Faculty of Engineering & the Built Environment Bachelor in Civil Engineering SUBJECT CODE: BUS 4053 Business Ethics

Prepared by: Mullu Deepsingh Arjun ID: SCM-020718 Date of Submission: 11-07-2013 Lecturers Name: Miss Hazlina

Table of contents
Title Page Number Definition of CSR------------------------------------------------------------------------------------- 3 The 4 strategies---------------------------------------------------------------------------------------- 4 The Toyota Example as Proactive Corporate Social Responsibility --------------------------- 6 References --------------------------------------------------------------------------------------------------- ----------- 8

Definition of Corporate Social Responsibility

Corporate social responsibility (CSR) is known under various terms used in the industry such as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business or corporate social performance. In spite of some variations in some cases, they basically share the same philosophy and aim towards the same goal. The primary function of Corporate social responsibility is to act as a corporate self-regulating mechanism which in integrated entirely in the business model of a company. The role of this mechanism is to monitors and ensures the companys compliance to law, ethical standards and international norms. The companies and business bodies would endorse and acknowledge the responsibility for the impact of their activities on consumer and employees, communities, stakeholders and all other members of the public sphere. The European Commission defines it as A concept where companies decide to contribute to a better society and a cleaner environment.

The 4 strategies
There are 4 approaches which companies generally adopt when implementing social responsibility in their business. These 4 approaches are:

1. Obstructionist approach 2. Defensive approach 3. Accommodative approach 4. Proactive approach

The chart below depicts the degree of social responsibility when applying each of these strategies.

1) The obstructionist approach

This approach is also known as a response strategy or reactive strategy. Companies that adopt this stance in social responsibility generally do the minimum required to tackle problems in society and environmental issues. Usually, when these companies violate the ethical or legal

aspect by unacceptable practices, the company will most of the time fall into denial or avoid taking the responsibility on these wrongdoings.

2) Defensive Approach
In this approach, a company will do just what is required to comply with the legal requirements to stay in business and nothing more. They have little concern about their social responsibility and are just abiding to the regulation because this is the law. These companies are more concerned about generating profits. The decision that these companies will take in regards to their business is based on compliance considerations and will manage their liabilities by abiding to the law and labour, environmental and safety guidelines. Measures to be in line with these prerequisites are in most cases taken in an ad-hoc manner, that is typically in response to a crisis situation or concerns of external regulatory bodies.

3) Accommodative approach
The accommodative approach is said to be an influence approach. Accommodative approach is adopted by firms who are willing to do more than only meeting the legal and ethical requirements of the Corporate Social Responsibility. These firms will go beyond their required obligation to support and contribute to sustainable and social practice. By adopting this strategy, the company has a very positive attitude in regards to this mechanism and will voluntarily abide to public policies.

4) Proactive approach
The proactive approach is coined as the highest degree of social responsibility a firm can take. Companies that adopt this stance bring social responsibility to a philanthropic level. The concern these companies have for the social, sustainable and ethical aspects of society is a model of excellence and they strive to perfect it with time. Their belief in corporate social responsibility is beyond the ethical, legal and profitable motives and will ensure to take necessary steps in a proactive manner to reinforce the community.

The Toyota Motor Corporation: An Example of Proactive Corporate Social Responsibility

One vibrant example of a company privileging the proactive approach is Toyota Motor Corporation. principles such as Be contributive to the development and welfare of the country and Be reverent, and show gratitude . Based on these two principle, this company has built a solid CSR structure, with a proactive orientation. The basic policies of Toyota Corporation concerning Corporate Social Responsibility are as follows: Toyota pledge to undertake social contribution activities to contribute to sustainable social vitality. Toyoya also support his employees to get involved in any social activities which can have a positive impact on the community. Also, by disclosing information about social responsibility activities, Toyota is promoting the improvement and development of the society. Toyota Motor Corporation focuses its effort in improving the welfare of society in 4 distinct fields which are: 1) Environment 2) Traffic Safety 3) Education 4) Society and Culture

Environment
In Japan, Toyota has implement his own forestry program by putting in place activities such as Forest of Toyota . These are forest found at the interface of cities and the nature in Japan and over time, due to human activities and development, these have been neglected and damaged. Toyota restored them and implemented environment programs for students and young people for awareness about the importance of nature. As a matter of fact, more than 7000 children per year join the Toyota Nature Program.

Traffic Safety
Toyota aims to completely eliminate traffic casualties, which are injuries, trauma and in worst case, death caused by the roads. Three factors are being treated as a whole when trying to improve this field, the people, the vehicles and the traffic. Toyota regularly organize awareness campaigns in various countries in which they are implemented, which are the USA, Thailand, India, Turkey etc

Education
One of Toyotas philosophy is manufacturing begins with educating people. Toyota has various programs which help people to find work, empowering them professionally and also help needy students to pursue their studies. A few examples are Automobile Technical Training Course for Brazilian Residents in Japan, Toyota Technology Challenge Supports Science and Technology Education in the UK and Increasing Basic Academic Skills by Toyota Teach.

Society and Culture

Toyota has engaged in various social contribution activities to promote more prosperous societies and mutual respect among people of different cultures. Toyota initiatives support various arts and cultural activities with the emphasis on fostering culture, broadening horizons and revitalizing local cultures.

The Toyota Foundation

This foundation has been created by Toyota with the idea and the aim to help people on a global perspective and support causes which will have long term benefit for humanity. One most vibrant example is the assistance of this foundation during the Japan earthquake and Tsunami victims. The Foundation had total funds of some 40 billion as of the end of fi scal year 2010 and has provided 7,363 grants totaling about 16 billion.

References:
http://seanjoehelleri.blogspot.com/ http://savemalaysia-stoplynas.blogspot.com/ http://intinewstudent.blogspot.com/2013_04_01_archive.html http://www.toyota-global.com/sustainability/report/sr/11/pdf/sr11_p36_p39.pdf http://cibs.tamu.edu/Gaspar/Griffin_IB6e_PPT/Griffin_IB6e_PPT_05.pdf http://corostrandberg.com/wp-content/uploads/files/CSR%20Continuum%20Draft_23.pdf http://www.academicjournals.org/ajbm/pdf/pdf2010/jan/fang%20et%20al.pdf http://www.toyota-global.com/sustainability/report/citizenship/pdf/citizenship.pdf