Written Analysis on Business Issues:

Behavioral Issues

“Toyota’s Unethical Behavior”

Submitted by:
Emmil Joy Pador
Submitted to:
Ms. Genalin Benavides

BSBA- BH
September 7, 2015
I. Problem/Issue

We all know about Toyota one of the most successful car brands but they started from
sewing and textile business until up to recent years they emerge as the top car brand dealers in
the world. Toyota Motor Co. was established as an independent and separate company in 1937.
Although the founding family's name was written in the Kanji "豊田" (rendered as "Toyoda"),
the company name was changed to a similar word in katakana - トヨタ (rendered as "Toyota")
because the latter has 8 strokes which is regarded as a lucky number in East Asian culture.

The issue starts with safety. One of the most important aspects of any car company is
safety - the concern for safety, how both employees and consumers are kept safe, and how
issues are handled should a safety concern arise. Toyota made a huge and unethical failure in
2010 when they basically betrayed their promise as a company by ignoring safety concerns and
delaying recall investigations just so they could save a little money.

After confronted with safety concerns regarding faulty brakes and sticking pedals in
2009, Toyota said that phasing in side airbags saved US$124 million and 50,000 man hours, the
cost of what it would have taken to recall and fix vehicles. They also stated that delaying a rule
for tougher door locks saved them US$11 million.

Despite being ordered to appear before Congress and provide an explanation for
their unethical handling of the situation, Toyota didn’t seem to think it was such a big deal.
“We can win back the customer’s confidence; we are doing a better job,” said senior Toyota executive
and global managing director on the Toyota board in somewhat of an apology for their delayed recalls.
But it seems that they were only sorry after they got caught - it was almost an entire two years before
Toyota got called out on this unethical practice after a few deaths and even more complaints about their
unsafe vehicles. Their failure to be honest got so bad that they were even accused of hiding evidence in
hundreds of rollover and death cases.
II. Fact of the Issue
The recall was prompted by safety fears about sticking accelerator pedals and failing
brakes on a collection of Toyota's leading models, including its beloved next generation Prius.

From a public relations point of view, the recall has been a disaster. With drivers' worst
nightmare about their car becoming a reality – that it will not stop – US authorities warned the
public not to drive their cars and Toyota's president was hauled before Congress in Washington
to explain himself.

III. Discussion / Analysis

As I’ve researched and read Toyota became so unethical on the way they behaved since
as some paper says one of the core members of Toyota group just laughed at the incident and
even made a phrase if you don’t laugh you cry this has given him a lot of criticism about not
caring for the safety of others. Because they were corrupted by the thought of saving more
money by lessening the safety measures of the car they sell and ignoring the safety of the car
user or even the whole family which uses the Toyota brands. In most papers people repeatedly
reported about sticking accelerator pedals which is quite dangerous in fact since as car speeds
up there are much more chances of car crashes or collisions with other cars. Other issues were
reflected that some of the door locks of those Toyota cars were not strong enough and the
boldly told to the world that it even saved them about 11 million dollars on just not
strengthening the door of the products they sell.

To put it at that they were very immature and very self-centered they had no care for
other and they only thought of gaining something with the extent of putting others into harm.
This move by Toyota was a very big no-no who would think of even lessening the safety
measures of a car? To put it frankly if you were in the position of the driver or one of the people
seating inside the car thinking that its totally safe and not knowing that a lot of things could go
wrong in an instant because of their fault ways of thinking and earning money.
 I always wonder how this people think and asses their strategies to do business. Is it
only for their own gain that they ignore the safety of their costumers? Why do these business
men think like that? Since the top priority of a car business is the safety and comfortable state
of their consumers or buyers. Toyota was even confident enough that they would win back the
confidence of their sponsors and buyers in just a few months. To them it was just like playing a
gamble they didn’t even look guilty at that. Toyota only pleaded sorry when they got caught
and to some facts they even were accused of hiding evidences of hundreds of roll over and the
death cases.

IV. Recommendation

For me Toyota should have never done that since a lot was put in danger and maybe
even people lost their loved ones because of Toyotas unethical behaviors. Toyota should have
focused on building safer and stable cars although it would lessen the money they saved it
would increase customer satisfaction and loyalty to them since having to produce a safer car
the company would have gain more trust and franchisers. I would also have focused on
people’s voice for a change hearing their wants and suggestions and maybe incorporating some
of their idea’s in the car so that there would a be new car innovation giving way to customer
satisfaction in turn gaining their trust and loyalty in the Toyota car brand and step by step
moving forward and keep on progressing.
V. Documentation

http://www.telegraph.co.uk/finance/newsbysector/transport/7384418/Toyota-boss-We-can-
win-back-the-customers-confidence.-We-are-doing-a-better-job.html