TOYOTA’S MISSION, VISION AND CODE OF ETHICS 2

Toyota’s Mission, Vision, and Code of Ethics

Toyota is a multinational company that manufactures automobiles. Founded in 1937, it
has grown over the years to become one of the most successful companies not just in Japan but
in the whole world. Currently, it is the biggest company in Japan by market value, the biggest car
manufacturer in the world, and the sixth biggest company worldwide by revenue (Toyota, 2019).
There is no doubt that Toyota’s great success over the course of its existence has been guided by
its vision and mission statements as well as its code of ethics.
Examination of Toyota’s vision statement
A vision indicates where the business wants to be in the long term. It represents the
dreams and goals of a business. It also shows how a business would like to be perceived and the
impact it would like to have on society (Campbell & Tawadey, 2016).
Toyota has a relatively long vision. It states “Toyota will lead the way to the future of
mobility, enriching lives around the world with the safest and most responsible ways of moving
people. Through a commitment to quality, constant innovation and respect for the planet, we aim
to exceed expectations and be rewarded with a smile. We will meet our challenging goals by
engaging the talent and passion of people, who believe there is always a better way” (Toyota,
2019).
This vision statement shows where Toyota as a company would like to be in future. It
would like to be a leader in the global automotive car market. However, it does want to achieve
such leadership by simply manufacturing many cars; it wants to manufacture the safest cars. The

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statement shows that Toyota will continue prioritizing the safety of its customers rather than
profits in its future endeavours.
The vision statement also indicates how the company hopes to achieve its long term goals
and objectives. It will be through adherence to quality, constant innovation, responsible use of
natural resources, and recruitment of talented and passionate workforce. The company’s vision
statement, therefore, reveals that the company will achieve its long-term objectives through
human resource development, environmental conservation and producing high quality vehicles
for its customers. Overall, Toyota’s vision statement is quite holistic as it encompasses not just its
strategic goals but also its corporate social responsibility, human resources, and product quality.
Toyota’s mission statement
A mission statement communicates the purpose of an organization (Campbell &
Tawadey, 2016). It gives its employees as well as its shareholders, vendors, and customers
direction. It represents the agenda of the company. From reading the mission statement, one
should know what the company plans to achieve from its daily activities (Campbell & Tawadey,
2016).
Toyota has multiple mission statements prepared for specific markets. For instance, it has
a mission statement for its American operations that is distinct from the mission statement of its
European and other operations. For its automobile operations worldwide its mission statement is
relatively simple and short: “to create vehicles that are popular with consumers” (Toyota, 2019).
This mission statement has all the components that make a good mission statement. It has a wide
target audience, clearly states what the company does, and what is unique about the products of
the company.

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Toyota’s mission statement targets customers, employees, shareholders, and practically
everyone else that may be associated with the company. It also specifies the kind of business it is

• manufacture of motor vehicles. Lastly, it reveals the uniqueness of its products – it makes
  vehicles that are popular with customers. In other words it manufactures vehicles that are of high
  quality and can be afforded by consumers of average means.
  A mission statement such as the one for Toyota not only clarifies its purpose as a
  company but also guides its decision-making. From the statement it is clear that Toyota
  prioritizes customer satisfaction and quality. Thus, designers and other employees know that
  their main goal should be to produce vehicles that are not only safe but also affordable.
  Toyota’s code of ethics
  Businesses do not exist in isolation. They operate in an environment regulated by laws
  and rules. Most of these laws and rules are written down. Others, however, are unwritten. They
  are simply expectations from the public on how a business organization should conduct itself. A
  breach of these laws, rules, and expectations, both written and unwritten, can lead to a huge
  financial and reputational hit for the organization involves (Crane et al., 2019).
  It is for these reasons that organizations establish codes of ethics. These codes are
  principles that are supposed to guide the behavior and actions of employees. They are
  particularly important when handling ethical grey areas where there is no straightforward good
  and bad actions (Crane et al., 2019).
  Toyota’s code of ethics provides numerous guides on how employees are supposed to act
  in different situations. For instance, employees are supposed to strictly comply with the
  regulations and laws of the countries they operate in, adhere to confidentiality management and

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asset maintenance, act with integrity, and enhance safety of vehicles. As a whole, the
organization is supposed to build people and environmentally-friendly vehicles (Toyota, 2019).
There are certain common themes that run through the company’s code of ethics. For
instance, the company urges its employees to act based on common sense, integrity and have
their actions reflect responsibility to customers and stakeholders, respect for people, respect for
local laws, and safety of its products.
This code of ethics was established in 1998. It was only revised in 2006 to reflect
changing business realities (Toyota, 2019). As it can be seen from its details, it presents
employees with a compass that guides them when making decisions on behalf of the company. In
so doing it makes sure that employees act an ethical and legal manner at all times.
How code of ethics, and mission and vision statements drive strategy at Toyota
The vision statement, code of ethics, and mission statement are not isolated statements.
Rather, they are all interlinked with each other. Collectively, they form the foundation of a
company’s strategy.
The vision statement explains where an organization is headed. In the case of Toyota, the
vision statement shows that the company wants to be the leader of global car industry in future
and manufacture vehicles that are safe and of high quality that will enrich the lives of consumers.
In the journey to achieve this goal, the company needs a guide for its employees so that
they do not act in a manner that may make it hard for the company to achieve its vision or scuttle
the vision altogether. The code of ethics is this guide. In the case of Toyota, the company has
detailed stipulations on how employees are supposed to conduct themselves in different

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situations so that they do not derail the company’s achievement of its vision through legal,
financial, or reputational damage.
The mission statement, on the other hand, expresses the vision of the organization in
practical terms. While the vision statement represents the desires of the company, the mission
statement shows concrete goals that the organization plans to meet in order to achieve its vision
as expressed in the mission statement. In the case of Toyota, it has mission statements for
different markets because of market differentiation. However, its worldwide mission is to “create
vehicles that are popular with consumers” (Toyota, 2019). This mission statement represents
what the company does on a daily basis. In the long run it is hoped that these daily goals will
help it achieve its vision as expressed in the vision statement.
As stated, the vision and mission statements as well as the code of ethics, form the basis
upon which a company’s strategy is formulated. A strategy lays out in practical terms actions the
company seeks to take to achieve its mission (Campbell & Tawadey, 2016). It has both short
term and long term components that are all geared towards achieving the company’s mission. If
the mission is not achieved, it is almost impossible to achieve the vision of the company.
Unlike vision which rarely changes, strategies that a business organization adopts change
with changing business environment (Campbell & Tawadey, 2016). For instance, Toyota’s
mission of creating vehicles that are popular with consumers may mean creating vehicles that are
eco-friendly. As part of its strategy to achieve this goal, the company may increase its research
and development budget that is related to eco-friendly vehicle research. However, it may change
this strategy if its revenues take a massive hit and is forced to cut back on its research and
development budget but that does not mean complete abandonment of its mission of creating

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eco-friendly vehicles. Strategy, therefore, may change as circumstances demand but the overall
mission and vision remain constant.
In conclusion, the vision and mission statements play an important role in focusing the
efforts of employees onto a single goal. A code of ethics acts as a guide for employees to follow
in all their actions so that the company’s resources and attention are only focused on its mission
and vision, not side issues. All three form the basis upon which an organization creates and
implements its strategy.

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References

Campbell, A., & Tawadey, K. (2016). Mission and business philosophy. Elsevier.
Crane, A., Matten, D., Glozer, S., & Spence, L. (2019). Business ethics: Managing corporate
citizenship and sustainability in the age of globalization. Oxford University Press.
Toyota Global (2019). Company. Vision & Philosophy. Retrieved on 15 th August at:
http://www.toyota-
global.com/company/​vision_philosophy/​toyota_global_vision_2020.html