Toyota Social Performance

Topics: Social responsibility, Socially responsible investing, Corporate social responsibility Pages: 5 (1742 words) Published: September 27, 2010
Since its establishment, Toyota has been dedicated to be a company with great social responsibilities, adhering to the direction of "safety, environmental protection and education" to make contribution to the society. It enhance enterprise values with love and dedication, and furthermore, the concept has been rooted into the marketing system, promoting the three-step strategy of "first manufacturers, distributors following up, and customer participating" for community projects of Toyota. In terms of education, Toyota sets up a lot of libraries which aimed at upgrading the quality of children in poor areas, what is more, it donated books, sporting materials and student funding to the students in rural areas. Besides, Toyota donated money and vehicles to the Hope Project when the Wenchuan earthquake occurred in China. Moreover, Toyota's environmental projects are also an important part of public commonweal projects, by carrying out a lot of tree planting activities, sponsoring the environmental photography competition and so on. In terms of security, Toyota engages in a large number of traffic safety education activities to enhance traffic safety education of children and promote family happiness and social harmony. However, apart from the bright sides, Toyota also has space for improvement in social responsibility (McWilliams 2001). The "brake" incident on Toyota results in consumers losing confidence in Toyota's vehicle, which is a lack of trust, also, a great blow to Toyota. This essay firstly discusses the social performance of Toyota, including charity and education. Following this, it will examine of how the company has impacted upon its stakeholders especially after the “brake” incident. Finally, it will look at the company’s actions on its stakeholders. Toyota making contribution to charity and environmental protection The standard of measuring a good company is not only the good products and the sales figures, but also the corporate social responsibility as the business development objectives into account. On May 10, the library completed sponsored by Toyota, which is just a start, signing the official beginning of community projects. Toyota has been doing the unrelated things without stop, such as education and environmental protection in different places. Toyota did not choose to spend the money on product promotion and sponsor any sports events that attract more eyeballs. On the other side, Toyota chooses to do charity to make some contribution to the society. Toyota declares that corporate social responsibility is not only to provide consumers with quality goods and services, but also to create a good living environment for staff and to promote the educational development and furthermore, changing the backward situation of poverty-stricken areas and then promoting harmonious development of society as a whole(Vogel 2005). From the general perspective of a company, Toyota is definitely a good business. Not laying off the employees in crisis: Toyota highlighting "social interest" concept In 2009, Toyota will achieve the "three extensions", which are expanding production capacity, extending product lines and expanding channels, ensuring that Toyota will not lay off workers and furthermore promote employment (McWilliams 2000). The establishment of the second production line of Toyota Motor, the new models getting into production and sales network expansion will promote the development of logistics, finance and other related industries, bringing more employment opportunities for the whole community. For enterprises, the talent pool is as important as investment. In the current economic crisis, many companies only saw a decline of business, and pay not enough attention to personnel training. As a "people oriented" enterprise, Toyota has attached great importance to personnel training. Executives of Toyota believe that a high level and adequate talent pool is necessary for branding building....

References: McWilliams, A. Siegel, D. 2001. Corporate social responsibility: A theory of the firm perspective. Academy of management review
Vogel, D. 2005. The market for virtue: The potential and limits of corporate social responsibility. (Accessed 1st September, 2010)
McWilliams, A. Siegel, D. 2000. Corporate social responsibility and financial performance: correlation or misspecification? Strategic Management Journal
Hill, R.P. Ainscough, T. 2007. Corporate social responsibility and socially responsible investing: A global perspective. (Accessed 1st September, 2010)
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