CORPORATE SOCIAL RESPONSIBILITY 2 Introduction This essay presents a case of a company that has dealt with public criticism from various stakeholders. In the introduction part readers will be able to know the company, its mission, and the type of business that it provides. Later on, the essay identifies the event which was responsible for the strong criticisms promoted by stakeholders, what the specific criticisms were, and the business’ response to the criticisms. All researched information can be confirmed by consulting the reference list. CORPORATE SOCIAL RESPONSIBILITY 3 Toyota Motor Corporation (TMC) was founded in Japan in 1937 by Sakichi Toyoda and is now considered one of the “giants” of the automotive industry. In the first year TMC produced 4013 units. In July 2012 - 75 years later - TMC “worldwide cumulative production tops 200 million units”. As reported by Lowry W. (April 29, 2014), in 2013, TMC is producing cars, trucks, and buses in five continents and leads the world market with 11.8% of share ahead of General Motors and Volkswagen. Financially, (and except for 2008) results have been very positive during the new century. From the FY 2014 Financial Report (May 8, 2014), the shareholder dividend as per March 2014 was 165 yen per share (Total Amount of Payment: 522.9 billion yen, Payout Ratio: 28.7%). Although Toyota USA’s Mission states "To attract and attain customers with high-valued products and services and the most satisfying ownership experience in America." Toyota’s Group uses an official statement called The Global Vision (refer to http://www.strategicmanagementinsight.com/mission-statements/toyota-mission-statement.html or http://www.toyota-global.com/company/vision_philosophy/toyota_global_vision_2020.html... ... middle of paper ... ...cial Responsibility. University of Houston. Retrieved from http://www.instituteforpr.org/topics/corporate-social-responsibility/ Lowry, W. (April 29, 2014). Why companies like Toyota lead in global automobile market share. The Market Realist. Retrieved from http://marketrealist.com/2014/04/companies-like-toyota-lead-global-automobile-market-share/ (n.a.). May 8, 2014. FY 2014 Financial Results. Toyota Motor Corporation. Retrieved from http://www.toyota-global.com/investors/financial_result/2014/pdf/q4/presentation.pdf (n.a.). (September 3, 2013). Mission Statement of Toyota. Retrieved from http://www.strategicmanagementinsight.com/mission-statements/toyota-mission-statement.html (n.a.). 2005. The Role of Business in Society. International Organization of Employers. Geneva, Switzerland. Retrieved from http://www.ioe-emp.org/fileadmin/ioe_documents/publications/Policy%
Stakeholders are individuals and constituencies that contribute, either voluntarily or involuntarily, to its wealth-creating capacity and activities, and who are therefore its potential beneficiaries and/or risk bearers1. There are several different types of stakeholders associated with a corporation, and those stakeholders can have different views and opinions on what corporation's goals should be and how they should be running. I have interviewed three different stakeholders of Staples Inc., an employee, a customer and a stock holder, to find their relationship between them and the firm. Then, I will use this information to suggest how the firm should proceed and continue to have a better and more beneficial relationship with its stakeholders.
...th a growing proportion of elderly people. Global market dynamics and innovations in big data and social networking are transforming the business strategies of companies everywhere—and forcing them to rethink fundamental rules of engagement. For better or worse, the future entrepreneurs will have to surface as one the most disruptive forces. As big data pushes for alternative ways of working – proactive solutions that drive information must quickly figure out which new policies and tools can be utilized most effectively. This grants enormous opportunities for key technological breakthroughs that will be needed for the next generation of transport.
Evens after countless back to back recalls, Toyota still has cutting edge advantages that allows them to maintain their position as one of the leading automobile producers globally. Toyota’s cutting edge strengths include:
As one of the leading automobile manufacturers in the world, Toyota ranks within the top three worldwide. Due to their unique business model, they are now have a market share of 14% in the first four months of this year. That is an astonishing 2.3% jump from the previous year. According to Autodata.com, the Toyota City based automaker ranks fourth in United States sales.
Salespeople need to know the history of the company, how the company has grown, and how the company runs currently. According to Toyota Global, the company was founded on August 28, 1937 in Japan, by Kiichiro Toyoda. The company has grown steadily over the years, and currently the Camry is one of the most popular cars in the world. Toyota has manufacturing companies it does business with in 27 different countries. Toyota’s vision statement is “Toyota will lead the way to the future of mobility, enriching lives around the world with the safest and most responsible ways of moving people” (Toyota Global). This statement shows Toyota places an emphasis on innovation, safety, and environmental responsibility. Forbes states the company has over $255.64 billion in sales making it the ninth most valuable brand in the
The company Toyota Kirloskar Motor Private Limited (TKMPL) according to its mission statement aims to play a major role in the development of the automotive industry and the creation of employment opportunities, not only through its dealer network, but also through ancillary industries with a business philosophy of "Putting Customer First".
In the auto mobile sector, General Motors and Toyota are the two biggest player that rank in the world ranking of manufacturers (OICA, 2010). Toyota corporation faces prosecution for covering up severe safety problems with “unintended acceleration,”according to court documents, and continuing to make cars with parts the FBI said Toyota “knew were deadly” (Ross et al., 2015). The brakes of the vehicles are defect because it is unable to break when the pedal is press; besides that, another problem arises when the model vehicles that is equipped with keyless ignition cannot turn off their ignition even when the ignition buttons only requires 3 second to stop the engine due to the poor instruction manual that is not posted on a place that is visible to the driver in times of crisis (Ross et al., 2015). The issues with the brakes shows that Toyota is doing a irresponsible business by acting it out unethically such as putting their sales level over the customers safety which is similar to the General
Significant production and distribution network Toyota’s CCC21 strategy allows them to see a steady increase in their production and sales. As previously stated, in Fiscal Year 2012, the company produced and sold a combined total of 17.4 million vehicles worldwide. Their opportunities throughout their geographic locations (53 manufacturing locations within 28 countries and regions) in addition to their capabilities reach a plethora of customers (vehicles sold in more than 170 countries and regions), thus increasing their revenue. (Worldwide operations, 2016) Weaknesses Automotive recalls Toyota had a decline in sales from 2008 to 2011, and a portion of that reason was due to recalls.
Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.
In the country, the vehicle is known as one of the luxurious and perfect among other types of vehicles. The vehicle was launched here and is being assembled here as well, giving the citizen a very good perception that it is like theirs. The country is one of the richest countries in the world meaning that majority of the prestigious people are here and it was right to bring this type of vehicle in this country as demand is high thus sales would also be high. The vehicle has been doing well in competing with other types of vehicles categorized as luxurious e.g. Mercedes-Benz, BMW, and Range Rovers just to name a few. It has a good reputation in that it is of high style, the luxury brand of automotive heavyweight, Toyota and has a perfect combination of an outstanding fuel efficiency and potent power. (Capizzo
Toyota’s uses both differentiation and low cost as generic strategies to try and gain a competitive advantage over their competitors in the automotive industry. The market scope that Toyota uses is a broad one that encompasses nearly every type of customer that is in the market to purchase an automobile. Toyota is able to target such a large market because they have something for everyone. Toyota has four wheel drive trucks and SUVs for the outdoor types or those who live in areas that face severe weather conditions, hybrid models like the Prius for the eco-friendly customers that are interested in saving the environment, along with the standard cars for general, everyday use. Additionally, Toyota provides vehicles for all price ranges.
Toyota Motor Corporation is one of the largest automakers in the world. At its annual conference in Tokyo on May 8, 2008, the company announced that activities through March 2008 generated a sales figure of $252.7 billion, a new record for the company. However, the company is lowering expectations for the coming year due to a stronger yen, a slowing American economy, and the rising cost of raw materials (Rowley, 2008). If Toyota is to continue increasing its revenue, it must examine its business practice and determine on a course of action to maximize its profit.
Toyota- focused differentiation, medium pricing, breadth of product line is low. Company is known for quality products, and nice styling.
This merger happened in the year 1999 where Renault acquired 36.8 percent equity stake in Nissan, 22.5 persent stake in Nissan Diesel and 100 percent in Nissan’s European Finance subsidiaries amounting to USD5.4 billion. This merger is based on the principal that both companies will share resources but will retain their separate identities. This was done to improve their individual competitiveness. While Nissan is somewhat stable in North America and Asia, it is supported by Renault in Europe and South America. They share responsibilities for Africa and Middle East.
2. What is the difference between a.. We noted that SSM Health Care learned from manufacturing companies in their quality journey. What can nonmanufacturing companies learn and apply from Toyota’s philosophy and practices? Suggest specific things that education and government might learn.