We find Business Ethics practice of Toyota.
Toyota was founded in 1937, by Kiichiro Toyoda
Japanese multinational automotive manufacturer with its headquarters in Toyota, Aichi
Fifth largest company in the world
First to promote the use of hybrid vehicles
2. Introduction
• Toyota was founded in 1937, by Kiichiro Toyoda
• Japanese multinational automotive manufacturer with its head
quarters in Toyota, Aichi
• Fifth largest company in the world
• First to promote the use of hybrid vehicles
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3. Company Logistics
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• Markets in about
170 countries
• overseas network
consists of more
than 160
importers.
• Works with part
distributors
08.30am
Product logistics Production
Part Logistics
• Just-in-Time principle
• Pull system eliminating the
waste from excess production
Distribution Values
• Toyota offers about 60 car
models, with each channel
offering only 15-25 models.
• Toyota’s sales and marketing
work is divided into four
distribution channels Toyota
(mostly high-end, large cars),
Toyopet (medium size), Toyota
Corolla (compact), and Netz
Toyota (compact).
• )• Four distribution channels
• Toyota (mostly high-end, large
cars), Toyopet (medium size),
Toyota Corolla (compact), and Netz
Toyota (compact)
• Approximately 5,000 outlets and
120,000 employees
4. Social Accounting Process
Sustainable advancement: Sets the environment, traffic safety,
and education as the three considerable factors according to
the social needs of each country or region, undertaking active
measures while utilizing their resources of technology and
expertise
Environment: For effective water use, Toyota introduced
reduction technologies at plants around the world along with
water saving activities. It made steady progress reducing CO2
emissions in production activities by developing and applying
new technologies
Risk Management: Appointed risk managers to prevent and
mitigate the impact of risks
Compliance: Toyota states that Toyota shall “honor the
language and spirit of the law of every nation and undertake
open and fair business activities to be a good corporate citizen
of the world.”
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Environment
Risk Management
Compliance
Sustainable Advancement
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5. Is The Process Effective?
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They have several separate reports,
for example , reports on social
sustainability or environment
sustainability. They have clear
disclosure of accounts and reports to
all stakeholders, in a form that is
appropriate to their needs.
Diverse Report System
It reflects the views and accounts of
all principal stakeholders. For
example, in their report “SMILES”
they have also included how their
TOYOTA Scholarship changed the
life of a girl living in China.
Transparency
Toyota encourages the organization
to continually improve its
performance and extend the areas not
covered or accessed
Continuous Improvement
8. Possible Issues
Fat Cat Salary
• Toyota Motors’ President Akio Toyoda earned 352 million Yen ($2.84 million)
• Toyota Engines Fabricating representatives with the work title Generation Supervisor earns a
yearly salary of $127,447.
• Whereas the HR workers earn a mnimum annual salary of $45,914.
Shareholder returns
• Profit is given based on net pay. 35.9% gave the common shareholders. 10.6% save for value.
3.8% save for resource.
• Insider Trading
• Toyota is a well-known company
• They do not exchange anything unlawful.
Insider Trading
• Toyota is a well-known company
• They do not exchange anything unlawful.
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9. Civil Society Collaboration
Collaboration with Civil Society
Engages With NGOs
Collaboration with CFAO
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Healthcare, Instruction and the Environment
Controversy with civil society
• Few civil society groups claimed against Toyota for additional
time activists
• Toyota damaged the labor law and harmed the specialist wellbeing.
• As a result, it strengthened Japan’s work hour contention and other
factors.
10. Government
Control & Audit
Video Monitor
Undisclose Location
Bullet Resistance
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Government Relationship
• Japan’s government and Toyota will collaborate
to progress the innovation key for independent driving
• Lobbying:
Total Lobbying Expenditures: $3,820,453
Controversies/Corruption
• A senior official from Toyota was caught in Japan
for abusing Out of line Competition Anticipation Law.
• Few of Toyota’s agents bribed the government to hide
inconsistencies in a plant in China
• The agent, Futaba Mechanical Co. was later suspended
and fined
12. Employees Discrimination
Based on Larry Lewis case :
• Terminated from his employment because of a
disability.
• Failed to provide reasonable accommodations,
unlawfully discriminated against him in terms of
compensation.
In November 2012 Muslim employee of Toyota :
• Verbally sexually harassed by a colleague
• lack of an adequate response by her supervisor to
human resources, the suit says
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U.S. Equal Employment
Opportunity Commission :
• Pay $202,000 to two
black men from
Landover and Silver
Spring to settle a race
discrimination suit
14. Employees Policy
• Protect personal information
• Only use of Personal Information
facts of:
1. Conducting Survey for research,
planning and customer
satisfaction.
2. Any provisions in any applicable
laws and regulations or follow
any government notice
Toyota use fair and good ethical
practice for protective privacy.
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Wages
Fair wages policy for both
male and female.
Affirmative
Toyota recruit new Japanese people who
were victim of Tsunami and Earthquake
15. Due Process : Safety and Health Management
Source: Figure 2f from: Irimia R, Gottschling M (2016) Taxonomic revision of Rochefortia Sw. (Ehretiaceae, Boraginales).
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16. Whistleblower Policy
• Support employees and stakeholder to report unethical practices conduct by company
• Toyota paid 2.5 million for disclose confidential information
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17. Consumers Controversy
• Hide Information: and paid $ 1.3 billion for safety issues which
responsible for 5 deaths.
• In India : Manufacturing defect in the oil tank that the car consumes
more petrol.
• In USA: Use of substandard metal components in vehicles.
• In Canada: GPS and media system was not working properly.
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18. Controversies in a Nutshell
Bribing
Hide defects
Fight against civil social groups in
japan for damaging labor laws.Employees: Discrimination
(racial, physical and verbal
harassment)
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Shareholders
Fat cat & Frequent profit paid to shareholders
Employees
Consumer
Civil
Government
19. Theory of Egoism
Fat Cat, Frequent payments to
Shareholders & Bribing
Utilitarianism
Hiding Defects
Relativism
Subjective Policies regarding Labor
Laws
Feminist Ethics & Natural Rights
Discrimination
Application of Theories
Quality is the best business plan
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20. Adopting Particular Theory: Absolutism
Zero Tolerance For Defects
Rules Against Bribing
Rules for Employers &
Employees
Management Rewards
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21. Recommendation
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Absolutism: Standard rules to be followed
regarding pressing issues globally.
Utilitarianism: Doing what’s best for
the most.
Feminist Ethics: Emphasizes on building strong relationships which
would in time build a motivated team.