09/11/13

Business and Ethics…?

Immoral practices and poor decision-making are what triggers us to wonder whether business and ethics can truly coexist in such a competitive business-oriented world. From an article  in Los Angeles Times, it was reported that Toyota, one of the world’s largest motor corporations, was accused of keeping a malfunction issue secretive over the course of the last decade. The problem started when vehicle owners complained about sudden and unintended accelerations without applying on the gas pedal; over 12 million recall notices from all over the world were issued. While Toyota did not officially publicize the severity of this issue, the corporation instead bought the vehicles back from the owners in order to keep their clients quiet. In the corporation’s position, such decision was made in order to maintain their reputation, see its share rise in the U.S. and maximize their profits. However, the unethical decisions that had taken place ultimately resulted in the loss of consumer’s loyalty in the corporation; a ruined reputation and a $16.4 million fine do not even come close to compensating for the damages that the unethical decision had caused.