Preview

business ethics Toyota 2000

Best Essays
Open Document
Open Document
2226 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
business ethics Toyota 2000
Ethical Audit Report---for Toyota
WHAT IS ETHICS?
Ethics is a standard on what is right and what is wrong towards your judgement, which usually referred to good values and virtues and the right moral duties and obligations. Arthur Holmes summarizes1 “It examines alternative views of what is good and right; it explores ways of gaining the moral knowledge we need; it asks why we ought to do right; and it brings all this to bear on the practical moral problems that arouse such thinking in the first place.”

WHAT IS ETHICAL DILEMMAS?
Ghillyer 2define ‘ethical dilemmas’ as “A situation in which there is no obvious ‘right’ or ‘wrong’ decision, but rather a ‘right’ or ‘right’ answer.
Here, we discuss the ethical dilemmas faced by the Toyota Corporation.

TOYOTA MOTORS COPORATIONS
Toyota the world’s largest automobile manufacturer Japanese corporation once over striped the General Motors and became the lead of the carmaker in the year of 2008.

First Ethical dilemmas: recall crisis
Business Ethics: A Marketing Perspective
Recently, Toyota is facing a series of recall campaign affected by millions of vehicles for flaw design, which is the intensity ethics dilemma for Toyota up to now.
In July 2009, NHTSA (National Highway Traffic Safety Administration) starts to investigate of defective gas accelerator on Toyota Tundra. Later, there was a crash in California that a Lexus ES350 ran out of control and killed four persons due to the gas pedal trapped under the floor mat in October 2009. Responding to the public pressure, Toyota issues recall of 3.8 million vehicles for defective floor mat.
After three months, Toyota announces recall of 4.2 million vehicles due to uncontrollable gas accelerator pedal issue and addition of faulty braking system. Having already halted in production and sales of eight popular models in the U.S for defective acceleration pedal problem in the early 2010, Toyota recalled of Prius Hybrid and Lexus HS250h models due to faulty braking system and

You May Also Find These Documents Helpful

  • Good Essays

    Mgmt 412

    • 576 Words
    • 3 Pages

    Toyota Motor Corporation has been a dominant name in vehicle manufacturing for several decades. Despite the patriotic drive in the United States to "buy American", the company has held its own, remaining a dominant and continually growing company in the corporate world of transportation. However, lately they been on the headlines of the news for vehicles being recalled, which is effecting the reputation of TMC in the market place. While the brand image of Toyota has recently taken a serious blow due to a number of recalls, including for the Camry Hybrid, overall the Toyota brand is very strong. The pros and cons of the Camry Hybrid are as follows:…

    • 576 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Ethical Behavior Quiz

    • 5293 Words
    • 22 Pages

    | An ethical issue is a problem, situation, or opportunity that requires an individual, group, or organization to choose among several actions that must be evaluated as right or wrong. Stakeholders determine whether specific business actions and decisions are perceived as ethical or unethical.…

    • 5293 Words
    • 22 Pages
    Satisfactory Essays
  • Powerful Essays

    Toyota is one of the largest makers of automobiles with 7.4 million vehicles sold each year on five different continents. It has the unique advantage of being the best Japanese brand sold in the United States and to be number one in Europe (Taylor, 2010).…

    • 3014 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    1101IBA Toyota

    • 1714 Words
    • 5 Pages

    In 2008 Toyota became the world’s largest carmaker when it successfully exceeded General Motors in sales and production. However, this leading position of Toyota had changed since the end of 2009. In the United States, Toyota’s largest marketplace, a fatal crash of a Lexus ES 350 on August 28th 2009 was highly publicized, due to the gas pedal which was stuck and the car went out of control (Los Angeles Times, Oct.25, 2009). Since then, Toyota’s vehicles have been largely exposed to a series of issues associated with unintended acceleration problems, and these have triggered Toyota’s escalating crisis and its massive recalls of approximately 9 million vehicles globally within a six months period. For Toyota, this is indeed a tragedy that is not only related to heavy financial losses due to associated repairs costs, market share lost and production suspending, but also to Toyota’s reputation for its matchless quality and management. The firm's reputation for quality…

    • 1714 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    Chapter 1

    • 1013 Words
    • 5 Pages

    Ethics is the standards of behavior, developed as a result of one’s concept of right and wrong.…

    • 1013 Words
    • 5 Pages
    Better Essays
  • Best Essays

    Toyota is one of the leading manufacturers of vehicles in the United States and across the globe. Toyota is ranked #55 in Forbes, World’s Biggest Public Companies, and capturing sales of 202.8 billion and a market cap of 137.8 billion as of March 2011 (Forbes.com, 2011).” Founded in 1937 in Japan, Toyota now employs 320,590 with operations all over the world (Forbes.com, 2011). “Recognizing a growing market in the United States, in 1957 Toyota established its first sales, marketing and distribution subsidiary in the U.S. called Toyota Motor Sales Inc. (Gretto, M., Schotter, A., & Teagarden, M. 2009, p.2).” Over the years Toyota has manufactured and sold vehicles all over the world and is a leader in innovation and technology. However, in recent years Toyota has faced many setbacks that have consumers concerned about their safety and have Toyota looking for a way to get back their credibility.…

    • 1643 Words
    • 7 Pages
    Best Essays
  • Powerful Essays

    What we all value comes into question when confronting an ethical issue. We have to evaluate when a moral act is right (ethical) or wrong (unethical) and then make a moral decision based on the facts.…

    • 2468 Words
    • 10 Pages
    Powerful Essays
  • Best Essays

    Environmental Analysis Paper

    • 2768 Words
    • 12 Pages

    As many may be aware, Toyota is not shy to the media spotlight. Toyota has been the number one automobile distributor since 1935 when the founder, Kiichiro Toyoda revealed their first model the A1 and by the 1950s. Toyota had produced more than 100,000 vehicles. However, not all of Toyota’s fame has been popular. Many will remember the major automobile company by the massive number of recalls totaling nearly one million, occurring in several countries across the globe. Half of the recalls were in Japan alone, but others were in the United States, Zimbabwe, South Korea, China, and Tanzania, to name a few. The recalls were from acceleration problems in different vehicles such as the Prius, Hybrid, Camry, and Sequoia Sports Utility Vehicles. On February 1, 2010, Toyota Canada Incorporation made the announcement that it would be recalling approximately 270,000 Toyota vehicles equipped with a specific accelerator pedal assembly and suspending delivery of the eight models involved in the recall on January 26, 2010. In this paper, Team C will elaborate on Toyota and its marketplace, provide the latest corporate reports, compare the three macroeconomic variables of employment, GDP and how it relates to Toyota’s deficit performance, provide its environmental analysis, and analyze information that identifies any relationships between the United States economic trends and the operational performance of Toyota.…

    • 2768 Words
    • 12 Pages
    Best Essays
  • Good Essays

    Practice

    • 744 Words
    • 2 Pages

    Toyota used to sit on top of the world. It basked in the reputation of building high-quality cars efficiently. It enjoyed unprecedented growth, even surpassing General Motors as the largest car manufacturer in the world. But all of that came tumbling down with reports that cars were accelerating out of control, careening down highways, and putting everyone’s lives in danger. There was even a recording of a 911 call from an off-duty policeman who lost control of his car and died in the ensuing crash. Toyota responded with a recall of historic proportions—nearly 8 million cars in the United States and 1.8 million in Europe. It even suspended sales of brand new models, including the best-selling Camry and Corolla, until the vehicles could be repaired. But still, there was confusion about what was causing the problems—was it the floor mats, the braking system, the software controlling the engine, or something else? Conspiracy theorists argued that Toyota had no clue what was causing the sudden acceleration and that their recall was basically worthless.…

    • 744 Words
    • 2 Pages
    Good Essays
  • Good Essays

    2) There are a few moral issues that plays into the situation. First, Toyota did not take corrective action quick enough. The first problem with the acceleration first occurred in 2003, but it was ignored. It took nearly 6 years till finally an investigation took place. Many of the issues could have been prevented if proper precautions were taken. Toyota has a strict business culture and for that, it gives the sense that whatever they produce is a hundred percent quality. The first sign of poor quality, Toyota ignored the fact because they themselves didn’t believe it. Second, should have Toyota try to cover up the situation and blame it on the floor mats? Sure there may have been a few case where the floor mats can cause the gas pedal to stick, but a few testimonies say didn’t even have floor mats. Was it ethical to push the blame back at the consumers so the company can save face?…

    • 1103 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Ethics refers to standards, morals, beliefs, and behaviors that follows to help guide one in situations they may face. Ethics are not gained in one day but are built over time from memorable experiences. From childhood to adulthood these learned behaviors add to traits that help shape an individual; they complete who one is and what one believes. Ethics contribute to guide an individual’s understandings of the concepts of right and wrong. In everything one does, ethical decision-making is involved. Work, school, home, and…

    • 1150 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    One of the company’s employees is a murder who was judged innocent earlier still on the move. The accused employee took advantage of his manager’s cooperation in order to execute his own interests.…

    • 284 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Signs of the impending recall crisis began as early as 2006 when the National Highway Traffic Safety Administration (NHTSA) initiated an investigation into driver reports of “surging” in Toyota’s Camry models. This investigation was closed the next year declaring that there were no defects. Known in the industry for their quality and reliability, Toyota would silently recall almost nine million Toyota and Lexus models due to the sudden acceleration problems. Because of the lingering reaction in dealing with these problems, Toyota’s leadership had been highly ridiculed, so now they had a big job in identifying the solution that would make sure of the safety of their vehicles and reinstate consumer confidence, as well as protecting the Toyota brand and salvaging the dropping share prices.…

    • 1706 Words
    • 7 Pages
    Better Essays
  • Better Essays

    Ethical Decision Making

    • 1651 Words
    • 7 Pages

    Ethics is a standard that tells us how we should behave. It is based on moral duty and includes a code of values that guides our choices and actions. No person with a strong character lives without such a code. Ethics is more than doing what you must do. It is doing what you should do. Because acting ethically sometimes means not doing what we want to do, ethics is often an exercise in self-control. Ethics involves seeing the difference between right and wrong. It is a commitment to do what is right, good and proper. Because doing the right thing can cost us more in friendship, money, prestige or pleasure than we may want to pay, practicing ethics, like exercising character, takes courage.…

    • 1651 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Ethical Dilemmas

    • 680 Words
    • 3 Pages

    The prevalence of major corporate scandals over the years has helped increase public awareness of two major ethics concepts --- stakeholders and ethical dilemmas. While these concepts are not unique to the study of business, they tend to be more commonly applied to ethical corporate decision making. For example, the corporate social responsibility movement is a direct application of these ideas in real life business practice. But what exactly do they mean?…

    • 680 Words
    • 3 Pages
    Good Essays

Related Topics