Toyota Case Study

The announcement of Toyota, one of the world’s biggest car manufacturers, to cease its production in Australia by 2017, has been brought to national attention involving Federal government, individual workers, workers union and more, as the decision will undeniably constitute some difficulties to the country. To analyze and evaluate the consequences of this decision, the two models of corporate social responsibility that are Shareholder and Stakeholders theories have been taken into account in order to have a better understanding in areas of social responsibility holding by each particular member of the society. Each theory contains a different view of responsibility; the shareholder theory focuses on shareholders’ profit maximization, while the stakeholder theory looks at the wider view of taking each stakeholder’s interest into the equation. The decision made by Toyota clearly has impacts on the society, and undoubtedly leaves the company to hold moral responsibility more or less. However, considering the professional roles of the Australian government and workers union, they are also responsible for the decision. This essay evaluates the positive and negative consequences in regard to the decision made by Toyota to end their Australian car-making and also examines the shareholder and stakeholders theories to identify the role of social responsibility that is borne by these three sections; Toyota, Australian Government and Australian manufacturing workers union.

The story begins with the media statement from Toyota earlier this year to stop its vehicles manufacturing, as well as the production of its cylinder engines, in Australia by the end of 2017, and operate in the country only as a national sales and distribution company (T...

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...Australian government and Australian manufacturing workers union are easily identified. These three sections are obviously responsible for the decision relying on both their professional and ethical perspectives. From the discussion, Toyota and Australian government has behaved socially responsible in assisting the employees and suppliers with the job opportunities throughout the ongoing support services. Further, the government is also responsible for other economic factors that beyond Toyota control in terms of the policy frameworks. For the Australian manufacturing workers union, by its duty, they are directly responsible for the employees who are displaced as a result of the decision. However, they did not try to stand up for the employee rights in this case as they claimed that the circumstance is far worse for Toyota to sustain its production in the country.