or expected. Anywhere.

No-smoking zones are uncommon in Japan. Put up with smokers. But if you smoke, it's still good manners to ask "May I?", even in a smoking area.

Ostentatious dress and behavior, eating/drinking on trains or while walking, public displays of affection, and generally being loud, boisterous, and needlessly conspicuous in public are traditionally frowned upon. (The younger generation, of course, does all of those with glee. And, also unsurprisingly, there are times and places where anyone can be uproariously noisy: festivals and o-hanami parties, to name a quick two.)

It seems there should be no need to say this one at all, but all the guidebooks make a point of it: Avoid nose-blowing in public, moreso at a dinner table. Never blow into a handkerchief and put it back into a pocket. (That's unbelievable anywhere in the world...)

Gesture toward objects or people with the hand; don't point a finger at people.

Business Meetings: Basics

Business dress is generally more formal than the US norm. Unless you know your partners to do otherwise, stick with standard, conservative business attire. (Keep a handkerchief handy in the hot, humid summer.)

Official office hours in Japan are typically 9:00 to 5:30 or 6:00. Long-term associates may be happy to meet you at unusual times and places, but for new contacts, office hours are best. And it's probable that your Japanese hosts would prefer at least an hour to settle in and prepare for the meeting, making a typical meeting time 10:00 or later.

Breakfast meetings are not common (read: not very welcome). You may find persons who have caught on to the habit, but otherwise try to request meetings for normal business hours. 

Martinis or other alcohol are not typical lunch fare.

Be prepared and organized. Have plenty of info on your organization and on the business agenda at hand (of course in Japanese, if available). Show that you've done proper research on the Japanese side, as well.

Have extra brochures/materials on hand. Keep them neat and presentable. Don't staple business cards to brochures.

Brochures/materials in Japanese are of course preferred, if available. If you go to the trouble to do this, try to also use the international standard A4 paper size, not US letter size.

Be on time for everything. If you'll be unavoidably late, call ahead to your contact. (That means keeping contact info on you at all times -- all part of being prepared and organized.)

There are protocols for many things such as seating at dinners and in cars, leading people into buildings and elevators, and so on. Just follow your hosts' lead and directions, without rushing ahead.

I have it on good authority (i.e., I was yelled at by a crusty old trading company type) that when making a business call, you should keep your bag/briefcase, coat, umbrella, and similar items off of the host's meeting table. (Makes sense; those objects don't necessarily stay clean during your travels through the city.) Hang on to the goods unless there's an obvious place for them (such as an umbrella stand), until your host directs you to set them down. It's fine to put a briefcase on the floor next to your chair.

Folders, pens, and other "meeting stuff" are of course OK to place on tables.

Greetings

It's not necessary to master bowing. (Nor is "mastery" the incredibly complex skill some guides want you to believe it is.) Returning any bows directed at you (probably not much more than a deep nod) is fine. Handshakes are not universal, but have become normal for many businesspersons. Don't try to impress people with a crushing grip, though.

European-style kissing greetings? Don't even try it.

Business Cards

Take lots of business cards. More than you think you need. Your hosts may field many more people than expected in meetings, and you'll need plenty for any receptions, side visits, and chance encounters. Being caught card-less is bad form.

Despite the above, ignore any dire warnings about cardlessness as some sort of social Armageddon. If it happens for a legitimate reason, just apologize, promise you'll send your contacts a card later, and do it. They'll almost certainly understand.

Bilingual (translated) cards are not necessary, but are appreciated.

Have business cards ready to hand at all times, preferably in a business card holder in jacket pocket. It's not good to dig for cards in a bag, and worse to pull out bent cards from a wallet.

There is often a hierarchy for presenting cards: top-ranked individuals first. Let the Japanese side lead.

The rule for handing over a business card is the same as for handing over anything: right-side-up, from the recipient's point of view. Use both hands for business cards where possible. The key point: Exchange cards, one-on-one; don't pass out cards en masse.

Receive business cards with both hands. Immediately look over the card for a moment, taking note of the person's name, title, etc.; it shows proper interest in the encounter and respect for the person.

It's normal to lay out the other side's business cards on the table in front of you, as a reminder of who's who as the meeting progresses.

Otherwise, received cards should be put away neatly, ideally in a card holder. It's poor form to jot notes on a received card (though you're free to do so later in private).

Language and interpretation

Many Japanese can read English well. Fewer can comprehend spoken English well, and even fewer can speak well. Be aware that hosts may or may not be as fluent in speech as they appeared in written communication. Speak slowly and clearly unless you're sure you can rev up to normal speed.

When working with interpreters, speak reasonably slowly, and let the interpreter do his/her job after every important point; don't ramble on for minutes and expect the interpreter to remember it all. Speak clearly and avoid slang, idioms, and jokes -- they likely won't translate well.

Important: Speak to (and look at) the other party, not the interpreter. Speak to the person as if he or she were understanding everything you say (which may even be the case).

Address the other party directly. Say to the person, "I want your company to work with us"; don't look at the interpreter and say, "Tell him I want his company to work with us."

A tangent: It's normal in Japan to specifically use "interpreter" in reference to speaking, and "translator" in reference to writing.

Don't assume from nodding and hmm-ing that your listener does understand everything you say. It may only be a way of saying, "I'm listening, I'm awake." (Or just a way of staying awake.)

Not every language has exact equivalents of "yes" and "no". Japanese is one that does not. The affirmative word "hai" does not mean "yes"; think of it as "uh-huh" or "I heard you". Whether the listener agrees with you or will follow your request is a separate matter.

It's a nice gesture to learn a few basic words and phrases in Japanese, but no one will expect much from a short-term visitor. Don't worry about it much. If you do learn, though, start with these. (Brackets indicate portions that can be dropped for informal brevity.)

• [Doumo] arigatou [gozaimasu]: Thank you [very much]
• Sumimasen: Sorry / excuse me
• Onegai shimasu: Please (when making a general request)
• ... o kudasai: Please give me... (requesting food or item)
• Douzo: Please (when offering something)
• Kampai: Cheers
• Ohayou [gozaimasu]: Good morning
• Konnichi-wa: Good afternoon
• Konban-wa: Good evening
• Oyasumi [nasai]: Good night
• Sayonara: Goodbye
• Itadakimasu: A phrase spoken before starting to eat.
• Gochisou-sama: A phrase spoken after finishing a meal.

Business negotiating

Expect to start with small talk, perhaps lots of it. It's an excellent chance to thank your hosts/guests for favors in the past (the dinner last month, the gift last year, etc.) -- not only for favors to you, but to others in your organization. Also express thanks to anyone in the other party who is not present at the moment, but others who helped in the past. These gestures will be appreciated.

Typically, relationship-building comes before actual business discussions. It may take a long time to move to the point of meat-and-potatoes business discussions, and a long time to reach an agreement once discussions start.

The other party will likely be far more impressed by facts -- lots of facts and data, which you have memorized or neatly prepared for instant presentation -- on your organization, products, and achievements, than by vision statements, grand goals, and the like.

Negotiations should be calm and cordial. Hard-nosed aggression will likely paint you as a high-maintenance partner who's not worth the trouble.

Take careful note of "this is how it's done in Japan" claims for later verification. Some of these may be true, but there's a lot of nonsense floating about too. Chances are that the Japanese side knows US business and customs far better than you know the reverse; skilled negotiators on their side may take advantage of that. A common example that needs to be taken with lots of salt: "You can't enter this industry in Japan without granting an exclusive distributorship."

Don't be put off by long stretches in which the Japanese negotiators are silent (or even appear to be dozing). They may be listening intently, or taking time to think and regroup. Or, in the hands of a wilier negotiator, the team may be trying to unnerve you. Use the time to do some thinking of your own; don't fill the silence by speaking more than you intended.

Just as "hai" does not equate to "yes, I agree", a response of "I see" or "I understand" may simply mean "I hear you". Listen to Japanese negotiators as if listening to politicians anywhere in the world. "We will consider it" in Japanese famously means "we will do nothing". (Then again, those words aren't a rousing promise of action in any land.) Don't assume meaning from a response unless it was stated explicitly and unmistakably. When you need to get clarification of intent, ask about follow-up steps, deadlines, etc.

Hierarchy is important and is observed, but the highest-ranking person may not necessarily be the real decision-maker. Both inside and outside a meeting, it may be unclear who holds the real power of decision. That person may be of middle rank and not very visible.

Decision-making can be slow, and it can be difficult to tell what the status of discussions are at any given moment. Business decisions typically involve detailed research and bottom-up consensus building within the organization. Building a close relationship over time with the Japanese partners, and identifying key players in the organization through informal contact, is the best way to really see how things are moving.

Disagreements among the members of the Japanese team will likely be resolved later, when you're gone. It's best to follow that lead, and not show any division on your side.

Accept opportunities for after-hours socializing. It helps build the relationships important to success, is often the place to discuss troubling questions that were avoided in the meetings rooms, and may even be the time when the "real" negotiating takes place after a day of meetings that seemed to go nowhere.

Contracts and agreements

Common consensus holds that details of contracts are viewed less stringently in Japan, with an expectation that parties will flexibly adapt to circumstances, based on trust and the mutual interests of both sides, rather than adhere to written rules. But this is changing, and business in Japan is becoming more contract-based.

If at all possible, have a contract translated professionally into both languages. The parties may agree to specify the English version as the binding one, however.

Once agreements and decisions are finally made, it's likely that the Japanese side will have worked out all the angles by then, and will move quickly (expecting you to do the same). There are of course many exceptions, but be prepared for the possibility.

Entertaining and Dining

As a guest, be on the watch for cues from hosts re the following: Where (and how) to sit; whether to remove shoes; what to eat (and how and when).

There's often a small damp towel (oshibori) for washing hands. It's not classy to wipe your face and neck, but many do it anyway.

Drinking is a chance to unwind and be less formal. There are some rules, though.

The norm is to fill the glasses of the people near you; they'll fill your glass. That means you normally don't fill your own glass. Wait for someone to do it, which shouldn't take long. Serving each other may go on all evening, or until the serious drinkers later decide to speed things up with self-service.

Hold or at least touch your glass while it's being filled; nod and say "thank you" (though it's preferred in Japanese to say sumimasen, "excuse me").

Don't drink until everyone is served. There will probably be a short, simple, and single toast (kampai). Bottoms up.

Rounds of toasting are not the norm. But after the kampai, if you want to call for one more toast to the partnership or business or whatever, that's fine. Say a few nice words, let the interpreter interpret if necessary, and raise glasses.

If you've had enough, leave the glass full; that will keep it from being filled again.

If you need to avoid alcohol completely, say so politely but clearly at the start of proceedings.

Don't eat until everyone is served and ready. Let your hosts lead.

If you have special dietary requirements, let hosts know well in advance. As much as possible, try to avoid special requests and demands at a meal, especially if you are a guest.

You get extra points by saying itadakimasu as you start a meal, and gochisou-sama at the end, especially if you are a guest. Everyone else will likely do it, so just follow along.

Chopsticks have a few special rules regarding their use: Passing food from one person's chopsticks to another's is forbidden, as is sticking them upright in rice. (Both sound like handy things to do with chopsticks, but have associations with funeral practices. Don't do it.)

Don't point with chopsticks or wave them about. Don't skewer food.

Some in Japan insist that it's bad form to eat/drink with one hand while holding food/utensils/beer in the other hand. Some operations are naturally two-handed (such as cutting food, or eating from a bowl in one hand using chopsticks in the other), but otherwise, when you eat or drink with one hand, put down whatever's in the other.

Meals may consist of many small dishes. It's best to enjoy a little bit of each in turn, rather than eat one at a time. Feel free to ask what things are, and be a good sport about trying them. There may be items that are sauces for another dish, or meant to be mixed with something else; watch and ask.

When taking food from communal dishes, some people follow etiquette and turn the chopsticks around, so the food is picked up with the "clean", unused ends. Some people ignore this rule. Watch your hosts and follow. (It's always fine to move food around on your own dishes with the "used" ends.)

It's bad form to move food directly from a communal dish to your mouth; it's better to put the food on a plate of your own first. Again, watch others.

It's okay to pick up rice or soup bowls and hold close to your mouth. It's okay to slurp many foods, too (but not drinks); watch and copy, if so inclined.

Cover your mouth while using a toothpick; keep it unobtrusive.

If the food and atmosphere look expensive, they probably are. Be properly thankful to hosts and praise the experience (but don't ask how much it set them back).

Gift giving

For most business purposes, a small "courtesy gift" is appropriate when meeting a party with whom business will be discussed, or with an existing partner, or with a host of any other sort.

Expensive gifts may be fine for long-term partners, special occasions, high-power deals, and so on. But for the usual "courtesy gift", keep the item modestly inexpensive. Your hosts may have gifts for you, but you never know -- you don't want to embarrass them with expensive gifts if they didn't prepare much. Also, organizations (especially in government or academia) may have rules about receiving expensive gifts.

Regional items are good gift choices; there may be nothing exotic in Japan about your regional specialties, but they make for good conversation pieces all the same.

Gifts should be wrapped or packaged neatly. Presentation counts! If that's not possible or it's an odd-shaped item, a nice sack may be fine (especially if from a name-brand store or unique local seller), though that should be kept clean and neat too.

If all your neat packaging and wrapping gets crunched and wrinkled during travel, apologize and don't worry about it too much; anyone who has traveled will understand.

It's normal when giving a gift to belittle it: "This isn't much, but I hope you like it."

In very formal surroundings, don't unwrap the gift unless directed to do so. Otherwise, it's fine to open it, but best to first ask "May I open it?". Then open, and offer many thanks.

If your hosts/guests should outdo you terribly on gift-giving, you can always thank them profusely and try to make it up next time (or buy a dinner when they visit your town, etc.). But try not to get locked into a cycle of escalating gift-giving, which neither side really wants.

Summary

Be flexible in everything. The above are only guidelines based on individual experience and common reports. Rules of etiquette may vary by sector (business, academia, government), by industry, by generation, and of course by general surrounding and circumstance. Not everybody will agree on all of the above rules; some individuals have notably odd ideas about normal etiquette. It's best to go with the flow rather than embarrass a host by insisting on the "correct" etiquette that you learned elsewhere.

Perhaps the most important piece of advice is an item that many of the etiquette guides leave out. It's this: None of the above is a shocking, unthinkable departure from Western etiquette. There are differences in details, but the "core" of etiquette is the same in Japan and back home. In short:

Be courteous and respectful; say please and thank you; be on time; be organized and informed; recognize people's contributions; adopt businesslike dress and behavior unless casualness is called for; be politely assertive (but not aggressive) where necessary; be attentive to guests; follow the lead of hosts; and through it all, smile and be flexible. That covers 90% of it, in Japan or anywhere.

Unless you're normally a loud, back-slapping boor, you can relax and be yourself. Perhaps the rudest thing you could do to your hosts is imagine them to be brittle, uptight nitpickers who will be mortified by minute lapses in by-the-book manners. Instead, keep the earlier rules in mind, but always assume that your hosts will be flexible, understanding, normal people with a broad outlook and a sense of humor.

Resources

JETRO has a publication online called "Doing Business in Japan", although it's not heavy on etiquette notes:
http://www.jetro.go.jp/it/e/pub/doing1999/index.html

JETRO also has a publication "Communicating with Japanese in Business":
http://www.jetro.go.jp/it/e/pub/commni1999/index.html
This text gets silly in places with exaggerated cultural differences and contrived psycho-socio-religious explanations for these, but overall it's harmless and has some good information. In particular, there are a few pages covering typical problem areas of English as it's taught and used in Japan, which may confuse discussions; that's an interesting bit that many of the guidebooks don't cover.
http://www.jetro.go.jp/it/e/pub/commni1999/4_b.html
http://www.jetro.go.jp/it/e/pub/commni1999/4_c.html
http://www.jetro.go.jp/it/e/pub/commni1999/4_d.html

Other pages with etiquette notes:

http://www.japan-embassy.no/page11881.html
http://www.gate39.com/jreference/drinkAndEat.aspx
http://www.bccjapan.com/asp/general.asp?MenuItemId=780