Analyzing Toyota's CSR Practices Through Stakeholder Theory Lens

This essay provides a comprehensive analysis of Toyota's corporate social responsibility (CSR) practices, examining their alignment with stakeholder theory and the triple bottom line framework. It begins by defining CSR and its link to sustainability, highlighting the importance of businesses contributing to society and enhancing their market image. The essay then explores relevant theories such as stakeholder theory and triple bottom line, illustrating how Toyota integrates these concepts into its strategies. It details Toyota's CSR initiatives, including programs for employees, customers, investors, the environment, and communities. The analysis emphasizes Toyota's commitment to addressing the interests of its stakeholders and its efforts to achieve sustainability in economic, social, and environmental aspects. The essay concludes that Toyota serves as a prime example of a company that effectively uses CSR policies to meet stakeholder needs, integrating CSR and sustainability to fulfill its responsibilities to society, stakeholders, and the environment.

ESSAY
As per Horrigan (2010) corporate social responsibility cannot be defined properly because of the
controversies associated and linked with the topic. All the definitions of corporate social
responsibility suggest that it is the obligation to the businesses that they have to return some part
of their profit to the society in return of the resources they are using. It is the aspect of business
that includes the practices in order to fulfil the business responsibility towards the society. This
essay focuses on analysing the corporate social responsibility practices of the company and its
relevance for the business (Beske, Land & Seuring, 2014). It is important to understand the
concept of corporate social responsibility in businesses because it not only benefits the society
but also helps in making and enhancing the image of the firm in the market. This essay discusses
about the theories that link between corporate social responsibility and sustainability and its
implication on the company called Toyota. Some of the theories are stakeholder’s theory and
triple bottom line theory.
Corporate social responsibility has many names. Some of the names of corporate social
responsibility are corporate responsibility, corporate citizenship, corporate accountability etc.
Corporate social responsibility is integrating in the business practices of most of the companies
these days and his is moving towards the aspect of responsible competitiveness or corporate
sustainability (Clapp & Rowlands, 2014). As far as the concept of sustainability is concerned, it
has been analysed that it is the conceit that is derived from the term sustainable development. It
is the development that is based on meeting the needs and requirements of the present generation
without making any compromise with the requirements of the future generations. Corporate
social responsibility is the concept that is very much linked with sustainability. Corporate social
responsibility helps the companies to achieve their sustainable targets in order to growth socially,
economically and environmentally (Garriga & Melé, 2004).

The above figure suggests that when sustainability integrates with the company it benefits the
society as well as the shareholders of the firm. Some of the sustainable practices that can be
practiced by the companies are innovation in products and processes, reduction in waste and
emissions, health and safety at the workplace etc. This results in employee satisfaction,
environmental protection and also includes stakeholder’s engagement (O’riordan & Fairbrass,
2008). Firms also get benefitted out of these practices such as enhancement in the image of the
company and improved utilisation of the resource. Some of the theories of corporate social
responsibility are utilitarian theory, managerial theory and relational theory etc. The theories that
include sustainability in them are triple bottom line and stakeholder’s approach. Triple bottom
line is the theory that assumes that organisation is moral community and thus it has some social
responsibilities. This theory also deals with sustainability and every organisation should weigh
their actions and activities on the basis of three types of sustainability such as economic, social
and environmental sustainability (Levy & Kaplan, 2008). As far as stakeholder’s approach is
considered, it has been analysed that it is theory that there are three elements of this approach
such as the stakeholders that includes employees, customers, shareholders etc., the second
element is interaction between the stakeholders and the company and the last element deals with
formation of strategies for managing the win-win situation between all the stakeholders and the
company.

Toyota is one of the car manufacturing companies that are well known for its corporate social
responsibility initiatives. It is the company whose initiatives of corporate social responsibility
can be studied in order to understand the implementation of corporate social responsibility
theories on the company’s strategies (We & Choi, 2008). This company has launched corporate
social responsibility initiatives and programs in the company in the year 2011. The global vision
of the company is like a tree in which the values of the company acts like a tree and the base of
the business activities of the firm is trunk of the tree. The positioning of the company that is
“always better cars” and “enriching lives of the communities” the other positioning statement are
like the fruits of the trees. Toyota deals with many stakeholders and fulfils their disparate
interests and demands. Following are some of the most important stakeholders of the company:
Employees: employees are one of the most important stakeholders for Toyota. The major aim of
this group is to have development in their career, job security and better workplace environment.
The company focuses on fulfilling their responsibility towards employees by implementing some
of the career development programs. The company has on the job development programs and
several other programs for the employees in order to enhance their career.
Customers: Toyota is the company that also succeed in serving the customers with their products
and services. This is because the company makes innovation in their products frequently.
Investors: investors and shareholders are the most important stakeholders of the company that
have their interest in earning profit (Epstein & Buhovac, 2014). Toyota addresses these
considerations and makes the strategies that are in benefits of the stakeholders.
Environment: it is the major concern of the organisation like Toyota to be sustainable in the
corporate social responsibility strategies. The company reports these interests through the Toyota
environmental activities grant program. This program results in donating automobiles and funds
for environmental conservation by the company. Toyota has supported many environmental
protection activities.
Communities: communities are also one of the major stakeholders of the company and their
interest’s lies in society’s development. Toyota is the company that has launched many programs

like education programs for literacy of the people (Kolk, 2008). Another safety intuitive is
known as GoSafety initiative that provides and educates the people for safe driving purpose.
Thus, this suggests that the corporate social responsibility activities of the company are
satisfying the communities as well. Toyota is a very appropriate epitome of a perfect company
that use corporate social responsibility policies to accomplish the needs of stakeholders. The
company has an inclusive corporate social responsibility approach that reports all of its
stakeholder groups. Even after facing so much of global recession challenges and product recalls,
Toyota has taken the required steps to ensure that the organization is on moving in the correct
path in upholding its fruitful efforts to fulfil stakeholders for high corporate social responsibility
performance.
The above discussion suggests that the theory of stakeholder’s approach can be implemented
here. As per the theory, the company used to fulfil the interests of all types of stakeholders of the
company and Toyota is doing the same with grace (We & Choi, 2008). There are many activities
of corporate social responsibility in which the company is engaged. These activities are directly
linked with sustainability in terms of economy, society and environment. The company’s 2.14%
of the staff is disabled and this shows the company’s interest in providing employment to the
disabled people and helping the society (Moir, 2001). In addition to it, in terms of environment,
the company focused on recycling the products and the waste that has been released by the
company’s manufacturing activities. As far as the supply chain of the company is considered, it
has been analysed that the company is allocating the resources very effectively. All these
activities suggest that the triple bottom line theory can also be implemented in this company.
This is clear evidence that corporate social responsibility and sustainability are the aspects that
are very much interlinked with each other. The study of Toyota and its corporate social
responsibility practices suggests that companies have to integrate the process of corporate social
responsibility and the sustainability aspect together so that it can fulfil its responsibilities towards
the society, stakeholders and the environment (Secchi, 2007). Considering all the factors of

economy, society and environment makes the corporate social responsibility activities of the
company sustainable in nature.
The essay concludes that corporate social responsibility is the obligation to the businesses that
they have to return some part of their profit to the society in return of the resources they are
using. It is the concept that is associated with sustainability and sustainable development. As far
as the concept of sustainability is concerned, it has been analysed that it is the conceit that is
derived from the term sustainable development. It is the development that is based on meeting
the needs and requirements of the present generation without making any compromise with the
requirements of the future generations. There are various theories that support the integration
such as triple bottom line theory and stakeholder’s approach. Toyota is the company that
practices all such activities of CSR that help the company to fulfil their responsibility towards
the society and environment.
References:

Beske, P., Land, A., & Seuring, S. (2014). Sustainable supply chain management practices and
dynamic capabilities in the food industry: A critical analysis of the
literature. International Journal of Production Economics, 152, 131-143.
Clapp, J., & Rowlands, I. H. (2014). Corporate social responsibility. The Essential Guide to
Global Environmental Governance. Routledge: London, 42-44.
Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in
managing and measuring corporate social, environmental, and economic impacts.
Berrett-Koehler Publishers.
Garriga, E., & Melé, D. (2004). Corporate social responsibility theories: Mapping the
territory. Journal of business ethics, 53(1), 51-71.
Horrigan, B. (2010). Corporate social responsibility in the 21st century: Debates, models and
practices across government, law and business. Edward Elgar Publishing.
Kolk, A. (2008). Sustainability, accountability and corporate governance: exploring
multinationals' reporting practices. Business Strategy and the Environment, 17(1), 1-15.
Levy, D., & Kaplan, R. (2008). CSR and theories of global governance: strategic contestation in
global issue arenas. The Oxford handbook of CSR, 432-451.
Moir, L. (2001). What do we mean by corporate social responsibility?. Corporate Governance:
The international journal of business in society, 1(2), 16-22.
O’riordan, L., & Fairbrass, J. (2008). Corporate social responsibility (CSR): Models and theories
in stakeholder dialogue. Journal of Business Ethics, 83(4), 745-758.
Secchi, D. (2007). Utilitarian, managerial and relational theories of corporate social
responsibility. International Journal of Management Reviews, 9(4), 347-373.
We, O. G., & Choi, B. H. (2008). A Study on the Corporate Social Responsibility (CSR)
Reinforcement in China; Focusing on Chinese Automobile Industry. International Area
Review, 11(2), 33-54.