A Note On Bad News

1107 Words5 Pages
Communicating Bad News Bad news has come from companies in different forms over the years, employee layoffs, unexpected financial outcomes, crises both internal and external, and natural disasters to name a few (French, S. L., & Holden, T. Q., 2012). For Toyota it came in 2010, with 4,872,583 vehicles recalled, accounting for 29.7% of all vehicles recalled that year (Mezey, A., Hamilton, S., Kuwahara, K., & Sandlin, C., 2013). The failure on the company’s part was in how the recalls were handled, the lack of internal and external communication, as well as the lack of acceptance of responsibility both played substantial roles in the public’s view of the company. Background The problem was, Toyota vehicles were experiencing unintended…show more content…
Which may have to do with the fact that consumer activism is underdeveloped and lawsuits are uncommon in Japan (Mezey et al., 2012). Although in American and the West in general the lack of time sensitivity was taken as a sign if indifference and inconclusiveness on Toyota’s part (Mezey et al., 2012). Internal Communication Issues The lead problem stems from the fact that Toyota failed to communicate with its own employees that safety was first, quality was second, and production was third according to the president of Toyota, Akio Toyoda (Mezey et al., 2012). He stated that Toyota had pursued production over the development of their people and the organization (Mezey et al., 2012). The failure to properly communicate between North American and Japanese executives caused issues, although the North American executives had a better understanding of the reality of what was happening, they had no say in the recall process (Mezey et al., 2012). That corporate structure is what prompted the U.S. Secretary of Transportation, Ray LaHood. to worry that the North American executive issues were not being communicated in Japan (Mezey et al., 2012). LaHood and the Nation Highway Traffic Safety Administration (NHTSA), meet several times with North American office, referring to
Open Document