Amidst the bad PR – a community backs Toyota

Unless you’ve spent the last few weeks on a remote South Pacific island you can hardly have escaped the fact that all is not well with Toyota recently. A series of safety issues relating to many of their vehicles have resulted in recalls, lots of bad press and in some cases hysteria. For decades Toyota has grown steadily in sales, reputation and global dominance and in 2008 finally passed GM as the world’s largest automaker. Initially analysts are predicting that the current ‘crisis in confidence’ may result in Toyota not only losing some of their market share but also the used car value of cars that were recalled may take a 5-10% hit almost overnight. How Toyota manage this difficult period in terms of public relations and consumer confidence will be the key to keeping the ship steady. While it’s been easy to find media outlets and competitors quick to pounce on the giant manufacturer I found a story about the loyalty from a community that is steeped in the practice of Corporate Social Responsibility – and not in Japan but in Kentucky.

Toyota Camry hybrid badge

The Toyota plant in Georgetown, Kentucky has become an established part of the community and the town is rallying around the company during these troubling times. Since 1985 Toyota has invested over $5 billion in Kentucky and some 6,600 people are employed at the plant. The mayor has gone as far as saying “Georgetown is Toyota and Toyota is Georgetown” in respect of the current situation, the relationship between company and town runs deep and true. Over $30 million in corporate gifts and sponsorship has been donated by Toyota in the decades long alliance and the township realise that the fabric and indeed security of the region is dependent on that relationship continuing. Statewide some 20,000 people either work for Toyota or indirectly as one of the many suppliers to the car maker.

It is easy to see why the town is loyal to the company during Toyota’s difficult 2010.  Funding in the county where the plant resides for the county school system was pledged at $20 million over 20 years beginning in 1993. Over $3 million has been pledged to colleges in the state and over $500,000 per year is donated to various charities and philanthropic causes throughout Kentucky. Toyota who build the Camry in Georgetown laid the foundations of a community centric program when they broke ground on their first US plant and have kept their end of the bargain ever since. Hence Kentuckians are concerned even if they don’t work for the company itself:

“I feel loyalty to Toyota even though I don’t work there,” said Colleen London, whose Lock and Key Cafe and Boutique sells sausage bake, coffee and gifts on Main Street. “Probably a good majority of my customers work there or have a spouse there, a family member works there. They’ve just done so much good. I probably feel protective I guess,” she said. “It’s kind of odd to feel that way about a car company.”

Toyota will have to manage an effective PR campaign in the months ahead and more importantly solve the issues with their vehicles. In the meantime it is a testament to the importance in developing a robust CSR strategy when you see the commitment they are receiving from one corner of the United States. It’s a far cry from the company towns built around dark steel mills of the 1930’s and a blueprint for what a giant business should be doing in the deeper role of building a community.

(Portions of this article courtesy of Reuters)