Toyota Ethical Issues Essay

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Current Ethical Issue in Business Toyota Ethical Issue
Charlie Badell, Dawn Vinaguerra, Dotlyn Robertson, Farida Biobaku, Peter Daunoy
HCS 350
July 18, 2011
John Muench, MSM

Current Ethical Issue in Business Ethics are moral principles of knowing right and wrong. All human action comes under the ethics of right or wrong. In the corporate world, ethics may be known as moral business principles. As defined by Crystal (2010), “Business ethics is the behavior that a business adheres to in its daily dealings with the world” (Para. 1). The company’s business ethics relate to the organization, its employees, consumers, and the surrounding community that may be the world. In business ethics, the line
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31). The issue led to massive recall of Toyota vehicles. In trying to fix the problem, Toyota recalled all floor mats in its vehicle to fix a problem in which the gas pedal can become caught on the edge of the floor mat. Toyota stated that the mat can cause the vehicle to accelerate uncontrollably. Thereafter another recall was made involving accelerator pedals that can stick on their own. For reasons best known to Toyota concealed the truth from the public and Toyota tried to fix problems after the issue become public. After the media reported the serious problem in Toyota’s vehicles, the public was enraged on how Toyota is handling the acceleration problem. The issue of focus in this paper is how the management of Toyota handled the situation viewed from the eye of a consumer.
3 The Toyota organization culture is secretive and non-communicative even with employees. The in-sider joke among Toyota American employees, working for Toyota is like working for the Central Intelligence Agency (CIA), and information is shared only on a need to know basis. The organization hierarchical decision-making structure reduced its ability to respond to the problem. As for Toyota transparency, a hearing by the United States lower house judged found the company’s initial responses ambiguous. One of Toyota senior VP Irving A. Miller warned the executive coordinator to come forward with the information of the accelerator pedals malfunction but was warned not to mention
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