Japanese Business Culture and Business Ethics

Country Profile„We Can Became More International, but Still Honor the Rules of our Society“ (A banner at Nartita Airport, Tokyo)

Balász Réka Blanka Britt Merkel

Judit Kormos Michal Malček

Sjur-Olaf Bendiksen

Agenda

General informationDimensional analysisNon-dimensional analysisCritical analysis of the culture

Critical analysis of the models

General Information

Culture and manner are highly regarded

Introvert and reserved people Male-dominated society Social ranking according to age

Japanese Business Culture (http://www.youtube.com/watch?v=of8UgykfUbw , 00.40 - 02.03)

Meeting manners

PolitenessHigh service level

Punctuality

Gender & Age

Relationships & Loyalty

Inward perspective: the company as core pillar, lifetime employment & social ranking

Outward perspective: Keiretsu

DIMENSIONAL ANALYSIS

UNCERTAINTY AVOIDANCE [UAI 92]Risk avoidersJapanese way of doingHarmony seekersSocial conformityAvoid conflicts and confrontationsDetail oriented

INDIVIDUALISM [IDV 46]Collective society, seeing the big picture.Group belonging (society, work, family, clubs)Harmony (“wa”)Work invades personal spaceJapan is changing!

LONG-TERM ORIENTATION [LTO 80]Aligned with high UAI and low IDV.100 year plans (keiratsu)Strong ethicsRespect for traditionsConsistent hard work

MASCULINITY [MAS 95]Male dominated societyDirect and preciseNo nonsense approachRules and structuresEmotionless

POWER DISTANCE [PDI 54]Pyramid-system, hierarchical Accept a high degree of unequal powerExpectations clearly set“Low creativity” on the bottom of the pyramid.Respect for age, sex and seniority.

The Japanese Garden (a cultural metaphor)

sense of integration – observer&nature (reminds the centrality of nature to the Jap. society)

4 key garden elements represented in society Wa (harmonious relations) Shikata (proper way of doing things) Seishen (‘spirit’ training - martial art, hell camp) Aesthetics (in painting, literature…)

society is fluid like the water in the garden (changing, yet retaining its essential character)

many droplets > waterfall > cascades > pond with carps zen buddhism

free from self-centered world, timelessness, oneness garden > freed world, physically reduced, spiritually enlarged

source: Understanding Global Cultures By Martin J. Gannon, Third Edition, 2004

Critical analysis of the culture 1/2

Critical analysis of the culture 2/2

Critical analysis of Hofstede’s model

Japanese organisation is characterised by less formalised rules and procedures and by socially induced values.The Japanese organisation is that of rather a family.

PD - UA The masculinity values are not related to Japanese decision-making style rather consensus based or consultative decision-making process.

MASCULINITY

Short-term past oriented.

LONG-TERM ORIENTATION

QUESTIONS ???

Ethics – Cultural View„We Japanese do not have principles; we have policies“ (Dr. Kazatuka Watanabe, liberal arts authority and author)“When you see a stranger, regard him as a thief“ (old Japanese saying)

Balázs Réka Blanka

Britt Mekel

Judit Kormos

Michal Malček

Sjur-Olaf Bendiksen

Agenda

Theoretical FrameworkMain Influences

Objectivism & RelativismVirtue – A difference from West

Rule-based View

Consequentionalist ViewBusiness Ethics

Theoretical FrameworkWhat we will focus on?

Main Influences

Several thousand years of powerful religious and metaphysical conditioning that were entirely different from influences in Western worldPhilosophical & Religious influences: the Shinto Ethic, The Confucian Ethic, and the Buddhist Ethic

‘Makoto’ (sincerity) to properly discharge all of one’s obligations so that everything will flow smoothly and harmony will be maintained; the outer behavior needs to be in line with the inner being. In extension, this means that ‘makoto people’ will not be self-seeking or show personal emotions.

Objectivism and Relativism

“Westerners say it’s OK to kill and eat cows, but not dolphins,”said Hiroshi Hatajima, a 42-year-old office worker from Tokyo. “That kind of special treatment isn’t going to register with a lot of Japanese. We have to eat animals to survive. It’s a cultural clash.” The film, while well-made, “comes across as somewhat propaganda-like,” he said.

Reactions from the documentary “The Cove” about the dolphin slaughter in Taijima

UN Code of Conduct (1991) between EU, US and Japan:7 point set based upon the Japanese concept of 'Kyosei' - living/working together for the common good of mankind" together with human dignity

VirtueA difference from West

Not very strong recognition of individual rights in relation to privacy, intellectual property, and freedom of information

Traditional cultures: Virtue-centered moralities West: Rights-centered moralities

Virtue orientation in Japan related with “Seishen” - spirit training (one of the key elements of the culture)

Rule-based View

precise system of doing things based on form and process – a system that came to be known as ‘do’ or ‘way‘

the way how Japanese exchange business cardthe bow at the beginning of a meeting

the special gift-giving custom

often took precedence over what “Westerners” regard as human rights and other high-minded concepts generally labeled as ethics

Consequentionalist View

changeable circumstances not basic truths or lawsremember? „society is fluid like the water in the garden“

different values and behaviors in relationshipspersonal/individual (part of a larger picture)business/group (emphasizes a lot on its importance)

political/national (group as a harmonious part of a nation in a certain place within a hierarchy)

an insider/outsider way of business (uchi / soto)

Business Ethics

Keiei = business in Japanstands for ’making effort to develop societies harmoniously and raise the well-being of the people

Business ethics means first a discipline, second economic practices Inseki Jinin (take responsibility and resign)Corruption

Bribery of high officials (direct payments, entertainment, gift memberships, unlisted stocks)Corruption Perceptions Index: JAP 17th, HU 46th, US 19th

Questions ???