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Toyota Motor

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Toyota Motor

The operation of the business is related to different issues that must be evaluated. In the

management of the business, different issues must be considered as this, including the legal

issues, issues related to sustainability, ethical issues, and the adoption of safety standards, among

others. The form ender evaluation is Toyota which is one of the largest car production firms in

the world. Toyota Motor North America, Inc (TMNA) is a subsidiary that is headquartered in

Texas. The firm plays an essential role in the marketing, designing, and manufacturing of cars in

the North American market. The firm plays an essential role in the employment of thousands of

employees and has an investment of more than one billion (Toyota. (2022). The firm has also

invested much in its sustainability efforts and ins supporting the transformations that help in

minimizing environmental degradation. The firm is related to several issues, some that support

its business while others act as challenges; these issues include corporate social responsibility,

product liability in relation to negligent decisions, and encouraging ethical behaviors at work.

Although Toyota has a large market in the entire North America, a key issue that affects

its business operation is product liability die to negligent designs. Product liability is a serious

issue where the plaintiff, in this case, a consumer, can act in case they encounter defective items.

It is related to negligence, and this is based on strict negligence (Legal Information Institute,

2020). Therefore, the perpetrators can be held answerable irrespective of their intent or

knowledge about the product’s defectiveness. It is related to several defects, which include

design, manufacturing, and breach of warranty. Although Toyota has a strong brand name, it was

faced with a case of product liability. In 2009, Toyota was faced with a potential lawsuit where

the firm agreed to pay $1.2 billion to overcome prosecution (ABC News, 2014). The firm was

accused of covering for the severe cases of the safety challenge of unintended acceleration. After
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the prosecution, the firm agreed that it misled American consumers by hiding and making

wrongful statements about two issues related to safety that affected the vehicles. The two issues

resulted in unintended acceleration. Based on the evaluation, it was evident that Toyota’s

primary aim was profit maximization over the safety of the consumers (Ross et al., 2014). The

firm also failed to recall all the faulty cars; however, it continued to manufacture these cars, and

it had information on how deadly they were when used. Although the media raised concerns

about the faulty cars, the firm continued to assure the consumers that the cars were safe and

reliable.

Toyota has played an essential role and has invested in corporate social responsibility

around the world. Wirba, (2023) asserts that CSR refers to the different ways firms adopt

different initiatives in support of the community in a voluntary manner without any form of

legislation. The implementation of CSR is often voluntary and is essential as it helps the firm to

meet its social responsibility in advancing its social support in areas they are operating (Wirba,

(2023). It helps the firm to manage the cost and the benefits related to the operation of the

business activity. The firm has engaged in different CSR initiatives in the USA and other nations

globally. The firm has engaged in the development of initiatives to attain carbon neutrality in the

USA. It has also engaged in initiatives to support biodiversity within the American nation. As

part of the CSR, the firm has engaged in tree-planting activities in Brazil (Toyota, 2022). The

firm has planted more than 130 thousand trees in Brazill as part of the environmental

conservation. In Thailand, the firm has engaged in coastal cleanup. This is part of Toyota’s

initiative to reduce cases of marine pollution, especially the right of plastic waste in the oceans.

Another CSR by Toyota is the engaged in disaster and recovery support. In 2018 the

numerous natural disasters that occurred, the Toyota firm developed “Toyota Disaster Recovery
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Support.” The primary role was supporting the community of the people affected by the disaster

more quickly and supporting them in restoring their lives. This was the case of the natural

disasters that often affected the Japanese people. the Toyota firm has also supported the “Special

Olympics for Athletes with Intellectual Impairments.” Special Olympics (SO) and an

international firm that supports individuals with intellectual challenges to engage with society by

offering them adequate and regular training and development of events and competitions that

allow them the showcase their opportunities (Toyota ‘Social contributions initiatives,’ 2022).

Toyota has joined the partnership agreement to become a global partner. Toyota associated with

the organization by supporting its mission and vision and in the development of a more diverse

society irrespective of individual abilities. Toyota has also played a key role in rejuvenating the

forest in Toyota City (Toyota ‘Social contributions initiatives,’ 2022). It has also engaged in

different initiatives in the USA to help in planting trees that help in the conservation of the

environment. The firm has a dedicated part of its income to support the green environment.

Toyota has also developed the “Toyota Orchestra Camp.” This is an initiative that helps in

supporting he future leaders, and it is conducted every year since 1985 in Japan. It helps in

supporting the youth in different ways such as in music. It allows the participants to gain

experience and return to their communities to have a positive impact in relation to their skills.

These have helped the participants to become key music performers.

Another key issue related to Toyota is ethical behavior at work. It is common for firms to

pride themselves on their higher-level code of ethics. The code often helps in the communication

of the right standards and admirable aspirations (Pope, 2015). Ethical codes are often supported

by good faith in their implementation within the workplace. Grigoropoulos,(2019). indicates that

business ethics are a critical issue in the corporate world. They are related to the ethical values
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and morals that help in shaping the everyday business process, the behavior of the different

stakeholders, and the policies of the firm (Grigoropoulos, 2019). Commonly, business ethics are

practices that every employee must follow as outlined by the firm. They relate to a broad range

of responsibilities, and they are not negotiable. At the core of business ethics include honesty,

and higher morality.

Toyota has developed various ways to engage ethical behavior among its employees. And

one of the key ways is the development of a code of conduct. “Toyota Code of Conduct” is based

on different key issues, and among them is always being faithful to the duties. In this case, it

encourages the employees to adhere to the delivery of the duties issued to them. Another code of

conduct is respecting people and creating a healthy and safe working place. In this case, the firm

respects every team member and takes the initiative to create an enabling environment. The firm

also protects human rights, and in this case, it adheres to international human rights duties

(Toyota, ‘Toyota code of conduct’, 2023). Another code of conduct by Toyota is the adherence

of the right to privacy. The firm indicates that it respects the privacy of its customers and

employees. In this case, it takes the required measures to ensure that it has protected all the

personal information to increase data privacy and protection.

In conclusion, Toyota is one of the biggest firms and it has engaged in different initiatives

to support its CSR. Some of the CSRs include planting trees, cleaning the ocean, and supporting

the Olympics among mentally disabled people. However, the firm has suffered from product

liability, where it paid about $12 billion due to the acceleration challenges with the manufactured

cars in the USA. The firm has stressed the need to engage in ethical behaviors a work. In this

case, it has developed ethical conduct as a way of stressing the importance of ethical business

conduct.
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References

ABC News. (2014). Toyota to Pay $1.2B for Hiding Deadly’ Unintended Acceleration.’

https://abcnews.go.com/Blotter/toyota-pay-12b-hiding-deadly-unintended-acceleration/

story?id=22972214#:~:text=ABC%20News%20first%20reported%20the,caused%20by

%20the%20unintended%20acceleration.

Grigoropoulos, J. E. (2019). The Role of Ethics in 21st Century Organizations. International

Journal of Progressive Education, 15(2), 167-175.

Legal Information Institute. (2020). Product liability.

https://www.law.cornell.edu/wex/product_liability#:~:text=Product%20liability%20is

%20a%20doctrine,of%20their%20intent%20or%20knowledge.

Pope, K. S. (2015). Steps to strengthen ethics in organizations: Research findings, ethics

placebos, and what works. Journal of Trauma & Dissociation, 16(2), 139-152.

Ross, B. R. I. A. N., Rhee, J. O. S. E. P. H., Hill, A. M., Chuchmach, M. E. G. A. N., &

Katersky, A. A. R. O. N. (2014). Toyota to Pay $1.2 B for Hiding Deadly’ Unintended

Acceleration’. ABC News.

Toyota (2022). ‘Social contributions initiatives,’

https://global.toyota/pages/global_toyota/sustainability/esg/social-contribution/

social_cont_all_en_p.pdf

Toyota, (2023). ‘Toyota code of conduct’

https://global.toyota/pages/global_toyota/company/vision-and-philosophy/

code_of_conduct_001_en_2.pdf
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Toyota. (2022). Toyota USA: Toyota Operations Map: Design, Engineering & Marketing.

Toyota USA | Toyota Operations Map | Design, Engineering & Marketing.

https://www.toyota.com/usa/operations/map/tcal

Wirba, A. V. (2023). Corporate Social Responsibility (CSR): The Role of Government in

promoting CSR. Journal of the Knowledge Economy, 1-27.