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Corporate Environmental Responsibility (CER) in Toyota

Paper Type: Free Essay Subject: Business
Wordcount: 2727 words Published: 15th Jun 2018

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Corporate Social Responsibilities (CSR) is an organization must act ethically in business and sensitively towards society, cultural economic and environmental issues. A company emphasized corporate social responsibility (CSR) not only can gain better company reputation but also gain benefits in other aspect such like save environment, brand loyalty from customer, attract or retain qualities employee and so on. The purpose we carry out this assignment is to do research study Corporate Environmental Responsibility (CER) for Toyota Motor Corporation (TMC). In this assignment we will argue the impacts of CER Practices to today’s business world. Next, we will identify the CER Practices of Toyota Motor Corporation had been performed by the company. Also, we will propose Toyota Motor Corporation for the CER Practices it can involve in or explore in the future. We apply the relevant knowledge that we learned in the class into this assignment. Through this, we can understand the important of CER better.

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Corporate social responsibility is a company doing voluntary activities that will bring benefit to society, economic and public. It also represented a sense of the responsibility towards the community and environment by contributing educational and social program. The goal of CSR is to encourage a positive impact to the environment which included consumers, employee, investors, communities and others. Government also has encourages those company conduct their business in a socially and environmentally responsible.

The first argument of the CER is that when corporations have to contribute the environmental problem, they have a responsibility to involved in the solutions. It is important to remember that corporation act within society and that they do fulfil useful roles – employing people and producing products and services by Dunphy et al (2003)

The next argument for CSR is that, corporations must be responsible for what they do, including the society’s problem such as pollution, as stated by Drea DeFoe in “Arguments For and Against Corporate Resposibility”. By this way, the corporates’ power is balanced with its responsibility. So, if a corporation acts in the favor of the society, they get to retain their corporate power. Next, Drea DeFoe suggests that voluntarily practicing CSR discourages government from imposing regulations on corporations. This act will helps corporations form being charged extra economic costs due to irresponsible acts. Furthermore, Drea DeFoe also proposes CSR can aids corporations in building up reputation while generating more profit. If a corporation always put in effort to solve societal and environmental issues, society will recognize it as a corporation which is committed to preserve the environment.

However, there are also some arguments that is against CSR. Drea DeFoe mentions an argument that suggests corporations should focus on its nature, which is generating maximum profit and leave all social and environmental issues to government or non-profit organizations to solve them. Also, practicing CSR lowers a corporation’s economic efficiency and profits. Because it has to divert some of its man power and resources to solve these issues. In addition to, “the invisible costs are imposed to customers cover the spending on solving society and environmental issues”, states Drea DeFoe in her article. Moreover, Drea DeFoe also indicates that these issues may require some skills that corporation lacks to solve it. In order to solve these issues, some employees are sent to learn these skills. This may cause these employees to not be able to focus on their works.

Toyota Motor Corporation (TMC) is a Japanese multinational automaker, with headquarters in Toyota, Aichi, Japan. Toyota was started in year 1933 as a division of Toyoda Automatic Loom Works devoted to the production of automobiles under the direction of the founder’s son, Kiichiro Toyoda. Its first vehicles were the A1 passenger car and the G1 in year 1935. The Toyota Motor Co. was established as an independent company in year 1937.

Currently, TMC is part of the Toyota Group, one of the largest conglomerates in the world. Under Toyota Motor Corporation group, there are Toyota (including the Scion brand), Lexus, Daihatsu, and Hino Motors, as well as several non-automotive businesses including housing, financial services and marine. Besides that, the company also owns and operates Lexus and Scion brands and has a majority share in Daihatsu and Hino Motors, Fuji Heavy Industries, Isuzu Motors, Yamaha Motors and Mitsubishi Aircraft Corporation.

Toyota is known for its mass-produced hybrid cars along with few other eco-cars such as electric and fuel cell cars. It is touted as the world’s largest automobile manufacturer, largely due to its remarkable sales record. As in year 2010, the corporation had a total of 325,905 employees worldwide. The next year, it became the third-largest automobile manufacturer by production behind General Motors and Volkswagen Group.

Corporate Environmental Responsibility (CER) Practice Analysis

All corporate organizations are required to take responsibility for their acts inside and outside of its business environment because protecting the environment is becoming a crucial matter. However, apart from the environment, such acts could also involve the human resource initiatives, social welfare, and any other moral or ethical measures that the company is supposed to address so that its operations are in line with the set standards and norms (GANESCU).

Toyota has practiced corporate environmental responsibility (CER) that further strides to lessen our environment impact. The initiatives on the environment are anchored on three pillars. First of the pillars concerns itself with ensuring that the company establishes a low carbon society by decreasing its water consumption and minimizing the amount of carbon gas emissions into the atmosphere while increasing the production volumes over the years. Toyota has an environmental management system that takes care of environmental affairs. Under this system, the company also formulated Toyota Earth Charter in 1992 and revised in 2000 which contains information concerning means and ways of maintain the environment.

The second pillar concerns about establishing a society which is able to produce other reusable products by recycling its waste and substances which could have been thrown as waste and continue polluting the environment. Therefore, before getting rid of wastes, the company makes sure that it recycles the wastes which are capable of being recycled. In 2004, Toyota Motor Manufacturing Canada Inc. (TMMC) has set a goal of sending zero waste to landfill and achieved in 2006 through comprehensive reusing, reducing, recycling and composting programs (Environmental Responsibility – Toyota Motor Manufacturing Canada Inc., nd) . As they reduced landfill waste and recycled more materials, recycling rate is increasing as there are new improvements, moving into the 80-90 percent range (McMullan, 2013).

Moreover, the third pillar is about making sure that the society is established in harmony with nature and protecting the environment. The company reduces the impact of its processes of manufacturing, distribution and marketing of the same on the environment to achieve this goal (Mutemi, nd). Planet Ark’s National Tree Day is Australia’s largest community tree planting and nature care event and it is to save the world. Toyota has sponsoring and partner with Planet Ark since 2000. It is also an opportunity for them to do something and reconnect with the nature. This event is very special because it can let all Australians gather together and lend a helping hand to plant and to take care of the native trees. This event is about community, individual and the country to make positive impact for the future generation. (About national tree day, n.d.)

Besides sponsoring, Toyota’s staff, dealers and brand ambassadors are encouraged to support this event. They will also join with the others to plant trees and save the world to show support. Through this event, it also can reduce the effect of global warming. “Native trees help to sustain the local environment and it can provide a cleaner and healthier future for all Australians,” said by Toyota Executive Director Sales and Marketing, Matthew Callachor.

Toyota company not just caring about planting, they also attempt to manufacture vehicles which are environmentally friendly and also hybrid in the sense that they do not emit lots of harmful substances to the atmosphere. The hybrid car is produced to conserve the environment and our future. Toyota is making revolution by producing hybrid car and building more fuel-efficient vehicles, Toyota Prius, that can reduce the impact on environment. It is the world’s first mass-produced hybrid vehicle. It used an electric motor and petrol engine to reduce fuel consumption and gas emissions. Following the Prius, Camry Hybrid became the first locally-built hybrid vehicle. For example, Camry H is created to cut fuel costs and reduce the CO2 emissions. Camry H is powered by a 2.5L Hybrid Engine, it is more efficient than previous Camry Hybrid model. It is more powerful and emits lower emissions. With this hybrid car which is an “ECO” car, they can optimize the fuel usage and let the driver use battery as a replacement of fuel with the press of a special button. This Camry Hybrid car is a full Hybrid System different with the previous hybrid car. The special part is petrol engine and electric motor can power the car individually or together. It also offers superb fuel economy and ultra low emissions. (Toyota, n.d.)


In this technology and the environment era, petrol and diesel become lesser and expensive. Even the Toyota Company current practice is producing hybrid car in order to reduce fuel and diesel consumption, the air pollution also can’t obviously reduce (Guest, 2013). Therefore, we recommend that Toyota Company should produce solar vehicle. Solar vehicle is an electric vehicle that uses solar energy. Company use photovoltaic technology to produce solar vehicle. This technology use Photovoltaic (PV) cells which embedded in solar panels that able to transform the sun’s energy into electric energy (Conger.C, n.d.). Solar energy is an endless resource. It is a good substitute resource for fossil fuels. For instance, solar energy free of emission during generating electricity (Callahan.R, 2010). By using this solar energy can significantly reduce damage to the environment. Thus, the air pollution can effectively minimize in future.

The company use recycling, reusable materials in producing products. Besides that, one of the issues is car a battery is not long lasting. It will create many substance and wastage towards the environment. To fix this problem, company should implement rechargeable car batteries approaches tend to reduced carbon footprint. A rechargeable car battery is one type of the electrical battery. It is consist of electrochemical cells. It can be used for the energy storage. In addition, rechargeable batteries able to help company minimize negative impact towards environment and encourage cost saving. The rechargeable fee is inexpensive and also can be reuse many times. Other than that, company can recycle that rechargeable battery which is damaged. It can help company to save the environmental resources that needed to produce a battery (Environmental Protection Agency, 2012).

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Even the company has the plantation event, it also unable to effectively contribute to the environment. Through this event, it can save the world and reduce effect of the global warming. Furthermore, the company is suggested to be used the organic infill car tires (GeoTurf, 2015). Currently, the company is using traditional ways which is using rubber tires. Rubber tires can’t be recycle and reuse. It is difficult to disposal. Thus, it may create more rubbish to the environment. If using burning way to dispose the tires, it may serious create negative environmental impacts. Such as air pollution, lead to global warming that harmful to the people health. Throughout this strategy, company can contribute more to the environment.

Last but not least, company should reduce their paper work. All the paper work should be computerized. For example, advertising their products, product order and documentation. The company use e-commerce to sell and advertise their products. Such as, the company can advertise their products through TaoBaos. It can help to minimize the usage of the paper. It avoids cutting more trees so that the extinct of tree can be prevented.


(n.d.). Retrieved March 3, 2015, from CSR Press Release: http://www.csrwire.com/press_releases/37744-Organic-Infill-Replaces-Car-Tires-in-Turf

CSR Press Release. (2015, March 9). Retrieved March 12, 2015, from http://www.csrwire.com/press_releases/37744-Organic-Infill-Replaces-Car-Tires-in-Turf

About National Tree Day. (n.d.). Retrieved March 11, 2015, from http://treeday.planetark.org/about/

Batteries. (n.d.). Retrieved March 11, 2015, from http://www.epa.gov/osw/conserve/materials/battery.htm

Callahan, R. (2009, May 29). The Advantages of Solar Powered Vehicles. Retrieved March 11, 2015, from http://www.livestrong.com/article/134597-the-advantages-solar-powered-vehicles/

Camry features. (n.d.). Retrieved March 11, 2015, from http://www.toyota.com.au/camry/features

Conger, C. (n.d.). How can solar panels power a car? Retrieved March 11, 2015, from http://auto.howstuffworks.com/fuel-efficiency/vehicles/solar-cars.htm

Contributor, G. (2013, June 21). 10 Companies With Eco-Conscious Production Processes. Retrieved March 11, 2015, from http://planetsave.com/2013/06/21/10-companies-with-eco-conscious-production-processes/

McMullan, R. (2014, September 4). Developing New Strategic Indicators for Toyota’s Waste Reduction Programs. Retrieved 3 11, 2015, from http://www.thegreentie.org/voices/developing-new-strategic-indicators-for-toyotas-waste-reduction-programs.


Toyota. (n.d.). Why is National Tree Day so important to Toyota? Retrieved March 11, 2015, from http://www.toyota.com.au/tree-day/toyotas-commitment


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