Corporate Social Responsibility of Toyota

This article delves into the Corporate Social Responsibility policies of Toyota, including their engagement with a CSR committee and their focus on social welfare, youth development, and environmental protection. The article also discusses Toyota's objectives for CSR management, such as achieving superior customer appraisal and contributing to environmental preservation. Additionally, the article explores the benefits of CSR for businesses and the similarities between CSR and stakeholder theory.

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Corporate Social Responsibility of Toyota
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Toyota Motor Corporation or Toyota is a Japanese worldwide enterprise of automotive
manufacturing (TOYOTA MOTOR CORPORATION GLOBAL WEBSITE. 2018)). Toyota is
headquartered in Toyota, which is a city in Aichi, Japan. Toyota Motor Corporation is the sixth
largest enterprise in the world in terms of revenue earned by companies. Toyota has been
adjudged as the second largest automotive manufacturer in the world.
Corporate Social Responsibility or CSR is an explicit structure that helps to understand the
relationship of business and society (Ahamad Nalband & Al-Amri 2013). There are two aspects
of Corporate Social Responsibility in Japan, which are protection and improvement of society.
Protection involves avoiding negative impacts to the society by the company. The welfare of the
society involves creating positive benefits to the society. Japan has become well aware of the
importance of the corporate social responsibility. Japan, the country with most number of
companies, published their report complying with the guidelines of GRI, which is the most
comprehensive reporting system of CSR performance (Carroll 2015). Japan emphasized on the
relationship between CSR management and corporate governance. Japan have conceived a
philosophy of “Sampo Yoshi”, for the implementation of CSR in business. This philosophy deals
with triple satisfaction that includes satisfaction of seller, buyer and the society .This is also the
strategy of Japan for corporate longevity. The Japan Business Federation gives stress on the CSR
reporting and environment reporting with the aim of linking consumers and investors in markets
with corporation (Magdalena Krukowska 2014).The Ministry of Environment, Ministry of
Health, Ministry economy Trade and Industry have their guidelines to disclose reports on CSR.
Japan strives to link CSR with business opportunities by promoting BOP and social business.
They also contribute by constructing disclosure infrastructure and international rules. The Japan

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government encourages CSR in social business by rebuilding and revitalizing regional economy
and solving social issues. They also aim to create new employment.
Toyota Motor Corporation or Toyota well aware of the Corporate Social Responsibility in
business and they have engaged a CSR committee to carry out policies pertaining to CSR .The
policies includes and deals with the following:
 Social welfare – They provide goods to charity bazaars, feed the homeless and needy and
it includes other activities.
 Youth Development – It provides support to youth invention clubs and provides donation
to organizations supporting youth development.
 Environmental Protection – Toyota undertakes several initiatives for forest protection,
involves in tree planting activities encouraging reforestation and provides support to
government led environment programs.
 Other activities – The other activities of Toyota involves organizing charity concert and
blood donation drives.
Toyota develops and manufactures cars, which are environment friendly and are of hybrid
model. The rationale of the CSR policy of Toyota includes Sustainable Development .The
objective of Toyota is to gain admiration and trust and to implement the CSR policy. The
Corporate Responsibility management committee of Toyota has set goals and developed Toyota
Visionary Management indices, which has been identified as the Key Performance Indicators
(KPI) in order to assess the process and achieve the goals (Doyle 2016) .The objectives of CSR
management of Toyota are as follows :

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 Achieving superior level of appraisal of customer in terms of quality and safety is one of
the objective of Toyota . They use pre-collision system with pedestrian detection and
rear-end collision avoidance technique in order to emphasize on safety.
 Contribute towards environment preservation by introducing and manufacturing eco cars.
Toyota also aims impact positively towards environment by reducing CO2 emissions from
the activities of their business.
 Toyota endeavors to enrich lives of communities that include collaboration with business
partners that includes suppliers and dealers.
 Toyota emphasizes on establishment of stable base of business that includes governance,
business continuity management and others. This is done by including diversity in
management and it also reflects external opinions.
 Toyota contributes to social activities by becoming good corporate citizen. They continue
activities that focus on the environment, traffic safety, education, society and culture.
Like Toyota every other organization should respond to CSR. Businesses are corporate
citizens and like humans they too have the responsibility towards the society ,therefore they
should sustain them .Their responsibility includes not polluting, not discriminating, not engaging
in deceptive advertising and not harming employees. By following Corporate Social
Responsibility, they can develop a favorable public image, this would help provide them various
benefits. The CSR approach applied in Toyota helps them to create trust among employees, it
leads to satisfaction among employees and customers .This is beneficial for the brand image of
the company Toyota. The benefits include increased sales that would provide them better
employees and offer less mitigation. The stakeholder theory and Corporate Social Responsibility
have lot of similarities. The main similarity of between the two is that both stress the importance

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of inculcating social interests into business operations. Business and society are embedded with
each other. According to the stakeholder theory, the concept of business lies in building
relationships and establishment of values for all its stakeholders (Miles 2017). On the other
hand, the CSR is an umbrella term, which defines the activities of the company towards the
development of the society. This includes the charity, volunteering, environmental efforts and
ethical labor practices .The stakeholder theory is developed into Stewardship Theory. It states
that the managers are no more the agents but they are the stewards. The Stewardship models
leads to some new CSR models, which includes the Sustainable development models and the
model of consumer driven corporate responsibility (Karns 2016). It also states that the
relationship equilibrium can be achieved when the goals of the managers are complying with the
interests of the stakeholders. For the purpose of ensuring safety Toyota has developed Pre-
Collision System or PCS, this would allow detection of vehicle for the Toyota cars in front of the
vehicle (Wang et al. 2016). This mechanism would alert the driver after detecting vehicles using
the audio and visual alert. The Pre-Collision System would ensure both the detection of vehicles,
which are in front of the Toyota cars, and also the pedestrian that comes in front of the
vehicle .This technology would surely boost the safety mechanism in the Toyota cars.

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References
Ahamad Nalband, N. & Al-Amri, M.S., 2013. Corporate social responsibility. Competitiveness
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Carroll, A.B., 2015. Corporate social responsibility. Organizational Dynamics, 44(2), p.87.
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Karns, G.L., 2016. Assessing market attractiveness under the Stewardship Model of
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Magdalena Krukowska, 2014. Determinants of Corporate Social Responsibility in Japanese
Companies. Management and Business Administration. Central Europe, 22(876553), pp.39–57.
Miles, S., 2017. Stakeholder Theory Classification: A Theoretical and Empirical Evaluation of
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TOYOTA MOTOR CORPORATION GLOBAL WEBSITE. (2018). TOYOTA MOTOR
CORPORATION GLOBAL WEBSITE. [online] Available at: https://www.toyota-global.com/
[Accessed 28 Sep. 2018].
Wang et al., 2016. Driving safety field theory modeling and its application in pre-collision
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