The individual report should propose a CSR strategy for Toyota. You are required to critically discuss the strengths and weaknesses of your company’s existing CSR policy AND use concepts from CSR theories to support your recommendation of changes in such policy. This report is neither a collective effort nor a reflection on how your group work went.
The individual report should be up to 1,200 words, excluding references.
CSR Strategy for Toyota
Corporate social responsibility is important for any organization as it allows for establishment of long-term relationship with the organization’s environment, including both the internal and external environment (Crane, et al., 2013, p. 36). It is only through such a relationship that the organization can be able to push through with its initiative within the organization. It is important for all the stakeholders to be adequately covered by any CSR initiatives that may be established as they are equally important to the success and sustainability of the organization within the market. This paper is going to review the corporate social responsibility initiatives put in place by Toyota with respect to all the stakeholders and to provide recommendations in terms of measures that could be upheld to promote further success of the organization.
CSR Strategy for Toyota
Various concerns among stakeholders are well covered by the CSR strategy for Toyota Motor Corporation. It is important to note that all these stakeholders influence the company in one way or another including its brand image, financial soundness, and human resource capabilities. The company acknowledges the significance of all the stakeholders to the organization. As such, the CSR measures that are put in place by the company directly address the interests of the stakeholders. As much as Toyota continuously advocates for maintenance of business strength within the automobile market, it has stood up as one of the top performing organizations when it comes to CSR programs that meet the relevant stakeholder interests (Bara, 2010, p. 52). The stakeholder groups that have been affected by the CSR initiatives put in by Toyota will be reviewed in this section with various recommendations being given towards promoting positive CSR events and the general alignment of stakeholder needs with those of the organization. Such stakeholder groups will include employees, investors, customers, communities, and the environment.
Employees are considered as the most important stakeholders at Toyota. As stakeholders, employees aim for fair employment practices, career development, and job security. The CSR strategy for Toyota allow the company to adequately address the employees’ interests through offering wages and salaries that are satisfactory, and employee advancement career development programs. Case in point, the On-the-Job Development (OJD) program was established by Toyota to allow for training in courses that are specific to career positions that are within the organization (Bara, 2010, p. 53). Such training courses include Technical development, Toyota Way Development, and Management Development. The company also financially assists any employee that seeks to continue with his or her formal education. This paper recommends that the company decentralizes more of its functions in order to empower the employees to make critical decisions concerning the organization (Bara, 2010, p. 53). This would promote innovativeness and as sense of belonging among the employees thus enhancing their commitment to the course of the organization.
At Toyota, customers are considered as the second most important stakeholders when it comes to CSR. Among others, the major interests of customers include reasonable pricing and high quality products and services. Such interests are addressed by the company through increased innovation as promoted by the Toyota Production Systems (TPS) and The Toyota Way (Bara, 2010, p. 55). Such innovations are intended at maximizing quality, efficiency, and further innovations. This paper suggests that the company should develop low cost automobiles in order to reach out to the low end market, as this would allow it to increase its market share while meeting the interests of the market. The company should also establish good feedback channels through which the customers can be able to raise concerns about the services or products they receive to allow for making of proper adjustments to suit their interests.
Toyota has experienced an increase in terms of the strategies put in place towards meeting the environmental goals over the recent past. When referring to the environment as a stakeholder, the main interests are environmental conservation and business sustainability. The company developed the Toyota Environmental Activities Grant Program (Bara, 2010, p. 55). The organization donates funds and automobiles for the conservation of the environment through this program. Case in point, back in 2008 more than $1 million and five hybrid cars were donated by the company towards maintaining Everglades National Park. The company also offers support to various advocates of the environment across the US through its Toyota Together Green program (Bara, 2010, p. 56). Nevertheless, little has been done by the company in terms of producing vehicles that emit less greenhouse gases. As such, this paper recommends that the company should invest more towards to R&D department to allow for the development of vehicles that use other forms of energy apart from fossil fuels, or emit minimized portions of the organic and inorganic gases to the environment. Considering the market share of the company, such an initiative would minimize the greenhouse gasses load in the environment and hence avert the effects of such gases such as the destruction of the ozone air and global warming.
Investors are highly regarded at Toyota and hence the company has put in place various CSR initiatives to ensure that their interests are well addressed. Primarily, investors are interested in the profitability of the business (Crane, et al., 2013, p. 78). As such, the organization promotes profitability by emphasizing its global expansion and competitiveness. As much as the company faced various setbacks in 2008 as an impact of the global recession, the reorganization in 2013 was a major boost as it positioned it at the helm of the market allowing tit to uphold resilience as a major strategic component as opposed to rapid expansion (Bara, 2010, p. 56). However, to further increase its profitability, this paper recommends that Toyota should invest in low cost automobiles as this will allow it to establish itself as a major brand especially among developing countries, an aspect that will improve its sales and hence profitability.
Communities in which an organization operates from also form an important stakeholder that should be carefully considered in any initiatives that are developed towards promoting corporate social responsibility (Hackett, 2015, p. 376). Establishing a good image of the organization within the society is important in promoting a positive perception of the organization. The major interest of the community is socioeconomic development. To address the interests of these stakeholders, Toyota has put in place various programs for community support and development. Case in point, the company has established education outreach programs which allow it to promote literacy within the communities in which it has established its facilities. The Toyota Go Safely program has also been established to provide families and individuals with safe driving tools and education. On the other hand, the company donates food to the Food Bank through the Meal Hour Program (Bara, 2010, p. 56). The company has also partnered with other organizations including the Red Cross in efforts of promoting community development. To further enhance CSR within the community, the company could consider empowering the local community members to develop entrepreneurial skills by organizing training workshops and granting them loans to start small scale business that would promote the relationship between the community stakeholder and the organization besides providing the local people with livelihoods.
It is evident that Toyota Motors Corporation has made
great strides in terms of corporate social responsibility, ensuring that all
the stakeholder interests are well addressed, an aspect that explains the
company’s high sales and large market share. The relationship that the company
has established not only with its employees but also with its customers and the
community at large is outstanding and hence a source of its success.
Nevertheless, the company needs to further its expansion campaign and to
embrace further innovation among its employees while enhancing their autonomy
in order to facilitate further addressing of their interests and those of the
customers. The company should also embrace green technology and promote
development of environmental sensitive products. If such measures are upheld,
the company will be able to address all the interests of its stakeholders and
establish value based relationships with such stakeholders.
Bara, C., 2010. Corporate Social Responsibility & International Development. Hamburg: Diplomica Verlag.
Crane, A., Matten, D. & Spence, L. J., 2013. Corporate Social Responsibility: Readings and Cases in a Global Context. 2nd ed. London: Routledge.
Hackett, S., 2015. Environmental and Natural Resources Economics: Theory, Policy and the Sustainable Society. 4th ed. New York: Routledge.