“We now have proof that Toyota failed to live up to its legal obligations,” Transportation Secretary Ray LaHood said in a statement. “Worse yet, they knowingly hid a dangerous defect for months from U.S. officials and did not take action to protect millions of drivers and their families.” ~ April 5, 2010 New York TimesOne of the characteristics of an Authentic Leader is ethical behavior and decision making. I believe that ethical fitness is tied to one's emotional intelligence.
In the recent case of Toyota executives ignoring safety warnings invovling their vehicles in lieu of profit making is a clear example of a failure to lead. What was the logic and factors that went into the decision to ignore safety concerns? Did it involve corporate concerns over image and profit? Who made those decisions? Who went along with them? How were they justified? These questions make a great case study.
The issue for us is how do we develop leaders that have ethical standards that are strong enough to break through the companies desire to make profits. How do we make sure leaders make the right decision?
The U.S. Transportation Department is seeking a $16.4 million fine against Toyota. Toyota is worth billions. This monetary penalty seems unlikely to make a real difference. We can hope the ethical and moral consequences cover the rest.
