Live Chat
Order now

Toyota Motor Corporation


This paper has discussed Toyota’s corporate social responsibility, the lawsuits and controversies that the company faces, and the best practices taken to address the issue. The first section is CSR which evaluates the procedures taken by the firm toward all stakeholders. Thus, Toyota conducts CSR activities among its business partners, employees, and the community at large. The company’s business partners and employees are provided with appropriate working conditions that foster their growth and development. The firm also conducts processes that have minimal effect on the environment. The second section offers a detailed discussion of the controversies and the lawsuit that Toyota has faced. Thus, a lawsuit of $1.2 billion has been identified as the major controversy for the company in the recent past. This section offers comprehensive details on why the controversy has escalated. The final section evaluates the measures Toyota has taken to avoid the situation from reoccurring. This part also evaluates whether these measures are effective.

Keywords: Toyota, CSR, lawsuit, controversies

Get a Price Quote
First order only: $ * $
* We give you 15% OFF on your 1st order


Toyota Motor Corporation is an auto manufacturer with headquarters in Toyota City, Japan. The firm, renowned for producing affordable quality vehicles, is the second-largest auto manufacturer in the world. Toyota sells vehicles to over 170 countries through a collaboration with 53 manufacturing companies. A wide variety of vehicles is offered to people from different social classes. The company also assures its clients over the world of the safety of their vehicles while in transit. The customer service in the firm is quite effective, which attracts many customers. However, ineffective external communication with regulators and customers was the primary reason that caused the company to pay a huge penalty in a lawsuit, filed in the USA.

Corporate Social Responsibility

The CSR of Toyota is embodied in all its operations, from the acquisition of raw materials to the provision of finished products. For example, in the acquisition of raw materials, the firm is unbiased in selecting its suppliers. Consequently, they are chosen based purely on the merit and evaluation of their strengths and capabilities (Toyota Motor Corporation, n.d.). At the same time, Toyota provides its shareholders with accurate information on its operations and financial condition. Thus, stakeholders are not misguided by wrong data, intended to entice them into making more investments. Moreover, they receive the actual return on investments as the firm does not make huge profits at the expense of its business partners.

Our Features
When using our platform you are guaranteed to receive
Plagiarism Free Essays
Plagiarism Free Essays
All of our work is unique and original
On-time delivery
On-time delivery
Your paper will be delivered according to your deadline
Well Formateed Papers
Well Formateed Papers
We do all formats, including MLA, APA, Harvard, etc.
Grammar and Spelling Check
Grammar and Spelling Check
All papers double checked for mistakes

Toyota acknowledges that employees are imperative in achieving its goals. Therefore, the company has introduced employee development that is meant to foster personal growth for its staff. Moreover, employees are not discriminated against based on such aspects as race, gender, and religion (Toyota Motor Corporation, n.d.). Furthermore, the firm ensures that there is a safe environment for the employees to work in and fair working conditions. The company ensures that the private information of all its clients is protected from illegal access. Toyota also offers high-quality products that meet the varying needs of its clients. The recruitment process is unbiased, which ensures that all applicants receive a fair chance of being employed in the company.

The company strives to produce vehicles that have a minimal effect on climate and biodiversity. Toyota achieves this goal by sourcing advancing technologies and aims at ensuring that capitalism goals and the environment do not collide. For instance, the firm has produced hybrid vehicles that use electricity, which reduces the dependence on petroleum (Toyota Motor Corporation, n.d.). The company collaborates with different organizations that focus on environmental preservation. Toyota does not tolerate any form of corruption at any level and respects the various cultures of the communities where it has operations. Furthermore, the firm promotes social relations among all its business partners, customers, stakeholders, and employees since good social relations create a positive environment that improves productivity and helps achieve customer satisfaction.

Lawsuits and Controversies

Toyota was faced with a lawsuit in 2014 where it was compelled to pay a $1.2 billion fine for misleading US consumers. The company concealed information on two safety concerns that caused unintended acceleration. Instead of acknowledging the defective parts and recalling the products, the first statement, released by the company that driver error might have resulted in the issue of acceleration, was fabricated (Rechtin, 2014). These actions of Toyota led to various undesirable circumstances, including the death of four family members. Other customers were given speeding tickets, and some were jailed for reckless driving. These punishments were very unfair, considering that it was not their fault.

Once the company agreed that its cars had a defect, it did not recall the earlier models that had a similar problem. Instead of maximizing public awareness of the issue, the firm treated the problem as public relations. These actions of Toyota led to the fact that many customers who had purchased the cars did not obtain the information from the company. One driver indicated that the information he got from ABC News had saved his life. This report informed customers of the actions to take when they were faced with a defect that caused unintended acceleration. In another instance, a person serving an eight-year jail term was released since it was established that the accident he was accused of causing had not been his fault. The fine, paid by Toyota, is the highest one ever paid by an auto manufacturer in the United States (Rechtin, 2014). Moving forward, the company has the intricate task of reassuring its customers that it has taken appropriate measures that will prevent such incidences from occurring in the future. However, this procedure will most likely be a costly venture since it will involve public relations campaigns. Negative publicity consumes a significant amount of time and financial resources (Heal, 2012). Thus, companies should take preventive measures to avoid such situations in the future.

Best Practices to Address the Issue

The company has adopted a transparent strategy in its internal and external operations. This plan entails being responsive to customers by listening to them and addressing their concerns. By doing so, the firm acquires meaningful insight from the customers, and this information can be used to prevent further disasters. When the company notices a mutual concern among many clients, it looks into the issue to establish whether a potential defect might require the affected vehicles to be recalled. This responsive approach has been effective in regaining customers’ confidence and trust in the company (Imai & Amano, 2012). Therefore, many clients in the United States and around the world have regained their confidence in Toyota.

Place an order
Place an order
Track the progress
Track the progress
Download your paper
Download your paper

The company has put the sales, manufacturing, engineering, and marketing departments in one location. This move has improved interdepartmental communication, which has helped in reducing defective parts. Faster information flow ensures that different departments liaise effectively on quality issues (Parnell, 2013). Furthermore, the firm has engaged in intensive training to allow its employees to gain technical skills that will prevent them from making errors that could result in defective items. At the same time, the company has adopted total quality management that focuses on ensuring that each stage of production is not exposed to errors. This approach has become an advancement to the earlier method of statistical quality control that emphasized on manufacturing stage. The parts are monitored by using statistical tools to identify deviations from the norm. Whenever the deviations were monitored, appropriate actions were taken to correct the errors. Total quality control (TQM) includes statistical control as well as other aspects such as acquiring raw materials that are in excellent condition. TQM involves working with reliable suppliers that provide high-quality parts on time, which ensures that the manufacturing process proceeds with no interruptions.


As can be seen from this discussion, Toyota concealed information on safety issues that had led its customers to experience adverse situations. Some of the clients died from accidents, caused by the defects in their vehicles. This issue caused the firm to face controversies and lawsuits. After the lawsuit that had caused it to pay $1.2 billion, Toyota has taken appropriate measures, including the adoption of total quality management, responsiveness, and bringing different departments to one location. These actions will prevent the negative scenarios from reoccurring. The firm has an effective CSR in place that caters to the needs of its employees, business partners, stakeholders, and customers. Finally, Toyota focuses on producing vehicles that have a minimal effect on the environment.

Like this sample?
Get an essay on this or any other topic only from $11.99/page
MENU Order now
Toll free:
Support: Live Chat