10-1 Short Paper Re-evaluating CSR Role Model

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Southern New Hampshire University *

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500

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Business

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Jan 9, 2024

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10-1 Short Paper: Re-evaluating the CSR Role Model Southern New Hampshire University Oussama Mediouni MBA-500: Building Business Leaders Dr. Jason Crawley January 22, 2023
In this brief essay, three significant takeaways from the MBA-500 curriculum will be identified and used to reexamine Toyota Motor Corporation. We will go over the company's early impressions, current impressions, and how those impressions were altered. All three will be covered in the re-evaluation. The Three Key Topics to Re-evaluate: The first aspect of the re-evaluation to be considered is the examination of accounting information in relation to a company's commitment to Corporate Social Responsibility (CSR) and the Triple Bottom Line (TBL) framework. Financial statements, such as income statements and cash flow statements, and individual components can provide insight into a company's dedication to people, the environment, and profit. For example, the financial performance indicators such as Return on Equity (ROE) and Net Profit can demonstrate a company's effectiveness in generating revenue, and in the case of Toyota, specific KPIs such as charitable donations, expenditure on wages, and investments can be analyzed to determine the extent to which the company is investing in individuals and the environment. The next aspect of the re-evaluation that I decided to consider is the role of the different departments within the said organization in contributing to the CSR model. Each department inside Toyota has its own set of goals to achieve. These objectives, however, are interrelated and must be consistent with the organization's long-term vision. For example, at Toyota, the sales and marketing teams have separate goals: selling automobiles versus promoting them. However, one department's performance is contingent on the effectiveness of the other; lacking good marketing strategies and sales will suffer. Without successful sales, promotional strategies would
be fruitless. Toyota also has a department dedicated to Electric vehicles that work to make the company’s brand more environmentally sustainable. Demonstrating its commitment to CSR. To properly advertise and successfully sell their product, this division will have to unite and work with the sales and marketing teams. The application of legal and ethical frameworks and their link to CSR is the third topic to also be explored throughout the re-evaluation. Although laws are frequently in place to regulate unethical activities, this isn't always the reality. for example, Toyota has previously encountered both legal and ethical concerns in a form of a pedal jamming in the Lexus ES-200 vehicles. Warnings from US engineers and senior Japanese managers were ignored, and a decision to continue to develop and market the defective cars was issued. Due to their disregard for people's safety, injuries and deaths started accumulating, which led to lawsuits being filed, and considerable financial consequences to occur. Toyota did change its ways by focusing more on ethical aspects and paying attention to warnings in real-time. They were compensated with a greater market share and therefore more profit.
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