Toyota: Defective Cars - Essay Example

In the recent past, cars with malfunctioning engines have been released to the market for sale; thus, making management recall several vehicles from the consumers to counter these challenges. Toyota recalled their cars in 2010 making it the worst experience for Toyota Company in its operations. The faults in the production process in the year 2010 led to their biggest motor vehicle recall. This was attributable to several misfortunes, which were beyond the management’s control. As a means of addressing these shortcomings, the company engaged stakeholders in “Corporate Social Responsibility” (CSR) when fixing the problems (Peloza & Falkenberg 2009).

As such, Toyota enhanced loyalty among their clients since the company relies on exporting vehicles to the EU and the North American markets together with the domestic markets. Their profitability from the sale of cars benefited from the approaches of CSR such as the use of the Carrols model. In an effort to ensure the survival of their brand in the stiff competitive business arena, the management in partnership with other stakeholders has to check that all cars released to the market function appropriately.

As such, the cars have to undergo quality testing before sale (Andrews, Simon, Tian & Zhao 2011). 2 CSR as a concept focuses on businesses integrating ethical processes, which are beneficial to the society. When put to practice effectively, CSR boosts stakeholder’s interest in a company, which in turn results to high-level profitability. CSR is usually a continuous process that centres on sustaining the business operations within the market (Peloza & Falkenberg 2009). In order for CSR to be effective, it has to take place voluntarily.

As such, when Toyota embraces the process they are likely to increase consumer loyalty despite the production of defective cars. Toyota will not only consider their products and the market in CSR, but they will also be interested with the community and the environment. Toyota will view their business process and the society as a single unit when dealing with their defective vehicles using CSR approaches. Previously, the company viewed the market place in terms of their shareholders and the monetary planners.

As the company embraces CSR, it will engage stakeholders in devising suggestion on how to prevent future occurrence of similar scenarios. Additionally, Toyota will improve quality management by giving union and employees the necessary guidance on measures to take in limiting the production of defective cars (Audi, 2010). It is apparent that Toyota cares for the environment by manufacturing cars that are less destructive to nature. Another CSR approach that Toyota applied was providing the local community with employment opportunities and infrastructure (Audi 2010).

Indeed, some of the recalled vehicles were recycled to minimize environmental pollution. 3 In Carrols model, a pyramid for “Corporate Social Responsibility” (CSR) represents processes that a company should accept during its operations. First, for one to practice philanthropy he/she has to be a conscientious citizen. Secondly, it is a company’s ethical responsibility to guarantee that they conduct their dealings fairly. Toyota can achieve such a feat by selling products that offer their clients value for their money.

In addition, abiding with the legal requirements as indicated in the Carrols CSR model can