Analyze On The Ethical Issue Of The Toyota Motor Corporation

Question: Discuss about the Analyze On The Ethical Issue Of The Toyota Motor Corporation. Answer: Introduction The aim of this study is to analyze on the ethical issue of the Toyota Motor Corporation. Toyota Motor Corporation also known as Toyota is a multinational automobile manufacturing company that is headquartered in Japan. This organization has been ranked fifth biggest in the globe as measured by revenue (Chun et al., 2013). Toyota has been considered as the market leader in the globe in terms of sales of electric vehicles. In addition, the organizations financial services division mainly offers financing to the dealers as well as their customers for purchasing Toyota vehicles. This company conducts their business in automotive industry. The nature of business of Toyota is to design, produce and sale vehicles and related parts in the global market. Ethical situation and its impact on the organization Business ethics refers to the form of professional ethics that evaluates ethical principles as well as ethical issues occurring in the business environment. It ensures required trust level that exists between the customers and different forms of participants in the market with business. In addition, the economic globalization increases pressure on the business ethics. The Toyotas recall problem reflects that the business ethics has been ubiquitous and this impacts on the development as well as prosperity of the organization (Crane Matten, 2016). This company has been well known for Union busting, which led to destruction of small nations in the globe. It highlights on the decrease in standard of living of the citizens of country. There are more than instances of the Toyotas manufacturing plant in US where the employees are often fired or often disappear from compensation pay roll. Recent study reflects that the employees working in few manufacturing plants of Toyota suicides due to their unethical behavior (Durkheim, 2013). Even this organization builds their manufacturing plants in poor nations for taking advantage of the nations low wage. In fact, many of their laborers of this company have been kept on temporary job for few years and hence increases number of recalls. Some of the employees of this company have complained about their dissatisfaction of their wages. Some recent cases highlights that few workers have been abused with unpaid overtime. Furthermore, the passport of the international workers has also been stripped off by themanagement of Toyota and forced them in working for more than 16 hours each day. Moreover, the wages paid to them is also less than the legal minimum wages (Ulrich Sarasin, 2012). However, the companys ethical issues ranging from work fairness, justice and harassment to foreign investors affects this organization as well as the employees involved in it. The business activities were adversely affected owing to these ethical pro blems (Hartman, DesJardins MacDonald, 2014). In addition, it also adversely affected the relationship between the employees and other stakeholders. The total productivity also reduces and this decreases the companys profit margin. Besides excessive hours of working, stiff patterns of work and unfair wages are also the main ethical problems that Toyota must focus in solving it. Few employees of Toyota left the job due to their ethical problems and hence it lowered their standard of living. Recent statistics also reflects that ethical problems also led to production and quality issues in Toyota. As a result, it caused several car accidents in the nation leading to death rate. This in turn affected the companys brand value and reputation. Managing the situation and solution applied Themanagement of Toyota had admitted that they purposely abandoned safety concern as well as deferred recall investigation for saving money. In order to manage the production issues of car, the management of the company had recruited high level bureaucrats in order to facilitate the company in managing their relationship with the federal oversight agency (Swanson Frederick, 2016). In addition, the management of this organization revised their CSR (corporate social responsibility) policies and introduced customers first policy for satisfying them and attaining their trust (Trevino Nelson, 2016). They also improved their employees working condition and implemented unique philosophy as well as practices of manufacturing products. As a result, the quality of products as well as services improved due to adoption of these policies. The management of this company also provided ethical training session to the employees in order to maintain good business environment. Evaluation and proposal of alternative situation The proposal of alternative solution by which the ethical problems in Toyota company can be handled is explained in the steps given below: The company should adopt ethical as well as compliance training programs. This initiative will reflect the fact that the workers of this organization should cultivate as well as adhere to ethical workplace code (Weiss, 2014). The employees must discuss their ethical dilemma with the companys supervisor in order to resolve their problem and also help them in taking the right decision. The management of Toyota must develop a plan of action that has been steady with ethical priorities and justifies their ethical plan. They should also implement this action plan and utilize appropriate skills as well as competencies. An ombudsman must be designated for handling informal concerns of workers pertaining to the ethics in workplace. Conclusion From the above report, it can be concluded that business ethics is vital for every organization as it helps in enhancing productivity as well as teamwork among the employees. Ethical conduct in organization encourages the culture of decision-making in the business. It also improves accountability as well as transparency in business activities. In addition, ethical behavior of the company facilitates in building strong reputation and attains trust of the customers. Although the unethical behavior in Toyota adversely affected their reputation, implementation of new ethical program as well as policies helped them in resolving the issues and attaining brand value. References Chun, J. S., Shin, Y., Choi, J. N., Kim, M. S. (2013). How does corporate ethics contribute to firm financial performance? 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