Mitsubishi

What is Mitsubishi Motors about?

Mitsubishi was formed in 1917 beginning as a shipping company. Mitsubishi then built their first automobile, the Model A, Japan’s first series production vehicle. Mitsubishi Motors is now a sub branch specializing in motor vehicles of the much larger community of Mitsubishi companies across the globe.

What does Mitsubishi Motors sell?

Mitsubishi Motors sell various styles of automobiles such as SUVs, crossovers and electric across the globe. In addition Mitsubishi sells many car parts compatible with the cars that are sold by their companies for repairs, upgrades and replacements.

How large is Mitsubishi Motors?

Mitsubishi is the sixth largest automobile company in Japan and the seventeenth largest company in the entire globe. It is also part of Mitsubishi which is the largest company within japan which was formed from the automotive division of Mitsubishi Heavy Industries.

Is Mitsubishi international or national?

Mitsubishi Motors is an international company that originated from japan during the early 1900’s which has its headquarters in Minato, Tokyo.

Does Mitsubishi do e-business?

Although you cannot purchase a Mitsubishi automobile over the internet there are many aspects of the business that can be completed online. Such as the ability to customize and build a model of the automobile you would like to purchase as to see your most preferred version and the available styles, colors, and parts. In addition there is a support center, store locater, used car finder, events, careers and much more.

Does Mitsubishi have a Board of Governance?

Mitsubishi currently has a Board of Governance that consists of 12 director 5 of which are directors outside as well and they supervise and advise the way the company manages objectively.

Mitsubishi’s Mission Statement

"We are committed to providing the utmost driving pleasure and safety for our valued customers and our community. On these commitments we will never compromise. This is the Mitsubishi Motors way.

What are Mitsubishi’s core principles?

Mitsubishi has 3 very simplistic and important core principles that they promise follow. These are:

Corporate Responsibility to Society - Strive to enrich Society, both materially and spiritually, while contributing towards the preservation of the global environment.

Integrity and Fairness - Maintain principles of transparency and openness conducting business with integrity and fairness.

International Understanding through Trade - Expand business, based on all encompassing global perspective.

These core principles are the goal of all their products and services and are worked towards in all of the activities throughout the company.

Mitsubishi’s Code of Conduct

Basic Policy

Mitsubishi’s basic policy is that every officer and employees of the Mitsubishi Corporation are required to respect all laws, rules and regulations of the applicable country of where they operate, of international standards and of the internal company. In addition they are also required to execute all activities in a socially responsible manner and uphold the highest ethical standard in the conduct of business.

Basic Principles + Explanation

1. Respect human rights, and do not discriminate on any basis, and engage in any form of harassment

Discrimination on the grounds of any subject such as race, color, creed, religion, gender, nationality or regional origin, age, or disability will not be tolerated at any extent. In addition Employees should understand the basic human rights and recognize that they apply and should respect foreign culture, customs and languages whether in the workplace or within business operations and to never interact in the form of sexual harassment.

2. Maintain high regard for environmental considerations in conducting our business operations, and ensure that our business is conducted in an environmentally sustainable manner, and comply with treaties, laws and regulations concerning the environment.

Employees are expected and required to obey all treaties, laws and regulations in relation to the environment and to protect the overall wellness of humans and the environment. This is to be accomplished by promoting sustainable development and to consume resources as energy efficient as possible and to attempt to reduce and recycle all waste that is produced.

3. Promote fair business practices and comply with trade rules, regulations, and internal cooperate rules and policies.

Mitsubishi expects all workers to obey the laws and regulations that cover commodity and the service industry. More specifically in regards to illegal trading that includes the fixing or maintaining prices in the market which would otherwise restrain competition in any field of trade. It also requires workers to complete the necessary procedures and to acquire the required permissions in order to complete an objective.

4. Comply with the rules and regulations of international trade.

This requires the employees to be knowledgeable of international rules and regulations and to comply with them in addition to being able to conduct international business involving military or similar goods and/or services carefully and to take into consideration the Company’s reputation and to properly notify the appropriate authorities if it is necessary.

5. Protect and properly use confidential and proprietary information, protect the right of the company and respect rights of others.

Carefully handle disclosed company information and if it is required to share confidential information with a third party it is required to conduct a non-disclosure agreement with the third party if it is required that the information is to be shared, in addition if you are knowledgeable of confidential information and have been terminated from the company you are to keep the information secret. Another aspect of this is not to make public statement on behalf of the company without the proper authority and to comply with the requests of the responsible department of which the statement is associated with, and that you are require to contact the Cooperate Communications Department. In relation you are not to steal or copy property owned by another company.

6. Do not engage in insider trading.

Do not buy or sell your companies, or any other companies securities while in possession of information that has not been publically released until a time when that information has been publically released.

7. Avoid conflicts of interest within the company: and maintain a distinction between corporate and private business.

This requires employees not to use any company assets, resources and information for any unauthorized business or personal gain. This also implies that you are not to be employed at another company without the knowing and approval of the company’s prior approval. And if the occasion is to arise that termination from the company is to be completed that you are to return all of its assets you possess both material and non-material. Finally you are not to perform person activities within the workplace without approval or with the exception that the activity is socially and generally accepted as a workplace activity in the country.

8. Record and report accounting and financial information timely and accurately.

Do not record false accounting and financial information as to mislead others or create off-the-book assets and/or liabilities and employees are to be punctual with expenses and revenue information as well as the information of credit and debt to be as accurate as possible.

9. Maintain proper legal and ethical standards with respect to gifts and entertainment.

Do not provide or receive gifts and/or entertainment, conveniences or other economic benefits on the basis of competition of business deals, in order to acquire favor in business deals, and with public officers whether at home or abroad that is more than what is accepted in business practices or in social norms.

10. Resolutely oppose any organization, group or individual engaged in unlawful activities and do not provide money or economic benefit to them.

Do not comply with demands or requests that are unfair with a known company that participates in unlawful activities that violate the commercial code, and to be aware of and to avoid contact with organizations of such kind, in addition do not knowingly or unwittingly participate in acts of terrorism, drug dealing, money laundering or other criminal activities, and take the necessary steps as to avoid the company becoming involved with such activities.

11. Promptly report to or consult the superiors, the group compliance officers, the domestic branch compliance officers, the foreign regional compliance officers, the relevant departments, the secretariat for the compliance committee, or the outside counsel in charge of compliance, upon discovering or committing any violations of this “code of conduct”.

This also requires compliance with company investigations of violations, and the disclosure of the subordinate’s name who provided the information for the violation, and secure that that person is not to suffer any disadvantages as a result of the disclosure of information given. And if a consulted personal is experiencing disadvantages due to the disclosure of information it is to be reported to the secretariat for the compliance committee.

Cooperate Standards of Conduct

1. Aim of Corporate Business ActivitiesThrough its business activities, Mitsubishi Corporation will endeavor to increase its value. At the same time, the company will strive to enrich society in all ways, developing and offering its customers the best services and products, with the highest regard for safety.

2. Fairness and Integrity in Corporate Business ActivitiesMitsubishi Corporation will continue to develop its business activities in compliance with all relevant laws, international regulations and internal rules. The company will act responsibly and will respect the highest social standards.

3. Respect for Human Rights and EmployeesMitsubishi Corporation will respect human rights and will not engage in any discrimination. The company will preserve and improve its corporate strengths through the development of its employees, all the while respecting the character and individuality of each employee.

4. Information Security and DisclosureWhile Mitsubishi Corporation will continue to develop, implement and improve the effectiveness of its information security management system, at the same time the company will disclose information accurately and in a timely fashion, so as to maintain transparency and be correctly understood by both its stakeholders and the general public.

5. Consideration for Environmental IssuesMitsubishi Corporation understands that an enterprise cannot continue to prosper without consideration for its environmental performance, and will strive to protect and improve the global environment and pursue sustainable development through all aspects of its business activities.

6. Contribution to SocietyAs a responsible member of society, Mitsubishi Corporation will actively carry out philanthropic programs in an effort to promote the enrichment of society. Moreover, the company will support efforts of its employees to contribute to society.

Mitsubishi Policies

Forced LabourThe Suppliers of Mitsubishi are required that their employees are not subject to forced labour or bonded labour and that they perform their job of their own free will.

Child LabourMitsubishi requires it suppliers not to have employees that are under the legal working age of the country where their business takes place.

Harassment/abuseHarassment and or abuse is not tolerated in way or form at any level of the cooperation and that there has to be respect for employees and human rights, and that the suppliers are t follow these same guidelines.

DiscriminationMitsubishi strives to make certain that there are equal opportunities in the workplace and prohibits discrimination of any type in all regards and that the suppliers to the company do not violate this policy as well.

EnvironmentAll employees of Mitsubishi and the suppliers of Mitsubishi are to protect and respect the environment as well as to consider the impact that their activities will have upon it and on local communities and ecosystems.

Health and SafetyMitsubishi and its suppliers are required to provide employees with safe and healthy work environments.

Wages and BenefitsMitsubishi and its Supplier must pay their employees the minimum wage or higher and not offer excessively reduced payment.

Hours of work/overtimeMitsubishi and its suppliers are required to ensure that employees working hours and breaks are appropriately used and monitors so that there are no infringement upon any statutory regulations.

Unethical behavior of Mitsubishi Safety Scandal Shames Mitsubishi

Identify the situation

In 2004 authorities seized documents from Mitsubishi offices and found evidence that produced one of the largest corporate scandals in Japan. The evidence found indicated since the 1980’s Mitsubishi Motors have systematically hidden defects in over 800,000 automobiles. These automobiles were distributed all across the eastern hemisphere in Japan, Europe and other parts of Asia, but they deny that any were sent to the United States. These defects include defective axles, clutches, brakes and many more; many of which resulted in several injuries and deaths due to accidents.

Results of the ethical misconduct:

After the collection of all the evidence of the cover-up scandal Mitsubishi was to be fined $1.8 million dollars for their misconduct. Although Mitsubishi was exempt from paying higher fines because the initial cover-up of the defects took place before the new laws prohibiting it were enacted.

What has happened since the allegations?

Since the allegations Mitsubishi have ruined their reputation and have lost a large portion of their sales due to the scandal tarnishing their reputation as automobile company. Mitsubishi Motors executive Yoichiro Okazaki apologized for the trouble and concern that was caused, and stated "The challenge now is if we can continue to exist as an automaker." Mitsubishi was forced to cut all salaries by 5% and to terminate 11,000 jobs worldwide due to their loss of money, and lost a deal with DaimlerChrysler that was estimated to have a 1.8 billion dollar lifeline. Luckily The Mitsubishi Group, a collection of over 2 dozen companies worldwide, gave them a $2.6 billion aid package and encouraged its employees to buy Mitsubishi Motors automobiles in order for them to avoid Bankruptcy. Mitsubishi is still a international company but they have lost much of their respect since these allegations.

Phase 21. Brief description what makes Mitsubishi Socially

Responsible

One of the chief objectives of Mitsubishi is to be socially responsible as stated in their CSR policy. A recent example of this is the Mitsubishi Corporation donating one million dollars towards environmental causes. These corporations would include Amazon Conservation Association, Audubon, E+Co, Fundación Natura, Tierra Nativa and Wild Salmon Center. In addition to the donations Mitsubishi provides they are also established in Social Responsible Investment (SRI) Indices and are Inclusion in SRI Funds. They have earned this based on its solid reputation for its CSR Initiatives and transparency in disclosed information. Mitsubishi believes and practices human rights as one of their main CSR policies and believe in the Universal Declaration of Human Rights, International Labour Standards which is based on the principle that peace can be obtained only if it is based on social justice, upholding indigenous peoples’ rights, and voluntary principles on security and human rights

2. Brief summary of CSR policy

Mitsubishi’s CSR policy is constructed of many components that in theory should make a socially responsible company. The components of the CSR policy in summary are to respect the environment and help it prosper, as well as respect all human rights and abide by the laws applied in each respective country that their business is being conducted within as well Mitsubishi works to maintain transparency within their operations. In addition Mitsubishi has a code of corporate ethics which was constructed in 1990 and has been revised several times since, and now consists of 6 core policies: comply with the law, respect human rights, contribute to society, collaborate and harmonize with the community, consideration for the environmental issues and to recognition of personal integrity. CSR activities are also promoted within the company based on the belief that all business activities will be impacted by the consideration of these policies.

3. My opinion on the policies

The CSR policies that Mitsubishi has constructed and follows make the company very respectable to me. This is due to the principled approach that they apply to the ethical issues that are to be dealt with within their company and within business transactions. One of the most appealing aspects of their CSR policies is the significant consideration for the environment and the issues affecting it. This is because as an automobile company many of their products will produce emissions that will affect the environment, which is an immense issue around the globe. In addition they do not use forced labour or labour of workers who are under the legal working age of the country

where their business transaction takes place so they follow the guidelines of the law. I believe that based on the CSR policies that Mitsubishi promotes that they are a socially responsible company and have good ethics.

4. New activity

A new activity that can be implements by Mitsubishi that is socially responsible and correlates with their overall business strategy is to start a program for planting trees. This correlates with Mitsubishi’s strategy of protecting and respecting the environment and by planting trees they are helping grow the environment, clean the air and show that they actually do care for the earth. Since Mitsubishi is an automobile manufacture they are the source of much pollution that is release into the air, and therefore by planting trees it would counteract some of the damage that the emissions are causing towards the environment. Mitsubishi also say that they care very much for the environment so this is one of the ways they can show it besides reducing emissions from their automobiles. Mitsubishi Motors is one of the oldest manufactures and therefore have produce a large portion of the emission into the atmosphere so it also shows that they are taking responsibility for what they have cause the world both in the past and in the present showing social responsibility to the world, which is one of their goals as a company.

5. Evaluation of company’s social performance

Criteria Rating Reason

Good Employee Work Environment

3

Mitsubishi has a great work environment where employees and managers can communicate easily

with each other, plus the good wages and benefits but the company is very bureaucratic throughout the levels of

management.

Economically Responsibility 2

Although in 2009 their sales were high, in 2010 their sales surprisingly dropped 41.8% below prior year’s

results, but it is estimated that their revenue will increase back up in the

preceding year and the one after.

Involved in the Community 4

Mitsubishi has many programs that involve the community such as the

Grandview Children’s Centre, Station gallery (A Art Gallery), Raise the Roof for Durham Youth Housing, Right to Play and more programs.

Environment Conscious 4

One of Mitsubishi’s main objectives is to be conscious of the environment and make decisions that will provide the least negative impact upon the

environment, as stated in their CSR policy.

Ethical Management 3

The Management of Mitsubishi is held to a very strict ethical code of

conduct as outlined in its CSR Report.

Score 16/20

Ranking System

1. Does not meet criteria

2. Meets some of the criteria

3. Meets the criteria 4. Meets the criteria and more

6. a) Analysis of company’s social performance with respect to a social responsibility strategy.

I believe that the company Mitsubishi applies a proactive strategy to social responsibility. I believe this an appropriate analysis of Mitsubishi’s social performance because they both meet and surpass their economic, legal and ethical responsibilities. Mitsubishi as an organization works to better communities with programs such as with Raise the Roof for Durham Youth Housing; creating homes and Right to Play giving kids the right to playing organized sports. Another aspect of their social performance is their transparency and their awareness of the environment and their objective to be as environmental conscious as possible. Although I the past there have been a major cover-up with defects in their automobiles they admitted their mistake and continued as a company and bettered themselves and is focused on creating the best product they can for the consumer.

b) Recommendation for company

I recommend that the company develops products with more care as to avoid as many defects as possible, and to take extra care in the construction of each automobile so that no defects occur in the manufacturing process. I recommend this because in the past this problem almost brought bankruptcy to the company because they hid the fact of the defects by falsifying documents. So if this event were to occur once again I believe that they would not be as lucky and get bailed out because they would lose all trust and respect from all companies and consumers and would probably be unable to continue for very long even if they do not go bankrupt on the initial charges. I also recommend that they continue to show an interest in the community and the issues that arise and should take the ethical approach towards them as they are now.

Bibliography

http://www.mitsubishicorp.com/jp/en/about/philosophy/pdf/

conduct100624e.pdf

http://www.mitsubishi.com/e/history/index.html

http://www.mitsubishi.com/e/group/about.html

http://www.mitsubishi-motors.ca/en/about/

http://www.mitsubishi-motors.com/corporate/environment/report/e/pdf/

2002/2002e_03.pdf

http://global.mitsubishielectric.com/company/csr/policy/compliance/

index.html

http://global.mitsubishielectric.com/company/csr/back_issues/pdf/2008/

csr_policy.pdf

http://www.mitsubishicorp.com/jp/en/csr/management/supplychain.html

http://www.autosafety.org/safety-scandal-shames-mitsubishi

http://www.csrwire.com/press_releases/31204-Mitsubishi-Corporation-

Foundation-for-the-Americas-Dedicates-1-Million-for-Environmental-

Causes