Toyota Business Ethics

1947 Words 8 Pages
INTRODUCTION
For any business organization to be successful in its competitive environment, there are certain qualities that must be ensured. The question of what is right and wrong within the organization plays a significant role in determining the image and integrity of a business organization in its environment, which is the main idea behind business ethics. The term business ethics could be used in different ways. It is a form of applied ethics that aim to evaluate the ethical principles and moral problems that could arise in a business organization (Solomon, 1991). It is important to the conduct of individual and business organizations. Business ethics comprise of a set of moral values and principles that guide the behaviour of every
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Toyota Production System (TPS) is said to have 400 organizational routines with one effective objective that can be found in these routines, which is fast delivery and accurate flow of design information to customers (p.35). (2) Improvement capability: Toyota improved its already-high productive capability nearly 50% within the year 1990 to 2005. The improvement capability of the organization comprises of a set of dynamic routines, which aim for effective problem-solving approach, root cause identification, goal-setting, alternative-searching, standardization, and diffusion. (3) Evolutionary capability: The two layers are explained before were considered to be routinized but this one is non-routinized ability of Toyota to manage this improvement capability and effective manufacturing for a long period of time. It has to do with organizational mindset to an organizational preparedness (p.36). In cross-examinations of the present success of Toyota, every research made can be placed under these three layers or one of them. And they are determining factors to the success of every business organization. Toyota was considered to succeed in them and the company is able to enjoy its qualities …show more content…
A firm is not expected to focus on making profits alone but also put into consideration some ethical issues such as the well-being of employees, their working conditions, the quality of business products and the good and bad as stated in business code of ethics. Business unethical issues in Toyota as it has been discussed, affected not only the image and reputation of the company but also the sales of their products in their competitive environment. This shows that no matter how develop a business organization can be, business ethical issues must constantly be put into strict considerations in every of its business

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