Companies have a social responsibility to perform and behave in particular ways. A company has a responsibility to ensure that any stakeholder’s needs are being met. The Toyota Corporations history and goals are as follows; “Toyota Motors is a Japanese automobile manufacturer founded in 1933. Toyota accounts for 78 percent of all the hybrid gas/electric cars sold in the United States. They are working to become the largest car-seller in the world, and in the first quarter of fiscal year 2007, for the first time ever, Toyota sold more cars than General Motors. Toyota posted record revenues and profits in the third quarter of 2007. Toyota is, overall, the world’s largest automaker when measured by net worth, revenue and profits” (Kageyama, 2010) and has a social responsibility to perform ethically in relation to the environment. Toyota has 45 manufacturing companies in 26
countries/locations, which produce Lexus- and Toyota-brand vehicles and components.
Toyota has enjoyed an image as an environmentally responsible automobile manufacturer in the fight against global warming. It all began in 2000 when Toyota released the “Toyota Prius” the first hybrid four-door sedan, “In Australia, Prius achieves fuel economy of 3.9 litres per 100km; it also produces just 89 grams/km of carbon dioxide – lower than any other car on the local market”(Toyota, 2010) and less than half the amount of similar cars in the Holden Commodore and Ford Falcon which have emission’s of 246g per km and 236g per km respectively (Carbon Emissions, 2010). Reducing Toyotas carbon footprint, being the largest Australian Vehicle exporter (Toyota, 2010) has great impact on the Stakeholders of the company as they believe the environment and global warming is the greatest and most significant issue affecting the world (Toyota, 2010). This is helping push the company into a 1.2billion dollar profit over the January to March quarter 2010.
It is not only environmental issues that are being addressed to help win back customers. Toyotas 29 top executives have given up bonuses since fallout from investment banks ‘Lehman Brothers’ collapse, which sent the automaker into the red (Kageyama, 2010), moves such as this have turned around a 9.2 billion dollar loss in January to march 2009 into a 1.2 billion dollar profit in the same quarter in 2010.
Affordability was another issue tackled to help society into newer, safer and greener cars. Toyota spent an average of $2498 per vehicle on incentives in the US in April (Edmunds, 2010) This resulted in a significant increase in sales with Toyota’s US sales increasing by 12% during the first 4 months of the year, according to Autodata corporation. (Kageyama, 2010)
For the fiscal year to March 31 2010, Toyota posted a $2.3 billion profit a dramatic reversal from a 5.18 billion dollar loss in the previous fiscal year (Kageyama, 2010). This was due to the hard work the Toyota Company has done to improve on quality of their range whilst keeping prices down, which made customers buy their cars, as well as salary sacrificing in the top end jobs. These major impacts that Toyota has implemented to benefit society and its stakeholders.
Toyota has stated that they are aiming to reduce their carbon footprint again by thirty percent from 2009 to 2012. They plan on achieving this by increasing the efficiency of vehicles and improving their innovation. Toyota aims to reduce their carbon footprint is supported by the Climate Savers Vehicle Initiative, (Climate Savers 2010), this is another way Toyota is aiming to improve its impact on society and its stakeholders.
The new Toyota Australia’s corporate headquarters in Port Melbourne was designed to be an environmentally friendly building. It is best described as “innovative, smart and green”; the building is very energy-efficient and eco-friendly. The building’s sustainable design includes features such as stormwater recycling, external solar shades, a 90 metre glazed atrium and an...
References: Berg. S. 2009. Effects of Car Pollutants. www.effects-car-pollutants-environment.com.au
Climate Savers. 2010. Climate Savers Vehicle Watch. www.climatesavers.com.au
Fujio. C. 2004. Toyota Opens New Australian Headquarters. http://www.autoweb.com.au/cms/A_102032/title_Toyota-Opens-New-Australian-Headquarters/newsarticle.html
Hamilton. C. 2000. Diesel and the Environment. www.cliehamilton.net.au/cms/media/documents/articles
Kageyama. Y. 2010. Toyota Profits Rebound. www.huffingtonpost.com/2010/05/04/toyota-profits-rebound
Squatriglia. C. 2008. Go Green – Buy a Used Car. It’s better than a Hybrid. www.hubpages.com/hub/prius
Toyota CEO, 2010
Toyota. 2010. Toyota Environment and community report. http://www.toyota.com.au/TWP/Upload/Media/368.pdf
Please join StudyMode to read the full document