The Toyota Recall Crisis: Media Impact on Toyota's Corporate Brand Reputation

Fan, David P.; Geddes, David; Flory, Felix

doi:10.1057/crr.2013.6

Cited by 34 publications

(22 citation statements)

References 17 publications

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“…() show that home countries with a high level of globalisation are more aware of MNEs' CSR initiatives worldwide. More globally connected through formal and informal media, MNE stakeholders in developed home countries (Thams et al, ) tend to have more knowledge and awareness of social problems in developing areas (Fan et al, ). This fuller picture of how MNEs perform in other areas, including their international CSR strategy, can make MNEs' CSR practices in developing countries relevant to home country stakeholders.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

How Corporate Social Responsibility Helps MNEs to Improve their Reputation. The Moderating Effects of Geographical Diversification and Operating in Developing Regions

Aguilera‐Caracuel

Guerrero‐Villegas

2017

Corp Soc Responsibility Env

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Multinational enterprises (MNEs) can enhance their reputations through advanced social initiatives and management practices. These firms often locate facilities in developing countries to benefit from lax environmental and social regulations, and to reduce their operating costs. MNEs can, however, also contribute positively to the development of those countries through corporate social responsibility (CSR) activities. This paper argues that MNEs operating in developing regions can enhance their level of corporate reputation through the implementation of CSR initiatives that meet specific stakeholders' expectations of the firm's activities in these areas. In addition, we argue that MNEs with units based in different regions strengthen the impact of corporate social performance on corporate reputation. Based on a sample of 113 US MNEs from the chemical, energy, and industrial machinery industries over the period 2005-2010, our findings show that CSR has a positive effect on corporate reputation. In addition, MNEs' operations in developing regions intensify the positive relationship between corporate social performance and reputation, although geographical diversification does not necessarily enhance MNEs' reputation through corporate social performance.

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Section: Theoretical Backgroundmentioning

confidence: 99%

How Corporate Social Responsibility Helps MNEs to Improve their Reputation. The Moderating Effects of Geographical Diversification and Operating in Developing Regions

Aguilera‐Caracuel

Guerrero‐Villegas

2017

Corp Soc Responsibility Env

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“…During the crisis, Toyota had established a website to inform relevant consumers. Blogs were a leading indicator of the negative image of Toyota (Fan et al, 2013) in the social media. Only on Feb. 5, 2010, about 3 months after the first recall, Akio Toyoda, the CEO of Toyota announced an apology to consumers for the massive recall.…”

Section: Resultsmentioning

confidence: 99%

“…For example, Jeffrey Bezos, CEO of Amazon.com, played a positive role in the Kindle crisis cases in 2009 (Coombs and Holladay, 2012). In 2009 during the Toyota recall crisis, CEO Ako Tojoda took the utmost responsibility for the sticking accelerator pedals (Fan et al, 2013). Nadeem (2012) argues that the top priority for a CEO is to approach all customers in a crisis situation Nowadays, the public begins to absorb news and information from social media in a crisis situation, as mentioned above.…”

Section: Communication Managementmentioning

confidence: 99%

Volkswagen Emission Crisis – Managing Stakeholder Relations on the Web

Zhang

Veijalainen

Kotkov

2016

Proceedings of the 12th International Conference on Web Information Systems and Technologies

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Abstract:Organizations establish their own profiles at social media sites to publish pertinent information to customers and other stakeholders. During a long and severe crisis, multiple issues may emerge in media interaction. Positive responses and prompt interaction from the official account of e.g. a car manufacturer creates clarity and reduces anxiety among stakeholders. This research targets the Volkswagen 2015 emission scandal that became public on Sept. 18, 2015. We report its main phases over time based on public web information. To better understand the online interaction and reactions of the company, we scrutinized what information was published on VW's official web sites, Facebook, and Twitter profiles and how the image of the company developed over time among various stakeholders. To investigate this, Twitter and Facebook data sets were collected, cleaned, and analysed. We also compared this crisis in several respects with the Toyota recall crisis in 2010-2011 that was caused by sticking accelerator pedals and floor mats, as well as the GM crisis in 2014 that was caused by faulty ignition switches. Further we compare our findings with the Malaysian airline crisis that was caused by the disappeared flight MH370 and downed MH14.

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“…With this same assertion made by other media houses, there is a grave danger that it will become the accepted norm. In their research, [19] averred that the responses from Toyota to customer complaints were seen to be very insufficient, and started to put a strain on public trust, regulators, car buyers and officials of government.…”

Section: The Role Of the Mediamentioning

confidence: 99%

“…Avers that Toyota's problems are due to political pressure, but according to the print and electronic media, the crisis lies in Toyota's extreme drive for growth and cost cutting measures. [19] posited on the relationship between the media and public opinion and further added that Toyota's inability to set the agenda by coming out promptly to address the media on issues of defects leading to recalls, led the media to set the agenda on issues of defects leading to recalls, attributed to Toyota.…”

Section: Research Question Twomentioning

confidence: 99%

Toyota’s Slow Response to Manufacturing Defects Leading to Recalls: Result of Poor Communication Strategy

Bebeteidoh¹,

Takim²

2016

JTTs

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The recall of vehicles in the automobile industry is not limited to any particular company. Recalls most often have been attributed to defective parts supplied by tier one and tier two suppliers. Toyota, a world leader in the manufacture of automobiles, built on world class corporate brand and Principles known as the Toyota Way, and located in about 53 countries in the world, with most of its production taking place in the North America and Japan. Its Communication strategy leading to recalls has brought it into conflict with its customers and regulatory agencies. Toyota's seeming departure from its core principles in the Toyota Way has also brought it into conflict with suppliers and affected its production. Answers will be sought for the following research questions: 1) Why with its Toyota Way, Communication became a challenge for Toyota? 2) What is the role of the Media, in Toyota's issues of recall? A detailed literature survey was conducted for Toyota's communication strategy. A dialectic inquiry was used to analyse the acquired data, from interviews conducted.

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The Toyota Recall Crisis: Media Impact on Toyota's Corporate Brand Reputation

Cited by 34 publications

References 17 publications

How Corporate Social Responsibility Helps MNEs to Improve their Reputation. The Moderating Effects of Geographical Diversification and Operating in Developing Regions

How Corporate Social Responsibility Helps MNEs to Improve their Reputation. The Moderating Effects of Geographical Diversification and Operating in Developing Regions

Volkswagen Emission Crisis – Managing Stakeholder Relations on the Web

Toyota’s Slow Response to Manufacturing Defects Leading to Recalls: Result of Poor Communication Strategy

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