1.0 INTRODUCTIONCompanies around the world have been publicly criticized for improving their company's bottom line at any moral or social cost. Ethics essentially “relates to issues of right, wrong, fairness and justice”. Clearly, examples like Enron, WorldCom, and even Conrad Black have challenged society's views on ethical, sound business and the connection to what society sees as “good” governance practices. While the disputes involve issues that vary only by company type, they virtually all involve some form of abuse of stakeholder trust. These cases are not representative of the full spectrum of today's economic environment; in fact, there are a number of companies whose competitive advantages are based on “good” corporate governance practices – i.e. stakeholder engagement. Consequently, I have chosen to present and explore in this essay the practices of one such company: Toyota Motor Corporation, highlighting its “good” corporate governance principles.2.0 TOYOTAToyota is a global leader in automotive sales, technology and manufacturing , but at the same time maintaining one of the most recognizable and appreciated brands in the world. At the heart of their success are the innovative and revolutionary production methods made possible by the company's recognition of the value of employee empowerment. Employee engagement is defined as “consisting of a variety of systematic methods that enable employees to participate in decisions that affect them and their relationship with the organization.” At Toyota, the company has used these proven co-determination techniques to encourage employee and supplier involvement in their decision-making, as these practices "help improve both the... middle of the paper..." and ( 1997). The Toyota Supply Chain: Changing Employee Relations; Bradford. Vol 19, issue 5:457. Available from the Proquest database: http://www.proquest.umi.com/ (accessed November 26, 2007).7. http://www.wsj.com8. NA (2005). Business: icon under fire; Volkswagen. The Economist Vol 376, Number 84434:54.9. NA (2005). Leader: together they stand; Scandal at Volkswagen. The Economist Vol 376, Number 84435:1410. NA (2005). Business: a timeless model?; Corporate governance in Germany The Economist Vol 374, Issue 84411:7111. Kochan (2006). Taking the high road; MIT Sloan Management Review. Vol 41, number 4:. Available from the Proquest database: http://www.proquest.umi.com/ (accessed December 4, 2007).12. Josselson (2001). South-west by north-west; Aviation Finance Journal. Issue 245:33. Available in the Proquest database: http://www.proquest.umi.com/ (accessed December 26 2007).