Corporate Social Responsibility: Toyota – Guest Blogger

Very nice article. UT is fortunate to get such a generous donation.
Elizabeth

Program Manager
Environmental Management
Oak Ridge Office
P.O. Box 2001
Oak Ridge, TN 37831
(865) 241-6172 phone
(865) 241-1984 fax
phillipsEC@emor.doe.gov

Great article. UT is so lucky to get such a generous donation from Toyota.

First I would like to thank you Ms. Noriko Chapman for talking to our class Monday evening. It was a very informative and I enjoyed the historical aspect of it just as much as the companies’ decision making process during the supplier’s inability to supply your company with needed parts during Japan’s disaster in 2011.
I find it very interesting that Toyota’s Code of Conduct strives for diversity like the United States does. I have traveled around the world a few times and I have never read or seen any industry outside of the US strive for diversity like the US does. It intrigues me to wonder if they are diverse because of the back lash they would receive from the US or is this something all of Japan is pursuing. I was astonished to find out Toyota has a diversity strategy. Toyota’s 21st (n.d.) stated, “a ten year, multi-billion dollar sustainable commitment to minority participation in Toyota—today and tomorrow.” I don’t know of any company in the US having a 10 year plan. Maybe Japan is striving to surpass the US in recognizing the importance of diversity? I would like to hear your thoughts on this.
Toyota’s 21st Century Diversity Strategy. (n.d.). A comprehensive program for minority participation in Toyota today and tomorrow. Retrieved from http://www.toyota.com/about/diversity/21stCenturyDivStrategy.pdf

I work for a global consulting company who is heavily engaged with various aspects of social responsibility. There are diversity programs in place. The company invests heavily in reducing environmental impact for themselves, as well as finding ecological solutions for the companies we work for. We work with both our local and global communities, especially when faced with natural disasters. After an earthquake last year in Southeast Asia, there was a global giving campaign to help our employees in the region, as well as the communities affected in general.
One of the big programs we launched is called “Skills to Succeed”. This is a global program designed for employees to teach skills and provide training to help people start a business or get a job. By 2015, the goal is to help 500,000 people with this program.
A study by Eberle, Berens, and Li (2013) shows that companies who engage in and share their social responsibility efforts tend to be rewarded with a more positive reputation and feeling of identity by their customers. Another study by Flammer (2013) shows that companies who made progress on lessening their environmental impact showed higher stock market gains than those who did not.
Eberle, D., Berens, G., & Li, T. (2013). The impact of interactive corporate social responsibility communication on corporate reputation. Journal of Business Ethics, 118(4), 731-746. doi:10.1007/s10551-013-1957-y
Flammer, C. (2013). Corporate social responsibility and shareholder reaction: the environmental awareness of investors. Academy Of Management Journal, 56(3), 758-781. doi:10.5465/amj.2011.0744

Drucker talked about social responsibility as far back as 1995. In his book “Managing In a Time of Great Change” he said: “the modern organization must be in a community but cannot be of it.”(Drucker, 1995, p. 81) He was emphasizing how an organization must be true to its values, vision and mission while living in a community, without letting that community cause too much distraction. However, Drucker then goes on to almost immediately state: “economic performance is the first responsibility of a business…but economic performance is not the only responsibility…every organization must assume full responsibility for its impact on employees, the environment, customers, and whomever and whatever it touches.” (Drucker, 1995, p. 84) To me, those are powerful words. Our organizations should not get so wrapped up in our communities that we lose sight of our purpose, which is economic performance. At the same time, organizations much maintain awareness and control as much as possible the impact they have on those communities.
Drucker, P. F. (1995). Managing in a time of great change. New York, NY: The Penguin Group.

Hi,
I’m very sorry to hear that your family was affected by Hurricane Katrina. You made a great point by commenting that “to see our leadership make that commitment to its staff was inspiring and allowed us to see beyond our own loss to help those in even greater need.” Thank you very much for sharing your personal experience.

Blog post 4 response
Recent events such as the tsunami affecting Japan demonstrate how global markets and the global economy can be impacted by relatively localized events. Repercussions of unethical motives and behaviors on the part of banking executives in Europe can cause a ripple effect in the global economy (Cavanagh, 2000).
The economy is relatively new to globalization, but we have always shared a global ecology. Multi-National Corporations must consider social responsibilities of ethical use of natural resources and treatment of the environment (Zsolnai, 2011). A large corporation like Toyota taking an ethical approach to environmental impact has a ripple affect on a global scale, which can drive change in other industries (Zsolnai, 2011). Just as Companies followed process changes that were successful at Toyota, it is likely others adopt proven ideas for environmental conservation.
References:
Cavanagh, G. F. (2000). Political counterbalance and personal values: ethics and responsibility in a global economy. Business Ethics Quarterly, 10(1), 43-51.
Zsolnai, L. (2011). Environmental ethics for business sustainability. International Journal Of Social Economics, 38(11), 892-899. doi:10.1108/03068291111171397

Thank you Miss Noriko Chapman for being our guest blogger this week it was very informative.
I have work experience with Papa John’s and thus decided to look at what philanthropic activities they have been a part of recently. According to the reporter for the Business First newsletter, Robinson (2013) Papa John’s International Inc. announced Thursday that it will make a charitable donation of $100 for every home run hit by a Louisville Bats player this season at Louisville Slugger Field and $1,000 for every grand slam. The donations, through the company’s Homers for Heroes Campaign, will go the Addison Jo Blair Cancer Care Center at Kosair Children’s Hospital. I feel proud to be a part of a team who makes it a point of duty to give back to the community.
Robinson, A. (2013) Papa Johns to make donations for bats home runs. Business First. Retieved on January 30, 2014 from http://www.bizjournals.com/louisville/news/2013/04/18/papa-johns-making-donations-for-bats.html

Ms. Noriko Chapman,
First of all I would like to thank you so much for being our guest blogger this week. I really enjoyed the material presented on Toyota. It’s ironic because a group in our class just did a case study on Toyota last week as well. Thus, some of the things you discussed seemed quite familiar, and I was able to make comparisons. I agree with you on most of the things you wrote on about social responsibility, and throughout my reading I found myself making relations with the company I work for. I am an engineer for AT&T networking, (not mobility). This company also displays quite a bit of outgoing social behaviors and plays many roles with the public such as the “no text and drive” campaing, diversity, and other topics. A study performed by Benabou and Tirole discusses how societies demand this top quality interaction, and the benefits of each factor. It is very apparent that the public will take major interest in a company that takes interest in its consumers.
Thanks!
Morgan Taylor
BÉNABOU, R., and TIROLE, J. (2010). Individual and corporate social responsibility
Economica , New Series, Vol. 77, No. 305, pp. 1-19.

Ms. Noriko,
I want to thank you for talking to our class Monday night. It is always nice to learn more on certain historical events that have happen that many might not know about. I enjoyed having you teach our class about what your company went through in Japan. Also, I want to say I’m happy to hear you beat cancer! I’ve lost some close people to it and I’ve also had close friends and family beat it and I know how terrible it is. I just wanted to recognize you for that.
I don’t know if you remember me telling you but I work at UPS which I see a lot of cardboard, and I mean a lot. I can 100 percent relate that cardboard is very wasteful. I am glad that Toyota decided to see how wasteful it was and decide to go another route. There are so many busted packages that come through UPS that it is almost impossible to believe. I just think that it is really important to transport goods to and from where they need to be without them getting damaged so often. Toyota’s 21st (n.d.) stated “We aligned our diversity commitment to the tenets of the
Toyota Way, “respect for people” and “continuous improvement.” Respecting peoples packaging is definitely on the way to improvement. The good thing about the containers Toyota uses is that they can be recycled and sold to other companies. Profitability does not always have to suffer. There is always two ways for both situations to benefit.

Ms. Chapman, first I would like to think you for visiting our classroom this week and for speaking with us. You are very inspirational and your visit is appreciated! Your blog post is also interesting, I love the way Toyota strives to be socially responsible even if it costs the company a little bit of money. You asked if we could share other examples and Ben and Jerry’s Ice Cream comes to mind. The Ben and Jerry Foundation “awards about $1.8 million annually to eligible organizations across the country and in Vermont” (benandjerrysfoundation.org). This money is in the form of grants and is awarded to non-profit organizations that wish to make a socially responsible change. By doing this, the company is helping others be able to make their organizations more socially responsible. Employees of Ben and Jerry’s are involved in choosing the recipients for these grants and a lot of thought goes into the selection. By helping others help themselves, Ben and Jerry’s is doing a great service.
Benandjerrysfoundation.org. 2014. Retrieved at benandjerrysfoundation.org

With there being so much bad publicity in recent years floating around the automotive industry; whether it is car emissions polluting the air or having adverse effects on the ozone layer, many consumers are seeking those companies who intend to be socially responsible. Denzo’s donations to Eco Park speaks highly of the Japanese and their initiatives to maintain an ethical company that, not only maintains efficient quality/operations standards, but also seeks to ensure ethical action is at the very core of all of their endeavors. Collins states, “that philanthropy is a major constituent for a companies ability to measure its reputation against competitors within a community which it operates” (2012). Denzo will surely see increased success in future years and maintain a competitive advantage if they continue maintaining an ethical commitment.
Collins, D. (2012). Business Ethics: How to design and manage ethical organizations. Hoboken: NJ. Wiley.

CSR is important to any firm’s long term success. CSR is particularly important to firms working in consumer-driven industries. Apple is a good example of a company that offers high-end products to a relatively astute, socially minded customer base. It is a wonder then that Apple has had such a difficult time in the last few years with problematic worker conditions at its overseas manufacturing plants. The largest of these plants, Foxconn, is located in China, and is in fact the largest electronics manufacturing plant in the world. Apple employs Foxconn in order to ramp up the kind of supply Apple uses to maintain its incredible profitability. Unfortunately, this profit is built off of the back of Foxconn’s egregious working conditions- conditions that have resulted in mass suicide and accidental death resulting from explosions.
Apple is still in the midst of addressing this CSR concern. Notable changes that have already been instituted by Apple are wide-sweeping 25% pay raises. The average worker in the factory now makes around $290 a month. Inadequate CSR will eventually hurt sales. Apple seems to realize this as they are continuing to address the Foxconn situation.
Examining Apple’s Core: Will CSR Prevail?. (2012). Business & the Environment, 23(3), 7-8.

Ms. Chapman, I want to thank you for speaking with our class. Andrew Carnegie stated, wealthy business people should apply their wisdom … to spending excess wealth in a way that enriched the lives of the poor through public projects (Collins 2012). Chevron contributes to the economic and social well-being of people in the countries where they operate. They recognize the relationship of healthy businesses and healthy societies. Wherever they have a presence, they go all-out to be a good neighbor, sharing the concerns of the communities and dedicating their capabilities, resources and people to creating a better future. To be a part of those communities they work with the host countries to understand the local needs and the reasons behind them. Since 2006 they have invested more than $1 billion to fund initiatives that increase economic stability and improve the quality of life in communities around the world.
http://www.chevron.com/corporateresponsibility
Collins, D. (2012). Business Ethics: How to design and manage ethical organizations. Hoboken, NJ: Wiley

Ever since Norfolk Southern has created a sustainability department and appointed an officer to oversee the department and their activities, the culture of the workforce has changed. The employees are now thinking of ways to help their community and preserve the environment and help to preserve company resources.
Not only has the company decided from top-level management that they would implement social responsibility efforts that would support the communities they serve but they would also devise ways that would improve efficiency while preserving the environment. It has gone from being a management decision to one that reflects active participation from the employees. The employees have bought in on the idea of sustainability and enjoy seeing the communities around them prosper as a result of their giving back to the community. The behavior of the workforce has steadily changed over the years into one concerned about the neighbors around them and their sustainability.
Communities, customers benefit from Norfolk Southern’s progress on sustainability.
(2013, July 17). The Association of Corporate Contributions Professionals. Retrieved July 27, 2013, from http://www.accprof.org/about-us/news_detail.stml?portalProcess_dd_0_1_3=showPublicEvent&calendar_entry_id=7029

First of all, I too would like to thank you for speaking with us on Monday night, Noriko. You are very knowledgeable of your field and the experience and interest in your profession lent a lot to our business education.
The ethical practices of Toyota are something that is very important to Toyota. I read further after reading here and found more about how socially conscientious they are on a global scale. In May 2013, for example, Toyota Europe held their annual Ichiban Event in Greece as a “show of support” for the country through the financial crisis going on there. They had many visitors and attendees to the event. The luxurious occasion could have been hosted in a number of countries in their European market reach but even here remains conscientious.
Additionally, you look at Toyota’s products and again find a global responsibility. Green initiatives are probably the most important in the automotive industry, not only on an environmental imperative but also for the financial benefit of its customers. Their hybrids now account for 14% of their profits according to Conference & Incentive Travel Magazine (2013), a number which is nothing to scoff at. While companies like Tesla are finally getting the wheels turning, Toyota was on the forefront and among those to lay the groundwork for the sake of customer, community, and environment.
While there is of course financial benefit in such things for Toyota, it is only through good intent that such benefits occur. Toyota, as you have pointed out, is a great example of how corporations do not have to be these looming, powerful, wicked entities, but instead be beacons for the betterment of communities and societies; and it all starts with the corporate culture.
Toyota events drive sales. (2013). Conference & Incentive Travel, 12-13

Ms. Chapman,
Thank you very much for taking the time to speak with our class Monday night. It was a great presentation. I did not realize Shoichiro Toyoda had donated to help build the Howard H. Baker Jr. Center at the University of Tennessee, or how Denso had donated to the community. I am certain you are very proud to be associated with and work for such a giving corporation. What great examples of social responsibility. In our text Collins states, “Being socially responsible also benefits marketing and customer relations” (2012). In creating a better community – you will gain loyalty and increase awareness of the Denso brand. It really is a win-win.
The company for which I work is a global engineering firm with more than 200 offices in over 25 countries and over 60,000 employees. My example would be sustainability. We work with our clients to reduce our environmental footprint – in design approaches that provide cost-effective, sustainable solutions, streamline work processes, and the list goes on. This is passionately driven by our President and CEO who states, “Sustainability is not just good for business; it’s good for all of us.”
With locations all over the world we also support our communities by volunteering, fund raising, and supporting local events. We also engage in recycling programs, waste management, reduction in lighting, and education (to name a few) at our own offices.
Thank you again for your time.
Collins, D. (2012). Business ethics: How to design and manage ethical organizations. Hoboken, NJ: Wiley

I work in the healthcare industry and community responsibility is a huge part of our training. We are held to a standard that we are to donate hours to our community here in Knoxville or elsewhere that we feel our talents are needed.
There was recently a group of doctors, nurses and anesthesia specialists who went to Africa to help in their healthcare dilemma. The hospital sponsored their airline tickets and medical needs. We as associates donated clothes, personal products and toys as our part in the effort to help the less fortunate.
The Radiology Dept. that I work in race in the KARM Dragon boat race every year to raise money for KARM in the Knoxville area. As a matter of fact when we go for our annual review every year one of the stipulations to getting a raise is if you donated your time.
Boccalandro states that there are several reasons to have your company and it’s employees involved in the community:
1. 45% of employees who have volunteered with their company or co-workers report that they are very satisfied with their jobs, compared to 30% who haven’t.
2.In a survey of professional women, 83% reported that volunteering developed leadership skills, 78% reported that it developed communication skills, and more than half reported development in other workplace skills.
3.Several companies have found statistically significant correlations between employee community engagement participation and employee retention.
So volunteering is a win , win situation for both employers and the community they work in.
Boccalandro, B. (2012, March). 19 Compelling Business reasons for corporate community involvement . In Business4Better. Retrieved February 1, 2014, from http://www.business4better.org

Thank you Ms. Chapman for joining our class. As I mentioned to you, I know several people who work for Denso in various capacities. I found your presentation very interesting and informative. Social responsibility for corporations has been gaining more and more ground over the years as we all know. It almost seems that a company cannot function without some sort of community action attached to it. 2007 saw a different approach to corporate responsibility take shape that I find fascinating…competitors in markets joining forces with activist groups, government entities, and academics to address social and environmental issues (Baue, 2007). For example, in 2006 the Automotive Industry Action Group (AIAG) announced a collaborative project on responsible supply chain management that included Ford, GM, Chrysler, and Honda (Baue, 2007). To help facilitate it, the US State Department granted them $185,000. Other collaborative efforts have been seen in major retailers to globalize an ethics compliance program (Baue, 2007). It seems that, competition aside, all large corporations are joining forces to combat arising social and environmental concerns.
Baue, B. (2007). “From competition to cooperation:Comapnies collaborate on social and environmental issues”. retrieved from http://www.socialfunds.com/news

First of all thank you Ms. Chapman for presenting to our class, it was a pleasure to see a woman in business rise to the ranks and give us some height to the ceiling for the future of the rest of us business woman to follow you. I agree that Denso is a great leader in strides in ethics and dynamics in the Business world both stateside and around the world. Having worked at Denso before, I understand the standards that they expect from their employees and what the quantity that they need to put out to compete with the competitors in the business. In engaging and empowering ethical employees Denso definitely strives to do this from the hiring process, training, and online and continual with the Kaizen training monthly. In the Kaizen training and competition the teams strive to find areas that can assist the line in produce a better time, efficiency, and improve costs for the company as a whole. This alone allows the team work together and then allows the team to be recognized in the plant and then compete in the United States and then internationally. Great job again for your presentation, keep moving strides onward and upward.
CHAKRAVORTY, S. S., & FRANZA, R. M. (2012). KAIZEN BLITZ. Industrial Engineer: IE, 44(4), 28-33.

Ms.Chapman
Thankyou for your presentation at our class. I found it very interesting and insightful as to see how a big well known corporation like Toyota implements strategies for upholding their corporate responsibilities to the communities they serve and their employees while still being able to protect their own interest in improving and maintaining the company. From what I have observed, there are not many corporations that show the effort in addressing concerns for their environment, employees, and consumers like what Toyota does. Typically large corporations only focus their efforts on being competitive and serving the best interest of profitability. With what you presented Toyota should serve as a model for all large corporations who are successful enough to have a significant impact on the society they serve. Toyota would serve as a good model for the support of a movement known as “conscious capitalism” which has a goal that “one day, every business will operate with a sense of higher purpose, integrate the interest of all stake holders, elevate conscious leaders, and build a culture of trust, accountability, and caring.” (Connor, 2013)
Connor, M. (2013). John Mackey’s ‘Conscious Capitalism’: ‘Simply A Better Way to Do Business’. Business Ethics.com
Retrieved from: http://business-ethics.com/2013/01/27/1154-john-mackeys-conscious-capitalism-simply-a-better-way-to-do-business/

To me, a great corporate example of a company with social responsibility at its core and as one of its main focus is TOMS, the shoe company. This company started out selling shoes for men, women, and children, and, for each pair sold, a pair is given to a child in need. TOMS refers to this as their “One For One Movement.” In 2011, TOMS introduced their line of sunglasses. Following their thought process and standard with their shoe line, for each pair of sunglasses purchased, TOMS provides help to an individual (or individuals) in need of eyeglasses or eye surgery in order to see.
Companies with a high level of social responsibility can appear to consumers as having more compassion and care for its customers, which, in turn, can create value for the company and increase the number of potential customers, customers, repeat customers, and referrers.
http://www.toms.com/our-movement/

Thanks for the post! It is always good to see business leaders and large companies re-investing into the people. This is not only an investment for a better future, but also an investment in the overall reputation of the company. Consumers get so used to seeing big cardboard checks written by donors of large companies presented at sports games that it almost becomes mundane. That is why it was great to read the story of Mr. Toyoda and how his generous donation came about. It is good to see he made a contribution to something that genuinely had an impact on him.

I worked for a large healthcare system in New Orleans, LA. While this company had employed me for 15 years, it was not until after Hurricane Katrina did I understand the role that it played within the community. It had been involved in many community outreach activities through the years, and all of that was important in giving back and creating a healthier population. However, following Katrina, the organization felt it important to embark in a “hand’s on” approach to helping fellow employees. Many employees lost everything as a result of Katrina and our company wanted to help as many as possible. To see the leadership in our organization step up was inspiring and offered hope to many. While my family suffered some destruction of our home because of Katrina, we felt motivated to follow the lead of our organization and participate in the program. It allowed us to see beyond our own loss to help those in even greater need. According to Bejou (2011), corporations have a responsibility to humanity, just as other organizations, such as government and nonprofits, do. (pg. 6).
Bejou, D. (2011). Compassion as the new philosophy of business. Journal Of Relationship Marketing, 10(1), 1-6.