Emir Purbo's Blog

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Recently Toyota Motor Corp. has been facing negative publicity due to the fact that they had to make “call-backs” of their products. This Japanese car manufacturer had to recall more than 2 million of its cars. This create both internal and external problems. These problems will definitely affect the brand loyalty of Toyota in the consumer’s perspective.

One of the biggest external problem of this issue is that it would give this company a bad image both in front of the competitors and the loyal customers. Competitor will try to innovate and improve the own products in order to avoid such issue, one of them being the usage of quality control and quality assurance.  In the eye of the loyal customer, Toyota has already have a bad image – as the car that does not prioritize on safety regulations.

In addition, the major internal problem that Toyota could be facing is the financial issue. Since they are calling back their products, requiring extra repair or changing extra parts could  cost them millions of dollars. Due to that effect, it will affect Toyota’s liquidity or acid test ratio, as the stock could not be sold to the market due to the call-backs.

Hence, Toyota should implement a more appropriate quality control management in order to assure that there would be less or if it is possible no products  that are defected.

http://www.time.com/time/business/article/0,8599,1957039,00.html

One of world’s finest economist, Milton Friedman once said “companies cannot be socially responsible because they only exist to make as much money as possible.”

Corporate Social Responsibility has become the method for multi-national corporations to be able to gain the recognition around the world. One of those companies is British Petroleum, or more known as BP Oil. This oil refinery company has bombarded the media with the flashy advertisement showing how the company has becoming more aware towards the environment. Thus, the company has been gaining recognition throughout the world.

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Nevertheless, accidents happen. In 2005, BP was blamed for the devastating event that occurred in Texas refinery, and recently the massive explosion that occurred in Gulf of Mexico. Now everyone knows “who” is BP oil company and what are the exact things that this company has done to our environment.

So what is the next step? No one has the answers yet, but what BP oil company can do is probably show that one of the leading oil refinery company in the world have the guts to stand up and take the blame, even if the cost of taking the blame (meaning paying the compensation) may reach up to billions of dollar.

http://www.thejakartaglobe.com/analysis/once-lauded-bp-exposes-corporate-citizenship-sham/385622