Question:
Case study report on corporate social responsibility.
Maintenance of the corporate social responsibility is the key tool for achieving the successful sustainability management. Many of the corporations try to promote the sustainable development for considering the environmental welfare. Similarly, Toyota has also undertaken the skilful procedure for promoting the concerns of the customers. The classified elements of ecology development are considering the area of promoting the sustainable development. The plan has been structured in considering the goals and objectives ensured by Toyota. The process is determining the strategic implementation within the limited time. The company has been introducing the automobile vehicles with high quality material that is concerned with the less emissions of CO2. Electric car has been launched to lessen the amount of fuel consumptions. The company has even undertaken the initiatives to recycles the chemical wastages. However, in concerning such areas, it can be inferred that the implementation of such plan would be beneficial for considering the safer approaches for the external stakeholders. However, some for the major advantages and the disadvantage are also involved with such implemented plans. The establishment of the communicational transparency would be beneficial for the upcoming future in sustainable development process.
The corporate social responsibility simply defines the maintenance of the responsibility of the organisations towards the environment and the community, where the business is located. The meaning of the corporate social responsibilities has been one of the most frequent questions that are concerned among the business corporations. (Ahman 2013) opined that the corporations usually try to engage their best inputs to keep the environment well-maintained. Therefore, each of the organisations has been providing their best effort to prove themselves suitable for surviving in this competitive scenario and achieving the sustainable development (Caplan, Dutta and Lawson 2016). While some of the corporations have been concentrating on the reducing the pollution and waste to keep the environment clean; other corporations have been concerning about the undertaking many social and education programs (Fath 2015). Some of the organisations are even trying to earn the adequate returns on the engaged resources. Hence, diversified procedure maintained in ensuring the corporation social responsibility and it is contributing the sustainability management in a specific way.
The study will be discussing the corporate social responsibilities maintained by Toyota Motors, Australia in ensuring the ecological sustainability. The study is associated with the analysis of the three major factors related to the ecological sustainability, such as economic, ethical, and discretionary. The structured plan based on the clean technology, pollution prevention, sustainability vision, and ecological sustainability will be demonstrated in this study. The establishment of the aims, objectives, tactics, and strategies will be incorporated in this study. Along with these segments, the study will also highlights the key advantages and disadvantages related to the initiatives undertaken for maintaining the ecological sustainability and this will be liked with the formulated strategy of the company.
According to Costanza et al. (2014), the ecological sustainability refers to the capability of the ecosystem that is required to maintain the essential functions and retain the biodiversity for the longer time. As per the environmental guidelines, the corporations need to keep the eyes on the environmental guidelines for maintaining the ecological sustainability. Under the section 516A of the Environment Protection and Biodiversity Conversation Act 1999, the organisations associated with the commonwealth programs need to present the report based on the statutory report (Environment.gov.au 2016). This particular report will be including the organisational initiatives undertaken for maintaining the environmental sustainability (McCallum, Schmid and Price 2013). More specifically, it is to be notified that these corporations need to maintain each of the principles written under this section. Toyota Motors, Australia is also maintaining such guiding principles to ensure the sustainable development. The compliance of the ethical in establishing the ecological sustainability is much commendable. The brief analysis of the three major factors related to the corporate social responsibility maintained by Toyota is described further:
Economic: Benn, Dunphy and Griffiths (2014) suggested that ecological economics is considered as the trans-disciplinary field in the context of corporate social responsibility. The ecological economy is not only bounded with the ecological sustainability, but it also describes the wider context of psychology, archaeology, anthropology, and history (Morelli, 2013). In highlighting the differences, it can be inferred that the environmental economics includes the sub discipline of economics, which can be applied to the environmental thinking. In case of Toyota, it has been seen that the company has concentrated in the fuel economy level. In the year of 2012, Toyota was considered as the full-line automotive manufacturer, which signifies the most fuel-efficiency (Toyota.com 2016). The use of the advanced engine technologies facilitated such initiatives during the manufacturing process of the automotive cars. The company has even introduced some of the Electric Power Vehicles like RAV4, Corolla, and Camry. These cars reduce the consumption level of fuel, which helps in eliminating the hydraulic lines and pump belt.
Ethical: Ethical ecology is demonstrating the study of individuals, humans, and corporate values. Ihlen and Roper (2014) defined that the ecological ethics includes the justification, evaluation, specified values, and standardized characterizations of diversified aspects. The diverse forms of disciplines are associated with the ecological ethics, which determines both the religious and philosophical versions. The expansion of the traditional ethics is concerned with the adverse effects of environmental conditions that depend on the human interests (Ito 2014). It is to be indicated that the sustainability is considered as one of the most prominent norms in describing the ecological ethics. In last few decades, some of the ethical concerns were quite prominent in the business scenario of Toyota. In the first place, it was informed that Toyota admitted their fault of neglecting safety concerns and delaying the investigation process just to save the money (Schneider and Schmidpeter 2012). The ecological ethics determines the safer approaches for the customers who have been dealing with the products or the services provided by the company (Costanza and Kubiszewski 2012). However, Toyota failed to maintain such purposes. On the other hand, the name of the company is somewhat involved with many others unethical behaviour, which is quite unjustified for the maintenance of the corporate social responsibility.
Discretionary Ecology: The discretionary ecology specifies the negligence of the fruitful advices related to the organisational sustainability. The discretionary policy signifies the decisions of the policy maker in judging the oppositions of a policy dominated by the pre-determined rules (Resick et al. 2013). Hallstedt (2015) explained that discretionary policy refers to the actions taken in responses to the changing scenario in the economic structure. Toyota faced some of the promising situations due to the unethical behaviour towards the discretionary ecological aspect (Åhman 2013). The deep and systematic issues with the poor quality of the automotive products are the major concerns in such purpose. The automobile parts used for the manufacturing process is not up to the mark (Benn, Dunphy and Griffiths 2014). Hence, it creates discrepancy with the safer approaches. In such cases the fixation of the acceleration is necessary. The list of the falsified statements is also considered as the ethical discrepancy.
This section of the study will be discussing the structured plan related to the sustainable development of Toyota in considering the featured initiatives. The demonstration of the mission and objectives would be specified in this section of the study. The structured CSR plan would be featured by including the required components.
Since the time of the establishment, Toyota has been concentrating on promoting the environmental welfare to maintain the skilled corporate social responsibilities. The provision of the higher quality and innovative products for managing the sustainable development of the societal context is also concerned by Toyota (Hallstedt 2015). Toyota Motor Corporation announced their fruitful contribution towards the sustainable development management in the year of 2005 (Toyota-global.com 2016). The initial step undertaken by Toyota has been concerning the maintenance of the transparent relationship with their internal and external stakeholders. Moreover, the company has been concerning about the sustainability development for next 5 years by adopting the environmental welfare process.
The subsequent changes in the environmental needs are sometimes considering some of the recognisable challenges for Toyota (Resick et al. 2013). The major rationale that has been observed by the company is the proper maintenance of the corporate social responsibility. The company aims to portray their image as the most trustworthy company in the society. Hence, it is required to promote some of the relevant initiatives that will make the people trust this company. The employees are put into the considerations of practicing the CSR policies. Moreover, the company has been involving the ethical practise in the subsidiaries as well as taking the proper actions against the discrepancy (Kesavan, Bernacchi and Mascarenhas 2013). Toyota puts the customers as their first priority and due to such reason the company has been trying to promote the safe and innovative features of the automotive products and services. Apart from the customers, Toyota has been concerning about the business partners, shareholders, and employees of the company.
The mission of the company is to establish business practices as per the ethical guidelines and build the trust for maintaining the sustainability approaches (Toyota.com.au 2016). The objectives of establishing the sustainable development plan are as follows:
The recognition of these specified objectives is necessary for structuring the sustainable development plan. However, it is to be stated that structuring the sustainable plan is a sequential process, which needs to follow some of the sequential steps. These steps are defined further:
|
Goal Specification |
Strategies |
Responsible person |
Timeline |
|
The first and foremost step of establishing the sustainable development plan is to identify the particular goal. In case of Toyota, the company has identified the requirements of establishing trust among the stakeholders. The company has been focusing on manufacturing the automobile products with the safety concern. Hence, the customers can use these vehicles with lower emissions of CO2 and the automobile parts will be made up of higher quality material. |
Engaging the higher quality material for manufacturing the automobile parts. |
Operational manager |
1st to 3rd Month |
|
The company has been concentrating on decreasing the level of the fuel consumptions. |
Promoting the electricity car |
Operational manager |
1st to 5th months |
Table 1: Sustainable Development Plan
It is to be indicated that the modern society is much influenced by the natural environment (Kim and Lee 2015). Each of the organisations tries to maintain the environmental welfare to keep the society happy. Hence, it is required to keep the concentration on the maintenance of the biodiversity aspects. Vehicle emissions are much significant concerns in the society. It is to be noted that the automobile parts are emitting more amount of CO2, which has been polluting the environment. Therefore, it is necessary to undertake any fruitful initiative that will be beneficial for reducing such CO2 emissions. Toyota has undertaken the initiatives to determine the strengthened sustainability management. The company has been concentrating on manufacturing the electricity cars, which will consume lesser number of fuels and will keep the environment pollution free (Ito 2014). Moreover, the company is even focusing on using the high quality materials for the automotive engines (Hallstedt 2015). Using the high quality material will be reducing the risks of the situational incidents and will keep the people safe. Since, the major motto of the company is to satisfy the customers and provide them the safer products, this initiative is much useful.
The biodiversity conservation is another fruitful initiative that Toyota has planned for maintaining their corporate social responsibility (Costanza et al. 2014). The Company has been considering the recycling of the wastes derived from the industrial projects and manufacturing process. In determining the Substance of Concern, the company has been promoting the process of reducing the release of chemical substance. This process is associated with the Transfer Reister Law that reduces the chemical release form the planet (Toyota.com.au 2016). In addition, the supply chain management process is also considering such area to be promoted in their sustainable development initiatives.
It is to be noted that corporate social responsibility is considered as a process of analysing the behaviour of the corporations towards the welfare of the environment in which it operates (Resick et al. 2013). In judging the corporate social responsibility, it is required to identify the basic needs and requirements of the stakeholders associated with the company (Kesavan, Bernacchi and Mascarenhas 2013). Similarly, Toyota has implemented special initiatives to promote their sustainable development approach and environmental welfare. The short term plan ensured by Toyota Motors, Australia is indicating the arrangements of the sustainability programme. On the other hand, the long term goal has been specifying that the use of the electric car has been reducing the fuel consumption, which can be beneficial for the future prospects. It is needless to say that the promotions of such sustainable development are considering the advantages for establishing the sustainable business in this competitive society. The advantages are as follows:
In spite of considering the advantages, some of the obstacles are also foreseen simultaneously. The disadvantages associated with the implementation of CSR initiatives are as follows:
It is to be indicated that throughout this implementation programme, the management behaviour of Toyota reflected an image of negligence, denial, and shifting of the blames (Kim and Lee 2015). It was their incapability to maintain the proper responsibility and due to such reason, the reputation of the company even affected in a very significant manner.
Conclusion
Maintenance of the corporate social responsibility is the key tool for achieving the successful sustainability management. Many of the corporations try to promote the sustainable development for considering the environmental welfare. Similarly, Toyota has also undertaken the skilful procedure for promoting the concerns of the customers. The classified elements of ecology development are considering the area of promoting the sustainable development. The plan has been structured in considering the goals and objectives ensured by Toyota. The process is determining the strategic implementation within the limited time. The company has been introducing the automobile vehicles with high quality material that is concerned with the less emissions of CO2. Electric car has been launched to lessen the amount of fuel consumptions. The company has even undertaken the initiatives to recycles the chemical wastages. However, in concerning such areas, it can be inferred that the implementation of such plan would be beneficial for considering the safer approaches for the external stakeholders. However, some for the major advantages and the disadvantage are also involved with such implemented plans. The establishment of the communicational transparency would be beneficial for the upcoming future in sustainable development process.
References
Åhman, H., 2013. Social sustainability–society at the intersection of development and maintenance. Local environment, 18(10), pp.1153-1166.
Benn, S., Dunphy, D. and Griffiths, A., 2014. Organizational change for corporate sustainability. Routledge.
Caplan, D., Dutta, S.K. and Lawson, R.A., 2016. Corporate Social Responsibility Initiatives Across the Value Chain. Journal of Corporate Accounting & Finance, 27(4), pp.57-66.
Costanza, R. and Kubiszewski, I., 2012. Ecosystem services.
Costanza, R., Cumberland, J.H., Daly, H., Goodland, R., Norgaard, R.B., Kubiszewski, I. and Franco, C., 2014. An introduction to ecological economics. CRC Press.
Environment.gov.au. 2016. Ecologically Sustainable Development home page. [online] Available at: https://www.environment.gov.au/about-us/esd [Accessed 5 Jun. 2016].
Fath, B.D., 2015. Quantifying economic and ecological sustainability. Ocean & Coastal Management, 108, pp.13-19.
Hallstedt, S.I., 2015. Sustainability criteria and sustainability compliance index for decision support in product development. Journal of Cleaner Production.
Ihlen, Ø. and Roper, J., 2014. Corporate reports on sustainability and sustainable development:‘We have arrived’. Sustainable development, 22(1), pp.42-51.
Ito, H., 2014. Toyota as an environmental model city: Is its eco-policy recognized?. Journal of Sustainable Development, 7(2), p.70.
Kesavan, R., Bernacchi, M.D. and Mascarenhas, O.A., 2013. Word of mouse: CSR communication and the social media. International Management Review, 9(1), p.58.
Kim, H.S. and Lee, S.Y., 2015. Testing the Buffering and Boomerang Effects of CSR Practices on Consumers’ Perception of a Corporation during a Crisis.Corporate Reputation Review, 18(4), pp.277-293.
Kim, P. and You, J., 2013. Strategic CSR through Innovation and Top Management Team Decision Making: Evidence from Eco-Friendly Automobile Industry Case Analyses. Journal of Advanced Management Science Vol, 1(4).
McCallum, S., Schmid, M.A. and Price, L., 2013. CSR: a case for employee skills-based volunteering. Social Responsibility Journal, 9(3), pp.479-495.
Morelli, J., 2013. Environmental sustainability: A definition for environmental professionals. Journal of Environmental Sustainability, 1(1), p.2.
Resick, C.J., Hargis, M.B., Shao, P. and Dust, S.B., 2013. Ethical leadership, moral equity judgments, and discretionary workplace behavior.Human Relations, p.0018726713481633.
Schneider, A. and Schmidpeter, R., 2012. Corporate social responsibility.Verantwortliche Unternehmensführung in der Praxis, Berlin ua.
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