This can be an ethical audit article on Toyota Company. The ethical audit is based on the UGB 210 Business Ethics project. This report was written within my second time at the Penang SEGI College (School of Sunderland). Business Ethics was a central module in my own degree programme.
Part 1 of this report is an introduction and background of Toyota Company and this section tackles the first part in the assignment. Here will be the identifications of Toyota's main moral dilemmas they are facing.
Part 2 of this report is an analysis on the moral dilemmas and solutions with moral theory assisting in process A. Here will be discuss about how Toyota is dealing with these moral dilemmas with facts and I am applied the ethical theory to the dilemmas platform on the dilemmas situation.
Part 3 of the report will be explained about how my quarrels and observation are support by the ethical theory and what I consider to be Toyota Company's ethical best practice and worth.
Part 4 of this report is my own opinions of recommendations to the plank of directors of Toyota to answer the critics they facing.
TABLE OF CONTENTS PAGE
Table of Material 2
1. 0 Moral dilemmas facing by Toyota 3
1. 1 Quality Control Problems 3
1. 2 Environmental Issues 4
1. 3 Toyota and People Resource Management 5
2. 0 Solution of Dilemmas 5
2. 1 Recall and Apologize 5
2. 2 Eco Friendly Environments 6
2. 3 Toyota Management Principles and Business culture 7
3. 0 GUIDELINES and Principles of Toyota 8
3. 1 Decision Making 8
3. 2 The Value of Customers 8
4. 0 Suggestions 9
5. 0 Bottom line 10
6. 0 Personal references 11
The Toyota Engine Company was founded by Kiichiro Toyoda in the age of 41 and his first passenger car created in calendar year 1935. Toyota Company is the well known greatest automaker of Japanese vehicle supplier in global. The business origin is within Japan but currently it gets the US market coverage set up from 1957 until now for over 50 years success. Lexus and Scion are also one of the Toyota's central products. However, a huge company profitable like Toyota may have facing its downfall too as it pertains to the honest dilemmas since the day they start their business. On this report, it'll identify and discuss about the Toyota Company's business ethics in a few areas such as:
The main moral dilemmas facing by Toyota and its stakeholder
Evaluation on the ethical dilemmas and solutions with ethical theory supporting
Toyota's ethical guidelines and beliefs with ethical theory supporting
Recommendations on the criticism
1. 0 Ethical Dilemmas facing by Toyota
The Toyota Company has been facing certain moral dilemmas predicated on their business which has needed immediate attention since the company established fact globally. It is important since it could either have an effect on the business enterprise reputation and also its stakeholders as well. The technology in autos that it presents to today's world is highly treasured which has made the company gain recognition through the years (Chen et al, 1997, pp. 856). It really is a multinational company that has assumed the first position on earth in car developing and the fact that it's facing moral dilemmas could lead to its downfall.
1. 1 Quality control problems
One of the major ethical issues which have damaged the Toyota Company has been the development of poor goods such as, the poor floor mat, acceleration concern and sticky gas pedals. The creation of automobiles is a delicate department as the company has to look out for the safeness of the consumers and ensure that it is assured. The recent injuries that were reported involving the Toyota car has brings to numerous negative attention by the mass media. The Toyota Company stated that an improper floor mat was installed in the automobile from another vehicle. This induced the vehicles to obtain accelerating issues resulting in the malfunctioning of the cars and has causes consumers into incidents and death cases. The acceleration problem was reported by other users of the Toyota car as well and this led to further investigations being conducted since the floor mat explanation did not seem to be enough for some of the experts.
The proven fact that the cars which were produced were considered to be of poor quality damaged the image of the other brands produced by the same company (Connor, 2010). Toyota Company is confronted with the ethical issue of agreeing to responsibility and ensuring the consumers of better products or maybe work on the situation aggressively by seeking to clear its name from the clutter. The step taken by the company will greatly have an impact on its reputation and its own stand with the consumers and other opponents as well.
1. 2 Environmental Issues
Globalization presented a great deal of opportunities for the company but the facet of local climate change and globalization has increased with time. The fact that globalization offered a positive attitude in the business meant that they were beginning different branches internationally.
The creation of automobiles has been at its highest optimum given the free trade go away that was brought up by the effect of globalization. These innovations have included the upsurge in the number of factories interacting with the creation of the cars. This has unveiled the aspect of the weather change problem that has been ongoing. Most of the industrious countries have been located to be the best contributors to the condition with the release of the fumes from the market sectors and other related factors (Community Designs, 2003).
The exhaust fumes from Toyota autos are also contributors to the condition and there's been the introduction of the electric cars which may have threatened to take over the car market. Although, it has not yet been founded, it is quite clear that the electric vehicles will be obtaining more support in order to protect the environment. Most companies have been co-operation with the live green aspect to get the environment. That is a choice that the Toyota company will be forced to deal with considering that they have involved in car production. To develop a fresh electric cars section may be an option that they might choose to consider.
1. 3 Toyota and Individual Resource Management
The development of the Toyota Company was initiated by the facet of competition. The primary competitors were the General Motors where they will be the largest automaker all around the world. Therefore, this makes the development of the Toyota Company at a very high level. It had been seems that the human resource management is influenced due to the rising volume of employees and handling ways of be put in place. Teamwork was the way given to the problem and it appears to be quite successful in Japan and other Asian countries.
However, the technique did not appear to be as effective far away especially the european countries. The management strategy applied there is certainly quite different resulting in the surge of different issues. This can be contributed by the facet of cultural differences in the countries (Winfield, 1994, pp. 46). That is quite hypersensitive as the company would not want to make trouble to the culture observed by other countries but at the same time should manage the management factors in other countries as well.
2. 0 Solution of Dilemmas
The honest dilemmas that the Toyota Company is facing play an important role in the building of the company and enhancing its current status. How Toyota actually working with those issues and its own solution are important and the supporting honest theory will be included in the discussion. That is to makes certain that the problems are fixed and the business is increased significantly.
2. 1 Recall and Apologize
Looking at the issue of their quality control issues, this had been a big affect on the Toyota's development and it acquired a lot of effect on the sales being made as the consumers were slowly losing trust in the brands being produced by the company. The realization that the company might be producing goods that are of low quality was brought to the attention of the market leaders of the business (Snider et al, 2003, pp. 180).
The Toyota Company made a decision to take major steps in working with the problem to be able to prevent future mishaps from taking place. That they had recalls all the damaged vehicles and can work to repair their quality control issues. This has included using a highly computerized engine unit on the automobiles and an operating control system which will be use in crisis cases. The business also decided to assist and agreed to make further investigations to be able to clear their name from the chaos and to regain the consumer's trust.
The Toyota Company has approached the problem by taking the blame and making apologies to their consumers. They explained to the consumers and press where the challenge was and how they aimed to cope with it (Brien, 2010). Since the situation was located to be from the vehicle company, it was found out that the business only assemble the elements of the cars that contain been brought in but do not make their own autos. Therefore, the Toyota Company must watch out at the problem of their resource chain management team.
The company applied the virtue theory when interacting with the problem. This is because the business has chosen to do what was right due to the facts according to the situation that happens. The business used wisdom to investigate the situation and despite the fact that the fault may have been brought on by others, they claimed responsibility.
2. 2 FRIENDLY TO THE ENVIRONMENT Environments
The problem of environmental responsibility has been taken quite seriously by the Toyota Company due to the danger that the business might bring to the surroundings. The business has approached the problem of competitive aspect as well as a responsibility factor. Most companies are altering to the live green initiatives building a good attitude and giving themselves a credit.
Hence, it is only natural if the Toyota Company participates in the initiative. The company has generated an eco friendly environment in their factories. At america branch, the company was granted "a zero landfill status. " This intended that the business observed the waste recycle action and every throw away product that had been released in the company was being transferred to companies that deal with waste materials recycling. Other methods that Toyota uses in the environmental protection are minimizing the quantity of energy utilized by 19%.
The action considered by the business regarding the environmental rules can be applied on deontology theory. Going right through out the honest problem, Toyota Company thought it was their responsibility to be sure the environment is sustained despite the activity that the business partcipates in. They viewed the prospect as a duty and responsibility to the consumers (Prahalad & Hamel, 2006, pp. 280). The business selects to do the right thing no matter what are the repercussions in return.
2. 3 Toyota Management Ideas and Business culture
The fact that the increase in plants at a worldwide level has raised some troubles in the HRM section is vital because the company can develop strategies that will suitable to all its employees and satisfied the customers. The cultural aspect brings about an ethical concern that is quite sensitive and requires to able approached with caution. The Toyota Company has offer with the problem through the use of the management principles of the company in every its branches. Who owns the Toyota Band of Companies Toyoda applied one main process in all his companies which claims "honor the vocabulary and the heart of the law of every country and undertake open up and fair corporate and business activities to be always a good commercial citizen of the world" (Demise, 2005, pp. 215).
Team work is the main aspect applied by the business and this principle is offered to the rest of the companies in other different countries. Therefore, Toyota Company calls for control of the situation by assigning codes of do that the employees should follow. However, they do cherish the considerations based on different countries but the region of team work is highly found in the process. It is because managing large number of employees in one point has proven to be difficult and separate them into organizations are simpler to manage.
Utilitarianism theory can be able to describe the moral do applied by the Toyota Company in reference to the HRM office and taking care of the employees. Toyota Company examined the consequences of having all large employee bases and founded their actions on the conclusions (Liker, 2004). They had to extend their business at different countries, and so they can increase the number of employees for effective servicing of the clients. The fact that the several cultures existed also was considered but it would end up being problems if the several countries were allowed to run the business according with their own principles. This might make the management very difficult providing the employees more expert than the employers. Hence, the utilitarianism theory was applied in that selecting the major theory.
3. 0 Best Practices and Beliefs of Toyota
In order to improve and make Toyota continue make it through, the business has applied among the better practices that produce sure they maintain the business ethics. The ethical theories are bought into the talk too.
3. 1 Decision Making
The decision making process that they apply is quite unique and not short term but rather philosophical. Even though making earnings and sales might be part of the main goal, furthermore important is understanding one's role in the history of the business. That is why the Toyota Company observes with their workers and their management skills.
This may be based on the virtue theory as well, since the philosophy of the company may be considered to be morally corrected in conditions of ethics. Making use of this principle covers all major basic principles of the business from the inner environment to the external environment (Cho, 2001). Your competition is watched externally predicated on this rule as everyone can do their functions effectively in order to achieve the company's aims.
3. 2 The worthiness of Customers
The Toyota Company promised that they appreciated their customers predicated on the actions that they took regarding their quality control issues that lead to mishaps. This might have been related to the actual fact that they wanted to maintain their customer foundation and somehow they considered their customers and they noticed that offered them an apology was quite important. This might be based on the virtue theory as it was part of their morals values to improve the situation that had been caused by some of their products.
Although the fact that their type of production affects the environment greatly, the business is took time to work on the waste material process. To lessen the pace of the power being consumed by the vehicles was difficult and it might have given their opponents an advantage over them but they still choose to view the environment first. For instance, Toyota's Prius, uses cross types technology to combine a petrol engine unit with an electric motor and for that reason, it offers lower emissions than any model in its class, is cheap to run, which is 100 per cent recyclable (Crane and Matten, 2007). This is actually the deontology theory, where Toyota seems that this is part of these duty for environmental improvement.
4. 0 Recommendations
The Toyota Company will be forced to come up with good alternatives that will allow them seem as competitive as before and make good improvements. On the product quality control problems products, the alternatives that the Toyota Company made for the public apologize and acknowledge the blame remain not an effective way to make alternatives because of their slow feedback to the public has cause the business image damage. Therefore, the business can use some other supply string management system that could ensure the quality of the products received by the vehicle companies is good. To resolve and make respond to the problem quickly could also end up being quite beneficial as the challenge will be settling quicker. This can make sure that the ultimate products that got from the Toyota Company exceed the customer's expectations.
The Toyota Company has been managing environmentally friendly issues quite effectively. However, they could work on the research and to become more creative by taking part in the creation of the electric automobiles. Since the misuse product recycling program manages most the factories but not the exhaust released from the vehicles. They can try to flip some of their branches in every the developed countries to get started on producing the electric automobiles because this would give them a make an impression on their competitors.
Managing the employees is not a simple step particularly when they are really on internationally. Therefore, the company must have a major principle that guides their activities and the aims that occur the all different companies must have achieve at one goal. Since teamwork does not seem to use everywhere, the company should let a few of the other countries observe their ethnic ethics and achieve the objectives within the given time.
5. 0 Conclusion
As conclusion because of this record, although Toyota Company is a well known automaker brand on the planet but they also facing their hard time with the honest dilemmas aspects such as, quality control issues, environmental issues and also their human source of information management issues. Toyota aware the dilemmas importance where they have beat their dilemmas facing in order to boost their business and provides consumer a reliable towards their company brand by using the ethical theories such as, Deontology theory, Utilitarianism theory and Virtue theory. Toyota also done their finest ethical practices and prosper in the moral terms. Finally, Toyota should always value their customer by thinking about the consumer security rather than just making money and also to take notice of the environment concern also in order to reduce the entire world pollution.
