000 pounds and with which the foundation of Toyota Motor Works was laid by Kiichiro Toyoda who was also an innovator like his father. The patent rights for this were sold for 100. HISTORY Not known to most people . Toyota has come to be known as the Worlds Number One Automaker today. .BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBITY OF TOYOTA BUSINESS ETHICS • • • • Reflects the behavior of a business firm Fair Dealing of a business house with the rest of the world Helps a business to grow Creates healthy competition. Established in 1937 . . TOYOTA has a diverse history. Sakichi Toyoda invented Japans first Power loom soon advancing to the Automatic Loom with the help of his son Kiichiro Toyoda setting up Toyoda Automatic Loom Works in 1926. Thus .

Aichi . marine. • Your Satisfaction Our Commitments • • . web based vehicle information networks. manufacturing and sale of housing as well as the information and communication business. aerospace and even robotics. the company also operates in Other Segment involved in design. we aim to exceed expectations and be rewarded with a smile. constant innovation and respect for the planet. We will meet our challenging goals by engaging the talent and passion of people. Through our commitment to quality. who believe here is always a better way. • • • VISION • Toyota will lead the way to the future of mobility. Toyota is ever expanding its non-automotive business by entering sectors such as biotechnology. Japan with its presence in six continents and vehicles sold in 170 countries and regions. Apart from the Automobile and Finance segments . In 2010 it was the worlds largest automobile manufacturer by production and is the worlds ninth largest company in the world by revenue. enriching lives around the world with the safest and most responsible ways of moving people.INTRODUCTION • TOYOTA MOTOR CORPORATION is a Japan-based multinational company headquartered at Toyota City.

MISSION • • Practice ethics and transparency in all our business operations. • • • • . Foster a corporate culture that enhances both individual creativity and the value of teamwork. mutual trust and teamwork. Create an eco-friendly company in harmony with nature and society • • • GUIDING POLICIES • Honor the language and spirit of the law of every nation and undertake open and fair business activities to be a good corporate citizen of the world. Dedicate our business to providing clean and safe products and to enhancing the quality of life everywhere through all of our activities. Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in their respective communities. Cultivate a lean and flexible business model throughout the value chain by continuous improvement. while honoring mutual trust and respect between labor and management. Create a challenging workplace which promotes a sense of pride. Touch the hearts of our customers by providing products and services of superior quality at a competitive price. Create and develop advanced technologies and provide outstanding products and services that fulfill the needs of customers worldwide. ownership.

revised in 2006) seeks to provide a basic code of conduct and to serve as a model and compass. The present “Toyota Code of Conduct” (originally issued in 1998. • • • . It also provides detailed explanations and examples of the actions and issues that we must be aware of when carrying out actual business activities (including in our jobs and daily business operations) and living in our global society. • • • • TOYOTA CODE OF CONDUCT • The “Toyota Way” and the “Toyota Code of Conduct” serve as important guiding tools when implementing our daily business operations to realize the “Guiding Principles at Toyota”. and remember to be grateful at all times. Always have respect for spiritual matters. thereby contributing to the company and to the overall good. Always be studious and creative.FIVE MAIN PRINCIPLES OF TOYODA • Always be faithful to your duties. Always strive to build a homelike atmosphere at work that is warm and friendly. striving to stay ahead of the times. Always be practical and avoid frivolousness. “Toyota Way” (issued in 2001) describes the values and methods to be shared for the people of the global TOYOTA organization.

Ensuring asset maintenance and confidentiality management – Insider Trading -Act as an investor with sound common sense – Activities Promoting Safety .       ACTIVITIES IN THE COMPANY Compliance with Laws and Regulations .Developing vehicles from the standpoint of our customers Procurement Activities -Reasonable and • sincere transactions – • Production and Distribution Activities .Building environmentally and people friendly vehicles – Research and Development Activities . people working for TOYOTA strive to build and share fundamental value of “Mutual Trust and Mutual Responsibility”.I.Acting with integrity and in line with sound social norms –  II.With sound social norms in mind – Use and Management of Assets and Confidential Matters .Winning the trust of customers and dealers – Overseas Business Activities .To become a global company trusted worldwide – Profitability Enhancement Activities .Building a stronger profit foundation – .  TOYOTA WITH EMPLOYEES Through our communication and dialogue with the company. Creating a Harmonious and Lively Work Environment .Building vehicles that win customer trust and faith – • • • Sales Activities .Enhancing vehicle safety – Environmental Preservation Activities .

Respect for shareholders’ benefit – Government Relations . • SOCIETY AND TOYOTA Corporate Communication Activities .Maintaining proper and transparent relations – Political and Religious Activities .Creation of a safe society – • THE TOYOTA EARTH CHARTER • • The Toyota Earth Charter was formulated in 1992 and revised in 2000. BASIC POLICY  Contribution towards a prosperous 21st Century society  Pursuit of environmental Technologies  Voluntary Improvement plan to address environmental issues  Working in cooperation with society .Becoming a corporate citizen trusted by international society – • • • • Shareholder Relations .Improve traffic safety awareness of society as a whole – Disaster Prevention and Crime Prevention Activities . It embodies Toyota’s comprehensive approach to environmental issues and it is based o the guiding principles at Toyota.Communicating facts in an accurate and timely fashion – .Being Open and Fair – • Philanthropy and Community Relations .Moderate participation – Traffic Safety Education Activities .III.

The key elements of the EMS system are : – 'compliance/no complaints' – • 'environment risk mitigation'. . • • The System has been used effectively in order to achieve the objectives of environment policy. integrity and ethical behaviour.ACTION GUIDELINES  Always be concerned about the environment  Business partners are partners in creating better environment  Actively participate in social activities as a member of society  Disclose information to facilitate better understanding TOYOTA ENVIRONMENT MANAGEMENT SYSTEM • The Toyota EMS holds the key to environment management efforts across Toyota affiliates and at TKM alike. Toyota EMS concept is applied to drive a continuous performance improvement cycle in line with corporate policies and strategies and site specific objectives. a "Whistle Blowing System" is in place at Toyota Motors to give an opportunity to all stakeholders to fearlessly report any unethical behavior noticed by them. • WHISTLE BLOWER POLICY As a company which encourages and respects professionalism honesty. It forms the backbone of our commitment towards reducing our carbon footprint and we have been re-certified for ISO 14001:2004.

Toyota has been able to sustain a decreasing per unit consumption trend.9 m3 per vehicle. By the end of 2010. TKM continued to target the elimination of unnecessary water usage through kaizen and by the implementation of best process technology such as membrane bioreactor (MBR) and reverse osmosis(RO) treatments that allow the recycling of wastewater. LIQUEFIED PETROLEUM GAS • Serving as the prominent primary energy source for heating in ovens and boilers . In 2010-11. WATER • Specific water consumption for production decreased by 12 percent within a year. STEEL • TKM's objective in reducing Steel wastage is to reduce the carbon footprint from steel manufacturing. The changes implemented have led to the reuse of approximately 180 tonnes of steel and a significant reduction of CO2 emissions every year.3 percent to 493 kWh per vehicle.ETHICAL RESOURCE CONSUMPTION ELECTRICITY • TKM's electricity consumption in the production area has decreased as compared to last year. TKM focused on energy saving activities along with optimum plant capacity utilization. • • • • • . A three-tier solution was devised that consists of kaizen or continuous improvement at various levels. Thus ensuring maximum possible reduction of energy use. Optimization of oven start-up and shut down has been one of the path-breaking improvements that were taken up. to reach a minimum of 2. As a result of an in house study and brainstorming sessions they came up with ideas to increase steel yield ratio : the ratio of steel that goes into the making of the automobile to the total steel procured. the average amount of energy required to produce a vehicle decreased by 8.

Delivery of Procured water and daily commodities was undertaken o the affected areas by utilizing parts/ Components Delivery Service System through Toyota’s Secure transport routes.WASTE MINIMISATION • TKM aims to achieve zero hazardous waste to landfill consistent with the Toyota earth charter. The entire concept is of ‘Potential Natural Vegetation’ to create the perfect forest with native species so as t create biodiversity and aid food chain and ecology. • ESTABLISHMENT OF SOLAR SLUDGE DRYING FACILITY • TKM has been disposing its hazardous wastes through an innovative process of “coprocessing” at ACC Cement kiln at Wadi. • • EXAMPLES OF INITIATIVES THE GREAT EAST JAPAN EARTHQUAKE • Support groups were allocated to transport aid supplies. We have been sending hazardous wastes to co-process at the cement plant to realize the philosophy of "zero hazardous waste to landfill". reconstruct facilities. which works on the principle of Greenhouse Effect and reduces excess moisture by up to 40%. procure materials such as power generation and support production management . It was done to spark eco mind concept among team members . • • . Gulbarga. Unwanted excess moisture content in the hazardous waste sludges pose load in terms of higher Hazardous Waste volumes and cost of disposal. To reduce this TKM has implemented both source moisture reduction kaizens and establishment of zero energy consuming Solar Sludge Drying Facility. TOYOTA AFFORESTATION • Toyota initiated afforestation activity as a part of Sustainable Plant initiative in 2009.

and then switching seamlessly to the engine when a certain speed has been reached. Hybrid synergy drive delivers excellent fuel efficiency. Another characteristic of THSII is that it employs a regenerative brake system that converts the kinetic energy generated during deceleration into electricity when the brakes are applied and recovers and stores that energy for reuse as a source of drive power. low emissions meeting world's most stringent regulations without compromising on performance an driveability. • • TOYOTA HYBRID SYSTEM II • The Toyota Hybrid System II (THS-II) uses the motor to start up the vehicle and operate it at low speeds. exceptional quiteness.HYBRID SYNERGY DRIVE • Toyota's hybrid synergy drive is a series parallel hybrid system and adopts the best of series hybrid and parallel hybrid system. Hybrid synergy drive is a combination of electric motor and a gasoline engine and selectively uses the same to take advantage of their key attributes. One of the main characteristics of the THS-II is that it can also be operated as an electric vehicle. • • .

For the 3rd generation Prius .Toyota filed over one thousand patents. and also rated as one of the cleanest vehicles sold in the US. Sold in more than 5 countries and with the 2nd generation Prius Toyota filed 530 patents. Its the worlds first mass produced gasoline-electric hybrid car. It is an evolution through integration of hybrid and electric vehicles. It is certified as an “Advanced Technology Partial Zero Emission Vehicle” The 3rd generation Prius is made from plant derived ecological bioplastics made from cellulose instead of petroleum. • • REVOLUTIONARY PRIUS • • • • The name PRIUS is the Lat word for ‘prior’ or ‘before’. It is the most fuel efficient gasoline car currently sold. In addition to reducing CO2 emissions and gasoline consumption it also offers the additional economic benefit of reduced total fuel costs. including the cost of gasoline and electricity. Plug-in Hybrid "regeneration system" restores electricity from heat energy which was generated from braking thus delivers better fuel efficiency than a conventional hybrid even with empty batteries. • • • .PLUG IN HYBRID • A Plug-in Hybrid is a hybrid vehicle which can also recharge batteries directly from household electricity as an electric vehicle.

• • . Also to overcome the acute water shortage faced by the residents of Ramanagara town. constructing 310 individual households' toilets.SOCIAL PERFORMANCE • ROAD SAFETY : Toyota Safety Education Programme (TSEP an interactive learning programme on Road safety specially designed for the children in the age group of 10-15 years. The objective of the concert is to contribute to the local culture by bringing the world's leading classical ensembles and orchestras to the people of Asia. – Toyota Technical Education Programme (TTEP): TTEP is aimed at imparting advanced skill training on automobile technology to the students of Industrial Training Institutes. CIVIC AND COMMUNIT-Y SANITAT ION PROGRAM : TKM achieved total sanitation of 6 villages in and around Bidadi plant. Toyota has constructed two water tanks with a total capacity of 1. – HEALTH AND SAFETY SERVICES : Toyota supported two health camps and around 1000 people benefited from this camp. ART AND CULTURE :Toyota Classics: Toyota Classics is a live musical concert performed by an international orchestra. – Books and Bags Distribution: every year Toyota Kirloskar Motor distributes books and bags to local government school children. EDUCATION AND SKILL DEVELOPMENT: Toyota Technical Training Institute is one of the brightest outcomes of this aspect of the company.5 million liters.

This aims at creating a better and safe environment for the future generations to come GO GREEN MOVEMENT GREEN BUILDINGS : • Toyota has adopted the Green Building concept at the new dealership at Sahibabad and upcoming dealership at Noida to reduce these impacts. In addition to meeting traditional expectations of quality.ENVIRONMET INITIATIVES • GREEN PURCHASE : TKM has adopted the 'Green Purchasing Guidelines' policy which includes the environmental criteria in every purchasing decision . Lead and Mercury have been eliminated from almost all parts of the Innova. • The green buildings incorporate the following green features: – Use of energy efficient and eco friendly equipment – Use of recycled and environmental friendly building materials – Quality indoor air quality for human safety and comfort – Efficient use of water – Use of renewable energy – Effective controls and building management – Effective use of existing landscape . Corolla and Fortuner. Cadmium. service and price we give preference to suppliers and products with better social and environmental credentials. • REDUCTION IN USE OF SUBSTANCES OF ENVIRONMENTAL CONCERN : Toyota's global standard promotes the elimination of substances of environment concern.

SAVE INDIA’S COAST : • India’s coastal area stretches approximately 6000km wide. • • • • NDTV GREENATHON • The NDTV-Toyota Greenathon is an event conceptualized to raise money to support the initiative – Lighting a Billion Lives. Total no. In Year 1. Over 300 million people in the India lack access to electricity. of villages adopted: 580Total Donations in Rupees : 11. the event reached 115 villages. The initiative aims to petition the government to take action to save India’s beaches. Toyota has partnered with NDTV for the “Save India’s Coastline” initiative for the conservation and restoration efforts of the coasts. The Yacht travelled on a 45 day campaign and covered 8-10 major coastal areas and helped transform several beach stretches. The latest edition was implemented with a high benchmark and with increased efforts and planning it turned out to be bigger and greener than the previous editions as it expanded its reach internationally. The Greenathon is a 24-hour live telethon played across the NDTV network. of which just half remains undestroyed.43 Lakh • • • . it raised funds to light up 56 villages and in Greenathon 2. of lives lit : 1. NDTV -TOYOTA “Coastal Express” yacht travelled along India’s coastline to report on the facts and impacts on beaches. It aims at providing solar power to villages without electricity.6 Crore Total no. This is being considered as one of the biggest disasters facing India’s envi ronment .

" it shows that in 2007.000 man hours. consumers have found themselves victims of a PR spin game in which Toyota would recall a limited amount of vehicles at certain times of the year to avoid a massive recall. the government department responsible for crash test ratings. but how can things go so wrong. At the same time.ETHICAL ISSUES OF TOYOTA TOYOTA ADMITS TO PURPOSELY NEGLECTING SAFETY CONCERNS AND DELAYING RECALL INVESTIGATIONS TO SAVE MONEY • Toyota has finally admitted to engaging in unethical behavior when it comes to investigating the safety of its vehicles. Toyota purposely and repeatedly delayed safety regulations by avoiding defect investigations and obstructing government inquiries into safety concerns. Instead they somehow found a way to justify negotiating with the government to make their problems disappear. – delaying a rule for tougher door locks saved $11 million. However. The larger problem with this scandal is that it has created a precedent for corruption and unethical behavior when it comes to the safety of vehicles that so many of us use and depend upon everyday. "Wins for Toyota Safety Group. Toyota was producing new vehicles with known safety flaws and advertising their vehicles to be the safest and highest quality vehicles on the road. New documents show the financial benefit of delay. to falsely improve Toyota's safety record while hiding NHTSA’s and the Department of Transportation’s inadequancies. What this goes to show is that Toyota conspired with NHTSA. In a 2009 presentation called. In the presentation. • • • • • • • . Toyota said : – a phase-in to new safety regulations for side airbags saved the company $124 million and 50." DERIVATION • In a situation like this it is easy to see that something went wrong.

so this doesn't blow us away. • • • • • BIGGER PICTURE • We now have a situation.FATAL CASES • An off-duty CHP officer and three members of his family were killed on the road in a Toyota Car and many have raised questions about what the true cause may have been. According to The National Highway Traffic Safety Administration there is still an open investigation into sudden acceleration events involving Toyota vehicles. Then just one month after the crash involving the Saylor family. What does shock us is how irresponsible and uncaring the governments that we employ to represent and serve us. continue to fool and cheat us. affecting 3. This problem is reminiscent of what tobacco companies did to smokers during the latter half of the last century. Safety experts also pointed out the fact that modern brake-assist systems result in in minimal stopping power. • • • • . At first Toyota issued a statement pointing to the installation of an improper floor mat from another vehicle. Hence.8 million vehicles dating back to 2004. in which we must now question the validity of all safety scores given out not only to Toyota vehicles but to all motor vehicles. as we previously reported as the cause of the crash. and derail the government and whistle-blowers who are trying to show just how dangerous your product is. many believe to be a flawed design with the highly computerized engine control system which lacks a fail-safe mechanism for emergency situations. make them feel at ease while using it. Toyota issued the largest call in company history. Tell the consumer your product is safe. Every company that engineers and manufactures a product strives to save costs.

Toyota is well known for their union busting. Toyota’s manufacturing plants back home in Japan resembles some of the worst sweat shops in the world. • • • CASE STUDY • There are already 1800 instances in the US where employees at the Kentucky plant have been injured. which has destroyed many small countries all around the world. Their operations have been described as "slavery" and "human trafficking". and receive no compensation. fired. Their plants have very high suicide rates as well. • • • Toyota is one of the world’s most profitable corporations. Their goal is to lower the average wages in America. the more they lower worker wages. Toyota has thousands of "karoshi" claims each year. and they disappear from the compensation pay roll. Many workers have been kept on as temporary workers for over 4 years. on the job they are layer off. . So essentially Toyota uses the cheapest materials. This term means "over worked to death".UNETHICAL BEHAVIOUR OF TOYOTA • • There have been many academic studies done on Toyota and articles created. Toyota builds their plants in the poorest states to take advantage of the lowest wages in the country. And when an injury has occurred to an employee. yet the more profits they make. and Honda seems to be backing them. and the poorest workers to manufacture them. This happens at a rate of 400 Americans per year working at Toyota. Reducing the standards of living amongst the countries citizens.

and identifying the root causes. It will take an incredible communicator to instill a singular focus on the value promise all over again. C-Suite leaders lose the pulse of the business at the same time that communication channels to the C-Suite become convoluted or blocked. Toyota’s reactions have raised frustration and reduced perceived reliability of the Toyota brand. – As companies get larger. a focus Toyota’s founder created and his son and grandson lost. • The lesson : – Growth often destroys brands. – Growth and profits become aims. Meanwhile. CONCLUSION • Hopefully Toyota will learn the lesson that a business’ value promise must drive all internal actions and decisions. • • • . delayed communicating quality issues to customers and regulators and made many misstatements to the public. understanding the business context.LESSON • Another piece of evidence that Toyota lost an internal focus on its value promise comes in Toyota’s reactions to its quality issues. – A disconnection arises – between what is promised and what is then delivered that erodes brand equity. Ford and Hyundai are driving their cars and messaging right through the hole Toyota left in the market. – Rather. the opposite of its value promise. while delivering on the value promise becomes secondary or even forgotten. – Toyota’s historic value promise for sure didn’t drive these decisions. The idea is to solve problems as a team by looking at the symptoms. – Toyota fixed new cars being produced without recalling cars in the field.

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