Why “Everyone Else Is Doing It, So It Must Be Okay” Is Dangerous

There’s a phrase I often hear from foreign business owners in Japan.

“My friend’s company does it that way, too.”

“Other foreign business owners do the same.”

“Someone in the community told me it wasn’t a problem.”

Of course, there’s nothing wrong with getting information from people in the same situation.

In fact, for foreign business owners who don’t speak Japanese well and have few Japanese acquaintances, the community is a vital source of information.

However, when doing business in Japan,

the mindset of “It’s okay because everyone else is doing it”

can sometimes pose a significant risk.

Information from the community isn’t always correct

Within the foreign community, various pieces of information are shared regarding:

• visas
• taxes
• social insurance
• employee hiring

and so on.

However, much of this information is based on personal experience.

For example, suppose you hear from another foreign business owner that

“My company isn’t enrolled in social insurance.”

Even if that story is true, it doesn’t mean

“You don’t have to enroll in social insurance.”

It might simply mean

“It hasn’t been a problem so far.”

The fact that no problems have arisen is not the same as being legal.

This is a very important point.

For example, imagine a company like this:

• It doesn’t have employment contracts.
• It doesn’t pay overtime wages.
• It isn’t enrolled in social insurance.

That company might have operated without any issues for years.

However, that does not mean it is legally compliant.

It may simply be that:

• Employees did not voice any complaints
• There were no government inspections
• No accidents occurred

That is all.

The fact that no problems have arisen does not prove that the company is acting lawfully.

“A friend told me it was okay” will not protect you from liability

Government agencies will not exempt you from liability simply because “a friend told you so.”

For example,

• Labor Standards Inspection Office
• Pension Office
• Hello Work
• Immigration Bureau

If you receive a notice from any of these agencies, explaining that “I was told that in the community” will not hold up.

Ultimate responsibility lies with the business owner themselves.

A common mindset among foreign business owners

Why does this happen?

One reason is a sense of security.

“I don’t understand Japanese.”

“I don’t understand the system.”

“I don’t know who to consult.”

In such a situation,

the words of someone from the same country or a business owner in the same position can feel very reassuring.

However,

“reassuring information” and “correct information” are not necessarily the same.

You need to be especially careful when it comes to laws and regulations.

In Japan, the situation differs for each company

For example, even within the same food service industry, there are differences between establishments in the following areas:

• Number of employees
• Working hours
• Employment status
• Sales volume

Therefore, something that wasn’t a problem at Company A might become an issue at Company B.

It is dangerous to simply copy what other companies do.

What Constitutes Truly Reliable Information

So, what kind of information should you trust?

Ideally, you should verify the following:

• Laws
• Information from government agencies
• Advice from experts

Of course, information from the community can also be helpful.

However, that is merely reference information.

The final decision should be made based on reliable evidence.

The Longer You Run a Business, the More Cautious You Become

Interestingly, foreign business owners who have been successful in Japan for a long time do not make decisions simply because “others are doing it.”

Rather, they tend to verify “what the law says” and “whether it is acceptable for the company.”

This is because they know that if a major problem occurs even once, they will lose:

• Money
• Time
• Reputation

Summary

The foreign community is an important source of support for business owners.

However, “everyone else is doing it” and “it’s legally sound” are two separate issues.

To sustain a business in Japan over the long term,

you must not rely solely on information from the community,

but rather have a proper understanding of the legal system and make appropriate judgments.

The most important thing for a business owner is not to think about “what other companies are doing,”

but rather

“what is right for my own company.”