Japan and America -- Cultural

Japan and America -- Cultural Differences

One telling example of the different standards of corporate loyalty in America and Japan comes from the Sony Company. Sony CEO Akio Morita was outraged when one of his prized American sales managers resigned, without any warning, because the man had received a better offer from a competitor. To Morita, the manager was a traitor to the investment Sony had made in him as an employee and a human being. The basis of the Japanese approach to corporate loyalty "is the idea that the manager thinks first and foremost about his employees, and in return, the employees are loyal to their manager. In a sense, this is a very paternalistic way of thinking: while managers and employees are in a tightly knit relationship, they are by no means equal" (Agawa, 2000). A CEO has a responsibility to create a good image for the company for the solvency of his employees as well, not simply to make a profit for shareholders as in America.

Usually, like American companies "Japanese companies compete harshly with each other" although "coordination and cooperation" within the corporate framework are stressed, as well as adherence to company standards and procedures (Mashima, 2001). Sometimes Japanese companies within an industry, when they perceive it to be in their interest, will cooperate, such as to ask for government protection. Japanese electronics companies in the 1990s, for example, had "faith in the power of industrial targeting and coordinated plans…[and] decided that HDTV was too important to be left to market forces" and turned to their government for support to develop the technology (Beltz, 1993). In general, Japanese companies are far less wary of soliciting government protection, if they believe will help their company. In contrast to American company's zeal regarding capitalism and promoting a free-market, competitive image, protectionism is not scored to the degree it is in the United States. American companies, although some have called for protectionist policies from Congress, seldom do so as openly as Japanese companies, for fear of harming their image and making it seem as though they cannot compete in the world marketplace.

The 1990s recession and the pressures of globalization have generated a recent shift in corporate culture in Japan. Japanese companies have had to focus more on generating revenue for shareholders. There is less deference to authority and past company image. Long-term stable employment is less reliable, but still employment fluidity is less marked than it is in the United States. The seniority system remains, although industry analysts predict wage differentials will widen, terms of employment and working conditions will become more individually specific, and awards systems will be diversified (Takeshi, 2003). Before, quite often work team performance, rather than individual performance determined an employee's rating.