Intro

Toyota has long been recognized as seventh largest company in the world

As been the world third largest manufacturer of automobiles in unit sales and in net sales, Toyota has also created
good customer relationship and provides customers with the products they need.

Toyota Motor Corporation is headquartered in Toyota City, Aichi
Toyota has annual sales of $120 Billion
Produces ~5.5 million vehicles per year
From 56 manufacturing plants across
6 continents

Founder

Mr. Kiichiro Toyoda was borned : 11 of Jun in 1894

He established Toyota Motor Company Ltd. in Koromo Town, Japan in 1937 by Mr. Kiichiro Toyoda.

History of company

By 1934 Toyoda and his team had designed and built their first gasoline-powered engine
Toyoda vehicles were manufactured beginning in July 1935,
In 1936 He later changed the name Toyoda to Toyota
As Toyoda himself believed the new name was easier to pronounce
since he wanted to bridge the gap between his family name and the Company name. That is, making a clear
distinction between his family (privatelife) and his company (public life).

the Toyota Motor Corporation, in 1937, with Toyoda as Vice President. He became president in 1941

Toyota also has a global network of design and 'Research and Development' facilities, embracing the three major
car markets of Japan, North America and Europe.

The company never encountered a problem or any bad history until there was recalls of some automobiles by the
Toyota Motor Corporation which occurred at the end of 2009 and commerce of 2010.

What happend?
According to Brownsell, 2010
Aug 28, 2009: four people were killed in an acclaimed no brakes Toyota Lexus crash
Sep. 29, 2009: Floor mat recall: Toyota recalled 55,000 sets of heavy duty rubber floor mats
Oct 30, 2009: Toyota no defect existence letters to customers
Nov 25, 2009: Toyota recalled 3.8 M vehicles to change all drivers side mats and denied media reports that
a problem exist with its electronic throttle system
Dec 5, 2009: Media reiterates its position on its finding about the acclaimed unintended acceleration with
Toyota products Toyota responds
Dec 26, 2009: another motor accident with all four occupants dead
Jan 21, 2010: Accelerator pedal recall this time in response to reports of accelerator pedals striking in
cars without floor mats
Feb 3, 2010: Anti-look brake software recall
the NHTSA received reports of 102 drivers of possible problems related to the braking system

Compensate /'kmpenseit/ n b, bi thng
Defective /di'fektiv/ c thiu st, c nhc im;
Injury /'indri/ s lm hi, s lm tn hi, s lm hng
Impartial /im'p:l/ cng bng, khng thin v, v t
Liberity /'libti/ t do, quyn t do
Violate /'vaileit/ vi phm, xm phm, phm; lm tri
Investigation /in,vesti'gein/ s iu tra nghin cu
Integration /,inti'grein/ s dnh quyn bnh ng cho
Paddle /'pdl/ ci gim

Ethical issues
the delay in recall of the 9.5 million cars in 2009 and repeated problems of defective parts in car is a major
concern. Because of such defects like sticky gas paddle, floor mate there are many injuries and death. Hence it is
necessary to look up at the whole issue at the ethics point of view with reasonable care.
Whether the Toyotas behavior is ethical or not we need to look at this issue from the following 4 theories of ethics
1. Utilitarianism /,ju:tili'te ri nizm/ thuyt v li
2. Justice and Fairness
3. Human rights
4. Integrative social contracts /'intigreitiv/ quyn bnh ng
Utilitarianism
Ethical decisions are made solely on the basis of their outcomes or consequences such that the greatest good is
provided for the greatest number
















What we learned from the case
People want to see a company take full responsibility, be empathetic ( thng cm )to the victims and their families
and be in control by outlining the problem and how they intend to solve itespecially the CEO. ~ Ong Hock Chuan

Listen to customers customers were providing feedback regarding this issue long before it became this crisis!
Hiding doesnt work must meet impending crisis head on
Lead from the Top involvement and direct communication from Executives, primarily CEO
Comm Early and Often Quickly respond to crisis by not only
Provide definite answers shareholders need to know what the problem is and what or who is effected. Is it the
gas pedal, the floor mat, the electronic system, and is it my toyota tacoma, prius or tundra thats effected?
Corporate culture drives future success one positive about this crisis is that they stayed true to their corporate
culture