Environmental Management System with Toyota - Case Study Example

Environmental Management System with Toyota Name Institution Professor Course Date Environmental Management System with Toyota Introduction Environmental Management System (EMS) refers to the management of environmental programs of an organization in a comprehensive, planned, documented, and systematic approach. EMS integrates organizational structure, planning, and resources for substantial development, implementation, and maintenance of policy for the protection of the environment. From this illustration, EMS refers to the set of processes, as well as practices with the ability to enable institutions and organizations to reduce environmental implications while enhancing effectiveness and efficiency in service and products delivery in accordance with the demands and expectations of the customers. The purpose of this research essay is t o examine the implications of EMS with reference to the case of Toyota. In order to achieve this objective, the study will focus on assessment of the benefits and shortcomings of the EMS on Toyota, as well as on the society. Background Information on Toyota and Environmental Management System Toyota Company is one of the largest automobile manufacturers in the global industry. The company came into existence in 1926 by Sakichi Toyoda in Japan. Toyota Company focuses on execution of business across the globe in more than 170 countries and regions. The institution provides employment opportunities to more than 320,000 individuals across the globe. Toyota is one of the leading business entities in the automobile industry in relation to integration of environmental technologies with success of the hybrid technology. The institution has been on the forefront in relation to incorporation of lean manufacturing approach to enhance effectiveness and efficiency in the production and distribution of products and services in accordance with the expectation and preference of the customers. The vision of the business entity is to become the most respected and admired institution in the automobile industry across the world. In addition, the mission of the company is to provide or deliver outstanding products and services to the relevant customers with the intention of enriching their communities, environment, and partners. Toyota Company tends to incorporate the essence of diversity and differentiation with the intention of offering quality products and services to the customers. Moreover, the approach seeks to enable the business entity to recognize and respect both similarities and differences in ideas and perceptions. EMS (Environmental Management System) refers to the set of processes, as well as practices with the ability to enable institutions and organizations to reduce environmental implications while enhancing effectiveness and efficiency in service and products delivery in accordance with the demands and expectations of the customers (Lee, p. 1218). The federal authority focused on a journey to set up EMS in the late 1990s. Under the influence of the requirements of executive order 13148, Greening the Government through Leadership in Environmental Management, implementation of more than 960 federal facilities was vital in the completion of the EMS in 2005. The developments led to the formal registration of the EMS at the American National Standard: International Organization for Standardization’s (ISO) 14001 standard. The scope of EMS continues to experience expansion to all proper organizational levels. The executive order 13423 makes the EMS the primary management approach for addressing environmental aspects of internal agency operations and activities. In spite of the existence of several EMS frameworks, most of the systems operate under the influence of the ISO 14001 EMS standard. In the global context, more than 130,000 organizations inclusive of Toyota have certified EMS in relation to the ISO 14001 standard (Jabbuor et al., 134). The purpose of the EMS is vital in helping business entities to adopt substantial frameworks to balance environmental performance with business objectives under the influence of a process of continual improvement. The framework contributes to significant savings and cost avoidance for numerous entities in the provision of quality services and products in the market and industry of transaction. EMS tends to operate under the influence of diverse or different principles. In the first instance, it is essential to note that effective environmental management is based upon the process control, lessening resource consumption, human and natural engagement, and compliance with the applicable environmental laws, as well as other requirements. In addition, process control generates a continual improvement in the management system. There is also need to focus on the resource conservation with the intention of supporting the national commitment to stewardship while lessening the impacts to the budget of an organization such as Toyota. Another principle of the EMS is the need to ensure compliance with the regulations and requirements to ensure that business entities and institutions have the potential to meet minimum environmental performance standards. Efficient management of environmental issues prove to benefit organizations, communities, and customers in satisfaction of their needs. Figure 1: The Five Components of an Environmental Management System The first component of the EMS is the commitment and policy. According to this component, top management commits to environmental improvement, as well as establishment of the company’s environment policy. The environmental policy operates as the foundation of the EMS. The second stage is the planning, which enable the business entity to identify environmental aspects of the operations. This is through identification of pollutants and hazards with negative implications on the individuals, environment, and society. The third component of the EMS is the implementation phase, which enables the organization to follow through with the action plan under the influence of the necessary resources such as human, financial, and time resources in pursuit of goals and targets. The fourth component of the EMS is the evaluation. During this phase, the organization has the opportunity and potentiality to monitor the operations in the course of evaluating the ability to meet targets. Failure of the organization to address these targets results into development and implementation of corrective action. The final component of the EMS is the reviewing process. The top management of the institution focuses on reviewing the results to assess the effectiveness and efficiency of the EMS in relation to objectives, values, mission, and vision of the company. This enables the organization to revise the plan with the intention of optimizing the effectiveness of the EMS in the market and industry of transaction. From this perspective, the intention of the component is to generate a loop of continuous improvement for the business entity. Toyota has been on the forefront in the development of a consolidated Environmental Management System (EMS), which is vital in setting up specific requirements for each of its various business activities. The purpose of the EMS at Toyota is to ensure environmental risk management and compliance across the relevant business activities. In 1992, Toyota focused on establishing the guiding principles in direct response to the international initiatives resulting from the Rio ‘Earth Summit’. The purpose of the summit was to generate a statement of principles in relation to forest management, conversation, and sustainable development. The guiding principles operate as the cornerstone of the corporate management philosophy while providing Toyota with the substantive and clear procedure towards realization of sustainable development. The Toyota EMS is ISO 14001 compliance as part of the environmental conservation and management. The intention of the company is to ensure that each site or business activity is under the influence of the EMS (Puvanasvaran et al., p. 1976). The certification of the system is vital in strengthening the whole management system in generating benefits in association with the good environmental practices. Toyota has been able to illustrate the ongoing improvements in the environmental performance. The ultimate goal in relation to implementation of the project and system is to delight the customers through exceeding their requirements for the products and services at their disposal in the market and industry of transaction. The institution focuses on handling the demands and expectations of the customers, employees, and the society in the current and future contexts. Benefits of Environmental Management System in relation to Toyota Implementation of EMS at Toyota has been essential in the realization of diverse benefits and advantages in relation to the achievement of goals and targets at the end of the financial period. In the first instance, Toyota has been able to improve its environmental performance and efficiency in attempts to promote environmental conservation. This is through development and implementation of adequate and substantive policies and procedures to guide conservation of the environment under the influence of minimal costs of operation. In addition, integration of the EMS at Toyota has been critical in the enhancement or improvement of the compliance of the organization in relation to the existing environmental laws and regulations. These attributes are critical in understanding the implications of ISO 14001 in relation to adoption and implementation of the EMS in handling the demands and expectations of the business entity in the market and industry of operation (To, Peter, and Billy, p. 20; Hemenway and Hale, p. 26). Toyota has been on the forefront towards prevention of pollution. This is through implementation of the EMS to identify and recognize the potential sources of pollution and hazards prior to substantive planning on the appropriate mechanisms to overcome or prevent occurrence of such issues in the future contexts. Implementation of the EMS at Toyota has been ideal in the generation of improved conservation of resources. The approach enables the organization to eliminate potential sources of wastes, thus improvement of effectiveness and efficiency in the delivery of products and services in accordance with the expectations and preferences of the customers. It is critical to note that customers demand quality products. Increased efficiency in the production under the influence of the EMS continues to enable Toyota to reduce its costs, thus enhancing the potentiality of the institution to focus on the quality of the products and services (Gonzalez and Adneson-Diaz, p. 1031). EMS has been critical in facilitating the ability of the organization to generate and focus on new markets and customers. For instance, the development of hybrid cars has been ideal for the Toyota Company to target a new market of transaction with the intention of improving effectiveness and efficiency in relation to environmental protection and conservation. EMS has been essential in the improvement or enhancement of the morale of the employees in pursuit of personal and organizational goals at the end of the fiscal period. This is through engaging the stakeholders on the need to protect and conserve the environment under the influence of the existing environmental laws and policies (Parker, p. 96). EMS has been critical in enhancing the position of Toyota in pursuit of competitive advantage in the global market and industry of transaction. This is evident in the implications of the EMS on the image, reputation, and position of the organization in the industry of engagement. EMS contributes through enhancing the image and reputation of Toyota with the public, regulators, lenders, and investors, thus substantive in the improvement of the profitability of the organization among the relevant stakeholders and shareholders (Maharaj and Ramnath, p. 349). EMS is beneficial to the Toyota Company through increased or improved awareness of the environmental issues and responsibilities by the employees. In pursuit of competitive advantage, employees of the company tend to operate in accordance with the environmental requirements on the need to protect or conserve nature against pollutants. The eventual outcome of this approach is the increased volume of revenues and profit levels at the end of the financial period because of the ability of the organization to exploit lean manufacturing and distribution channels (Evangelos et al., p. 512). The lean manufacturing and distribution channels are ideal in the realization of effectiveness and efficiency in the delivery of quality products and services to the customers at the end of the fiscal period, thus massive reduction in the cost of operation. Shortcomings of Environmental Management System in relation to Toyota In spite of the overwhelming benefits of EMS, there are potential costs or shortcomings in relation to adoption and implementation of the technique with reference to the case of Toyota. This section of the study will focus on identification and illustration of the potential shortcomings of the technique concerned with improvement of the environmental performance and conservation at Toyota Company. In the first instance, EMS continues to generate internal implications and shortcomings. For instance, implementation of the EMS in the operations of the institution has been crucial in limitation of the time of the top management, as well as other employees in pursuit of diverse goals and targets. In addition, like in the case of other entities, Toyota tends to expand different internal labour costs, which represents the bulk of the EMS resources. From this perspective, the organization has the obligation of financing the improvement of environmental performance and conservation in accordance with the demands and expectations of the customers (Dayna, Damien, and Daniel, p. 36). The implementation and exploitation of the EMS associate with increased costs of operation. For instance, there is need for the organization to train and develop employees or personnel in order to improve their effectiveness and efficiency in handling or utilizing the systems appropriately. In the context of these developments, Toyota has been on the forefront in financing the training and development programs for the employees to ensure that they comply with the environmental demands, policies, and regulations in accordance with the mission, vision, and values of the institution. Moreover, incorporation of EMS continues to subject Toyota to substantial costs with reference to potential consulting assistance. From this perspective, the institution tends to outsource some critical resources and services in the course of exploiting the EMS in accordance with the demands and expectations of the business entity. On the other hand, the massive investment in the system deprives the organization of the intended profitability levels at the end of the fiscal period while adhering to the expectations of the customers in the industry and market of engagement. Impact of Environmental Management System on the Society Conclusively, adoption and implementation of the EMS have diverse implications on the society. Firstly, EMS has the ability and potentiality to improve the environmental performance and conservation by the communities and citizens. This is through increased awareness and understanding of the existing and emerging environmental issues by the citizens, as well as the need to conserve nature. Environmental empowerment of the communities is crucial in identification and recognition of the potential sources of pollution, thus enhancing the ability of the society to plan effectively and efficiently on how to curb or eliminate such vulnerabilities (Paul and Gary, p. 5). In addition, EMS contributes through increased compliance with the international standards on improvement of environmental performance. EMS contributes towards prevention, minimization, and elimination of potential causes to global warming. This is through increased understanding of the environmental regulations and policies citing the need to conserve the environment by the society members. EMS is also vital in realization of sustainable development. The societal planners tend to adopt and incorporate EMS in making or developing quality action plans on the need to exploit the resources without jeopardizing the demands or needs of the future generation. This is vital in the development of adequate and substantive platform for sustainable development (Jennifer, Lori, and Tim, p. 4). Similarly, EMS is essential in increasing efficiency in service and products delivery and production under the influence of lean transaction in the market and industry of operations. 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"Integrating carbon footprint into supply chain management: the case of Hyundai Motor Company (HMC) in the automobile industry." Journal of Cleaner Production 19, no. 11 (2011): 1216-1223. Read More