Toyota Company Environmental Audit Literature review

Toyota Company Environmental Audit - Literature review Example Firstly, the paper will identify the different drivers creating awareness of environmental damage. Secondly, the paper will describe Toyota’s current ‘green’ policies along with supportive evidences. Thirdly, the paper will discuss how effectively the organisation has developed and executed green policies. Finally, the paper will recommend the Toyota management on how the organisation can improve its marketing mix by developing further ‘green’ strategies involving its products and markets. A standard research method has been used for this study, including secondary information and principal sources. The hypothesis is that modern customers give great emphasis on environmental safety while considering the purchase of automobiles. 2. Literature Review Evidently, external and internal drivers force Toyota to become more environmentally focussed. The external drivers mainly include government policy and legislation while cost savings, business ethics, sust ainability, and public relations constitute internal drivers. However, internal drivers are stronger than external factors in forcing the organisation to develop and implement improved green strategies. The organisation is still in its growth phase and therefore Toyota management strives to improve its corporate social responsibility policies. External drivers While analysing different legislative systems, majority of the national governments impose strict restrictions on automobile manufacturing industry as this sector is accounted for a notable percent of the total global pollution. Combustion of fossil fuels in vehicles causes emission of large volumes of CO2, which is an important green house gas contributing to ozone layer depletion and thereby global warming (OECD, 2001, p.173). As Cleff et al (2004, p. 157) point out, the European Union has imposed a set of tough restrictions on its automotive industry in order to promote environmental sustainability. The authors opine that s uch restrictions would foster competitiveness and technological innovations in the automotive sector in addition to promoting environmentally friendly operations (ibid). Internal drivers Business sustainability is one of the major internal drivers which forces Toyota to pay specific attention to environmental safety. As discussed earlier, people today reject environmentally threatening products regardless of their superior features. Hence, automobile manufactures would be thrown out of the market if they cannot successfully develop eco-friendly vehicles. Obviously, Toyota also is compelled to adapt to new market trends that promote environmental sustainability. Costs saving strategies encourage Toyota to become more environmentally focussed. For instance, people’s growing awareness on electric and solar vehicles may assist the company to trim down its product promotion expenses. Similarly, environmentally friendly operations would aid the company to eliminate unnecessary fine s arising out of environmental policy violations. Ultimately, such an operation may assist the company to provide its customers with some price benefits as well. According to marketing mix concept, price is one of the major determinants of a product success, which also drives the company to give more focus on environmental management (Lecture note). Business ethics and public relations are other internal drivers influencing the organisation on the