Report on Business Ethics 2022

Running head: BUSINESS ETHICS
Business Ethics
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2BUSINESS ETHICS
 Introduction
Ethics is one of the major aspects of any and every business organization. All the business
organizations have to make sure that they are being able to stay true to their duties and their
responsibilities and make sure that they are being able to take care of the health of their
customers and also their employees. At the same time, they ensure that none of their actions are
violating any of the acceptable ethical standards
Background
Toyota is one of the most famous and well-known car manufacturing companies in
Australia. The company was established in the year 1973 and since then it has tried its level best
to make sure that they are taking proper care of the needs and demands of their customers. This
is because they have been able to use all the modern and updated technologies and made sure
that they can incorporate the same within their products. As per the company policies, they are
concerned about the health of their customers and also they try their level best to make sure that
they are not staying profit-oriented (Bowen and Zheng 2015). They are aware of the harmful
environmental impacts that can be created due to the emissions of any harmful components from
diesel or petrol-driven cars. Therefore they always try to use the co friendly products to keep the
environment clean.
It must be noted that there are about three different approaches or levels of ethical
standards in any company. The Company level, the Macro level and also the individual level.
This is because ethics is a particular set of rules and regulations that must be followed by the
organization as a whole and also by the different employees if the organization at their individual
or their level (Bowen and Zheng 2015).

3BUSINESS ETHICS
Integrated Approach must be followed in all the different organizations so that the maintenance
of the ethical standards can be carried on right from the top hierarchy to all the different levels
and the departments of the staff working in the organization.
 Issue
The report has dealt with the ethical issue that developed in Toyota Company regarding the
Accelerator Pedal Recall. The issue that was mainly detected was the presence of the sticky gas
pedals. It was due to the sticky gas pedals that made it difficult for the riders to stop the car
whenever they wanted to. In other words, this can be considered as one of the major mistakes in
designing and the production of cars. The major issue was with the gas pedal mechanism that
caused the accelerator to get stuck and they were not able to make sure that whether they could
press the accelerator. This sticky gas pedal made it tough for the drivers to press the accelerator
and then there was also the issue of the poorly designed floor mat. This was a fault because this
could take the lives of the many innocent customers under a huge threat.
Therefore all the customers started making complaints about faulty cars and feared that
using these cars is detrimental to their lives. This was a matter of huge ethical concern and was
also a major scandal on the goodwill and the fame of the company. It was for this reason that the
car company had to make recalls in a huge amount so that they can deal with this issue and save
their customers from using these faulty cars. More than 8.5 million Toyota cars and trucks have
been recalled. Drivers who have used those cars have made complaints of cars careering out of
control at 65mph while overtaking, and negotiating roundabouts so fast that it felt like their car
was on two wheels. Toyota was thus highly embarrassed after having these scandals and not
knowing what would be the best solution to come out from this. The only prominent step that