Toyotas Corporate Responsibility - Essay Example

Corporate responsibility is a form of corporate self-regulation that is integrated into a business model. Policies of corporate social responsibility function as a built-in mechanism of self-regulation in which businesses monitor and ensure they are inactive compliance within the spirits of the law, international norms, and ethical standards. Corporate responsibility aims to embrace responsibility for the actions of the company and encourages positive effects via the activities on the consumers, environment, communities, employees, stakeholders, and all other members of the sphere of the public. In addition, Toyota embraces environmental responsibility. For example, everything from the basic stance of Toyota Company to its specific initiatives is put in place to make the environment better. In-depth annual environmental activities coverage is part of Toyota’s social and environmental initiatives. Toyota Company has been in support of SOS children villages’ mission to provide safe homes to thousands of children orphaned in the country. Toyota has also been a pivotal partner in the progressive development of the SOS children's village since 2010 as a major part of the company’s corporate social responsibility program. Toyota Company has also made contributions to Mater Heart Run in 2012. This is the company’s fifth year in sponsoring a noble program aimed at helping children from poor families who are unable to afford the expenses of cardiac surgery.

In other cases involving Toyota and its customers, the company’s public relations department helps the consumers to their satisfaction in case of crisis. Toyota also remains socially responsible and solves its customer-related issues. For example, Toyota’s public relations department has the mandate to handles customer complaints and grievances. When there was a Toyota Acceleration case crisis, Toyota tried to deny the existing problem and responded very slowly to the crisis. The Toyota Company had realized the problem much earlier but responded late. The public relations department of the distressed company could calm customers down either. Toyota however never complied with the law and failed to notify the authorities of the technical problem. This led to the failure of Toyota failed in to rectify the manufacturing problem; thus, failing to restore its image as a customer safety-oriented company (Rothaermel, 2013). Those held accountable for the crisis were the board for miscommunication and focusing on varying values and goals. The Japanese managers failed to make quick decisions and confined information to them. However, after the crisis, Toyota initiated an effective way to manage the aftermath. It changed its motto and issued 4 letters to the public apologizing for the problem within a span of one month. These effectively calm the customers down as they felt considered and understood. After the apology went through, Mr. Toyoda managed to resume the management of the company in order to show a refocus on the strategy and values of the company. Mr. Toyoda committed his personal time in his testimony to the United States House Committee on Oversight and Government reforms. The management of the Toyota Crisis could however be improved through improved communication. This could be both internal involving the board of managers, subsidiaries, and employees, and external involving the government, customers, and suppliers. Toyota could also consider decentralizing the process of decision-making through changing its subsidiary system and allowing other managers to be more accountable and responsible for much bigger roles.

Toyota Company also participates in recycling vehicles in order to preserve the environment. The company puts its focus on recycling and resource-saving in the entire life cycle of manufactured vehicles. The company also emphasizes the development and design of its products with the environment in its mind and manufactures vehicles with structures that are easy to dismantle.

The company achieves its corporate social responsibility by promoting effective resource utilization and use as well recycling at the stage of sale: automobile recycling engages in the development and research of recycling technologies, recycling resources of rare earth and rare metal, and compliance with the domestic act for the use of recycled resources promotion. In summary, Toyota Company achieves its corporate responsibility through emphasizing sustainability reports, environmental concerns, vehicle recycling, social contribution activities, and corporate citizenship.