1.
0 Introduction
Explain ethics and its concept
Ethics provides principles and standards that guide behavior in the world of
business. Ethics involves the behavior which is right or wrong, good or bad.
Ethical considerations are relevant in all aspects of life, from personal
relationships to professional conduct, and from social and political issues to
global challenges. Ethics is concerned with and promotes the moral values
and principles that guide people’s decisions and actions. It is creating a more
equitable and safe society. Business ethics means ensuring that businesses
operate in a moral and socially acceptable manner. Business ethics involves
considering the impact of business decisions and actions on stakeholders,
shareholders, the environment and society. Business ethics can assist
organizations in becoming more profitable, sustainable, and successful over
the long term.
Company
I chose 3M Malaysia and Toyota Malaysia in this study to compare and
analyze their ethical behavior. They are two separate companies but both
have presence in Malaysia. A division of the 3M corporation, 3M Malaysia is
a global diversified technology company. The company offers a wide range of
innovative solutions that are designed to improve people’s lives. Products
from 3M Malaysia include healthcare, safety gear, and electrical items. On the
other side, Toyota Malaysia is a Malaysian-based division of Toyota Motor
Corporation. Toyota Malaysia is responsible for sales, marketing, and
distribution of Toyota vehicle in Malaysia.
Relate ethics with the company you are studying
The good ethical issues that 3M Malaysia addressed included fair labor
practices, non-discrimination, and offering customers high-quality products.
Toyota Malaysia has in the past dealt with certain moral dilemmas, including
safety recalls, environmental concerns, and unfair pricing to customers.
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2.0 Content
2.1 Implementation of ethics by the companies
3M malaysia
Workplace environment, safety and health
3M Malaysia has provided a supportive workplace environment for its
employees. They strive to develop a workplace culture that fosters the values
of teamwork and diversity. They handle all corporate operations in a way that
safeguards the well-being and security of their workers. Also, 3M Malaysia's
global policy forbids discrimination based on race, color, age, gender, sex,
national origin, citizenship status, disability, pregnancy, or religion. Policies at
3M Malaysia adhere to local anti-discrimination laws and regulations (3M
Malaysia., 2022). These code of conduct can lead to a more productive and
engaged workforce, and reduced employee turnover rates. Employees are
more likely to be loyal to their employer that treats them with respect. When
employee feel valued, they may also be more willing to collaborate with
colleagues and share their ideas, leading 3M Malaysia to greater innovation.
In addition, 3M Malaysia provides a safe and healthy work environment in
order to minimize the environmental effect of its operations. 3M Malaysia
requires employees must comply with all environmental, health and safety
(EHS) laws and regulations (3M work culture). 3M Malaysia can enhance its
reputation and make it more attractive to potential partners and clients by
creating a supportive workplace environment.
Corporate social responsibility (CSR)
3M Malaysia is committed to improving lives and fostering sustainable
communities through social investments. 3M Malaysia has a robust corporate
social responsibility (CSR) program called 3Mgives, that has given community
partners throughout the world RM1.45 billion in cash and in-kind donations.
The program focuses on three main areas: education, community, and the
environment. In order to enable students and instructors to have access to
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more resources and information, 3M Malaysia collaborates with schools,
colleges, and other institutions under the education pillar. 3M science to assist
address environmental challenges, community program and intended to boost
community vibrancy via volunteer labor and investment to improve the quality
of life. Overall, 3M believes in the power of its people to help solve some of
the world’s greatest challenges and make a positive impact on the Earth
(AMCHAM, 2023). 3M Malaysia helps to address pressing society issues,
such as education, poverty, and environment. It can enhance the positive
public image and reputation by improve the lives of communities.
Toyota Malaysia
Prohibit illegal acts
Toyota Malaysia will follow applicable laws, internal company policies and
rules, and will take appropriate action if illegal acts occur. Toyota Malaysia will
not allow any unlawful act, although it is motivated “in the interest of the
company” or “in the interest of the customer” (Toyota code of conduct, 2020).
If something unlawful happens, Toyota Malaysia will take the necessary
measures. It can enhance the Toyota Malaysia’s reputation by strictly
enforcing policies against illegal activities. Prohibit illegal acts also helps
ensure company compliance with local laws and regulations, it reduces the
risk of legal issues, financial penalties, and reputation damage.
Philanthropic projects
Toyota engages in philanthropic efforts that help to build a sustainable
society. They make use of its resources and engage in activities that benefit
society. The activities are designed to address societal issues such as the
environment and traffic safety. Additionally, they concentrate on local
communities and the social issues that each local community suffers from,
and they work to find solutions to these problems. They will actively support
philanthropic projects to gain awareness of local social issues through
volunteer activities. Adhering to ethical practices and engaging in
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philanthropic will build trust among stakeholders. This trust can foster the long
term loyalty and contribute to the company’s stability and success.
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2.2
A. Research ethical issues that the companies may have faced with
regard to information technology, environment and marketing
3M Malaysia
Fair labour practices
Fair labour practices are one way that 3M Malaysia pledges to act ethically.
They ensure that their employees are treated fairly by providing fair wages,
safe working conditions, and opportunities for career growth. Total rewards
are a range of plans and initiatives offered by 3M to entice and retain
employees. 3M Total Rewards may include a basic wage and variable income
that are offered to qualified employees and include incentives. Besides that,
workers are given access to medical, dental, and vision benefits, disability
benefits; life insurance; paid absences; and the General Employee Stock
Purchase Plan (GESPP) (3M benefits, 2023).
Provide high-quality and safety products
3M Malaysia provides a wide range of resources and solutions to help
customers promote safety in the workplace. They help customers solve
unique safety challenges, and help their workers to be safe and sound by
providing Personal Protective Equipment (PPE) training and education (The
science of safety, 2023). Customers are receiving high-quality products from
3M Malaysia, which is ethical if done in a way that puts their safety and the
welfare of other stakeholders (3M Quality products, 2023). Providing high
quality products is important, it is one aspect of ethical behavior that
companies should consider along with other factors to ensure that they are
operating in an ethical and responsible manner. The numerous products
produced by 3M Malaysia are developed and guided by worker-wearer
insights and consumer needs. In order to examine the intricacies crucial to
clients, they will involve customers in the development process.
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TOYOTA MALAYSIA
Overcharging customers
There have been several ethical issues with Toyota Malaysia that have been
mentioned in the past. Toyota Malaysia had been overcharging customers for
specific car parts and vehicles. When a product is first released, companies
charge a high price for it before lowering the price over time. It is ethical
issues due to Toyota Malaysia taking advantage of customers by not
providing a fair price for the money they spend on the company’s products
and services. In this instance, the company failed to maintain its responsibility
to be transparent and honest in its pricing and exploited its customers to gain
profit. In addition, there are ethical issues with Toyota Malaysia service
centers, customers report that they have been charged for unnecessary repair
fees and their cars are still damaged after the service center’s care.
Therefore, customers feel disappointed with the poor quality of service at
Toyota Malaysia. These ethical issues will damage a company’s reputation
and erode customer trust (henrykhoo, 2013).
Environmental damage
The environmental damage caused by Toyota Malaysia’s vehicle, which runs
on fossil fuels, has been linked to the company’s ethical issues. The
environment and human health are harmed by the burning of filthy energy. In
this case, their products increase the air pollution in the environment and
harm the environment.
Sell potentially dangerous products
Toyota Malaysia has an ethical issue because they are selling customers
potentially dangerous products. Toyota Malaysia has issued recalls for certain
models due to safety issues, including malfunctioning airbags and fuel pumps.
In 2016, Toyota Malaysia recalled 320,000 cars due to a defect of vehicle’s
side curtain airbags. The side curtain airbags may deploy while the vehicle is
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stationary, it causing the minor injuries to the occupants (Lye, G, 2016).
In addition, Toyota Malaysia has another recall problem related to possible
fuel pump issues with some Toyota and Lexus cars in Malaysia. It may cause
vehicles to stop working and cause difficulty with the driver’s control of the
vehicle. Toyota Malaysia’s lack of ethical decision making in the component
problems with their vehicles, it has failed to uphold its obligation to ensure
customer safety in automobiles. This ethical issue resulted in more accidents
and damages for its customers (Chan, M, 2020).
B. Should the companies use any of the theories we have learned
(Utilitarian theory, Kant’s ethics of duty, etc) thus far in their decision
making?
3M Malaysia
The focus of consequential theory is on the result or consequence of an
action. The goal of the consequential theory is to maximize the overall good or
benefit for the greatest number of people. It will use the consequential
perspective to apply the utilitarianism theory of ethics. According to
utilitarianism, the goal is to maximize pleasure while minimizing suffering. The
company will take a action when the outcome is benefit more than cost. The
high quality products that 3M Malaysia offers to its consumers can be
analyzed using from consequential ethical theories or utilitarianism theories. It
can lead to positive consequences such as customer satisfaction and good
reputation. Additionally, providing high quality products can benefit customers
in way that can be perceived as contributing to their happiness, such as
enjoyment.
According to Kantian ethics, the principle of human dignity means that people
should never be used or exploited for the benefit of others, they should always
be treated with respect and fairness. Employees at 3M Malaysia were given
equal opportunity and fair labour practices. Therefore, it is consider with
Kantian ethics and the principle of human dignity. Fair wages, safe working
conditions, and given opportunities for career growth, it allow them to live a
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life that is worthy of their dignity.
Non-consequential ethical theories emphasize an actions inherent qualities
rather than its effects. In non-consequential ethical theory, it can be used to
apply right ethics. Right ethics is a natural rights are certain basic, important
that should be respected and protected in every single action. According to
non-consequential ethical theories, Toyota Malaysia should not overcharge
customers as it is the immoral things to do so. They should apply the non-
consequential ethical theory and rights- based ethics by given the fair price to
customers. Respecting the individual rights of both sellers and buyers can be
viewed as part of the concept of fair value. Furthermore, it might be seen as
one of the right to fair treatment and transparency to customers.
Toyota Malaysia
If Toyota Malaysia faces a recall problem, considering the utilitarian ethical
theory would encourage the company to prioritize the well-being of its
stakeholders by addressing the issue of ensuring safety and minimizing
negative consequences. Toyota Malaysia should consider the utilitarianism
theory while making decisions about the components and quality of its
automobiles. Safety of the vehicle is important to consider in order to prevent
damage and accidents to customers. Toyota Malaysia should consider
proactively addressing the recall, this would demonstrate a commitment to
ensuring the safety of their customers, which would be in line with the
utilitarian goal of minimizing harm. Besides that, Toyota Malaysia addressing
the recall issue promptly can help maintain and enhance the company’s
reputation. It would be beneficial to the happiness of stakeholders and
shareholders.
If Toyota Malaysia faces a poor service problem, adopting Immanuel Kant’s
ethical theory might indeed be a reasonable approach. Immanuel Kant's
theory consists of three maxims, and applying the 'New York Times Test' to
this situation might be appropriate. The New York Times Test suggests that if
an organization would feel uncomfortable about their actions being reported in
the social media, then those actions are likely of questionable moral standing.
In this context, Toyota Malaysia might experience discomfort when customers
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were to expose the company's poor service problems on social media. It
means that providing poor service to customers is unethical. This theory
suggests that the company should consider the long-term impact of its actions
on its reputation. If the company continues to provide poor service, it may
harm its reputation and lead to a loss of customers in the future.
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2.3 Steps that you would have taken to resolve ethical issues
Improving customer satisfaction in Toyota Malaysia: Addressing
Overcharging and Subpar Services.
Toyota Malaysia can solve the issues of overcharging customers and subpar
car services by upholding high standards for vehicle services, standardizing of
pricing, and tracking customer satisfaction. Toyota Malaysia can ensure that
their car service technicians have the necessary training and are certified to
provide high-quality service to customers. They might also put in place routine
quality control inspections to make sure the service delivered satisfies meets
the requirements set by clients. They might standardize their prices to avoid
overcharging clients. Furthermore, Toyota Malaysia can track customer
satisfaction through customer feedback to determine where adjustments are
needed. As a result, they are able to adjust their services to meet the
customer’s feedback.
Usage hybrid and electric vehicles to reduce environmental pollution
Toyota Malaysia has taken a number of actions to help resolve the issue of
environmental pollution. They encourage the usage of hybrid and electric
vehicles and provide clients discounts when they buy these types of vehicles.
Toyota Malaysia offers hybrid electric vehicles as a means of reducing carbon
emissions and protecting the environment. They have installed efficient air
filtration and reduced fuel consumption. In order to protect our environment,
they promote the new vehicle which can reduce CO 2 emissions by 90%
compared to older vehicles. Furthermore, they also minimize water usage and
implement water discharge management in accordance with specific local
requirements in order to achieve a net positive environmental impact. Besides
that, Toyota Malaysia ought to encourage the planting of trees as part of
environmental activities or corporate social responsibility to help lower
pollution levels. They can collaborate with regional environmental groups to
plan activities that will increase public awareness of the pollution problem
(Corporation, T. M., 2020).
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Announces recall and repair for affected customers with compensation
Following the discovery of the recall issue, Toyota Malaysia had communicate
with affected customers about the recall and repair vehicle. Toyota Malaysia
stated that it will get in touch with the car’s owner to arrange for the necessary
repairs to be made. Toyota Malaysia informs all affected vehicle owners that
they will receive compensation in the form of free replacement parts. In
additional, Toyota should take immediate action by stopping fresh production
in order to ensure that parts exchange takes place. Toyota Malaysia should
identify the computer system error and providing software updates, thereby
eliminating future possible faults. Even once the recall is finished, Toyota
Malaysia should keep an eye on the situation.
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3.0 Conclude
In conclusion, 3M Malaysia is committed to creating a positive workplace
environment, complying the laws of the environment, strong CSR, and
promoting diversity and inclusion. Toyota Malaysia also complies with laws
and prohibits any unlawful acts. They also engage in philanthropic activities
aimed at reducing societal issues.
3M Malaysia is committed to ethical behavior by providing fair labor practices,
quality products, and resources for workplace safety. However, Toyota
Malaysia has faced some ethical issues related to overcharging customers,
poor service quality, environmental damage, and selling potentially dangerous
products. These issues have damaged Toyota Malaysia’s reputation and loss
the customer trust.
These companies should use a combination of ethical theories in their
decision making process. By applying different ethical theories to different
aspects of their business, the company can ensure that they are making
ethical decisions that provide the benefit to their customers and employees.
Toyota Malaysia can improve their customer service and pricing
standardization to resolve their ethical issues. They can also promote green
technology and environmental sustainability by offering hybrid and electric
vehicles, and partnering with local environmental organizations to raise
awareness about the environment. Overall, Toyota Malaysia can improve its
reputation and contribute to a better environment by implementing these
measures.
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