Topic > Toyota Case Study - 1110

The announcement by Toyota, the world's largest car manufacturer declared by Gibbs (2014), to cease production in Australia by 2017, has been brought to national attention involving the government federal, individual workers, union workers and more, as the decision will undeniably pose some difficulties for the country. To analyze and evaluate the consequences of this decision, the two models of corporate social responsibility which are the shareholder and stakeholder theories were taken into consideration in order to have a better understanding of the areas of social responsibility of each particular member of the society. Each theory contains a different view of responsibility; shareholder theory focuses on maximizing shareholder profit, while stakeholder theory examines a broader view of including each stakeholder's interests in the equation. The decision made by Toyota clearly has an impact on society and undoubtedly leaves the company with more or less responsibility. However, considering the professional role of the Australian government and the workers' union, they are also responsible for the decision. This essay evaluates the positive and negative consequences regarding the decision made by Toyota to cease Australian automobile production and also examines shareholder and stakeholder theories to identify the role of social responsibility supported by these three sections; Toyota, Australian Government and Australian Manufacturing Workers Union. The story begins with Toyota's media statement earlier this year to stop vehicle production, as well as cylinder engine production, in Australia by the end of 2017, and to operate in Australia. only as a national sales and distribution company, and under a legal framework established by the federal government to control acceptable business behavior that in some way affects the company. On the other hand, the second model, suggested by Edward Freeman, is the stakeholder theory or the broad view which generates the opposite idea of ​​socially responsible behavior of a company. The theory argues that the shareholder-centered idea is incomplete, since there are stakeholders who are affected by a business decision and can also influence an involved company (Fassin, 2012). By definition, according to Beauchamp et al. (2009, p.61), the parties who hold a stake; Stakeholders are defined as an investment, a benefit, any claims for compensation or influence on the activities that make up the company. This includes shareholders, employees, customers, managers, suppliers, local community