Corporate Principles Toyota strives to be a good corporate citizen trusted by all stakeholders and to contribute to the creation of an affl uent society through all its business operations. We would like to introduce the Corporate Principles which form the basis of our initiatives, values that enable the execution, and our mindset. cp_01 Basic philosophy and its implementation process Guiding Principles at Toyota Since its foundation to the present day, Toyota has handed down the Five Main Principles of Toyoda which embody the thinking of the founder of the Toyota Group, Sakichi Toyoda, and are the basis of the corporate management philosophy. These precepts went on to be revised and organized into the Guiding Principles at Toyota in 1992 in response to changes in society and business structure. The Guiding Principles clarify how Toyota is expected to be and indicates ways that it should make progress with fi rm conviction during times of change. Toyota places high priority on contributing to the development of a sustainable society and the earth through all its business operations. Toyota Way 2001 Guiding Principles at Toyota CSR Policy: Contribution towards Sustainable Development Toyota Global Vision Medium- to long-term management plan Annual directions: global corporate direction Regular business activities Toyota Code of Conduct Practice of the Guiding Principles at Toyota In March 2011, Toyota adopted Toyota Global Vision, which is based on the Guiding Principles at Toyota. In order to achieve this vision, a medium- to long-term management plan is drafted and Toyota works toward achieving the goals specifi ed in the plan. The Toyota Way 2001 and The Toyota Code of Conduct serve as an important guideline for the implementation of daily business operations. The Toyota Way 2001 clarifi es the values and business methods that all Toyota employees around the world should embrace, and the Toyota Code of Conduct details the basic attitudes and mindset necessary for people to adhere to rules and act in good faith in their work at the company and private life in society. cp_02 [ Guiding Principles at Toyota ] Toyota adopted the Guiding Principles at Toyota in January 1992 (revised in April 1997) based on the recognition that strong policies are important for fi nding the way to proceed, especially when the environment surrounding us is drastically changing. 1. Honor the language and spirit of the law of every nation and undertake open and fair business activities to be a good corporate citizen of the world. 2. Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in their respective communities. 3. Dedicate our business to providing clean and safe products and to enhancing the quality of life everywhere through all of our activities. 4. Create and develop advanced technologies and provide outstanding products and services that fulfi ll the needs of customers worldwide. 5. Foster a corporate culture that enhances both individual creativity and the value of teamwork, while honoring mutual trust and respect between labor and management. 6. Pursue growth through harmony with the global community via innovative management. 7. Work with business partners in research and manufacture to achieve stable, long-term growth and mutual benefi ts, while keeping ourselves open to new partnerships. 003 Sustainability Data Book 2016 Corporate Principles
The Five Main Principles of Toyoda The Five Main Principles of Toyoda have been at the core of Toyota s management from its foundation to the present day. The principles are a statement of the ideas of Sakichi Toyoda, the founder of the Toyota Group, and serve as the basis of the Guiding Principles at Toyota. The principles were not originally in a fi xed form, but as of the size of affi liated companies increased, it became necessary to codify the principles to ensure that all employees were thoroughly familiar with them. Risaburo Toyoda and Kiichiro Toyoda, who were present during the founding period of Toyota, formulated the Five Main Principles of Toyoda as the legacy of Sakichi for dissemination to the world. The principles were introduced on October 30, 1935, the sixth anniversary of Sakichi s death. Always be faithful to your duties, thereby contributing to the company and to the overall good. Always be studious and creative, striving to stay ahead of the times. Always be practical and avoid frivolousness. Always strive to build a homelike atmosphere at work that is warm and friendly. Always have respect for spiritual matters, and remember to be grateful at all times. cp_03 CSR Policy Toyota s CSR policy was an interpretation of the Guiding Principles at Toyota with a focus on relationships with stakeholders (established in January, 2005, revised in August, 2008). Toyota aims to become a company that is admired and trusted by society through ensuring that all employees recognize and act on our CSR Policy. We also share this policy with our consolidated subsidiaries, make a point of putting it into practice together, and expect our business partners to embrace its spirit and act in accordance with it as well. In addition, we participated in the formulation of and observe the standards outlined in the Charter of Corporate Behavior of the Nippon Keidanren (Japan Business Foundation), an alliance of leading Japanese corporations. Preamble of CSR Policy: Contribution towards Sustainable Development We, Toyota Motor Corporation and our subsidiaries, take initiative to contribute to harmonious and sustainable development of society and the earth through all business activities that we carry out in each country and region, based on our Guiding Principles. We comply with local, national and international laws and regulations as well as the spirit thereof and we conduct our business operations with honesty and integrity. In order to contribute to sustainable development, we believe that management interacting with its stakeholders as described below is of considerable importance, and we will endeavor to build and maintain sound relationships with our stakeholders through open and fair communication. We expect our business partners to support this initiative and act in accordance with it. CSR Policy: Contribution towards Sustainable Development Full Text Web http://www.toyota-global.com/sustainability/csr/csr/ 004 Sustainability Data Book 2016 Corporate Principles
cp_04 Toyota Global Vision The Toyota Global Vision -announced in March 2011- refl ects lessons learned from fi nancial losses as a result of the global economic crisis of 2008 and quality issues. It also articulates the kind of company that Toyota wants to be and the kind of values it should esteem, which should be embraced throughout Toyota. It was announced as a clear statement to Toyota s customers and society as a whole. The Five Main Principles of Toyoda, the Guiding Principles at Toyota and the Toyota Way have played a role of the backbone values of all Toyota operations. We will strive to implement a positive cycle of making ever-better cars that exceed customer expectations, contributing to Enriching the Lives in communities, and being rewarded with the smile of customers and communities. This leads to a Stable Business Base. We aim to generate such virtuous cycles and achieve sustainable growth. Fruit Ever-Better Cars Develop vehicles which exceed customer expectations Fruit Enriching Lives of Communities Contribute to communities Contribute to the future of mobility Rewarded with a smile by exceeding your expectations Toyota will lead the way to the future of mobility, enriching lives around the world with the safest and most responsible ways of moving people. Through our commitment to quality, constant innovation and respect for the planet, we aim to exceed expectations and be rewarded with a smile. We will meet challenging goals by engaging the talent and passion of people, who believe there is always a better way. Roots Sustainable Growth Trunk Toyota Values The Five Main Principles of Toyoda / The Guiding Principles at Toyota / The Toyota Way Stable Base of Business Toyota Global Vision Web http://www.toyota-global.com/company/vision_philosophy/toyota_global_vision_2020.html 005 Sustainability Data Book 2016 Corporate Principles
cp_05 Toyota Way 2001 The Toyota Way 2001 clarifi es the values and business methods that all employees should embrace in order to carry out the Guiding Principles at Toyota throughout the company s global activities. With the rapid growth, diversifi cation and globalization of Toyota, the values and business methods that had been passed on as implicit knowledge were identifi ed and defi ned in April 2001. The Toyota Way is supported by two main pillars: Continuous Improvement and Respect for People. Continuous Improvement means that we are never satisfi ed with where we are and consistently seek further knowledge to pursue higher value. Respect for People means that we respect all Toyota stakeholders and believe that the growth of each employee will connect to the success of our business. Challenge We form a long-term vision, meeting challenges with courage and creativity to realize our dreams Kaizen We improve our business operations continuously, always driving for innovation and evolution Genchi Genbutsu We practice genchi genbutsu... go to the source to find the facts to make correct decisions, build consensus and achieve goals at our best speed Respect for People Continuous Improvement Respect We respect others, make every effort to understand each other, take responsibility and do our best to build mutual trust Teamwork We stimulate personal and professional growth, share the opportunities of development and maximize individual and team performance cp_06 Toyota Code of Conduct The Toyota Code of Conduct organizes the basic attitudes necessary for people working at the company or otherwise, provides a basic code of conduct, and acts as a compass. It also details what is required of us and what we need to keep in mind. Along with the Toyota Way, it is deemed essential that each employee carries out the Guiding Principles at Toyota and fulfi lls their social responsibilities. Toyota Code of Conduct Web http://www.toyota-global.com/company/vision_philosophy/toyota_code_of_conduct.html 006 Sustainability Data Book 2016 Corporate Principles
CSR Structure CSR Structure cs_01 Basic Philosophy regarding CSR Since its foundation, Toyota has continuously strived to contribute to the sustainable development of society through the manufacture and provision of innovative and quality products and services that lead the times. Motor vehicles greatly expand the freedom of mobility, but impact society and the environment in various ways. Always bearing this in mind, we listen carefully to our customers and the local community as we pursue a business that works towards harmony with people, society, and the global environment, as well as the realization of a sustainable society through monozukuri (manufacturing.) For details, see Corporate Principles (CSR Policy: P4) cs_02 CSR Organization and Structures We strive for sustainable growth by providing society with values such as Safety and Peace of Mind, Environmental Sustainability and Waku-doki (excitement and exhilaration that wows you) through our business activities. Toyota established the Corporate Planning Meeting and the Corporate Governance Meeting to promote these activities from a long-term and company-wide perspective. Corporate Planning Meeting and Corporate Governance Meeting In October 2007, Toyota established the CSR (Corporate Social Responsibility) Committee to coordinate and promote CSR activities. Through the CSR Committee, we have ensured legal compliance, conducted social contribution activities and promoted initiatives for environmental issues. Since April 2015, organizational changes have been made with the intention of incorporating CSR into management and raising corporate value. These changes were designed to bring CSR-specifi c discussions that previously took place in the CSR committee into more general management and business operationrelated discussions. Therefore, the functions of the CSR Committee have been transferred to the Corporate Planning Meeting and Corporate Governance Meeting. Under the oversight of General Shareholders meetings and the Board of Directors, the Corporate Planning Meeting discusses growth and business strategies, taking into account a wide range of social issues. An optimal governance structure has been deliberated in the Corporate Governance Meeting, which serves as a supervising body over business implementation, to realize these growth and business strategies. CSR Structure (Corporate Value Enhancement) Shareholders Meeting Board of Directors Corporate Planning Meeting Chairman: Executive Vice President Shigeki Terashi Basic corporate policies for contributing to the sustainable development of society and the earth Planning and development of global CSR policies and activities Sustainable growth strategies for corporate value enhancement Social contribution, environmental issues, and other social issues Corporate Governance Meeting Chairman: Director Nobuyori Kodaira Corporate ethics, compliance, and corporate governance Significant issues concerning risk management and the initiatives 007 Sustainability Data Book 2016 CSR Structure
CSR Structure cs_03 Goals to Realize Toyota Global Vision In order to realize the Toyota Global Vision, Toyota has involved external and internal experts to set goals and have established the Toyota Visionary Management Indices to act as KPI to assess the progress being made towards achieving those goals. Each responsible division conducts self-evaluations and implements PDCA to strengthen CSR activities. * For further details on Actual Results for the Previous Fiscal Year and Major Initiatives for the Current Fiscal Year, see each section. Global Vision for Those We Serve Goals Ever-Better Cars 1. Provide safe and reliable vehicles that inspire enthusiasm at affordable prices 2. Listen sincerely to customer voices and continue to reinvent ourselves through sufficient information disclosure and dialogue Achieve the highest level of customer appraisal in terms of safety, quality and moving people Raise customer satisfaction concerning customer inquiries 3. Contribute for economic development of local communities with open stance to new suppliers and dealers and through sustainable growth based on mutually beneficial business relationships with dealers/distributors and suppliers Suppliers: Promote local purchasing globally Dealers/distributors: Establish sales networks together to be rewarded with a smile Enriching Lives of Communities 4. Contribute to realizing a sustainable society through initiatives of the Toyota Environmental Challenge 2050 5. Be aware of responsibilities of developing and producing vehicles and contribute for realization of new mobility society free from traffic accidents and congestion Progress steadily with the Sixth Toyota Environmental Action Plan (2016-2020) Engage in advanced/cutting-edge research for a new mobility society, and promote the practical application and popularization thereof 6. As a good corporate citizen, respect the culture and customers of every nation and region and contribute to social development Continue stable social contribution activities at an appropriate level as a good corporate citizen Stable Base of Business 7. Create working environments for various employees to work proudly and with loyalty and confidence in fulfilling their potential, which realize their self-growth 8. Ensure sustainable growth by fostering the virtuous circle Ever-Better Cars > Enriching Lives of Communities > Stable Base of Business Increase the ratio of employees who feel that their jobs are rewarding Establish a stable base of business 008 Sustainability Data Book 2016 CSR Structure