A major car company by the name of Toyota was recently experiencing mechanical issues with some of their vehicles and there have been major fatalities cause by it. Toyota is trying to recall the models that are causing the problems, however, there are too many to recall and it will cost millions of dollars to fix the problem. Having a successful company requires that you practice and have good business ethics also. Toyota business ethics have come into question over its lack of concern for the safety of the consumer and for its desire to make as much money as possible, therefore Toyota had a major recall after owners of Toyota vehicles raised issue about the safety of Toyota’s vehicles.
Business Ethics is very important subject to a work place and it demands that a company examines its behavior towards the outside world. “The field of business ethics deals with questions about whether specific business practices are acceptable.” (Ferrell, Fraedrich, Ferrell, 2011) Employees and managers must have moral concerns into their decision-making process. Ethical concepts are important to resolving moral problems confronting business. At a work place there are policies, codes of ethics, code of conduct, organizational values, and company cultures, lapse in workplace ethics occur every day. “Ethics is the principles of conduct governing an individual or a group. It is the study of morality.” (Velasquez, 2001) In the work place ethics results either from expense account fraud, involvement in conflict of interest, and sexual harassment. It is very important also, to have an ethical behavior so; there won’t be any issues with other workers.
The Toyota brand name, one of the most well known brands with top quality, has taken a heavy hit. Toyota is having problems with sales and production of eight of its top selling cars and recalled more than 9 million cars worldwide, in two separate recalls. Some of the most recent recalls were 2000-2004 Avalon, 2005-2006 Avalon, 2005-2010 Avalon, 2007-2010 Camry, 2005-2008 Corolla, 2009-2010 Corolla, 2004-2006 Highlander, 2008-2010 Highlander, 2005-2008 Matrix, 2009-2010 Matrix, 2004-2007 Prius, 2004-2009 Prius, 2010 Prius, 2009-2010 Rava4, 2003 Sequoia, 2008-210 Sequoia, 1998-2010 Sienna, 2011 Sienna, 2005-2010 Tacoma, 2007-2010 Tundra, and 2009-2010 Venza. Toyota faces the prospect of billions of dollars in charges and operating losses. For Toyota and every other company, ethics and success in business are very important. “Ethics is the study of moral standards – the process of examining the moral standards of a person or society to determine whether these standards are reasonable or unreasonable in order to apply them to concrete situations and issues.” (Velasquez, 2001) With Toyota, there has been recalls of some of their vehicles due to bad brake paddles that the brakes don’t work properly by accelerating when they are trying to stop and step on the brakes and when the brake paddle gets stuck. This has caused many injuries and death.
There was a case last year around February 2010, where there was a problem for Toyota where they now have to begin building trust with customers again. One of the quickest ways of bringing a company down is lack of trust from the consumer. If one consumer starts to question the ethics of a company, then that consumer tells close friends and relatives who will tell close friends and relatives, and the negative reputation of the company avalanches from there. This can also start to affect the employees working for that company if they start hearing negative feedback from friends. The local community’s trust in the company will be eroded, and the company will start to fail from the outside in. Toyota now have to work on building their reputation again because due to the fact that there were many problems with some of their cars not working properly with the acceleration and brakes. “If they designed and built the safest and most...
References: Ferrell, O., Fraedrich, J., & Ferrell, L. (2011). Business Ethics Ethical Decision Making and Cases (8th ed.). Author. (Original work published 2008)
O’Brien, G. (2010, March 4). The Week in Ethics: Toyota and the Ethics of Greed. Retrieved from http://theweekinethics.wordpress.com/2010/03/04/the-week-in-ethics-toyota-and-the-ethics-of-greed/
The Associated Press. (2010, April 22). Attorneys: More evidence Koua Fong Lee tried to stop Toyota. Retrieved from http://www.kare11.com/news/news_article.aspx?storyid=848573
VELASQUEZ, M. G. (2001). Business Ethics Concepts & Cases. Author.
Please join StudyMode to read the full document