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CSR in Asia

Asia is the largest and most populous of the earths continents. Asia
includes a full 30% of the world's land area with 60% of the world's
current population. It also has the highest growth rate today, and its
population almost quadrupled during the 20th There are a total of 51
countries in Asia. In 2013, the population of Asia is estimated at 4.299
billion. Russia is excluded from Asia's population, although there are about
40 million Russians who live in Asia, or east of the Ural Mountains.
century. (Asia Population 2016, 2016).
Asia has the two most populous countries in its borders: China and India.
China is currently the most populous country on earth with an estimated
population in 2013 of 1,357,379,000. It accounts for 31.69% of Asia's
total population. Moreover, these two nations are part of the BRIC
countries who are distinguished from a host of other promising emerging
markets by their demographic and economic potential to rank among the
worlds largest and most influential economies in the 21st century (and by
having a reasonable chance of realizing that potential). (Global Sphera,
The combination of its cheap labor and constant economic growth, Asia
has made Asia an attractive continent to conduct ones business for years.
CSR in Asia
Global experience shows that regulatory frameworks are needed to ensure
that business activities are socially responsible. Nevertheless, today CSR
is being used by stakeholders as a way of promoting a culture of legal
compliance and respect for standards. With globalization, a weakened
state facing countless of socio-economic, developmental and
environmental challenges, is using CSR as a counter-balance to the
powerful business sector. So challenges occur on all sides.
As CSR is a concept which was born in western countries, the concept
brings along several challenges in Asia due to the culture difference and
other factors. There are multiple challenges regarding CSR Asia, and
corruption tops the list. Furthermore, the misunderstanding between cots
and benefits is a reoccurring challenge in the continent. Very often
business still interpreters CSR as a cost, and in instances when it is willing
to embrace CSR, business is determined by the challenge of actual

CSR Toyota
Every company is required to take responsibility for their internal as well
as external acts in its business environment. Such acts include the
environment, social welfare, human resource initiatives, relationships
among the firm and its employees, health and safety of the employees at
work and any additional moral or ethical measures that a company is
supposed to adopt.
CSR at Toyota
Since its foundation, Toyota has continuously strived to contribute to the
sustainable development of society through the manufacture and provision
of innovative and quality products and services that lead the times. Motor
vehicles greatly expand the freedom of mobility, but are also related to
and affect a number of social and environmental issues.
Always bearing this in mind we listen carefully to our customers and
neighbors in local communities to pursue our business, seeking harmony
with people, society, and the global environment, as well as the
sustainable development of society through monozukuri
In the main line of their business, automobile manufacturing, Toyota
develops and introduces environmentally friendly vehicles in addition to
mechanisms for active and passive safety. The company also rolls out new
businesses in such areas as biotechnology, afforestation, energy etc.
Furthermore, the company pursues initiatives for social contributions that
focus on "the environment," "traffic safety," and "education."
Such activities centering on automobile manufacturing are designed to
help people in the wider community and bring them happinessthis is
Toyota's aspiration.
The basis of Toyotas rationale is its CSR Policy: Contribution towards
Sustainable Development. Toyota aims to become a company that is
admired and trusted by society by ensuring that all employees recognize
and put into practice the companys CSR Policy. Toyota also shares it with
their consolidated subsidiaries and take appropriate action. And they
expect their business partners to support this initiative and act in
accordance with it.
In addition, Toyota participated in the formulation of and observe the
standards outlined in the Charter of Corporate Behavior of the Nippon
Keidanren (Japan Business Foundation), an alliance of leading Japanese
corporations. (Toyota, 2016)

Toyota has structured its CSR structure into several committees, each
hosted by a different chairman.

CSR Policy
In January 2005, Toyota Motor Corporation (TMC) announced the
Contribution towards Sustainable Development, an interpretation of the
Guiding Principles at Toyota that takes into consideration Toyota's relations
with stakeholders. This was revised in August 2008 to become the CSR
Policy: Contribution towards Sustainable Development to take into account
subsequent environmental changes and heightened societal interest in
Toyotas CSR statement claims the following: We, Toyota Motor
Corporation and our subsidiaries, take initiative to contribute to
harmonious and sustainable development of society and the earth through
all business activities that we carry out in each country and region, based
on our Guiding Principles. We comply with local, national and international
laws and regulations as well as the spirit thereof and we conduct our
business operations with honesty and integrity. In order to contribute to
sustainable development, we believe that management interacting with its
stakeholders as described below is of considerable importance, and we
will endeavor to build and maintain sound relationships with our
stakeholders through open and fair communication. We expect our
business partners to support this initiative and act in accordance with it.
(Toyota, 2016)

Toyota has established several meeting in order to strive their objectives

regarding CSR. The company started a Corporate Planning Meeting and
Corporate Governance Meeting as the bodies responsible for raising
corporate value, and implements activities from a long-term, companywide perspective.
Issues discussed during the corporate planning meeting include Basic
corporate policies for contributing to the sustainable development of
society and the earth, Global CSR policies and activities, Sustainable
growth strategies for corporate value enhancement Social contribution,
environmental issues and other social issues. Whereas the corporate
governance meeting has been established in order to deliberate corporate
ethics, compliance, and corporate governance significant issues
concerning risk management.
The company has divided its CSR in five main categories:

Business partners
Global Society/Global Communities

Furthermore, the company believes to follow five main principles which

are highly related to CSR. These have been established in 1992 and are
still highly important to the firm nowadays. These five principles state the

Always be faithful to your duties, thereby contributing to the

company and to the overall good.
Always be studious and creative, striving to stay ahead of the times.
Always be practical and avoid frivolousness.
Always strive to build a homelike atmosphere at work that is warm
and friendly.
Always have respect for spiritual matters, and remember to be
grateful at all times.

Moreover, Toyota has positioned several additional principles which have

been visualized by the company in the following way.

Toyotas goals
In order to realize the Toyota Global Vision, Toyota has set goals and
established the Toyota Visionary Management Indices as KPI to assess the
progress being made towards achieving those goals. Each responsible
division is conducting self-evaluations and implementing PDCA to
strengthen CSR activities.