Ethics in Toyota Company (Case Study Sample)
choose an ethical issue and discuss how the ethical issue affect the companysource..
Ethical Issues in Toyota Company
Ethical issues in Toyota Company
Toyota Corporation is a global and multinational motor company based in Japan. Even though the company recently facing ethical blames, it has undergone a tremendous development founded on its industries and innovative spirit as a corporate outlook. Therefore, it currently boasts approximately 183 billion yearly on sales, making it the global largest automaker (Barron et al., 2017). Its business operations are all over the world, with its markets in many countries as well as territories like America, Europe, and Africa. However, the company has been criticized and accused of concealing defects on their vehicles concerning acceleration hence costly lives (Vafeiadis, et al. 2019). However, the company aims to strive under an ethical framework hence its extension of goodwill to the society through corporate social responsibility like education sponsorship in developing countries. The accusations, which were majorly felt in North America, came before and after the recall of Toyota vehicles in the market (Chikudate, 2019). Toyota recall seems not to change anything as far as the market dynamics are concerned and instead have continued to widen. Worst still, the company had to face the US criminal investigation and litigation. Thereby, the company is suffering market has the consumers started to doubt the Toyota products.
Ethical issues in the company
Contrary to its corporate principles, the company faced ethical issues, particularly in 2010 when its vehicle was found in the market to be the fault, especially in the United States (Chikudate,2019). As such, the company was putting the lives of the people in danger by giving less attention to safety. For instance, the vehicles' brand tended to accelerate themselves to uncontrollable levels, hence causing mayhem and, worst, still death to the users. The case and the experience made the company recall almost all the defective vehicles, and the incident was broadcasted on national and international media. Consequently, the sales of the company reduced drastically. Besides the defects on the company's motor vehicles, an environmental debate has centered on the corporation over fossil fuels emit greenhouse gases rendering the company unethical (Holstein et al. 2018). On the contrary, the company has resolved the environment by innovating battery vehicles.
The company could have considered the consumers' safety not by producing products that comply with safety standards but also by providing them with preventive information regarding the inadequacies in their products. Furthermore, a company should operate according to international sustainability expectations through environmental conservation (Barron et al., 2017). However, the company, in pursuit of profits, ignored such crucial ethical matters. The publicity and the damage caused by the company drew the attention of the stakeholders involved, who gave their input to reverse the situation.
Impact of ethical issues to Stakeholders
The company management system is subdivided into departments that carry specified functions. For instance, the internal team is expected to be innovative, creative, and inventive in addressing CRS programs and ethical matters. Operating strategies have been put in place based on continuous improvement, challenges, respect, and teamwork to become righteous (Crane, 2020). On the other hand, the company has external stakeholders tasked to address ethical issues at the outside environment of the society and the customers. The team emphasizes the use of corporate social responsibility as a marketing and advertising tool hence getting mileage as the customers value the company's endeavors.
Besides, the community and government organizations are part of the stakeholders whose inputs in the company are highly regarded. The government and the community provide the base under which the company operates. Therefore, the company gets guidelines, policies, and regulations that act as ethical compasses from these stakeholders and the international bodies, without which the stakeholders cannot free themselves from the shame associated with the company (Choi & Lee, 2018). They have a responsibility to participate and support the running and the production of the company to avoid such shortcomings as ignorance and negligence in relation to ethics.
It is immutably arguable that a company with Toyota stature should endeavor to make profits from its production. Still, it should also consider the welfare of the consumers by operating ethically. Despite the company's global appeal, the impact of concealing defects in their products greatly affected the company. As such, a company should widen its responsibility beyond economic responsibility to ethical, legal, and philanthropic obligations. The company ought to have put in place measures to improve its pr
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