Corporate Social Responsibility: An examination of the performance of Toyota Motoring Corporation Australia
Milton Friendman genuinely believed that the business of business is business and that practices outside the interests of the shareholders, employees and customers were issues of public services and not the responsibility of the executive (Friedman, 1970). What does this mean for the impacts when your company is the last major player in a dying industry? The story of what is and has happened behind Toyota Motoring Corporation Australia (TMCA) in recent years is an interesting look at what obligations industry has to society and at what point it simply becomes unsustainable to continue production even if stopping meant closing down
…show more content…
In February 2012 the Head of the TMCA Max Yasuda went on the front page of The Australian Financial Review and talked about industrial regulation (IR) reform (Roberts, 2012). He talked about the workplace practices at the Altona manufacturing plant, Saying that when he visited he could see improvements to made with his own eyes (Roberts, 2012). Max Yasuda was doing everything within his power to keep the TMCA going. He said to achieve viability he was aiming to cut the company’s manufacturing break-even point by 25% in two years and double the output of local manufacturing (Roberts, 2012). Toyota was clearly in trouble, Max Yasuda had just cut 350 jobs at the Altona plant (Roberts, 2012). He later tried to cut the cost of making a car by $3,800 through an initiative called the Toyota Australia Future Business Transformation (TAFBT) that started in 2012 ("Toyota Motor Corporation Australia Limited," 2013). But Max Yasuda faced setbacks. He tried to change its Workplace Agreement to provide more flexibility, be more competitive and remove allowances to reduce labour costs ("Toyota Motor Corporation Australia Limited," 2013). Four senior members of the company brought up the decision and the Federal court blocked the decision ruling that it was against the Fair Work Act (Ewin Hannan, 2013).
Toyota Global has its own interests at stake. TMCA ran at a loss for three
It is known that Toyota has various other legal actions, other governmental proceedings and other claims pending against it, including
Toyota is the leading motor vehicle manufacturer in the world today. The company is known particularly for manufacturing a wide range of high quality cars attracting a spirited competition from other globally established competitors like General Motor (GM), Ford, Hyundai, Volkswagen and Nissan.
With the increase of the high local labor cost, Holden is suffering from the high production costs. The market share for its main competitor (TOYOTA) maintains a stable increasing. Though Australia government supported Holden every year in order to protect Australian’s own car maker, Holden itself still can not pass that difficult (ABC Premium News,2013).
Toyota initially establish in Japan by Sakichi Toyoda. However in 1933 Toyoda company enhance into many field and one of them is automobile industry where it was named as Toyota (Toyotauk, 2013). Today, Toyota able to cross many boundaries and develop their business from plain filed to massive production firms. Toyota currently the global number 1 position after beating General Motors and Volkswagen Group on vehicle sales for 2013 (Gibbs, 2014). According to Gibbs (2014) Japanese firm recorded $9.98 million of sales in 2013. Whereas they have estimated to hit the $10 million mark in 2014. The company operates with approximately 339000 employees in 2014 (The Statistics Portal, 2014). Toyota Motors well known for their innovative
Cole, R. E. (2011). What really happened to Toyota? MIT Sloan Management Review, 52(4), 29-35. Retrieved from http://search.proquest.com.library.capella.edu/docview/875531966?accountid=27965
Recently on 11 December 2013, Holden announced that it would stop production of Holden vehicles in Australia. The decision by the auto transnational signals a massive escalation in the assault on the living standards and social rights of the employed class across Australia. The entire Australian car industry aspects the potential of being liquidated, with hundreds of thousands of jobs destroyed.
Toyota Motor Manufacturing Canada (TMMC) leadership made a planned decision to establish its first Toyota operation outside
Should the new Toyota president accelerate the launch scheduled for the Toyota Prius? The plan to introduce the car “at the end of 1998 with expected production of 1000 units per month…” (Reinhardt, Yao & Egawa, 2006) is an extremely aggressive and ambitious goal; but, is it in TMC’s best interest to speed up the planned launch? There is no doubt that the new president (Hiroshi Okuda) is under extreme pressure to compete in a global market, he believes the company should radically alter its image to attract new customers and gain a competitive advantage while systematically facilitating environmentally-socially responsible practices. It may very well be that TMC should push for a faster
In my report I will briefly mention about the CSR of Emirates Airline, Firstly CSR is very important for every company these days to achieve success in sustainable society and to stay in humans mind.
Executive Summary: Hiroshi Okuda, Toyota Motor Company is most recent appointed president, must decide whether to continue endorsing the project committee in charge of developing a fuel-efficient vehicle, the Prius. The project is made to be a shift for Toyota; yet developing the prototype has represented a large cost for the company since the technology needed to be created from scratch. Toyota has been recently criticized for producing non-innovative, look-alike models, not attractive for young new customers. Despite that Toyota Motor Company has registered an increase in its net sales; the profit margins have substantially fallen for the past 5 years.
The purpose of this report is to examine if the reasoning behind well-known car manufacturer, Toyota’s loss of revenue and leading market position is alone as a result of extensive product recalls following a fatal crash of a Lexus ES 350 on August 28th 2009. The journal article, “Toyota Crisis: Management Issue?” (Yuanyuan Feng 2010) provides an outline of the key factors that triggered the 2009 Toyota crisis, and explores whether the fall in the company’s returns by 19% were caused purely as a result of the recall and safety concerns, or something much deeper.
General Motors (GM) is America’s one of the oldest automobile manufacturer. Currently, GM employs 212,000 plus employees working in 396 facilities across the globe (GM, 2014). GM offers vehicles ranging from electric cars to trucks. GM offers a large range of vehicles in more than 120 countries across the globe. The General Motors Foundation is involved in philanthropic activities throughout the world. These activities are mostly related to child hunger, education, promote diversity and support vital non-profit organization. Recently GM has gone through tough time due to the quality of the vehicles they have manufactured. Problems arose due to recall of over 29 million vehicles (CBS News, 2014). As a result of recalls, company’s image and the profitability of the company got negatively impacted.
Additional recalling led to shutting down assembly lines in order ‘to assess and coordinate activities’. To compound with the existing issues they had, Toyota suffered from both direct and indirect losses, such as the impact on revenue, cash flows, human capital and reputation. On the other hand, they did realise there were problems and made efforts to deal with them but the speed at which they were working was a significant issue as there were unanswered questions into how these flaws were not identified originally and how they passed quality control.
If Toyota does one thing better than other automakers, it is cost management. After earning a
One potential threat for Volkswagen is that Toyota may respond strategically by also cutting its prices. However, given Toyota’s quality problems over the past year, they will not be able to lower prices, as this possibly would create the perception of lower quality.. First and foremost, Toyota needs to ensure it handles its quality problems to its customers’ satisfaction. The auto maker needs to ensure the public perception is that Toyota is being upfront, honest, and responsible in dealing with recalls and the