Corporate Social Responsibility : An Examination Of The Performance Of Toyota Motoring Corporation Australia
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Corporate Social Responsibility: An examination of the performance of Toyota Motoring Corporation Australia
Milton Friendman genuinely believed that the business of business is business and that practices outside the interests of the shareholders, employees and customers were issues of public services and not the responsibility of the executive (Friedman, 1970). What does this mean for the impacts when your company is the last major player in a dying industry? The story of what is and has happened behind Toyota Motoring Corporation Australia (TMCA) in recent years is an interesting look at what obligations industry has to society and at what point it simply becomes unsustainable to continue production even if stopping meant closing down…show more content… In February 2012 the Head of the TMCA Max Yasuda went on the front page of The Australian Financial Review and talked about industrial regulation (IR) reform (Roberts, 2012). He talked about the workplace practices at the Altona manufacturing plant, Saying that when he visited he could see improvements to made with his own eyes (Roberts, 2012). Max Yasuda was doing everything within his power to keep the TMCA going. He said to achieve viability he was aiming to cut the company’s manufacturing break-even point by 25% in two years and double the output of local manufacturing (Roberts, 2012). Toyota was clearly in trouble, Max Yasuda had just cut 350 jobs at the Altona plant (Roberts, 2012). He later tried to cut the cost of making a car by $3,800 through an initiative called the Toyota Australia Future Business Transformation (TAFBT) that started in 2012 ("Toyota Motor Corporation Australia Limited," 2013). But Max Yasuda faced setbacks. He tried to change its Workplace Agreement to provide more flexibility, be more competitive and remove allowances to reduce labour costs ("Toyota Motor Corporation Australia Limited," 2013). Four senior members of the company brought up the decision and the Federal court blocked the decision ruling that it was against the Fair Work Act (Ewin Hannan, 2013).
Toyota Global has its own interests at stake. TMCA ran at a loss for three