FREE ESSAY ON JAPANESE WORK ETHICS VS AMERICAN WORK ETHICS

JAPANESE WORK ETHICS VS AMERICAN WORK ETHICS

Japanese Work Ethics vs American Ethics
For an American to consider the Japanese from any viewpoint for any reason, it is
important for us to remember that they are products of a unique civilization, that their
standards and values are the results of several thousand years of powerful religious and
metaphysical conditioning that were entirely different from those that molded the
character, personality and habits of Westerners ( De Mente, p.19). To understand the
Japanese, it is necessary to have an understanding of their religious and philosophical
backgrounds. My research suggests that basic ethical values in Japanese business systems
are influenced by three philosophical and religious traditions: the Shinto Ethic, The
Confucian Ethic, and the Buddhist Ethic. Boye De Mente adds a fourth which he labels the
Parent-Child Ethic. 
Shinto was the primitive religion of Japan before Confucius and Buddha . The chief deity
of Shinto is Amaterasu, the Sun Goddess from whom the Imperial Family of Japan traces its
origin. Lesser clans, in turn, claim descent from the lesser Shinto deities. Shinto has
only one command, the necessity of being loyal to one's ancestors. This precept binds all
Japanese in a bond of unity to a degree unknown in rest of the world. Shintoism stresses
that harmony is necessary to keep man and things right with the cosmos. Each individual
is obligated to do whatever is expected of him whatever the cost so as to bring honor to
his family. Those in superior positions are obligated to take care of those who serve.
Selflessness, kindness, helpfulness, loyalty, will bring trust, honor, confidence, and
respect from others.(Cowles, p. 623) 
Confucius insisted on respect for superior persons and things. The five basic
relationships are between ruler and subordinate, father and son, elder and younger
brother, husband and wife, and friend and friend. The younger or inferior was to obey to
the older or superior but at the same time the superior has obligations to the
inferior.(Cowles, p.1507). The parent-child relationship rises to be an outcome of this
teaching. Confucian principles stress piety, fidelity, obedience, kindness, loyalty to
one's superior, self-control, discipline (strong work ethic), and superior/subordinate
vertical structures of society. 
Most Japanese are Buddhists. The Fourfold Noble Truths of Buddhism assert that all is
sorrow, that sorrow springs from desire or craving, that desire may be eliminated, and
that sorrow can be overcome by following the middle path. This Eightfold noble path is
marked by right belief, right aspiration, right speech, right conduct, right livelihood,
right effort, right frame of mind, and right rapture. It's goal is the attainment of self
knowledge which allows man to live a contented life (Cowles, p. 1507). Western culture is
based on Christian philosophy which preaches the equality of men and emphasizes man's
freedom as a rational being. Man has a free will and can choose to act in accordance with
this principle. Consciousness, choice, and freedom are the key principles. 
The fundamental work philosophy in the US is capitalism. Webster's dictionary defines
capitalism as an economic system characterized by private or corporate ownership of
capital goods, by investments that are determined by private decision rather than by
state control, and by prices, production, and the distribution of goods that are
determined mainly by competition in a free market. Shaw suggests that capitalism is based
on the premise that people are basically acquisitive, individualistic and materialistic
in practice and capitalism strongly reinforces those human tendencies (Shaw, p. 32).
These basic philosophical differences have resulted in very different corporate ethics
for western and Japanese cultures. Because of their ties to their past, the Japanese
place more emphasis on the long term success of their country and the long term growth of
their company and connected partners who are seen as family. Akio Morita, Chairman of
Sony has commented that western society looks ten minutes ahead while the Japanese look
ten years ahead (Morita, p.84). 
The Japanese employee is regarded as a representative of the company and he/she is
expected to bring honor to the company. Company needs come before personal needs. As a
result the individual must operate within the confines and social circles of the
organization and its goals and values. Japanese companies operate by common agreement
rather than on individual opinion. To ensure loyalty and proper instruction, employees
are hired right out of school and trained in the company way before they can be spoiled
by outside influences. Management style is based upon personal loyalties and seniority
within a group. This makes it difficult for managers to shift from one job to another
within a company and even more difficult to move to another company. 
In Western society the company is only a means to an end, namely the way to support one's
individual or family lifestyle. In the U.S. an individual is not bound to the company and
has the flexibility to move in order to further one's personal goals. Movement is often
looked upon as an asset to the individual's resume and not as disloyalty to the firm.
This emphasis on individuality is seen in the fullness of head hunters who raid companies
for key personnel, individual retirement funds which help the worker achieve independence
from the company, and references to employees as individual contributors. It is to be
noted that John Sculley, the President of Apple Computer, has suggested that a 5 year
work term is sufficient to spend in any one company (Dillon, p.28). 
Japanese society tends to be vertically structured. Historically the vertical rank scale
began with the lowest laborer and moved upwards to the emperor, with rank is frequently a
birthright. Today this ranking is visible in education and corporate life. The university
one attends, as well as the level of education achieved is very important and can
influence one's status and subsequently later career success. Companies are ranked and
one's status in society is related to one's employer. The Japanese would rank a worker at
IBM as having higher status over a worker at a smaller company even though the worker at
the smaller company might have more responsibilities. In the same way an Ivy League
school would rank higher than a State University. The number one school in Japan in terms
of rank is Todai (Dillon, p.28). The student starts at a very early age to work for
admittance into the University and it is said that incredible stress frequently leading
to suicide is the result. Prestigious companies pick their employees based on the rank
order of the universities from which the students have graduated. Once hired by a
company, it is expected that the individual will continue to maintain a relationship with
their alma mater and their sporting groups and will ease the way for other students to
join the company. Success is measured on getting into the right group as opposed to the
right job and discrimination does arise. Because the business circle is so important in
the Japanese business world, leaving a company to join another, as we do in the U.S. is
rare. If an individual leaves a company they will find it difficult to re-establish a new
circle and thus will have difficulty advancing as they have violated the principle of
loyalty. 
The organization and even the office structure of a Japanese company reveals a Confucian
influence . It tends to be rigid and does not encourage individual specialization as do
American companies. The basic operating unit is a section having a chief, some
supervisors, and general staff. Several sections make up a department headed by a
department chief. The desks are configured facing each other in rectangular symmetry with
the manager's desk looking down the middle. The department head sits farthest from the
door and usually has a good view of the department. A task is assigned to the team and
members are expected to work on the task as a team. Since the workers face each other
they usually are aware of everything that occurs. Sections and departments are ranked.
The section tables are aligned in rank order. The more sections to a department, the more
important the department. This is significantly different from U.S. practice where
individual space is highlighted by blocked - off cubicles or offices. In the U.S. as an
individual progresses in rank, his/her office usually becomes larger, more barricaded,
and more isolated from general staff, frequently to the point of being located on an
entirely different floor. Dress codes differ as well. In Japan all levels wear a uniform
for consistency and equality. In the U.S. it is typical that the higher the individual
the more expensive the dress becomes, ie: white collar vs. blue collar. 
The repression of one's feelings, automatic submission to superior authority, and
punishment for resistance are quite visible in the corporate structure and system of
business practice. For example, the Japanese tend to answer a question in terms of what
they think will please the inquirer rather than to answer with a disagreeable truth.
He/she values the serenity of the relationship and will not jeopardize it. Akio Morita
(Chairman of the Sony Corporation) notes that Japan's Confucian background makes it very
difficult for its people to say no within the context of normal human relationships. In a
traditional hierarchy, subordinates dare not say no to higher-ups without violating
normal courtesy. The higher-up takes a no from a subordinate as insubordination. In a
staff relationship, no is something to be avoided in order to maintain smooth human
relationships ( Morita, p.121). Taken into the business setting this policy limits what
the individual can say or how he/she can act without breaking the peace. Confrontation
rarely occurs. Instead workers and superiors hope for a sort of telepathic understanding.
 Japanese people are not prone to considering complex moral questions as being matters of
right and wrong; they are more concerned with knowing what is acceptable and unacceptable
to a group. (Dillon, p.27-30). The corporate culture is a place where the worker
represses his/her individual style in the interest of the group harmony. As a result,
friction and stress build up in the individual. To relieve this pressure there are
company sponsored year - end parties and considerable after hours drinking and
socializing. While intoxicated, the individual feels free to speak openly to his
co-workers and superiors without fear of recourse. As a result alcoholism is a serious
problem in Japan. 
Boye De Mente sees a parent-child relationship as a distinctive ethic in the Japanese
business system where the employer is looked upon as a parent and the employees as the
children. Since feudal times the Japanese were raised to work cooperatively and respect
authority in return for their livelihood and protection. There was a penalty for not
agreeing. The word Amae is translated into indulgent love or love by an indulgent mother
(De Mente, p. 98). The style of management and the company as a whole is as a mother to a
child. Company benefits include housing or the subsidizing of housing, transportation
allowances, family allowances, child allowances, health services, free recreational
facilities, educational opportunities, retirement funds, and bonuses. The pay scale in
the work force is patterned after the lifestyle of the individual. For example, men who
have a family will have a higher salary than men who is retiring. The pay is scaled low
to high and back to low again. The retired executive is cared for through transfers to
another less visible division so that the work status is maintained and the employee is
kept active. 
This family's patterned system of life employment, while it applies to a minority of
workers is still an active system in Japan. Under this system all permanent employees of
larger companies and government bureaus are generally hired for life. These organizations
generally hire once each year directly from the schools. Candidates are invited to take a
comprehensive exam and after a careful analysis is made, are then employed for life. Once
employees are selected they are expected to commit themselves totally to the company. The
company in turn promises to care for their employees to their death. Managers cannot
hire, fire, or hold back promotions. The company does the hiring and the managers and
supervisors motivate via style, trust, goodwill, and cooperation. Promotions are
dependent on longevity first, ability and accomplishment second. Employees are placed
according to their abilities with the brighter picking up the heavier load and the less
able a lighter load. There are no stars. Everyone is part of the team. Management
trainees are switched every two to three years in a circulating effect or rotation.
Instead of promotion and pay raise incentives, the most capable and productive gain
status and will eventually be singled out for higher spots. Promotion is based on ability
to get along with the team and to promote harmony within the group. Groups work on
direction and goals and are not as task oriented as in the U.S. Human relations take
precedence. The role of the manager is to create harmony rather than to direct. A good
manager, for example, will accept blame for employee mistakes hoping to create a more
harmonious group by protecting his subordinates from loss of face. This technique binds
subordinates to cover for and support their manager should he have a weak area. American
corporations focus on the bottom line rather than on corporate longevity or harmony among
fellow workers. 
While life time employment creates a secure working environment and a dependent employee,
creativity tends to be suppressed in the Japanese culture. Some researchers indicate that
as a result of this parent-child relationship, innovative and creative leaders are lost
to the Japanese corporate world. In recent years, researchers have begun to explore the
level of satisfaction of the average Japanese worker. There is a condition called ki ga
susumanai, which means: my spirit is not satisfied ( De Mente, p.125). It is used to
describe a general feeling of dissatisfaction that the Japanese feel towards their work.
The long hours and work weeks that have been a part of the Japanese work ethic are
beginning to be questioned in the press. Some liberal groups in Japan have started a
media campaign questioning the work ethic. Posters have been hung in the Tokyo subway
depicting children crying and a comment that these children have lost their fathers to
work. Most workers use the subway to get to their place of work. The group feels these
are indications that the Japan work ethic is not as successful and fulfilling as once
thought and that the Japanese are seeking more than the company reward of security and
identity. 
Akio Morita describes the American work ethic as a corporate right to pursue maximum
profits with the worker seen as a tool or resource without rights. He contrasts this view
with the Japanese view where the worker is seen as a human being with inalienable rights
that include more than wages. It is the role of the Japanese company to provide meaning
to the worker's life, to care for him to death. In Japan, Morita says that top executives
work to improve the position of their company with the bulk of their salaries paid into
taxes for national goals. American executives, in contrast, hop from company to company,
grabbing as much money as they can, often well beyond their ability to spend it.
Furthermore American accountants are paid to find ways to help the executive avoid paying
taxes. As a result, unions have developed in the U.S. to assist the worker to confront
management in order to get what they see as their fair hare (Morita, p.188). 
The difference between Japanese and American ethical concerns is particularly apparent
during economic downturns. If an industry collapses in Japan, the company does everything
within its means to secure employment elsewhere for its laid off employees. In the U.S.
when the market shifts, employees are laid off generally with little notice and with
little regard for their ability to secure new employment. 
Morita notes that Japanese and American corporate philosophies differ as well. In Japan a
corporation is a success if the company accrues profit free from debt. In the U.S.,
leverage and short term gains are termed success. In Japan no one is fired. If the
company decides that they have made a poor selection, they will retrain a deficient
worker and place him in a situation where he will receive support and assistance. In the
U.S. the deficient worker is fired. Rarely is any thought given to retraining the
individual or placing him/her in a more supportive setting. 
When Sony was hit with a downfall from the oil recession, the CEO was advised to have a
lay off. The chairman refused to lay off his workers even at the expense of a loss to the
company. To keep people on the job, he installed educational programs and busywork to
keep up moral and improve the labor skills. Morita notes that this was an American branch
of the Sony Corporation and he was not sure what the reaction would be. He was happy to
note that even in America the workers' loyalties to the company were strengthened and a
strong sense of company appreciation and camaraderie was developed. Morita notes that
employees bought tee shirts which had inscriptions on them against labor unions. Akio's
point is that no matter where in the world you live or are employed the basic Japanese
(Shinto, Confucian, Buddhist, Parent/Child) work ethics are valued. 
It should be noted that Japan does have unions within their companies. Younger employees
are quite active in these unions. For the most part the unions and the management have
been on compatible terms. In recent times this attitude appears to be changing towards
the adversarial role of US unions. Employees' organizations want legislation and are
calling for shorter working hours, overtime ceilings, an increase in the overtime wage
rate, and increased vacation entitlement. (Yamada, p. 699-718) 
In an effort to retain the free enterprise aspect of capitalism, there have been many
movements in the US towards antitrust actions to break up monopolies such as Standard Oil
and AT&T. In an effort to retain the freedom of free enterprise numerous laws have been
passed and government involvement has been fostered in the US to protect these rights.
The Japanese approach towards company development and protection is quite different as
evidenced in Keiretsu(). As large parent companies grow they form connections with lower
and second tier smaller companies through cross ownership, financial ties, long-term
business relationships and social and historical links. Each company entwines their
business with one of the Japanese business partners. In this way the sources and uses of
funds are dispersed and kept within Japan. As a company expands it will borrow funds or
be funded by a series of Japanese connected banks or large firms. They in turn will
secure a percentage of the sales profits as the firm grows. If a firm has a downturn
connected firms will help out or help absorb some of the pain and personnel associated
with the loss. This connected network has been quite successful and profitable for Japan
as evident in large companies such as Mitsubishi, Sumitomo, Toyota and Hitachi. Working
in association with one of the large firms has a certain aspect of security associated
with it. When companies like Apple work with these large firms, the business practice and
ethics becomes quite evident in the manufacturing of their products. For example, when
Apple contracts out a job to a firm for a completed product or finished good. The
Japanese firm who wins the bid in turn contracts out the component parts of the product
and it's assembly to smaller connected firms who each taking a percentage margin. The
work performed to manufacture this product is conducted by firms who are connected to the
primary company who won the bid. If production increases these smaller firms benefit from
the gains and increased production. If the volume decreases the mother firm does pull
back but usually assumes the obligation to provide for alternative sources of production
work for their second tier subcontractors or cottage partners. We have found that the
relationships are extremely tight to the point of blocking alternative sources for
component parts. We have had a recent example of this with one of the major Keiretsu
firms. Apple dictated a specification for a component part to be used in the
manufacturing of a new product. The component part was not manufactured by one of the
second tier suppliers or family members of the supplier but by competitor firms in
Europe. As a result they commissioned one of their subcontractors to copy the part and
refused to purchase the component from a firm outside of Japan.. We have found that
Japanese manufacturers will source only from connected Japanese firms and will resist
European or American supply sources unless it is a last resort or under pressure from
Apple. It is noted that Japanese shops will manufacture needed parts for the benefit of
the Keiretsu firm and Japan, and if needed and they will be funded by the Keiretsu to do
so. 
This sort of business practice has been termed as antitrust in the US. This is considered
pure and fair in the Japanese culture and the Japan government system fosters this type
of business practice. The Confucian ethics of loyalty and fidelity are so strong that
companies often will not do business with other companies unless they have personal ties
within that company. This has made it difficult for Western companies to break into the
marketplace as these ties, for the most part, have never been established. Since the
Japanese focus on the good of the nation as a whole and not on individual capitalism it
is easy to see why this behavior would be appropriate in their terms. It is necessary to
keep in mind that the basic ethics which the Japanese practice, it would be quite
appropriate that the company would network in this way. What poses a difficult challenge
is when the two different philosophies are entwined within the same region where the
basic ethics differ so much. In the States, capitalism demands the use of the lowest cost
manufacturer or the bank with the best interest rate no matter who they are or where they
are located. There is more incentive in a capitalistic society to save on costs then to
network with US firms. In Japan it is a breach of ethics for a Japanese firm to conduct
business outside the boundaries of the Keiretsu or where funds are not funneled back into
Japan. 
Is it right for a country like Japan to practice their work ethic in a country like the
U.S. whose basic value and moral systems are quite different? It appears that compromises
must be made. Recent news articles indicate that the Keiretsu walls are starting to crack
and U.S. capitalistic values are beginning to creep into the Japanese workplace. These
changes appear to have started in the late eighties when the yen lost value (Kuniyasu,
p.22). As a result large Keiretsu's had to lay off or force out of business their second
tier suppliers or lose the mother company. This change in change company behavior led to
a change in worker's sentiments. The basic values once cherished appear to be visibly
deteriorating. As a result students attitudes are changing and the corporate culture is
becoming more and more competitive, seeking talented managers from Western companies.
Even Japanese workers are beginning to seek the better job across the street (Kuniyasu,
p.45). Companies such as Matsu*censored*a have taken aggressive capitalistic competitive
actions within Japan to get ahead. These two cultures often find it difficult to
understand and accept each others differing corporate goals and management styles and
misunderstandings are frequent. 
Sources Cited
1. Shaw, William H. Business Ethics. Belmont: Wadsworth Publishing Company, 1988. 
2. Dillon, Linda. Can Japanese Methods Be Applied in the Western Workplace?
Quality Progress October 1990: pp 27-30. 
3. "Religion." Cowles Comprehensive Encyclopedia. 1980 ed. 
4. Kuniyasu, Saki. The Feudal World of Japanese Manufacturing. Harvard Business Review
Nov-Dec 1990: pp. 38-49.
5. De Mente, Boye. Japanese Manners & Ethics in Business. Phoenix: Phoenix
Books/Publishers, 1981.
6. Morita, Akio. The Japan that Can Say No --The New U.S.- Japan Relations Card. Osaka:
Kobunsha Publishing, 1990.
7. Yamada, Narumi. Working Time in Japan: Recent Trends and Issues. International Labour
Review Nov./Dec. 1985: pp. 699-718. 
8. "Capitalism." Webster's New Collegiate Dictionary: 1977.