Second Essay

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20229611 | Second Essay | Page 1 of 6 The Effects of Toyota’s Recalls on Stakeholders Second Essay Phil 215 Kurt Holukoff 25 July 2011 Vyvy Ta 20229611
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20229611 | Second Essay | Page 2 of 6 Managing a corporation involves more than making profit and increasing stock values. There are several stakeholders that are considered when decisions for the corporation are made. These stakeholders can be shareholders, employees, consumers, and the government. In a corporation such as Toyota, several stakeholders were affected by their decision to recall their products. For the past five years Toyota has been riddled with various mechanical and electrical issues (, 2011). These issues have caused Toyota to recall millions of cars (, 2011). Furthermore, it has attracted a lot of media attention, specifically in the United States and Canada (Crawley and Lauder, 2011). The malfunction in their products’ acceleration pedal has been suspected to be the cause for over 80 deaths within the United States (France-Presse, 2010). Toyota’s recall involved repairing the pedal by installing a friction device to prevent it from sticking (, 2011). Despite all the negative media attention that has come from the recall, Toyota’s decision to recall their products was in the best interest of the stakeholders as it can be justified by moral theories. Consumers are a major stakeholder for Toyota and in order to keep up with competitors, Toyota needs to attract new consumers and keep their current ones satisfied (Crane and Matten, 2011). In regards with the recall, the most affected stakeholders are the consumers. They are using the products and rely on them daily. As a manufacturer, Toyota has product policies for their consumers. One of those policies would be product safety. As the defect in the pedal compromises their safety, it is their duty to notify the consumers. This decision fits in with utilitarianism, virtue ethics and ethics of duty. Virtue ethics is about doing the right thing and acting with integrity (Crane and Matten, 2011). The recall fits into virtue ethics as it was the right thing to notify consumers that they had a faulty product. The consequences of not notifying
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Second Essay - 20229611 | Second Essay | Page 1 of 6 The...

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