business ethics Toyota 2000

Topics: Ethics, Business ethics, Morality Pages: 10 (2226 words) Published: June 30, 2015
Ethical Audit Report---for Toyota
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.”

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 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 certain Camry vehicles for investigating power steering hose position worldwide.

If the Toyota can not handle the intractable recall crisis properly, the reputation would damage heavily. Hence, in this situation, millions of buyers would not trust Toyota and prefer to choose other competitors’ vehicle. There is no doubt that nobody would buy the dangerous quality car to threaten their life and health. As a result, Toyota might be disappeared in the automobile market ultimately. Hence, to resolve the recall dilemmas is the last-ditch fight for Toyota. After evaluate the importance consequences of dilemmas for recalling crisis , now let us analysis how Toyota take measures to deal with the recall crisis and rescue the partially redeem its tarnished public image. The respond to the Toyota about the recall dilemmas can be divided from three parts: Accept Responsibility. 

Toyota’s top executive, Akio Toyoda apologizes for mishandling of global recalls in May 2010. "Toyota is working quickly to prepare a correction remedy," the automaker said in its announcement. When Audi encountered a safety issue two decades ago, similar to Toyota’s, Audi took the position that “it was the driver’s fault,” David Cole, the spokesman of Audi. Later, Coles says that reaction ultimately hurt Audi’s reputation. From an ethical standpoint, these behaviors can be referred to utilitarianism theory. Utilitarianism is derived from consequentialism, which is objective to the moral truths and assesses the moral action through its consequence. Utilitarianism is defined that by Richard T. De George3: “an ethical theory that holds that an action is right if it produces, or if it tends to produce, the greatest amount of good for the greatest number of people affected by the action. Otherwise the action is wrong.” In brief, “the greatest happiness for the greatest number” the Classic exponent – Jeremy Bentham summarized.Utilitarianism associate with what its defenders believe of us...
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