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Toyota

Free «Toyota» Essay Sample

Nowadays we know Toyota as one of the most popular and respectable brand of automobile industry. But only a small amount of people remember that the brand could not exist if  Sakichi Toyoda wouldn’t invent the Automatic Loom in 1924 and then sell the invention to the British company. Toyota have been developing over many decades and in 2008 company achieved its goal – became number one among all automobile manufacturers in the world. Company operates in automobile industry. Main activities of Toyota are design, development, manufacturing and selling vehicles. The well-organized corporate structure and an effective CSR policy are the reasons of Toyota’s leadership position.

Corporate social responsibility (CSR) – it’s a company’s initiative to take the responsibility for environment and social wellbeing effects (Broomhill, 2007). The main goal of Toyota’s corporate social responsibility policy is to find a harmony with people, society and global environment. Company offers innovative and quality products and services. This is how Toyota contribute to the sustainable development of society.

 

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There are five directions of Toyota’s CSR policy: customers, employees, environment, shareholders, global society. Toyota implemented «Customer First» philosophy. Company is focusing on quality of its products. Toyota are testing products to make sure that they are eco-friendly, easy to use. They are trying to provide as many customers as possible with a car that presents high safety performance. For example some cars of this company has radar cruise control which helps to adjust vehicle speed to match the speed of preceding vehicle (Toyota’s CSR Concepts).

Company respects their employees, because it is a core of success. They stimulate the growth of employees by providing friendly atmosphere at work and safe and healthy working conditions. Toyota is giving employees the chance to be involved in business.

Company also conducted Toyota Traffic safety campaign. This campaign is aimed to present traffic safety materials to kindergartens and schools. Toyota also trying to create safer and cleaner technology that will satisfy society’s needs.

Company also cares about environment. It creates Toyota Environmental Challenge 2050. They are considering the world 30 years in the future. They have an action plan how to reduce the negative factors associated with cars to zero. Global warming provokes terrible disasters all over the world. That is why company is trying to reduce vehicle CO2 emission. According to forecasts, in 2050 the population will increase. As a result the demand on water will increase too. Toyota use a lot of water in manufacturing. That is why even a small reduction of its usage will have a positive impact. In my opinion, Toyota has a very effective CSR policy that will make our planet a better place to live in.

Corporate structure of Toyota is closely connected with organizational structures of all Japanese businesses. This structure is directed to maximize the capacity utilization and efficiency. The Toyota’s corporate structure is divisional and strong centralized what means that all major decisions are made in company’s headquarter in Japan. However, the structure was reorganized in 2013 and now it has new additional characteristics: product-based divisions, global hierarchy, geographic divisions. It means that now Toyota is more flexible and can response to regional market requirements and conditions (Toyota’s Organizational Structure). Toyota is a public joint stock company. This form of organization means that the ownership of company is divided into defined amount of stocks, which are freely traded on stock exchange market. Many investors own the securities of such kind of company. It gives Toyota ability to raise capital and funds through sale. But the accounts of this company should be regularly audited by external auditor.

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The strategic approach to CSR is very important to company’s competiveness. It can bring many benefits.  If the company wants to be successful, the business must be built on ethical practices. Toyota has goals and a vision, based on ethical principles, that go beyond products and profits, which provides a warmer image of its business.  That is why people trust this company and choosing their products among others.

 

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