Business Ethics

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In order to gets acceptance from the government as well as the bodies controlling policies and laws, organizations have to accept and follow certain rules and regulations and maintain certain standards in the work process. A collaborative study of these regulations, laws and issues can be termed as business ethics. Ethics is always concerned with the moral judgment of business. Every business or organization expects to be in the good books of the government as well as regulatory bodies. Decisions in an organization are taken by higher management but these decisions are always influenced by the culture of the company as well as the external environment in which the company operates. Involving in ethical process might seem difficult and lead to cutting down of short-term profits, but it is very essential for a successful and sustainable long term growth of the organization (Chang, 2011). Companies can significantly benefit from positive corporate social responsibility and ethical behavior. Customers are attracted to the products and services of the firm, thus, profits and sales get a boost. Employee perception towards the organization becomes positive and loyalty increases. Thus, there is a decrease in labor turnover and overall increase in productivity. As a result of the positive perception growing popularity of the organization, skilled talents are attracted and recruitment costs are reduced significantly. The share price of the company increases and investors are constantly attracted and business is always in growth phase. TOYOTA COMPANY Toyota is one of the largest automaker in the world, headquartered at Toyota, Japan. In terms of revenue, Toyota is the eleventh largest corporation worldwide. The company was founded in 1927 and deals with the manufacturing and production of commercial vehicles, automobiles, engines and motorcycles (Toyota, 2013a). Apart from global leadership in vehicle manufacturing, the company is known for its participation in ecological campaigns and sustainable environment issues. The company believes in theory and practice of sustainable development. Toyota practices total quality management in all its operations. The objectives are to least impact the environment. For creating a sustainable environment, the company has established a plantation programes (Toyota, 2013e). Apart from this, the company is involved in many ecological campaigns and environmental management programes. The organization has been awarded with various awards such as Green Awards (Toyota, 2013d). ETHICS AT TOYOTA Toyota is one of the well recognized conglomerates worldwide. It is imperative that the organization maintains a record of all its transactions and business acts. In this regards, proper maintenance of ethical behavior in the organization is critically important. Quality and ethics are the benchmark for the sustainability of the organization as well as growth and development of the supply chain and other important department of Toyota (Toyota, 2013b). Both play a crucial role in the strategic plan of the company. Since it is a vehicle manufacturing company, safety of the consumers will be the top-most priority while designing and manufacturing products. On a broader term, the business ethics for the company can be applied in three major areas. designing and man