Great companies have values. These are not just glorified words written on the company website or brochures. They are operating principles that guide the company’s daily decisions and operations. They are an integral part of the culture of the company. Their leaders take responsibility to weave these values into the culture. They themselves live up to these values and exemplify these values in their actions. At times, a part of the company may fail to live up to these values and deviate. That is when the leaders step in to re-emphasize those values and lead the course correction. Here is an example:
The world’s biggest automobile maker Toyota has one of their values (they call them “attitudes”): “Honesty first, integrity always.”
On Monday, January 29, 2024, at a conference, Toyota Motor Corp. CEO Koji Sato bowed in front of the media in Tokyo to apologize to customers, suppliers and dealers for flawed tests at group companies.
On the next day, Toyota Motor Corp Chairman Akio Toyoda bowed in apology at another press conference held to announce the company’s “Global Vision.”
“I deeply apologise for the repeated wrongdoings by Hino Motors, Daihatsu Motor and Toyota Industries that have caused troubles and worries to customers and stakeholders. They lost sight of the values and priorities that should have been upheld. I am ashamed of the situation. It will take time to recover the trust back from our customers. I am ultimately responsible for the misconduct ” he told reporters. He also promised to lead a “transformation”.
What were these two senior leaders of Toyota Motor Corp referring to?
Three of Toyota Motors subsidiaries had rigged various tests of their vehicles to get some certifications and the Japanese government revoked certification on their vehicles, essentially halting mass production. Daihatsu makes small cars and Hino makes buses and trucks.
Mistakes were made by the people at the three Toyota subsidiaries. They had compromised with the Toyota value of ““Honesty first, integrity always.” Hence, both leaders had taken it upon themselves to remind and reaffirm their commitment to the company’s values.
When such digressions happen, they can dent the overall reputation of the company brand to some extent. But if the company leadership takes timely action to reaffirm its sustained commitment to its values, it can weather the storm.
It is because of the consistently unwavering commitment to its values that Toyota Motor Corp has become the top-selling automaker for the fourth successive year in 2023, selling 11.2 million vehicles across its four brands Toyota, Lexus, Daihatsu and Hino.
By accepting responsibility and apologizing for the recent wrongdoings done by their subsidiary companies, Toyota leaders present yet another example of how great leadership instils higher values in their organizations.
-Sanjay Shah
SME Business Coach