Status and rank have played a very important role in Japanese society from the days of the shogun, and they still do today. Even the Japanese language is stratified, and different forms are used with people of different rank. Thus, much of the country's business and social etiquette revolves around determining the rank of an individual and behaving accordingly. Negotiating Japanese traditions and customs is both fascinating and challenging.
Appointments—An intermediary can be a great asset when doing business in Japan, but it is important to use people of high rank. Establish meetings well in advance of your visit. Note that although the Japanese work long hours (48 hours a week is standard), the standard office hours are Monday-Friday 9 am-5 pm. Punctuality is of extreme importance.
Personal Introductions—The traditional introduction is a bow. However, you may also be greeted with a handshake or a bow and a handshake. Follow the lead of your Japanese counterpart. If your acquaintance bows, bow to the same depth to indicate your equal rank. As you bow, keep your hands flat against the front of your thighs and lower your eyes. Use your host's last name plus the word san, meaning "Mr." or "Ms." It is appropriate to ask about a person's family. Remain formal in your demeanor after the initial introductions. It may take a very long time before any personal relationship develops. Even if you develop a first-name relationship, you should continue to address your associate by his last name in the presence of others.
Business cards are very important, and there is an entire set of etiquette rules built around their use. Have your card printed in English on one side, Japanese on the other. Present the card Japanese side up. The formal way to accept a card is with both hands, though this is not always necessary. Spend time reading the card. Do not immediately put it away into your shirt or jacket and never place it in a wallet that you then place in your pocket. It is suggested that you purchase a special cardholder for the business cards of your Japanese associates. Never write on any of the cards you receive.
Negotiating—Do not be surprised if early in your negotiation you are asked many personal questions. This is the way that the Japanese size you up and determine your own rank. Do not display any negative emotions or do anything to inadvertently embarrass your host. The concept of the group is important to Japanese business. Individual achievement and glory must be secondary to the success of the group. Thus, many people may be involved in your negotiations, and the higher-ranking members will look for a consensus, which may slow down the decision-making process considerably. Be patient. The Japanese do not like to respond negatively to a guest. As a result, noncommittal answers—such as "perhaps"—often mean no. Avoid negatively phrased questions, which can lead to confusion. If you use attorneys, it's a good idea to use Japanese counsel to supplement your own.
Business Entertaining—The Japanese entertain in the evening, and often until late at night. Typically, the host will treat. An invitation to lunch or dinner is important in Japan and is an indication of trust. It is customary for the host to order for the guest. Alcohol may be imbibed in liberal quantities—always raise a toast exclaiming "kampai" (literally, "dry glass," but meaning "cheers"). Never fill your own glass. Allow someone to pour for you and be certain to reciprocate in kind.
Body Language—Personal space is very wide. Gesturing is kept to an absolute minimum. There is very little, if any, conversational touching. Eye contact is often very weak. Smiling is a norm but is also used to cover displeasure. Bumping and jostling is quite common in Osaka, especially when passing through busy shopping areas and getting on and off trains. Apologies are neither offered nor expected. It can be uncomfortable and, at times, borderline annoying. There is nothing personal in it. Just pass it off as a cultural experience.
Gift Giving—Gift giving tends to be formalized and even ceremonial. Consumables such as good-quality spirits make excellent gifts. Have the gift wrapped but avoid white paper, as white is associated with funerals. Gifts will not always be immediately opened, and you should follow your host's lead. Present your gift with both hands. If the gift is for an individual, give the gift in private. If it's for a group, make sure the entire group is assembled. Indicate that your gift is a small one, regardless of what it is. This indicates that your relationship is more important than the gift. Some Japanese believe the numbers 4 and 9 mean bad luck, so avoid gifts that convey those numbers.
Conversation—All aspects of Japanese culture are good topics for conversation if they are spoken of in a favorable context. Avoid talking about World War II and the current U.S. presence in Okinawa. Jokes do not translate well and may not be understood or, worse, may be misunderstood.
Other Information—Keep in mind that where you stay will be interpreted as a reflection of your company's stature and success. Staying in a cheap hotel can have serious business consequences when dealing with the status-conscious Japanese, especially if your competitors are in upscale accommodations.