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The concept of Managing Sustainability on Toyota
YINGLE WU MAISA KYLE VASUDHA JUN LI
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Outline Introduction Social sustainability Economic sustainability
Environment sustainability conclusion Recommendations
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sustainable development
Sustainability Defined as a requirement of our generation to manage the resource base such that average quality of life that we ensure ourselves can potentially be shared by all future generations(Geir,1994). sustainable development Seeks to take account of and integrate the economy, ecology and society in order to preserve the world‘s environmental and cultural resources for future generations while also respecting diversity and reducing social inequality (AUTOMOTIVE INDUSTRY SUSTAINABILITY REPORTS,2010).
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Sustainability in the car industry
Environmental concerns Climate change energy shortage: reliance on oil, Relevant terms As a significant contributor to anthropogenic Greenhouse Gas emissions, control the car exhaust,Car exhausts contain a range of toxic substances that can have a serious impact on health consumer awareness Social corporate responsibility improve fuel economy lower the carbon intensity of their product portfolio by introducing alternative propulsion systems long-term challenges (Sustainability Leader Member of DJSI World.2004) Automobiles contribute to global environmental issues such as global warming, resource depletion, accumulation of wastes and atmospheric pollution. Demand for vehicle ownership in densely populated developing countries is growing rapidly; it is estimated that the number of cars on roads around the world will increase from approximately 750 million today to over 1 billion in Vehicle emissions ,The increasingly strict legislation pertaining to the industry and rising consumer awareness has compelled the automobile sector to make continuous improvements to its environmental performance In addition to environmental issues, the auto industry also has a wide range of social and economic impacts, such as its best practices in management, processes, product development, and worker and customer relations Industry Driving Forces The main sustainability challenge for the automotive industry is climate change. As a significant contributor to anthropogenic Greenhouse Gas emissions, the industry is subject to stringent regulations in most countries. The industry's reliance on oil adds up to the challenge as governments worldwide seek to diversify their energy sources. To address these issues, carmakers need to improve fuel economy and lower the carbon intensity of their product portfolio by introducing alternative propulsion systems. As markets mature in developed economies, carmakers are aiming for global expansion. Additional long-term challenges arise from their operations in emerging markets. Carmakers need to contribute to regional development through foreign direct investment backed by social and environmental standards and through sustainable supply chain management. Sustainable mobility requires profitable business models to meet the fast-growing demand for mobility in an environmentally-viable and socially acceptable way. (AUTOMOTIVE INDUSTRY SUSTAINABILITY REPORTS: A COMPARISON OF BRAZILIAN AND GERMAN FACTORIES ,2010)
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Toyota leading the motor sustainability
Toyota, the world‘s largest automotive manufacturer (Samuel&Louche,2010). lead the automotive industry in corporate sustainability. it's Vision 2010 "Innovation into the future" with its long-term environmental strategy CSR POLICY: Contribution toward Sustainable Development Toyota investments in hybrid technology led the way as an example of sustainable innovation (Toyota,2007). Toyota, the world‘s largest automotive manufacturer by sales and productions,with 53 production sites around the world. Toyota continues to lead the automotive industry in corporate sustainability for the second consecutive year. On a strategic level the company has successfully aligned its expansion strategy and it's Vision 2010 "Innovation into the future" with its long-term environmental strategy - the scope of which is one of the broadest in the industry. charge-sustaining mode,which combine existing technology with environmentally conscious technology,toyota is contributing to sustainable motoring (and sustainable development) through creating and building a new market segment for automobiles。
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Toyota Sustainability Performance
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The strategy of Toyota’s
A successful strategy of managing sustainability is different from and much bigger than just “green”:we should took into account three aspects. All of these aspects are embodied in product development, production factories, social activities and the relationships around Toyota
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Managing sustainability On Toyota Environmental aspect Social aspect
Development of vehicle environmental technologies Reduction of CO2 emissions during logistics activities,at plants and dealers Design for recycling, etc. Customers first policy Respect for diversity, development of human resources Vehicle safety, etc. Environmental aspect Social aspect Payment of taxes,return to shareholders, employment Corporate governance,etc. Economic aspect Economic aspect (Toyota Sustainability Report 2010)
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Social sustainability
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development of community organizations opportunity for learning
The definition of Social sustainability encompasses three components: development of community organizations opportunity for learning Basic needs
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The components are underpinned by 4 guiding principles:
Equality Diversity social interaction Good quality of life
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1. Equality Increasing Employment Opportunities for Disabled People
linking disabled people more closely with society and with workplace communities Increasing Employment Opportunities for Disabled People Re-employment Program for Retired Professionals in either an external or internal workplace Job Placement Program for Over-sixties
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2. Diversity Promoting Measures to Create a Workplace Worthy of Vigor and Enthusiasm
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Dedicated that Toyota’s vision philosophy
3. Good Quality of life Dedicated that Toyota’s vision philosophy They providing clean and safe products and enhancing the quality of life everywhere through all their activities T O Y O TA C O D E O F C O N D U C T March, 2006
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4. Social Interaction Toyota actively promote and engage, both individually and with partners, in social contribution activities that help strengthen communities and contribute to the enrichment of society.
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CSR Policy: Corporate Social Responsibility
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Global Society and Local Communities
* Toyota implement their philosophy of “respect for people” by honoring the culture, customs, history and laws of each country. * they constantly search for safer, cleaner and superior technology that satisfy the evolving needs of society for sustainable mobility.
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Initiatives toward Improving Traffic Safety
Integrated Traffic Safety Measures (Integrated Three Part Initiative) (Toyota,2010) 18
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Relations with Customers
No. of Calls at Toyota Customer Assistance Center (Toyota,2010) 19
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Relations with Employees
(Toyota,2010) 20
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(Toyota,2010) Building Good Health Relations with Employees
S u s t a i n a b i l i t y R e p o r t | S o c i a l A s p e c t s In FY2009, Toyota conducted BIP2 activities* 1 and efforts to improve metabolic syndrome (a condition when a person has abdominal obesity and abnormal status in two or more of the following areas: blood sugar, blood pressure and blood lipids) with a priority on workplace activities that promote good health practices (Toyota,2010) 21
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Relations with Business Partners
Working More Closely with Business Partners and Returning to Basics of ‘Emphasis on Quality' and ‘Customer First' 22
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Relations with Shareholders
Improving technology, supply, and marketing through continued forward-looking investments Growth Maintaining and improving profitability and capital efficiency Efficiency Maintaining a solid financial base Safety
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