Takata Air Bag Production in North America
Takata Started Making Parachutes for the Japanese Military in the 1930s, Later Making Seat Belts (1950s) and Air Bags (1980s)
Takata Shifted Air Bag Production From USA to Mexico (2001-2006)
The Air Bags Made in USA or Mexico Were for US or Mexican Assembled Autos
The First Factory Relocation to Mexico Was in 2001; The Last 2 USA Air Bag Factory Re-Locations to Mexico Occurred Between 2004 and 2006
The Vast Majority of Takata Air Bag Assembly Staff in the USA Lost Their Jobs When the Factories Moved to Mexico; Takata Hired Local Workers Instead
Takata Made a Few Key Financially Driven Choices in the Handful of Years Leading Up to the First Air Bag Injury (2004)
The Factory Relocations Saved Takata $70M in Labor Costs Between 2001-2006
Multiple Cost Savings Choices Injected Significant Safety Risk Into the Air Bag Line of Products, Leading to the Ultimate Failure of the Once Proud Firm
Product Test & Evaluation and Factory Quality Assurance Functions Remained in the USA (Michigan) and Did Not Shift to Mexico
1
Your Paper Regarding Takata CSR
Imagine You are on a Japanese Auto Industry Panel that is Tasked With a Historical/Lessons Learned Corporate Social Responsibility Review of the Takata Corporation; Review Period is From Late 1990s to Middle 2010s
Identify a Key Financial Decision Made in the Late 1990s Which Made Takata Air Bags Unsafe in Multiple Common World Wide Operating Conditions (15.6%) (5 points)
What Did a Takata Executive Do in Feb. 2004 That Raises CSR Eyebrows? (3.1%) (1 point)
Identify Takata’s Response to the First Air Bag Injury in May, 2004 (18.8%) (6 points)
Identify Takata’s Response to 3 Airbag Ruptures in 2007 (9.4%) (3 points)
Identify the 4 Major Quality Assurance/Quality Control Issues in Mexico Occurring in 2006, 2009, 2011, and 2012 (6.25% Each, 25% Total) (2 points each, total 8 points)
Could the Mexico Factory Quality Assurance/Quality Control Issues Have Been Prevented or Remedied? How? (9.4%) (3 points)
Was Takata Completely Honest With US Government Officials, Auto Makers and End Customers? Did Takata Hide Anything? If So, What Was It? (9.4%) (3 points)
What Two Strategic Decisions Could Takata Have Made at Any Point Along the Way, Which Might Have Saved the Company From Extinction? (6.2%) (2 points)
On a Scale of 1 to 10, With 10 Being the Best; Give Takata a Numerical Score for Their CSR and Provide Rationale for Your Rating (3.1%) (1 point)
2
Specifications for Your Individual Paper
The Paper (Both Hard Copy and Drop Box on Beach Board) is Due at the Start of Class on March 3, 2020
Use New Times Roman Font, 12 Point, Double Spaced
The Minimum Requirement is 4 Pages, With a Maximum of 7 Pages Accepted (You Can Lose Up to 25% for Having a “Short” Paper)
Length of the Paper (more than 7 pages) Will Not be Considered in Grading: Only Content Will be Graded – No Extra Credit Will be Provided for Papers That Are More Than 7 Pages (32 Points Possible)
Staple the Paper; Number Each Page; No Cover Page Please; Bibliography Will Not Count As Part of Your Total Page Count
Use the APA Method to Identify Sources/References; See Purdue Site: https://owl.english.purdue.edu/owl/resource/560/05/
Turnitin Software Will be Used to Review Your Papers; Please Use the Software to Check Your Paper Before Submittal (similarity rating must be below 25%; multiple paper submittals allowed)
3