Toyota Ethical Issues Essay examples

1245 Words Aug 1st, 2011 5 Pages
Current Ethical Issue in Business Toyota Ethical Issue
Charlie Badell, Dawn Vinaguerra, Dotlyn Robertson, Farida Biobaku, Peter Daunoy
HCS 350
July 18, 2011
John Muench, MSM

Current Ethical Issue in Business Ethics are moral principles of knowing right and wrong. All human action comes under the ethics of right or wrong. In the corporate world, ethics may be known as moral business principles. As defined by Crystal (2010), “Business ethics is the behavior that a business adheres to in its daily dealings with the world” (Para. 1). The company’s business ethics relate to the organization, its employees, consumers, and the surrounding community that may be the world. In business ethics, the line
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Upper management underestimated that Toyota North American customers expect certain ethical attributes concerning the quality and safety of products and customer’s safety. Several ethical issues were in violation beginning with upper management by hiding the mechanical failure of the braking system. It seems there was a do not ask do not tell policy at work. This mechanical failure could lead to loss of lives. This could be a calculated strategy by the company not to accept financial responsibility for the recalls. Toyota was willing to risk the lives of their customer over financial gains of its company. All this does not make Toyota a virtuous company. The president of Toyota Akio Toyoda went on record stating “We pursued growth over the speed at which we were able to develop our people and our organization.” The Company’s vision is guiding principles and core values that express the beliefs and values shared by the organization (Liker & Hoseus, 2008). 4 In 2007 Toyota was the number one in the United State after improving quality because of an escalating pattern of recalls in the United States and Japan. There had been ethical concerns that Toyota executives' reluctance to issue a recall over a suspected defect had led to a death in a southern Japanese city. There was a call for Toyota to slow down growth but the president, Watanabe defend the growth has Toyota’s future (Treece, 2007). But the ethical behavior and responsibility differed between

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