Currently Toyota company is involved in a legal issue concerning manufacture of defective cars which the company has recalled more than 1.3 million cars over concerns of safety measures. The problem is that their cars may abruptly accelerate hence the lives of drivers and passengers are put a great risk. This brake related issues mainly affect Prius and other hybrid cars. The problem is said to impacting on more than 9 million vehicles universally hence bringing legal, political, strategic, operational, and ethical challenges to the corporation. The problem is said to be as a result of gas pedals being ensnared in the floor mats. As of now many individuals have filed several lawsuits against the company on allegations of being harmed by its products due to this sudden braking (Burlison, 2010).
Another case in which Toyota has been involved was back in 2006 when an employee in United States of America filed a law suit against her Toyota North America Inc. CEO (boss) Hideaki Otaka for sexually harassing her (Henning, 2010). According to Sayaka Kobayashi, her boss made her go through time times for a period of three months as an employee of the company due to the sexual and romantic approaches made by him. Due to this Kobayashi filed a lawsuit against the Otaka in New York courts entailing the details of her being harassed. It is also claimed that the company failed to help her after seeking assistance from her seniors, a reason that made her seek legal redress.
Toyota’s corporate culture and values are all embodied in the five core value the company has in The Toyota Way. Through this all employees are expected to stick to the company’s principles, a fact that goes a long way to help in collective decision making. By respecting people from all walks of lives Toyota has been able to understand the needs and demands for both its employees and customers. This is one way in which the company incorporates its culture in decision making because through respect for all, the needs and views of everyone are considered to come up with a solution to any problem within the corporation (Toyota Motor Corporation, 2010).
For many years and by sticking to the Toyota way, the company has worked industriously to sustain these pillars by various business strategies to ensure nonstop demand for their cars, enhance customer satisfaction and loyalty by making right decisions to keep the company at the top. For instance, the recent car recalls was due to a decision made by the company’s executives basing on their culture of accepting challenges and being prepared to face them.
Their ability to carry out research from the issue, a culture that has been in the company since its inception and as fully stipulated in Genchi Genbutsu ensures that the right decisions within the corporation are made because of being with facts concerning a given situation. Additionally, the code of ethics/conduct has helped the company make important decisions as it gives the employees rules to cat within the guiding principles. The spirit of consultation harbored within the company also makes the employees to seek solutions within other parties to make correct judgments (Chen, 2010).
It is inevitable for a company of Toyota’s nature to encounter challenges both legal and ethical. However there are mechanisms that Toyota can use to handle them and also try to minimize their occurrence. Most problems mostly come as errors in human resource s o it must ensure that this sector is well taken care of. The first way of dealing with some of the issue is finding the root cause of the problems in their products. It is on record that this is not the first time Toyota is recalling cars for some mechanical problems hence to avoid this, the root cause has to be established to avoid further issues (Chen, 2010).
The company should also heavily invest in training of their employees to equip them with the necessary capabilities and skills to perform effectively and identify and deal with all situations they may face. This will go a long way in ensuring that some of the problems are avoided.
Chen (2010) asserts that other than the above, Toyota should persistently look for and listen to early warning indications from both employees and customers. All the signs must be acted upon immediately however small they may be. This is because complains, even if it is one, can bring about serious meaning and consequences. Additionally checks and safeguards have to be put I place to counter the actions and strategies that may be against the company’s values and culture.
The leaders at the company should also organize frequent staff meetings to get the views and challenges the staff goes through. For example in cases concerning employee harassment, the perpetrators have to be given stern punishment regardless of what positions they hold in the company to encourage a better working environment and good employee relations. At the same time it should guarantee that strong channels of commutation are developed and encouraged among the management and employee levels. This will enhance the information received by the organization from employees who serve as the eyes of the company (Chen, 2010).