Sustainability Means More Than ‘Being Green’
The National Labor Committee has released an in-depth - if not scathing - report on the human toll of Toyota’s auto manufacturing, available here. The report links Toyota to human trafficking and sweatshop abuse in its auto parts supply chain, the use of 10,000 low-wage temporary workers, unpaid overtime and severely overworked employees, repression of unions and an overall lowering of wages and benefits throughout the US auto industry. Toyota has yet to generate a significant response to these allegations.
Toyota has been lauded for its green tilt, as it fields an impressive array of hybrid vehicles. It has even surpassed General Motors as the largest auto manufacturer in the world, thanks in part to the popularity of its fuel efficient cars. Yet for all its green credentials, Toyota seems to lag behind on human rights and justice issues. Products which are environmentally-minded are not necessarily produced in a sustainable way.
This case serves as a reminder that true sustainability goes far beyond ‘being green’ to include employee - and stakeholder - well-being. Stakeholders are people whose lives are affected by a company’s actions. These can include employees, customers and those who live next to a factory, among other groups. If people are suffering directly or indirectly because of a company, that company fails to embrace holistic sustainability. When shareholder advocates engage companies on social issues, we must support the fullest expression of sustainability.
June 26th, 2008 at 3:02 pm
Interesting article. Toyota definitely needs to address those issues of labour, and you’re right- it’s not enough just being green- sustainability has to be holistic- or else it’s still unsustainable. Treatment of workers is just as important if not more important than environmental issues- though both are crucial. Does MMA have investments in Toyota?
June 27th, 2008 at 12:43 pm
Yes, we hold Toyota stock in the MMA Praxis International Fund. We hope to begin shareholder advocacy work with Toyota soon, in collaboration with other socially-concerned shareholders.