Corporate Social Responsibility (CSR) planning in Toyota Motor in Europe in 2010 - Essay Example

An analysis of Corporate Social Responsibility (CSR) planning in Toyota Motor in Europe, Table of Contents Table of Contents 2 Introduction 3 Managing CSR Performance 4 Measuring Internal Stakeholders 5 Measuring External Stakeholders 6 Conclusion 8 Bibliography 10 Introduction With the onset of the economic slowdown during the recession period Toyota have gone through several challenges for a sustainable growth in the business environment. In spite of such a tough situation the company has always ensured safety and customer satisfaction to the top priority and implemented several strategies for a better understanding of the market as well as for the environment. After the recession period the company have gone through a fresh start and steer towards a new growth direction with its new Corporate Social Responsibility (CSR) approach. Always committed to supply safe and reliable vehicles for the market the company always looked after the dynamic need of the customers and the market place together. In the process the company have great support from the stakeholders and the people related to the company who helped for this sustainable growth of the company in the competitive environment. The company is not only into development of safer car as its CSR approach but also involved into serving the people associated with the company business who provides the high quality products from the company for the growing market needs. With the global crisis of energy Toyota also looks after developing eco-friendly cars for the society and grows in hand with the environment with the safe and reliable vehicles for the society (Toyota, 2011). For an efficient handling of the Corporate Social Responsibility program the corporate team have established the CSR committee who are into the management process of the CSR departments and the promotion of the approach and help the company to implement strategies for its CSR activities. The legal compliance are looked after by the core Corporate Ethics Committee and the Philanthropy Committee manages the social activities for a better reach and promotional activities which facilitates the process of long term growth for the company (Toyota-a, 2011). Managing CSR Performance The management of CSR activities for Toyota consistently looks after the improvements of the different processes for the firm. The Corporate Social Responsibility program for the company is primarily focused towards the assessment of the internal as well as the external entities for the firm. The assessment program gives the chance for the company to look after and identify the weak points of the company and evaluate strategies accordingly for midlevel and long term growth of Toyota. For a sustainable growth in the environment the company is driving its strategy in various directions. The dealers of Toyota are also supported to work along with the company in the CSR approach for delivering quality service and minimize their environmental footprints. The stakeholders are constantly working hard for the reduction of waste production and ensure less energy consumption by the vehicles. Toyota being socially responsible initiated many projects which are mainly focused towards the reduction of CO2 emission to the environment. The Sustainable Retailer program across Europe for reducing energy consumption has great impact on the society and reduces about 10% energy consumption from the retailers. This kind of activities from the firm helped the company to achieve benefits from building a strong value for the company in the society but also grow the network of its operation. The Retail program builds a stronger relationship amongst the retailers and the other stakeholders who are working closely with the company for being the Eco-Driving champion in the locality (CSR Europe, 2010, p. 24) Realizing the need to act promptly for the environmental energy crisis and the changes in the climate Toyota aims to produce the ‘zero emissions’ vehicles for the society. For a stronger approach of the concept the company has implemented strategies to incorporate this act within the product development phase of vehicles. The core focus for the development includes elimination of the use of fuel, reduction in the use of resources and using renewable sources of energy for the development of pollution free environment for the society. The company ensures low emissions throughout the product life cycle and commit to reuse the energy. Toyota is constantly fighting for building the ultimate eco car for the society which will provide environmental performance from the design to its disposal abiding all the legal standards and using the least energy. For a sustainable growth in the environment the company also encourage all its stakeholders to act more socially and encourage in environmental performances (Salama, n.d., p. 11-14). Toyota has created a mindset for the industry to be aware of the environment and act with more social responsibility beyond just conducting business in the industry for a strong position in the market and acquiring market share. Measuring Internal Stakeholders The Corporate Social Responsibility of the firm is not only dependent on the activities the company carries out for the environment. But addition to it the CSR approach of the company also influences its internal and the external stakeholders. Any one related with the company is needed to act accordingly for a sustainable growth prospect of the firm (Bhattacharyya, 1989). The key internal performance indicators for Toyota are its customers, employees, business partners, shareholders and the environment community. Each and every division of the company are needed to be improved for the CSR policy to succeed. Each having their own areas of development is needed to be evaluated by the company and implement strategies accordingly for the development of the Corporate Social Responsibility of Toyota. The companies National Marketing and Sales Companies have great improvement across Europe and are placed with high scores in respect to customer satisfaction and after sale services. The dedication of the retailers on the recall campaign of the company has depicted the responsibilities taken by the employees for a better and stronger company building process. The scores of the employees in respect to their satisfaction level also showed high scores which gives an idea how the company has maintained the employees and stability in the firm by motivational programs conducted by the company. Due to focused approach towards the manufacturing division of the company in the European Manufacturing companies the health and safety indicator of the company also scored high as compared to other companies which shows the company’s culture for being responsible to the environment and manufacture safe and reliable vehicle for the society. The corporate citizenship index for the firm over the years have also showed significant improvement which depicts the best practices of the company and increasing popularity of the CSR policy for Toyota. The European project will also be implemented by the company to the manufacturing plants for a better approach to risk management and increase the awareness amongst the suppliers. Due to huge sales and marketing division diversified at various parts of the world, the company gives support to the countries with lower score and encourage the retailers to involve into social responsible program and activities and special attention is provided for the catering with the risk management issues of the firm at different parts of the world (Toyota European Sustainability Report 2010, 2010, p. 57-59). Measuring External Stakeholders The external stakeholder analysis is primarily done through European Key Stakeholder survey process. In the survey process the key areas which are focused for scoring the corporate citizenship are Environment, Society and the Economical performance of the firm in the business process. The company’s acts towards the environmental inspirational process and towards the environmental performance have scored very high with respect to the other players of the market in the automobile industry. Scoring highest in the corporate citizenship program Toyota achieved the highest score in the overall rating of the program and leading the industry. The global economic crisis has massive impact of the corporate citizenship score in the respective industry and Toyota also was affected to an amount for the cause. The company also have a great influence towards the economical contribution and the social contribution. With the reputation of a responsible employer Toyota is always ranked higher amongst the people and builds up strong brand name and values for a strong base for the future. The innovation, integrity and business performance of Toyota business is the major contributor to the building process of the Corporate Social Responsibility management program. Due to the leading innovation in the field of technology and the operational process Toyota always maintained a leadership position in the environmental performance process. Few of the social performance are performing below average for the company as compared to the industry standard which are needed to be evaluated by the company to develop better social activity. Ratings on the employment at Europe and import contribution of the company to the economy are rated below average for the company when compared to the industry of the automobiles. Toyota needs to improve these areas to improve the overall performance of the social responsibility of the company. The business performances of the company have increased to great extent for the development process of the safety and integrity within the firms manufacturing process. This has increased the overall performance score for the business process and the quality level of the company’s product in the market and gives a stronger foundation for the company (Toyota European Sustainability Report 2010, 2010, p. 60-61). Toyota with its unique lean technique of the manufacturing process has understood the need to control the wastage in the development phase. The company recognized the need to develop a continuous flow in the service and manufacturing processes. Minimizing the elapsed time between the different activities provides the best quality products at much low cost than its competitors in the market and reduces the chances of error in the business process (Liker, Meier, 2005). Conclusion Toyota being the leader of the automobile industry is also a prominent name for its Corporate Social Responsibility program at Europe. For the development of a strong base in the market the company constantly evaluates its strategies to gain the market share but all the activities from the firm reflects social responsibilities which not only includes environmental performance activity but also being responsible towards the internal and the external stakeholders of the firm. Toyota recognized that building strong brand cannot be achieved through social programs only. For a sustainable growth and strong base the company for the future it needs to develop the internal as well as the external stakeholders perform as the efficiently as the company works and increase the overall performance level of the company. The leader has identified the need to act socially in all the business process activities and act accordingly towards the employees and customers so that all the people related to the company will also be responsible for the building process of a socially responsible strong brand name called Toyota. References Bhattacharyya, S. (1989). Exploring the concept of strategic corporate social responsibility for an integrated perspective. [Online]. Available at: http://www.emeraldinsight.com/journals.htm?issn=0955-534X&volume=22&issue=1&articleid=1833002&show=html&PHPSESSID=kd24a02am8eqj1f2odp8528571. [Accessed on: August 29th 2011]. CSR Europe. (2010). TOYOTA MOTOR EUROPE. [Pdf]. Available at: http://www.csreurope.org/data/files/enterprise2020/2020marketplace_catalogue.pdf. [Accessed on: August 29th 2011]. Liker, J., Meier, D. (2005). The Toyota way fieldbook: a practical guide for implementing Toyotas 4Ps. McGraw-Hill Professional. Salama, A. (No date). Toyota Motor Europe. [Pdf]. Available at: http://www.unep.org/climateneutral/Portals/0/Image/Alaa%20salama%20pdf%20presentation.pdf. [Accessed on: August 29th 2011]. Toyota European Sustainability Report 2010. (2010). Measuring CSR performance – external stakeholders. [Pdf]. Available at: http://www.toyotainbusiness.com/Images/Sustainability_Report_2010_tcm634-1048542.pdf. [Accessed on: August 29th 2011]. Toyota. (2011). Executive Message. [Online]. Available at: http://www.toyota-global.com/sustainability/csr_initiatives/csr_concepts/executive_message.html. [Accessed on: August 29th 2011]. Toyota-a. (2011). Toyotas CSR Organization and Structures. [Online]. Available at: http://www.toyota-global.com/sustainability/csr_initiatives/csr_organization_and_structures.html. [Accessed on: August 29th 2011]. Bibliography Liker, J. (2004). The Toyota Way: 14 Management Principles from the Worlds Greatest Manufacturer. McGraw-Hill. Read More