Corporate Social Responsibility_Toyota

7/26/2019 Corporate Social Responsibility_Toyota

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Corporate Social Responsibility

Introduction

Corporate Social Responsibilityor CSR are the voluntary events and endeavors started by an

organization to work in a fiscal,

public, community

and naturally supportable way. As perFriedman !"#$%, CSR is referred as the supportable and viable initiative or pledge by a

company or large business to work morally and assist in social and economic progress

while rendering improved standard of life of the staff and their loved ones along with the

society and the people around them as a whole. Companies can have a lot of

harmful results on the surroundings. In many casesseveral corporate companies

have come up with initiative to support an idea of balancing the revenue with a pledge to

ethical activity to compensate the consequences of business or support social cause.

&regor '(!(% mentioned that, nowadays it is preferred for big medium companies that

are consuming natural resources, to make official guidelines of moral codes for

stakeholders to follow so called Business Ethics. )usiness ethics theories actually

include moral standards or codes a business or organization brings into practice to

ensure that business and staff members perform with suitable and appropriate conduct.

*amare '(!!% cited it altogether unusual as CSR is concerning bringing potential for

viable work and surroundings. +t shows considerations for cultural differences and finds

the business prospects in making the skills of workers.

About the Organization

oyota motor corporation is a -apan based automobile manufacturer which is

considered largest manufacturer in the world. he company was established in !"$ by

*iichiro oyoda.

he company has / different brand under which it manufactures vehicles namely

oyota, 0e1us, Scion, 2ino and Ranz. Apart from this oyota has about # 3 share in

+suzu, /!./3 share in 4aihatsu motors and !#.3 investment in Fu5i +ndustries. oyota


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has best manufacturing and corporate procedures. 6anagement decisions are based

on long7term philosophy and believe in reliable technology and approached that serve

people. oyota has its dealers and stores across the world. +t incorporates best

corporate policies to serve people and surroundings.

8ith intention 9contribute to society and the world: oyota group has came up with

innovative and effective social responsibility and ethics. he company has very good

policy of commitment to surroundings. he policy is committed to backing the group or

individuals who work in support of the Surroundings, 0earning and Safety as these

three things are connected to oyota;s corporate vision perating a business in a manner that meets or e1ceeds the ethical, legal, commercial

and public e1pectations that society has of business. )aker.6, '((?%

he Corporate Social Responsibility CSR% of an organization refers to operating a

business in such a manner that it takes responsibility for the social and environmentalimpact created by the business. CSR is actually an obligation to develop policies and

rules that put together responsible practices into daily business operations and to

reporting on progress created toward implementing these practices. @arly CSR reports

usually targeted on philanthropy or so called charity or generosity as a driver of CSR.

hat term is now replaces by a broad commitment to protecting and improving the lives


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of employees and therefore the communities within which firms do business. CSR

reports currently generally address problems impacting 5ust about each space of

operations= governance and ethics employee hiring, chance and training accountable

buying and provide chain policies, and energy and environmental impact. As you sow,

'(!'%.

A review of some of the literature on ethics provides some interesting insights into the

important area of ethics. Some writers refer to business ethics, which in itself suggests

that an e1acting set of ethics e1ists for business. his, in fact, is totally untrue as ethics

apply to all parts of life and to think you discard one set of ethics and adopt another as

you enter the office is false. @thics are like your skin= they go everywhere whit you.

)azley.6, )erry.A, 2ancock.B, -arvis.R, '((?%

According to, )arry, '(((% business ethics is think about a spread of issues which will

arise from the atmosphere surrounding the business and the way staff and

management and organization which will trot out it morally. +ssues are e1amined, like

fiduciary responsibility, and company social responsibility, company governance and

shareholder relations, and insider trading, bribery and discrimination within the field of

business ethics.

Theories of usiness !thics

+f we talk about morality and ethical theories, morality is concerned with the social

practices defining right and wrong. @thical theory and moral philosophies provide

guidelines for 5ustification of right or wrong actions when settling human conflict. o one

moral philosophy is accepted by everyone.

+n order to understand the ethical behavior we need to understand theories on ethical

and moral issues relating to shareholders. hese theories determine the right or wrong

5udgment for given situation.


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Currently, the three most important theories of business ethics are the shareholder,

stakeholder, and social contract theories. hese theories give clear e1planation of a

businessmanDs ethical responsibilities, and hence, at most one of them can be accurate.

he shareholder theory is the oldest of the three, and it would be fair to distinguish it as

out of favor with many modern business ethicists. he traditional definition of a

shareholder is 9any group or individual who can affect or is affected by the achievement

of the organization;s ob5ectives: Freeman !"E?%. >ne main part of the normative

shareholder theory is that the company decisions affect shareholder outcomes and has

to be ethic. +t concentrates precisely on those people who have a financial or fiscal

share of the company. As per this theory, a companyDs only ob5ective is to serve the

reuirements and concerns of the company;s owners.

Gnder these a few different business ethics theories e1ist, such as the utilitarian, rights

H 5ustice, @goism and @thics of duties.

)oth @goism and utilitarianism 5udge right and wrong based on outcome of a decision.

According to )eauchamp and )owie !""=!E% theory of egoism can be defined as 9An

action is morally right if the decision maker freely make a decision in order to follow

either their short7term reuirements or long7term interests. Similarly Stuart '(($% says

an action is ethically right if it results in the greatest amount of gain for the greatest

amount of persons affected by the action.

Rights and 4uties theories remain important in deciding right wrong in business. hese

theories served many decision makers of religious adherence. +mmanuel 4aimler

!""?% argued that ethics and 5udgment about right and wrong were not dependent on a

particular situation but also on cost of someone;s action.

+f we talk about morality and ethical theories, morality is concerned with the social

practices defining right and wrong. @thical theory and moral philosophies provide

guidelines for 5ustification of right or wrong actions when settling human conflict. o one

moral philosophy is accepted by everyone.


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Friedman !"""% states, 9Responsibility is to conduct the business in accordance with

their Ishareholder;sJ desires, which generally will be to make as much money as

possible while conforming to the basic rules of the society, both those embodied in law

and those embodied in ethical custom.: 2e assumes that if society has sketched out

many ethical and moral standards with corporate law, then the company;s obligations to

non7shareholders will be fulfilled with lawful business practices.

6orality is something which is associated with the social customs mentioning right and

wrong. @thical theory and moral philosophies give principles and rules for validation of

right or wrong deeds when resolving human arguments. +n this case utilitarian theories

can be applied these theories state whether an action is right or wrong is verified by the

actual or probable results that the action will have for the greatest number of people

affected by that action. Above all, business ethics are the principles to attain and sustain

success. +n modern world share holders and public have elevated reuirements of those

behind the management of modern business. Commitment and determination to put

ethics into practice is the prereuisite in your roadmap to business ethics 2olmstrom

and 6ilgrom !""?%%.

The Triple otto" Line Approach

he triple bottom line is a further approach to business social responsibility. +t gives

business manager;s chart of bottom7line results both in economic terms and company

in the social and the environment areas.

+t can be achieved by two methods. First, the three columns of responsibility have to be

put apart, with recording results separately for every column. 0ater, in all three of these

parts, the business should achieve sustainable results. Sustainability can be defines as

the long7term maintenance of balance with respect to ethics and economics,.


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Social sustainability is balance of values in peopleDs lives. ma5or changes in living

standard and 2uman 4evelopment +nde1 of citizens of a same economy is believed

risky and unsafe. 8hen the imbalance grows and the rich get richer and the poor get

both poorer and more numerous, the chances that society itself will collapse in anger

along the risk of anarchy, increase. he condition will remain same for developed,

developing and poor countries.

@conomic sustainability is long7term financial stability against more short7term profits

and unstable revenue. As per the triple7bottom7line model, ma5or businesses have a

moral and ethical responsibility to create business plans allowing stable and continued

action. Sustainability means valuing business plans that may not lead to uick riches

but that also avoid disastrous losses.

@nvironmental sustainability is based on the commitment that natural resources,

especially the oil healing our engines, the clean air we breathe, and the water we drink,

are limited. +f those things deteriorate significantly, our children wonDt be able to en5oy

the same uality of life most of us e1perience today.

Identify sta#eholders concern$%

he essence of CSR is stakeholders concerns. Relationships among stakeholders

become one of the main vehicles for sustainable competitiveness. @ngaging

stakeholders customers, employees, suppliers, communities, investors and others% in

CSR design is a key task for planning and e1ercising stakeholders; engagement.

)asically, this means that stakeholders take a part in the decision making process.

he primary ob5ective is to understand the continuously changing ob5ectives, values,

demands, and e1pectations of those peopleKgroups with stake in the business -an H

Foster, '(('%. Stakeholders concerns are e1pressed by stakeholders in relation to


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business need. hese concerns need to be carefully considered and incorporated in the

process of align CSR with business practice.

Custo"ers= +n order to become and stay competitive and successful, companies

should build lasting relationships with customers. hese relationships are based on the

mutual interest in terms of understanding what customers need and what an

organization can offer to them. he focus is in the uality and reliability of products and

services. +n addition to uality and reliability of products and services, it is very impotent

to have, as om Beters said Lhaving a passion for customers.

!"ployees. he uality of life in the workplace affects employees; private life and their

families. Broviding meaningful work, as well as fair wages and healthy and safe work

environment, helps employees develop and realize their working potential. herefore,

it is important that companies contribute to employees; work, which at the bottom line

develops and realizes their potential. Also, the workplace security and working

conditions add value to employeeDs performances. 4oing so, the company

demonstrates internal CSR.

usiness partners= &lobal competition has brought new paradigm in the business

arena. )usiness partners such as suppliers, 5oint venture and alliance partners, and in

some cases even competitors are very important to companyDs success. +nstead to

compete using unpopular actions i.e. price cutting%, business partners should develop

long7term relationship. 4oing so, they can increase ethical awareness and reduce

comple1ity and costs.

The !nviron"ent$ @thics in business lead to corporate social responsibilities.

6anaging sustainable environment makes good business sense. Bromoting and

practicing eco7efficiency benefits not only the environment, but also the company. he

life cycle of the product and of the company can be e1tended. he energy inputs, to1ic


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dispersion and material recyclables help the company and environment to build the

good ethical image and e1tend the life cycle by using renewable resources.

Corporate Social responsibility of Toyota

4escribing the corporate social responsibility oyota;s Bresident, Akio oyoda says that

the company will act in response to needs to society and enhancing live of people

surrounding it. 2e assures gratitude and appreciation to company;s customers and

stake holders. he company we keep contributing for continuous development and bear

in mind the subseuent environment effects and increased involvement in CSR

)ased on the CSR guidelines and policy oyota 6otor Corporation has taken steps to

assist in well7balanced and continuous development of surrounding and society by the

means of all activities of company in each country. . hey assure of complying with

national and international norms for conducting business with honesty and loyalty. 8ith

rational communication company will retain strong association with stake holders.

he company gives more importance to management involvement with stakeholders to

be a part of sustainable development. Company considers it is importance effort to

build and maintain firm relationships with its stakeholders by clear and honestcommunication. Company presumes its stakeholders to support the initiative and work

in harmony with it.

oyota motor corporate takes efforts to safeguard the personal information of stake

holders and customers who are connected in business.

CSR policy towards e"ployees

he Company values its workforce and considers that the growth and achievement

toyta business duet to each individual contribution and integrated teamwork. he

company encourages the employees to grow and e1cel. +t is always tin company;s

interst to render good and acceptable working conditions and to keep a safe and

healthy working surroundings for all the employees. oyota does not have any


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discrimination policy and supports eual employment opportunities. Company respect

and honour the human rights of people involved in business and in particular, do not use

or tolerate any form of forced or child labour.

oyota 6otor Corporation respects its business stakeholders like distributors, dealers

and suppliers and thrives on long term relationships to reach mutual growth. he

company always looks into realising a steady and long7term development and evolution

for the benefit of shareholders. he shareholders are regularly communicated with

business results and financial aspects of operations.

CSR policy towards Surroundings and co""unities

!nviron"ent7 he Company always looks out to have minimum impact of business

operations to the surroundings the growth should be harmony with the environment .

Considerations are made and strong steps are taken that to minimize effects to

environment due to business work and vehicles produces by it. he uality and

development team has established technologies enabling the climate and economy to

e1ist in harmony.

Co""unity7 oyota 6otor Corporation applies its policy of 9respect for people: bygiving privilege to the community, culture and customs of each country it is working in. it

always seek out for superior and safer methods that meet the increasing e1pectation of

society for prolong growth .oyota contributes to society in terms of offering support to

&> and individuals working in the interest of environment and society.

&overn"ent$ he best way for corporations to show social responsibility to the

government is to provide strict compliance to the regulations which is, in fact, the

primary e1pectation of the government from companies. oyota do not tolerate bribery

of or by any business partner, government agency or public authority and maintain

honest and fair relationships with government agencies and public authorities. he

Corporate &overnance 6eeting assesses governance structures for realizing those

strategies and supervises business operations.


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enefits of CSR

M +t assists in attracting ethical mindful consumers

M @ffective e1pense reduction due to recycling

M CSR results the attraction and retention of employees

M &ives good competitive edge over competitors in the market

M CSR in long run will result in increased revenues.

Conclusion

he Corporate Social Responsibility CSR% refers to operating a business during a

manner that accounts for the social and environmental impact created by the business.

CSR means that a commitment to developing policies that integrate accountable

practices into daily business operations and to reporting on progress created toward

implementing these practices. )usiness ethics theories comprise of ethical values or

codes a company puts into practice to make sure that all employees act with acceptable

behavior. oyota understands that the future of any business is relying on nature, socio

political and global economy for their sustainability and growth. oyta has taken

initiatives to control C>' for global warming. Also reduce energy consumption in all

business activities. he company is looking after all shareholders by respecting them

and providing healthy, safe work environment and economic benefits for employees and

rendering innovative and superior products society with responsibility to built and assist

them all.


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Corporate Social Responsibility_Toyota

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