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Toyota's Ethical Issue (Project)

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Sarah Bassam

on 9 April 2013

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Transcript of Toyota's Ethical Issue (Project)

TOYOTA's Ethical Issue The name of the company The consequences of ethical dilemma The solution or the end of the ethical dilemma Toyota Motor Corporation The field of company The ethical dilemma or issue witch faced the company Toyota's "Sudden Acceleration" Problem

Sudden Acceleration is the unintended, unexpected, uncontrolled acceleration of a vehicle, often accompanied by an apparent loss of breaking effectiveness. Such problems may be caused by driver error (e.g., pedal misapplication), mechanical or electrical problems, or some combination of these factors. •An off-duty CHP officer and three members of his family were killed.

•The attorney explained the details of his client’s case, “Gomez was held hostage for 20 miles on a Bay Area freeway by a 2007Camry traveling more than 100 mph. Gomez was unable to turn off the engine or shift into neutral and then burned out his brakes before slamming into another car and killing that driver.” In addition to the attorneys of victims, survivors, press organizations, and Toyota considering alternatives, there have also been nine different federal inquiries and investigations since2000. Of the nine cases involving federal probing, only two cases pointed to the floor mats as the definite cause. Of the remaining cases, five have dismissed Toyota of fault, one pointed to a loose part, and one case is still open. In general, Toyota use the A3 method to solve any problems faces the company. The idea is to solve problems as a team by looking at the symptoms, understanding the business context, and identifying the root causes.
The A3 system was originally created by the Toyota Motor Corporation and was named for the paper size on which it was printed. Toyota used the A3 methodology to help develop its famed Toyota Production System (TPS). The basic steps of the A3 method is:
1. Theme or Background (What should be happening?)
2. Current Condition (What is happening? and Context)
3. Cause Analysis (Symptoms and Causes)
4. Target Condition (Draw the solution)
5. Implementation Plan (Actions: Who, What, When, Where)
6. Follow Up (How will you know when you have fixed the root cause?) For this specific problem, the only way to shut the vehicle off in a similar emergency would be to follow the directions outlined within the owner’s manual, which reads, “If you have to make an emergency stop, press and hold the ‘power’ switch for more than three seconds.” Sarah Bin Gheshian .. 431201523
Mashael ALNajashi .. 431200517
Sara AlMedlej .. 431200858
Maysa AlMedlej .. 431200713
Abrar AlMedlej .. 431200351 THANK YOU ... The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. References:



http://en.wikipedia.org/wiki/Sudden_unintended_acceleration According to a recent article in the Los Angeles Times, there may be more to the story than first explained by Toyota issued statement pointing to the installation of an improper floor mat from another vehicle and to the break paddles as the causes of this problem. Some believe that the issue goes beyond the floor mats and the break paddles, likely in what many believe to be a flawed design with the highly computerized engine control system which lacks a fail-safe mechanism for emergency situations. Sudden Acceleration is not a new problem; it’s been reported many times from different types of Toyota cars since 1987. Reported incidents of sudden acceleration include:

•In 1987: Audi 5000s was reported.
•In 1988: Honda Accords was reported.
•In 1997: Sudden acceleration in Jeep Cherokees and Jeep Grand Cherokees was reported.
•In 2000: Several Ford Explorers were reported about in the UK.
•In 2005: Incident observed in a Toyota Camry.
•In 2006: The 2004 model year Ford Mustang Cobra.
•In 2008: Incidents involving the 2005 Kia Amanti and Kia Sephia had been reported.
•In 2009: Toyota Avalon was reported.
•In 2010: Several vehicles were recalled in the 2009–2010 Toyota vehicle recalls, which resulted in suspension of production and sales of many of Toyota's most popular models, including the Toyota Corolla, Toyota Camry, Toyota Tacoma, Toyota Avalon and more. Toyota Corporation faced a lot of financial consequences:
1. The decrease in motors demand forced the company to announce a plan of shrinking the number of the employees.
2. Recalling over than 8 million vehicles, these vehicles recall costs Toyota more than 2 billion dollars. That recall had an immediate bad effect to the company's reputation and had an effect on the market shares for about 4 -5 % decrease.
3. Toyota announced that they will pay about 1.1 billion US dollars compensation to the affected customers who owned a 2009 and 2010 car models.
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