Corporate Social Responsibility

In my 29 year Toyota career we generally used the term “mutual respect.” We respected people by giving them meaningful work that challenged them to work hard, creatively, and with a sincere dedication to the satisfaction of their external and internal customers. We expected them to be engaged in their own capability and career development by identifying and working with colleagues to solve problems that helped us strengthen our competitive advantage. We expected that people work during assigned working hours, adding value in return for the very competitive compensation and benefits we provided.

Mutual respect also requires mutual obligation. As a group vice president and officer, my strongest obligation was to ensure that our company continued to survive and prosper so that every employee had the opportunity to spend their career in Toyota, and their children and grandchildren could have the same opportunity. Therefore I have important leadership responsibilities to chart a clear path to our vision, to facilitate effective cross-organizational collaboration and cooperation to develop the process improvement action plans necessary to deliver superior business results, and to create a safe and nurturing environment that enables every person at every level to participate in effective problem-solving to both improve our business results and develop their full human potential.

If things do not happen as I expected my first responsibility is not to blame, but rather to humbly reflect (hansei) and ask questions such as, “How have I failed to help them understand?” or “What can we as management do to solve problems or make improvements so that it is easier for people to do the work the way that we desire?” or “What can I do better next time?” (This is how people and organizations learn and improve. Pointing a finger of blame provides no learning.)

If my company got into a period of financial difficulty, my compensation should be reduced first before we ask our subordinates to sacrifice, as management has the greatest influence on the performance of the company.

Yes, expectations are very, very high at Toyota. With a kaizen spirit, we often describe a “permanent state of dissatisfaction” always seeking a better way. This is our duty to our society, to our customers, and to our employees. Mutual trust and respect are mutual, with strong obligations on both sides of the relationship. And for me “leadership his heart” and the values and behaviors I describe above must come from the heart as well because the brain. And what a thrill it is for the entire team to build such a great legacy, and to have achieved it with the integrity, and humanness, and value to society that we can be proud of!

Luis Javier Sosa Gomez

I worked for Toyota from 1998 to 2008 , Toyota always manifested a personal interest in people and the protection of the environment and of course, to generate profits for its shareholders

Although times change and now, I’m not working with Toyota, I am working with Nissan – Renault Alliance , Toyota made ​​a legacy very difficult to forget , especially if we talk about human resources.

As for the relationship with suppliers, like any business , always looking to achieve profitability and a least we are talking about business , there will always be some degree of pressure from the bargaining unit , handle low prices, after all is a struggle to be more competitive , to sell a car in good quality, environmentally friendly and reasonably priced compared to those offered in the market.

So is that Toyota , surely ; will maintain its philosophy that has enabled it to position itself in such a high place, everyone wants to imitate , when you see things from the outside , perhaps, even could say something, but when you’re in and work for Toyota, things look different.

As a manager or as a consultant, you don’t implement or recommend policies labeled “respect for people” or “respect for humanity.” Instead, you make changes to the way work is being done and organized that are aligned with these values and needed for your business.

It goes beyond the obvious realization that the effectiveness of the Stalin/Darth Vader model is limited. It also means taking a critical look at current fads, and, in particular, putting a stop to counterproductive, demoralizing practices like 360 evaluations, Rank-and-Yank, or Management-By-Objectives, and replacing them with others that are tailored to the business at hand, including, for example, policies that are part of TPS like career planning for permanent employees, a pay-for-ability component in the wage system, and Hoshin Planning. But the list is not limited to TPS. It can include, for example, the Balanced Scorecard developed in the US.

To be more specific, following are a few differences between management practices that I think are relevant to this topic, as discussion starters:

• Supervision: I have seen many factories where one first-line manager is in charge to 90 to 100 operators, with 4 or 5 work leaders as intermediaries. In Toyota car plants, you have one first-line manager on the average for about 17 operators. The operators are further organized in teams of 4 to 6, with one member acting as team leader.
• Career planning for operators: Major American companies used to offer career plans for their professional staff. Today, these plans are mostly gone, and are sometimes replaced by Rank-and-Yank. They never existed for production operators. I know Toyota has them for operators in the past, and I assume they still do.
• Response to safety concerns: An operator complains about finger cuts caused by sharp edges on a fixture. Does the manager respond immediately, by adding rubber guards while organizing for the tooling department to smooth the edge on the fixture? Or does he ignore the issue?
• Fashion: At Porsche, you can tell employees’ positions from what they wear. At Toyota, you can’t; when on the floor, the plant manager is dressed much like an operator. At Honda, everybody wears white uniforms. At Boeing, there are no uniforms. A dress code, or the absence of one, is a management statement on the way it views people.

Emmanuel JALLAS

As far as I am concerned, I never met respect for me when I was employed. I was fired 4 times. Not because I wasn’t doing the right things, nor because I and my teams had no results. But because I didn’t behave the way the King and his court wanted me to behave. I also raised some (a lot of?) jealousy. I have also no love for company politics which always end in a human disaster for the team members. Nor did I jostled for my position. So I also left when the job wasn’t fulfilling. Simple respect for me, my values and beliefs.

On the other hand I can remember myself answering to one of my operators, shortly after being hired myself, 20 years ago. This operator, Jean-Pierre was his name, came to me with a dismantled welding mask. “Can we have this mask replaced sometime ?” did he ask. “Here are the keys of company’s car. Go right now to this shop. Ask for Alain (vendor’s name). Ask him to provide you the mask of the latest technology that fits your need, and to send me the bill. By the way, if you need some other tools, please buy them.”
Jean-Pierre remark was “I’ve been here for four years, and never had a tool bought to help me do my job. I can’t believe It.”

My belief is that respect is shown in small details of working life. Your teamates are behaving the way they do, not because they want to annoy you, but because they are who they are. (just try to change yourself or your behaviors !). If you consider them smart enough to do the job, so you shall consider them smart enough to know what they need, to try what they want to try, to say what they think they need to tell you, and to know what’s good for your company from their point of view. After all, aren’t they making your living?

Irrelevance of National Culture

We cannot over-stress the irrelevance of national culture to this issue. Japanese traditions, for example, are short on respect for people in many ways. Young people who married against their parents’ wishes, for example, were not viewed as courageous but selfish, because they were shirking their duties to family. Sons of small business owners were shunned in recruitment by large companies, based on the assumption that they would eventually leave to take over the family business. And women’s talents were simply ignored…

Conversely, the culture in which I have seen the greatest respect paid to people who do menial jobs is the US. I think the reason for it is that doing these jobs is considered a normal part of education. For all you know, your waiter tonight may be the teenage child of a high-level business executive. Later in life, this experience is the basis for claiming to have been “born in a log cabin he built with his own hands.”

Yet the national cultures do not translate into consistent practices on manufacturing shop floors or in offices.

Ram Parthasarathy:

Michel, to take your very valid analysis a step further, the challenge is to turn this “negative” into a positive. These different people from diverse cultures have different strengths and weaknesses. It is important to understand these and leverage these strengths.

In a small town in India, we used girls just out of high school, with minimal English speaking knowledge, to manufacture engine valves which were accepted in Europe by Daimler, Audi, VW, Fiat, etc. These kids were like a blank slate, but the advantage of that was that you could mould them any way you wanted to. Results were simply amazing.

Faith in People

What is necessary for managers to even attempt to put to use their people’s ability to sense, learn, analyze, and create is a belief that these abilities exist. It is an act of faith. It is easy to have faith in people when living a comfortable life with many opportunities; it is much harder when you have been living in misery or subjected to injustice, discrimination, or persecution.

Having faith in the abilities of factory workers was also a challenge in the American Midwest of the early 20th-century, because communications were severely limited. Many were non-English speaking recent immigrants from farming economies and with limited education, like the heroes of Upton Sinclair’s The Jungle.

The management practices that we inherited from that era are based on not taking up this challenge, relying exclusively on managers and engineers to do the thinking, and simplifying jobs. In recent decades, however, the experience of TPS implementation in California has shown that you can compete in manufacturing by leveraging the brain power of a multi-cultural, immigrant work force.

The challenge can be overcome, but it requires faith in people, which I like to call humanism.