GBS 2

MAHNOOR BUTT
G1F17BBAM0062
GOVERNMENT BUSINESS AND SOCIETY
SUBMITTED TO : PROF ZOHAIB SALMAN

ASSIGNMENT-2
Select a company that follows Carroll Model or corporate social responsibility and

explain the impact of CSR on that company ?
TOYOTA MOTOR CORPORATION
Introduction:
The world's top ten automotive companies, Japan's biggest car company, was founded in
1933, now has developed into the main car production; business to large industrial groups
involved in machinery, electronics, finance and other industries.
Toyota's early manufacturing of textile machinery, textile machinery production, founder
Kiichiro Toyoda in 1933 established the Automotive Division, and thus began the history of
manufacturing cars of Toyota Motor Corporation. In 1935, Toyota AI cars a successful trial,
the second year of the formal establishment of Automotive Industry Corporation. However,
the slow development of the whole number of 30's and 40's, just after World War II, Toyota
Motor Corporation to accelerate the pace of development. Through the introduction of
European and American technology under the guidance of the U.S. automotive technical
experts and management experts, and soon mastered the art of automobile production and
management techniques, and in accordance with the characteristics of the Japanese nation,
created the famous Toyota Production System management mode, and continue to be
improve and perfect, greatly improving plant efficiency and product car at the end of the
1960s, the influx of the North American market. In 1972, the total production of 10 million.
Carroll’s Model of Toyota Company:

Carroll's CSR pyramid is a framework that explains how and why organizations should take
social responsibility. The pyramid was developed by Archie Carroll and highlights the four
most important types of responsibility of organizations. These are: Economic responsibility.
Legal responsibility.
 Legal Responsibility
 Ethical Responsibility
 Philanthropy Responsibility
 Economic Resp[onsibility
• Legal Responsibility
The legal responsibilities of a business occupy the second level of Carroll's CSR modeland
focus on a corporation's compliance with the Law of the land. As per Isaksson and Mitra.
Businesses have the responsibility to obey all existing laws regarding their operation
orindustry and to comply with pre-established standards of safety and health. To balance
theextreme forces in corporate environments, governments and local authorities implement
laws andregulations that enable businesses to operate in harmony with their environment.
Therefore,companies must follow these regulations effectively to avoid any conflict with the
Law or itsenforcers. For instance, organizations must adhere to the laws and regulations of
their country orstate of operation by complying with the constitutional requirements on
competition,employment, and procedures. Similarly, managers must ensure compliance with
health andsafety rules to safeguard their employees from work-related injuries. These
responsibilities donot only limit legal conflicts but also protects the organization from
resultant consequences.
 Ethical Responsibilities
The next level of responsibility in this model of CSR is an ethical responsibility,
whichincorporates acting in line with the generally acceptable behavior. According to Baden
itencompasses the organization's commitment to adopt ethical and moral practices to ensure
littleharm to those interacting with the firm. While different scholars hold differing
opinionsregarding the standard ethical or moral behavior, Baden (2016) opines that it
involves goingbeyond the legal requirements of the Law to achieve a morally-standing
organization. Theorganization should not stop at obeying the legally stipulated laws but
implement practices thatfavor positive relationships among stakeholders and non-
stakeholders. Such methods include treating employees and suppliers by paying promptly,
non-discrimination, and the provision ofequal opportunities. Similarly, managers should
ensure that their products do not violate thedignity of their customers and that prices are fair
and value-based. The third level ofresponsibility calls on managers and other organizational
leaders, to treat all stakeholders,including clients, employees, suppliers, and the public with
respect and dignity.
 Philanthropic Responsibilities
Philanthropic responsibilities are the highest level of commitment in Carroll's CSRpyramid,
includes the need to give back to society. Charitable responsibilities are discretionary,and
managers are at liberty to choose what works for them (Baden, 2016). There is no
standarddefinition of philanthropic duties as they may also differ from firm to firm.
Accordingly, it relatesto the organization's role in promoting welfare programs for the
community, including charitabledonations and collaborative projects. Organizations need to
involve in societal welfare toencourage goodwill, improve public attitude, and promote the
organization's ideologies. Forinstance, organizations may choose to sponsor football teams in
the region to uplift people withtalent in society or choose to facilitate health and wellness
programs to benefit the community.
 Economic Responsibilities
Toyota Motor Corporation is one of the most economically successful companies in themotor
manufacturing industry. Critical analyses of the firm's financial statements reveal that
theorganization is on a continuous growth trajectory with a stable increase in net profits over
the lastdecade Apart from the low business period during the Corona break, thecompany has
realized an evident increase in its profit margin in the past ten years, with the firmboasting of
an annual relative increase in net profits of around 3 (three) percent. Notably, theseprofits
place the organization ahead of its competitors, and currently, Toyota Motor Corporationis
the leading car manufacturer in profits and car sales globally. The success is attributable
toyears of research, innovation, strategic marketing activities, and extra effort. These
statistics areevidence of the firm's ability to repudiate its economical responsibilities to the
organization'sshareholders effectively. Toyota Motor Corporation thus fulfills its economic
mandate byensuring that the investors in the organization realize reasonable returns on
investment.Additionally, the organization implements effective operational techniques to
ensure areduction in operating costs. According to Lu et al. (2020), the guiding principles of
the founder,Sakichi Toyoda, includes maintaining the spirit of 'kaizen,' endless creativity, and
inquisitivenessThe precepts of the founder focused on initiating the spirit of continuous
improvement inoperational activities to ensure sustainable efficiency over time.
CSR:
Supporting local communities:Toyota promotes local purchasing globally.
Gender equality and minorities: As a result of relevant set of initiatives the number of
women in managerial positions has increased from 16 in 2004 to 111 in 2015.Toyota aims to
increase the number of women in managerial positions in 2020 by three times the number
in2014.
Health and safety: Quality Control (QC) circles have been instituted at Toyota to increase
the vitality of people and workplaces. As of March 2015, approximately 4,100 circles
involving approximately 36,000 members were active in Japan, and approximately 13,000
circles involving approximately 99,000 members were active abroadToyota conducts
geniegenus safety inspections regularly to ensure the safety of employees and visitors to the
company.
Environment water consumption: Rainwater collection has been implemented by Toyota
to reduce the amount of water usage in its plants.
Other initiatives: Toyota has initiated a number of road safety education programs which
include issuing nearly 134 million copies of traffic safety picture books to preschool and
kindergarten children around Japan, and nearly 1.5 million copies of traffic safety picture-
card sets. Moreover, Teen Drive in the US and White Road Campaign in Thailand are among
road safety educational initiatives launched by Toyota outside of Japan’s workshop and
education programs are organized for suppliers in Japan and abroad participation in which is
voluntary.
References:
admin (2011/8/11) The simple introduction of the Toyota Motor Corporation, Available at:
http://www.aierfu.cc/en/NewscenterDetails.asp?newsid=93 (Accessed: 1st May 2021).
Baden, D. Saks son, L. E., & Mitra, N. (Dec 01, 2016) CSR PYRAMID IN TOYOTA, Available
at: https://netlogiqs.com/carroll/CSR_Toyota.docx.pdf(Accessed: 1st May 2021).

GBS 2

Uploaded by

Copyright:

Available Formats

GBS 2

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

GBS 2

Uploaded by

Copyright:

Available Formats

MAHNOOR BUTT

GOVERNMENT BUSINESS AND SOCIETY

SUBMITTED TO : PROF ZOHAIB SALMAN

Select a company that follows Carroll Model or corporate social responsibility and

TOYOTA MOTOR CORPORATION

Carroll’s Model of Toyota Company:

You might also like