Marketing Essay Sample paper on Toyota’s Corporate Social Responsibility Strategy

Toyota’s Corporate Social Responsibility Strategy

Corporate Social Responsibility (CSR) has become a standard business practice. CSR is an organizational approach of giving back to the community by providing sustainable development through social, economic and environmental benefits. According to a 2015 study by the Kenexa High Performance Institute, organizations with strict commitment to CSR performed better than those that are less committed (Heath & Ni, 2008). CSR has a positive impact on a company’s profile. Benefits delivered by CSR include better brand recognition, enhanced customer loyalty hence increased sales, positive business reputation, and easier access to capital. Toyota is one of the companies which have demonstrated a genuine commitment to CSR. This has propelled the company’s performance, placing it among the top players in the automotive industry. Toyota has established policies which work towards the integration of social, ethical, environmental and consumer concerns.

Since its inception, Toyota has strived to deliver sustainable development to the society as well as its stakeholders and the environment. The automotive organization has achieved this by manufacturing and providing quality and innovative products and services (Toyota Motor Corporation, n.d.). The company has worked collaboratively with its customers and the local communities to ensure that their business promotes harmony with people, the society and the global environment. At the core of its business operations is a strong adherence to providing safety and peace of mind, environmental sustainability and excitement to its people. This is planned and executed through the company’s Corporate Governance Meeting and the Corporate Planning Meeting which help to achieve long-term results.

Toyota has demonstrated undying devotion to the environment through various initiatives. Through its Toyota Environmental Challenge 2050 unit, the company has established numerous initiatives that aim to solve global environmental issues such as resource depletion, climate change, extinction of biodiversity, and water shortage. These environmental issues have threatened the human survival on earth therefore addressing them not only saves the environment but also protects humans. There have been various global environmental policies including the UN’s Sustainable Development Goals (SDG) in 2016 and the Paris Agreement concerning the global temperature. Toyota keenly responds to such policies to realize their goal of protecting the environment and its people. For instance, the Toyota Hybrid Vehicle manufacture is a responsive move towards reduction of carbon dioxide emissions (Toyota Motors Corporation, n.d.).

Social responsibility has also been at the center of TMC’s CSR structure. According to the company’s data, it spent Billion yens 21.6, 25.3 and 29.2 on social contribution activities in 2014, 2015 and 2016 respectively (Toyota Motors Corporations, n.d.). The company also provides employment opportunities to numerous individuals worldwide. Some employment positions include foreign executives, CEOs/COOs, Managers and local employees whereby both men and women are hired. Toyota’s dedication to provide safety has attracted worldwide recognitions and awards. For instance, in 2017, the company received more IIHS Top Safety Pick Plus Winners Awards compared to other brands (Toyota Motors Corporation, n.d.).

Toyota’s strategy to interact with its market reflects its marketing mix. The marketing mix is tailored according to the organization’s goals. This has helped the company to achieve success in all sectors of its operations. For instance, the company uses CSR as a promotion strategy to enhance the brand’s recognition. As it participates in various initiatives in the local communities, the company not only gains recognition but also expands its customer base. Apart from CSR, other promotional strategies employed by the company include advertising, public relations, sales promotions and sales organization. This has enhanced the company’s position in the market and enabled it to remain competitive.

References

Heath, R.L. & Ni, L. (2008 Sep, 25). Corporate Social Responsibility. Institute for Public Relations. Retrieved from https://instituteforpr.org/corporate-social-responsibility/

Toyota Motors Corporation. (n.d.). CSR Basic Philosophy. Toyota. Retrieved from http://www.toyota-global.com/sustainability/csr/csr/