An Assignment

on Business Ethics
Submitted to:
Prof. Dr.Tim Goydke
Dean of International Graduate Center (IGC)
Hochschule Bremen

Submitted by:
Shah Naoaj Ahmed
Deepak Ramachandran
Mohammed Yaseen Hussain

MBA in Global Management

International Graduate Center (IGC)
Hochschule Bremen

Date of Submission: 30.08.2018

 Table of Contents

 Introduction……………………………………………………………………………….. 3

 Corporate social responsibility………………………………………………………..... 3

 Company Introduction…………………………………………………………………... 4

 Range of issues dealt by Toyota according to sustainability data book 2017.......... 4

 Range of issues dealt by Ford according to sustainability report 2016/2017……… 6

 Evident similarities and dissimilarities between two companies according to the

sustainability reports…………………………………………………………………….. 8

 Differences between Toyota and Ford based on their country Differences……..... 9

 Other explanations to the differences of the companies………………………….... 10

 Whether or not a standardized approach would be appropriate for Ford and

Toyota…………………………………………………………………………………….. 11

 Conclusion……………………………………………………………………………….. 13

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 Introduction
This assignment is focused on two of the biggest automobile manufacturing companies of
the world, Ford motor company from USA and Toyota from Japan. The main aim of this
assignment is to discuss about the difference that are evident between the annual social
reports of the two company’s corporate social responsibility and the range of issues dealt by
them. Based on those issues we will try to find out the influence of country differences on the
reports. Furthermore, we tried to find a standardized approach for both the companies to
deal with its issues.

 Corporate social responsibility:

The concept of Corporate Social Responsibility can be explained quite simply; it is simply
doing the right thing. Corporate Social Responsibility, or CSR for short, is about how the
organization’s existence affects stakeholders beyond own insular interests, recognizing the
impact of operations have on the community at large.

CSR aims to ensure that companies conduct their business in a way that is ethical. This
means taking account of their social, economic and environmental impact, and consideration
of human rights. It can involve a range of activities such as:

 Working in partnership with local communities

 Socially responsible investment (SRI)
 Developing relationships with employees and customers
 Environmental protection and sustainability
(The University of Edinburgh, 2017)

In a 2018 article, Collier discussed about the benefits of corporate social responsibility. The
benefits of CSR speak volumes about how important it is and why you should make an effort
to adopt it in your business. Some clear benefits of corporate social responsibility are:

 Improved public image:

This is crucial, as consumers assess your public image when deciding whether to
buy from you. Something simple, like staff members volunteering an hour a week at a
charity, shows that you’re a brand committed to helping others. As a result, you’ll
appear much more favorable to consumers.

 Increased brand awareness and recognition:

If you’re committed to ethical practices, this news will spread. More people will
therefore hear about your brand, which creates increased brand awareness.

 Cost savings:
Many simple changes in favor of sustainability, such as using less packaging, will
help to decrease your production costs.

 An advantage over competitors:

By embracing CSR, you stand out from competitors in your industry. You establish
yourself as a company committed to going one step further and considering social
and environmental factors.

 Increased customer engagement:

If you’re using sustainable systems, you should shout it from the rooftops. Post it on
your social media channels and create a story out of your efforts. Furthermore, you
should show your efforts to local media outlets in the hope they’ll give it some
coverage. Customers will follow this and engage with your brand and operations.

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  Greater employee engagement:
Similar to customer engagement, you also need to ensure that your employees know
your CSR strategies. It’s proven that employees enjoy working more for a company
that has a good public image than one that doesn’t. Furthermore, by showing that
one is committed to things like human rights, you’re much more likely to attract and
retain the top candidates.

 More benefits for employees:

There are also a range of benefits for your employees when you embrace CSR. Your
workplace will be a more positive and productive place to work, and by promoting
things like volunteering, you encourage personal and professional growth.

 Company introduction:

Toyota: Toyota started in 1933 with the company being a division of Toyota Automatic Loom
Works devoted to the production of cars under the direction of the founder's son, Kiichiro
Toyoda. Kiichiro Toyoda had traveled to Europe and the United States in 1929 to investigate
automobile production and had begun researching gasoline-powered engines in 1930.
Toyota Automatic Loom Works was encouraged to develop automobile production by the
Japanese government, which needed domestic vehicle production, due to the war with
China. In 1934, the division produced its first Type A Engine, which was used in the first
Model A1 passenger car in May 1935 and the G1 truck in August 1935. Production of the
Model AA passenger car started in 1936. Early vehicles bear a striking resemblance to the
Dodge Power Wagon and Chevrolet, with some parts actually interchanging with their
American originals.
Although the Toyota Group is best known today for its cars, it is still in the textile business
and still makes automatic looms, which are now computerized and electric sewing machines
which are available, worldwide. (The Editors of Encyclopaedia Britannica, n.d.)

Ford: Ford Motor Company is an American automaker and the world's fifth largest
automaker based on worldwide vehicle sales. Based in Dearborn, Michigan, a suburb of
Detroit, the automaker was founded by Henry Ford, on June 16, 1903. Ford Motor Company
would go on to become one of the largest and most profitable companies in the world, as
well as being one of the few to survive the Great Depression. The largest family-controlled
company in the world, the Ford Motor Company has been in continuous family control for
over 110 years. Ford now encompasses two brands: Ford and Lincoln. Ford once owned 5
other luxury brands: Volvo, Land Rover, Jaguar, Aston Martin and Mercury. Over time, those
brands were sold to other companies and Mercury was discontinued. (Astoriaford, 2018)

According to TOYOTA’s sustainability data book 2017 there are range of issues Dealt
by TOYOTA. Such as:

1. Society:
1.1 Initiative to improve traffic safety: According to a World Health Organization (WHO)
survey, 1.25 million people worldwide died in traffic accidents, making them the ninth leading
cause of death. While the number of deaths due to traffic accidents has been decreasing
slightly in Japan, the United States and Europe, it has been constantly increasing in
emerging nations and regions where traffic safety education and transportation infrastructure
have not kept up with increases in the number of cars on the road. On a global scale, traffic
fatalities continue to increase constantly and are predicted to become the seventh leading
cause of death by 2030 unless countermeasures are implemented.

In order to achieve Toyota’s ultimate goal of Zero Casualties from Traffic Accidents, the
development of safe vehicles is of their important, but it is also essential to educate people,

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namely drivers and pedestrians and to ensure safe traffic infrastructure including traffic
signals and roads. Towards achieving a safe mobility society, Toyota believes it is important
to promote an Integrated Three Part Initiative, involving people, vehicles, and the traffic
environment, as well as to pursue Real-world Safety by learning from actual accidents and
incorporating that knowledge into vehicle development. Toyota has also defined its
Integrated Safety Management Concept as the basic philosophy behind technologies
towards achieving the elimination of traffic casualties and is moving forward with developing
such technologies. Such as Integrated Safety Management Concept, Popularization and
Promotion of Safety Technology Development, Multiple Safety Systems Are Packaged, ITS
Connect, Cooperative Driving Support System, Impact-absorbing Body and High-strength
Cabin, THUMS Virtual Human Body Model, Automatic Emergency Reporting System (D-Call
Net), Driver Emergency Stop Assist, Parking Assist, Automated Driving.

1.2 Customer First and Quality First Measures:

The origins of Toyota’s “Customer First” and “Quality First” principles lie in the Five Main
Principles of Toyota, which embody the thinking of Sakichi Toyoda, and the spirit of audit
and improvement of Kiichiro Toyoda. Since its foundation, Toyota has established a
corporate culture that focuses particular attention on quality that will produce customer
smiles and on continuous kaizen (improvement) achieved through genchi genbutsu (onsite,
hands-on experience). “Storyteller Activities” Maintain Focus on the Series of Recall Issues,
Coping with Quality Troubles, Strengthen Quality Improvement measures through Region-
driven Measures Centered on CQOs, Customer First Measures, Toyota Customer
Assistance Center and Lexus Information Desk, Customer Feedback from Each Country and
Region and ongoing Customer First Staff Education

1.3 Creating an Affluent Society:

To help realize a mobility society of the future and affluent lifestyles, Toyota is working on a
wide variety of initiatives beyond just automotive manufacturing, including building
environmentally-friendly communities where people connect more freely, developing life-
supporting robotics and sponsoring sport events such as the Olympic Games Tokyo 2020
and Paralympic Games.

1.4 Next-generation Traffic Systems: Connected with Communities and Society:

To realize a society in which everyone can travel comfortably, Toyota is working on the
commercialization of Ha:mo, a new transport system which optimally combines personal
mobility with public transportation. Environment-friendly, highly maneuverable, ultra compact
electric vehicles are used. Stations are set up near access points to public transportation
systems such as train stations to encourage a short, quick ride from trains or private
automobiles.

1.5 Promoting Various Sports, from Company Teams to Lessons for Children:
Toyota is working to help create affluent communities by adopting initiatives that promote
various sports. Since their founding in 1937, Toyota has focused particularly on company
sports. The image of players competing, including the challenge, teamwork and never giving
up, embodies the spirit that Toyota holds dear. The image of coworkers working hard
together helps raise the work ethic. There are currently 35 athletic clubs and teams, each of
which balances sports with work to bring excellent results.

1.6 Education:
In accordance with TOYOTA’s principle that “Monozukuri is about Developing People,”
Toyota provides support worldwide to promote the development of the human resource who
will become the leaders of tomorrow. Respecting the culture and customs of every nation,
Toyota aims to help realize an affluent society through corporate activities rooted in local
communities. Toyota also provides support in occupational and educational areas and

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promotes programs that convey the importance of monozukuri to ensure sustainable
advance of such a society.

Activity Case (Japan) In September 2016, Toyota held fuel cell vehicle classes for the
upper-grade students of elementary schools in Iwaki City, Fukushima Prefecture. The goals
of these classes were to provide young people who will become the leaders of tomorrow the
opportunity to experience cutting-edge technologies, focused on fuel-cell vehicles (FCVs),
and to arouse their interest in the environment, science, and monozukuri. With the help of
members of Toyota’s Battery & Fuel Cell Production Engineering Division serving as
instructors, this project enables students to have a broad range of experiences through
monozukuri.

2. Environment:
Toyota actively provides environmental education, supports environmental programs, and
undertakes reforestation. As forests are the basis of a sustainable society, Toyota carries out
continuous ownership and preservation of its forests under appropriate management.
Furthermore, Toyota has implemented environmental activities in Japan and overseas with
an emphasis on collaboration with society and regions, and employees have undertaken
regional environmental preservation through volunteer activities.

Activity Case (Japan) The Forest of Toyota was created by rejuvenating a company-owned
forest in Toyota City as a satoyama model. It is offered as a site for environmental learning
targeting a wide segment of society with a focus on local children. In July 2016, the Biotope
Club of the local Sueno Elementary School indicated that the students of the club wanted to
know the depth of a pond and learn how to preserve local plants as a reference for
improving the biotope at their school. In response, a program for learning about
improvement techniques and creatures living in the biotope was carried out. The students
who attended the program took the lead in applying what they learned to improve the
biotope at their school. Toyota plans to continue providing opportunities for environmental
learning that matches the wishes of the people in the local communities.

In accordance with the national policies of Japan, Toyota designated June as its “Toyota
Environment Month” in 1973 and has been taking measures since then to raise employees’
awareness and actions for the environment. In 1991, they changed the name to “Toyota
Global Environment Month,” expanding their activities globally. During the period, they
ensured that all global employees are aware of Toyota Global Environment Month. This
includes displaying common poster worldwide, making event-related notifications on
monitors at various locations throughout company sites and on the intranet, and distributing
the President’s message on the environment.

Enhanced active disclosure of environmental information and communication:

To further expand Toyota’s environmental disclosure, they utilized their annual
environmental report and website to effectively release the results of progress along the
Toyota Environmental Challenge 2050 and the Sixth Toyota Environmental Action Plan.
They also actively disclose environmental information and conduct environmental
communication with a wide range of stakeholders through various events.

According to Ford’s sustainability report 2016/2017 there is a range of issues dealt by

FORD. Such as:

1) Social
1.1) Employee wellbeing:
Ford has adopted a number of corporate social responsibility initiatives making sustainability
a main priority. The company recognizes that without its dedicated employees, the firm
would cease to function. A number of employees initiatives have been introduced to improve

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employee well being, productivity and efficiency recognizing employees as the backbone of
the company. These initiatives are based on principles such as strategic hiring, training,
protection and safety and healthcare. Ford does what it can to ensure that the best person is
selected for a particular position. Training varies depending upon the level of the employee.
In 1999 Ford also revamped its safety program and created global safety process standards
that have reduced injury rates to one-tenth. The company also conducts virtual ergonomic
assessments to identify and reduce injuries. Finally, Ford has partnered with the United Auto
Workers union to offer a voluntary two-year enhanced healthcare program that offers
personalized care to employees with chronic health issues.

1.2) Education
Ford also supports employee diversity and education by introducing employee programs like
Ford Interfaith Network to help them learn and respect different religious beliefs. Ford also
introduced driver training courses in each community where professional drivers ride with
students and teach them important skills to help keep them safe on the road. The initiatives
and efforts done by Ford in the present and past helps us understand that Ford believes in
employee well-being.

1.3) Community Involvement:

Ford recognizes the importance of gaining consumers’ trust and respect; it strongly believes
that the consumer is a major priority. It participates and sponsors many events to help its
local communities. The Ford Partnership for Advanced Studies or Ford PAS is an award-
winning academic program initiated by the company that brings together students, teachers,
employers, and community leaders to help better educate the youth by offering free tutoring
to all who participate. The Ford Volunteer Corps are a special group of volunteers who
rebuild homes in poverty-stricken areas. Every year Ford holds a Global Day of Caring in
which thousands of volunteers engage in building projects in communities throughout the
world. To keep all these events in order, Ford has a community services department called
the Ford Motor Company Fund and Community Services.

1.4) Anti-Bribery and Anti-Corruption:

Ford maintains a high standard of operation although the company has many facilities
around the world. They need to comply with a range of national laws and governmental
enforcement practices. To ensure that they don’t accept local norms if they fall below their
standards, the company strengthened the anti-bribery and anti-corruption elements of their
Global Terms & Conditions (and other contracts) for their suppliers, continuously training
individuals who may encounter bribery or corruption issues in their work and assess all
operations for risks related to bribery and corruption.

1.5) Reporting Violations

Ford ensures that through the compliance program, employees are encouraged to report of
known or potential violations of the law, or Policy Letters and Directives. Individuals can
anonymously report such violations to the General Auditor's’ Office, human Resources or the
Office of the General Counsel, using telephone hotlines or via email. A cross-functional
committee reviews all allegations, oversees any investigations, and implements corrective or
disciplinary actions.

2) Environmental:
Ford is making great strides in making its vehicles more sustainable. Ford has embraced
sustainability through greener operational processes such as equipping six of its plants with
dry machining capabilities which lubricates the tools used during the processes this process
is different from the traditional way as it saves great amounts of water and oil. Ford has
initiated a ten-year plan to decrease energy consumption at 25 of its plants. According to
Ford, “Ford hybrid and electric vehicles feature advanced fuel-saving technology which
optimizes efficiency and simplicity. Ford is investigating lighter and more sustainable

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materials for its cars such as using aluminum for production and installing fuel-efficient V-6
engines. Manufacturing of electric vehicles and EcoBoost engines are additional ways that
Ford is trying to reduce its carbon footprint.

 Evident similarities and dissimilarities between two companies in terms of issues

dealt by both the companies according to their sustainability reports:

Both Toyota and Ford belong to the same industry but in different countries. After analyzing
both of their annual reports we found some similarities in their work as well as some
dissimilarity. Such as Toyota uses kaizen approach and Ford uses six sigma approaches in
their work environment. Both companies have been striving towards continuous
development and also giving their best effort to CSR activities and taking more eco friendly
initiatives.

As mentioned previously Toyota is very keen on customer satisfaction and quality

improvement. Their employee benefits come second on the list. On the other hand Ford is
more of a balanced on quality and employee satisfaction as well. Employee satisfaction is on
the same level as the quality and customers.

Toyota has been taking a wide range of initiatives to build an affluent society. The company
has been building environmentally-friendly communities where people connect more freely,
developing life-supporting robotics and sponsoring sport events. On the other hand ford is
trying to make their own structure and products better for the society. They are focusing on
less carbon emission technology to support the climate change. Toyota is working for next
generation traffic system which is more safe and efficient. Ford is more products focused
and trying to make safe vehicles.

Ford is taking an initiative to prevent bribery and corruption to their branch and subsidies all
over the world. Toyota is also taking an initiative for similar goal but in a different approach.
There is a gift giving tradition in Japan. Whenever someone comes to meet they bring gifts.
Toyota is taking initiative to control the flow of gifts and limiting it in a level where it will not
be as bribery.

Ford has a system about reporting for violations where employees are strongly educated
about the law and its usefulness. They promote reporting for violation to every sector of the
company. Toyota has a book called Toyota code of conduct where all the rules for the
company are properly stated. They also promote reporting for violence from every part of the
company.

Toyotas approach towards employees is rather different from Ford. Employees are nurtured
in such a culture that they address a problem through the root cause instead of taking a
perfunctory look in Toyota. On the other hand employees at Ford are not trained in making
deeper efforts in addressing problems. They are made to leave the problem at perfunctory
levels.

Both the companies are running various educational programs to educate the next
generation of people about the safety and efficient use of vehicles from colleges to
universities. Toyota provides support worldwide to promote the development of the human
resource who will become the leaders of tomorrow respecting the culture and customs of
every nation. On the other hand Ford also support education and supports employee
diversity and education by introducing employee programs like Ford Interfaith Network to
help them learn and respect different religious beliefs.

Although both the companies have been continuously working on educating the people
Toyota has taken a few extra steps and measures to be environmentally sustainable but

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providing education regarding sustainability to the people as well as its employees through
the example of its own forests.

 In a 2010 article Hashimoto discussed about the differences between Toyota and
Ford based on their country Differences:

As the countries Japan and USA are geographically very far from each other, their way of
doing their everyday work both in professional and nonprofessional sector are very different.
The Japanese approach to work can seem starkly different from the American approach
such as:

Speed vs. Consistency:

Generally U.S. Company’s decision making is quick. Superiors give some great leeway to
subordinates so that they can decide and make decisions quickly. Unfortunately there are
some errors that can come because of that.
Japanese company’s decision making is in stages along their corporate hierarchy. Their
decisions are very cautious and conservative and sometimes slower than U.S. companies.
These stages are backed by plenty of meetings and documentation. This minimizes error
and brings consistency at all levels.

Roles & Responsibilities for Individual vs. Group

The U.S. Company’s roles are very individualized. Contribution of individual is very important
as linked to company goals. Japanese companies require individual contribution to the whole
group but recognize that the whole group must succeed otherwise the individual’s
contribution has no meaning.

ROI of Revenues vs. ROI of Relationships

US Companies focus on Return on Investment (ROI) or the end result. They don’t concern
themselves on how it is achieved. US companies spend less time establishing their process.
Japanese also focus on ROI; however, they emphasize the process on how to get
there. For example, they evaluate how to create the process for the project so that they
regard the cost including the value of establishing the process in total.

Risk Takers vs. Risk Adverse cultures

If we ask something to achieve for them, they’ll say “We can do it” even though they can do
it in probabilities of 50-60%. After they have accepted, they try to achieve as close to 100%.
If the Japanese feel that it’s possible to achieve most likely 100%, they don’t say “Yes”. Their
agreement is careful because they want to be accurate. They make sure it is exactly is
100%. What the Japanese say is important. If they are not right it will reflect badly on them.

Heterogeneous vs. Homogeneous cultures

Since U.S. is multicultural, the company is consisted of a plenty of nationalities, which
means there are so many different ways to think. Almost in all situations, they don’t progress
without say anything.
Basically a Japanese company is organized by Japanese. Almost everyone has same
background to realize the situation so some of the understanding is in unspoken words. This
is one of the important communication skills in Japan.

Time Spent Collaborating vs. Collaborating Time Spent

US companies aim to do meetings efficiently as much as they can. The meetings are fewer
and less time. If meetings are too plenty the people seem to resist them.
Meetings are very common in large companies. They value the process to agree with
everyone who is related to their project, so they have many meetings and spend a lot of time
in meetings.

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Remote vs. Face-to-Face communications
Contacting clients by email or on the phone seems to be more natural in conducting
business relationships.
They respect meeting each other face to face. It is important to them for conducting business
relationships.

Loose vs. Structured Working Styles

Basically the working style is almost the same as Japan. It is very flexible, where working
from home is very normal. They have cubicles for each employee who focuses on a person’s
independence-high walls, isolation, and spaciousness.
Most Japanese companies work regular office hours and they don’t permit working at home.
The work environment is set like a school class where the head of the department is at the
top of a row of desks. There are group oriented- no walls, no cubicles and closeness.

Self-Sponsored vs. Company-Sponsored Retirement Rewards

The 401k is entirely sponsored by employee salary with the exception of matching funding
by companies. This system is one of the things that do not encourage people to stay with
companies. One exception is the pension systems in the USA.

Japanese are encouraged to stay in a company by gaining monetary rewards. These are
company sponsored payments independent of the person’s salary. The longer they stay the
higher the company sponsored payout is to them.

Personal Life vs. Professional Life

Family and personal time is the priority in the US. Work-Life balance is a must. There is
some socializing outside of work but not as a group. In Japan, priority is on the work life.
Work is given immense importance rather than personal life. There are many traditions that
reinforce this.

Workers' discretion
Toyota allows certain amount of discretion to workers on the assembly line such as
empowering them to inspect the job for defects and to stall the flow on the assembly line to
rectify the defect then and there and then let it go to the next workstation to ensure zero
defect situation and to eliminate the need of rework division.

But Ford on the other hand works on eliminating the scope for workers' discretion to be used
at the workplace since each worker on the assembly line has to perform only a single task
and the next task has to be done by the next worker. Workers have no authority to stop the
flow of work as such, an incidence of defect is allowed to pass till the end of the process and
the defective item is sent to rework division.

Set up time & cost

Toyota fundamentally designs its products for continual flow meriting frequent changeovers
and set ups, but this could be offset by the extra costs of blocking capital in the form of huge
pile up of stocks, characteristic of Ford Motors. In Ford scheduling is done for continuous
run, changeovers are less frequent and so, low set up time and cost.

 Other explanations to the differences of the companies:

It is understood that approach towards work of Japanese people is very different from people
of USA. The above factors tell us that country and culture differences play a major role in the
working of the people as well as the performance of a company. However we analyzed there
could be some other explanations to the differences of the companies. Such as:

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As both companies are located in two different countries and its employees are from
different cultures, beliefs and have a different approach towards work and life, the
management in both the companies adheres to different approaches to attain success. Due
to the above factors Toyota being a Japanese company follows a different CSR model to
Ford which is an American company. Such as:

The Six Sigma methodology (Ford) and Kaizen (Toyota) both have their pros and cons;
however, the current management practices and process controls are complex which
requires the combination of both the systems to work simultaneously. The "continuous
improvement" notion of Kaizen methodology involves an inclusive culture within a workplace
that ease the top-down communication on making strategic decisions for the company,
whereas Six Sigma aims to optimize the business process by keeping a keen eye at each
stage to manufacture the final product with zero errors. (Essay Writing Service Uk, n.d.)

The Japanese orientation towards Kaizen has actually enabled them to be a perfectionist in
all the production industries they entered into, and it translated into better, affordable and
durable products for the end consumer. Kaizen is indeed a strategically better methodology
for process optimizations, immediate action items and quality controls to ensure an error-free
product to the consumer along with an inclusive learning approach within the workplace.
However, there are some benefits to the utilization of Six Sigma such as attempting to
reduce costs, increase productivity and competitiveness. (Essay Writing Service Uk, n.d.)

The management differences between both the companies have lead t different approaches
in the market. Ford's mass production (produce to stock) philosophy has received ample
appreciation and has been convicted to be the right path by most other manufacturers. But
the onset of Toyota production system is based on the philosophy of "lean manufacturing”,
brought a change into the well complacent American automobile industry system. Toyota
Relies on piecemeal style of production, i.e., produces only when there is pull from the
customer but whereas Ford manufactures in large scale to create stock based on estimated
demand. (UKESSAYS, 2017)

 Whether or not a standardized approach would be appropriate for Ford and

Toyota:

In this part of the report we are going to discuss about whether or not a standardized
approach could be possible for both Ford and Toyota. Following the previous discussion we
can say that Ford believes that employees should perform certain specific tasks where as
Toyota believes that every employee should be able to multi task to increase efficiency. Due
to this Ford over simplifies the complex operations and hence relies on employees with low
level skills and better chances of improvement.

Ford works towards an environment sustainable business they concentrate more on the
community service in the society when compared to Toyota which have ventured deeper into
the aspects of “Going Green”. Toyota being from Japan has its own forest named “The
Forest of Toyota” where society people and children are educated about the environment.
Ford on the other hand has emphasized on educating children for free and providing safety
classes but has not been active in educating regarding environment sustainability. (Toyota,
Sustainability data book, 2017)

The obstacles faced by Ford to be environment friendly is seen to be more than Toyota as
engine sizes in Japan are considerably smaller when related to the sizes in USA hence
reducing fuel emissions have been more successful in Toyota. Toyota has adopted a
sustainable mobility concept seeking ultimate eco-vehicle that vehicles coexist harmoniously
long into the future. They introduced the Prius technology that controls the hybrid system
achieving excellent energy efficiency and low fuel consumption. The achievement on Toyota

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Prius sets up a good example to other auto manufacturers including Ford. (Toyota,
Sustainability data book, 2017)

Overall, Toyota being in Japan have been very successful in reducing CO2 emission in
Japan when compared to the USA and hence it proves that Toyota is much more eco
friendly making it the third best automotive company in environmental sustainability. (Toyota,
Sustainability data book, 2017)

It is understood that there are a wide range of reasons why the social and environmental
factors of both the companies are different and how they have dealt with it, but there still
could be standardized approaches that can be used to reach targets.

Standardized approach based on the society:

Toyota and Ford both belong to different countries which are very different from each other
in terms of society and culture. These differences have strong influence on their working
behavior and daily life. A Japanese employee gives the foremost priority to the company and
work. On the other hand an USA employee prefers a proper work life balance and employee
benefits. Japanese employees prefer staying in the same company for the rest of their
careers and they do not strongly support career switching. But for an USA employee it is a
common behavior to switch their workplace for better opportunities. It is evident that both the
working culture are very different from each other and that strongly influence the employees
those are working in it.

As working environment and employee behavior is strongly dependant on each other any
kind of change can bring a very strong effect on the company's overall performance and that
can drastically affect the society as well. Both the companies are performing individually with
different strategies in production (Ford- Mass production and Toyota- Lean
Production) accomplishing new heights in their own sectors, cultures and society. Binding
them in the same frame and making standardized approaches for both the companies may
not be efficient in terms of society and company development. Both the Japanese and
Americans have certain likes and dislikes in a working environment. So converting both their
approaches into standardization may not solve all the issues of both the companies in future
and may create more problems for both employees and society.

Standardized Approach Based on Environment:

Automobile manufacturing industry significantly influences the environment. Environmental
responsibility has become the most important obligation to the automobile industry due to
the current environmental issues. It is very important for companies like Ford and Toyota to
be environmental sustainable in every way in the automotive industry. Hence it is very
important for both the companies to carry forward a standardized approach.

In an article published in Daniel’s Fund Ethics Initiative, Ford has been making new strides
to being sustainable. They have been investigating on lighter and more sustainable materials
for its cars such as using aluminum for production and installing fuel-efficient V-6 engines.
Ford has also been reducing its carbon foot print by manufacturing electric cars and
ecoboost engines. Although it is understood that the company has been taking steps to
improve the environment they should produce a better approach to dealing with
sustainability and competing against the big environmental sustainable companies like
Toyota. It is hence very necessary that Ford follows a strategic approach similar to Toyota.

According to Toyota’s 2017 Sustainability data book Toyota has adopted a sustainable
mobility concept seeking ultimate eco-vehicle that vehicles coexist harmoniously long into
the future. Their approach to sustainability has been in collaboration to the society and long
into the future by creating their own forest and educating the people and children regarding

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environment
nvironment sustainable. They have also been continuously pushing towards employees
being educated regarding the environment and what steps to take to produce more
sustainable products. It is important that Ford uses the same approach of educating the
society
ty regarding sustainability as well as educating the employees. Toyota has set up
certain challenges for itself for the future years to come. A following standardized approach
of Toyota should be followed by Ford to be more sustainable:
sustainable

Challenge1

New Vehicle Zero CO2Emissions Challenge

Challenge 2

Plant Zero CO2 Emissions Challenge

Challenge3

Life Cycle Zero CO2Emissions Challenge

Challenge4
Challenge of Minimizing and Optimizing Water Usage

Challenge5

Challenge of Establishing a Recycling-based Society and Systems

Challenge6

Challenge of Establishing a Future Society in Harmony with Nature

 Conclusion:
The main aim of the automobile industry should be reliability, efficiency and no compromise
on quality. Customer always comes first and it is very important that all companies in the
industry must work towards customer satisfaction. But it should also be u understood that to

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ensure good customer service and better quality products the employees should be given
top importance as well. Ford and Toyota are two leading companies in the automotive
industry that should work towards a better quality, better efficiency and a support to the
community and people. Although both the companies are located in two different countries,
and follow different cultures, rules and approaches to their success, they should eventually
have a common goal to provide betterment to the society, customers and employees in their
own way. As Edward Everett Hale once said:

“Coming together is a beginning; keeping together is progress; working together is

success.”

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