To y o t a I n d u s t ri e s R e p ort

2011

Corporate Social Responsibility
Impact of the Great East Japan Earthquake andToyota Industries’ Response
Corporate Philosophy(Toyoda Precepts, Basic Philosophy and CSR Policy)

Corporate Governance

P38

P39
P40−43

Relationship with Our Customers

P44

Relationship with Our Associates

P45−46

Relationship with Our Business Partners

P47

Relationship with Our Shareholders and Investors

P48

Relationship with Our Local Communities

P49−5037

Impact of the Great East Japan Earthquake andToyota Industries’ Response
Toyota Industries extends our deepest condolences and prayers to the people who have lost their lives andthose affected by the Great East Japan Earthquake. We sincerely hope for the safety of the people living in,
and a swift recovery as well as reconstruction of, the disaster-stricken areas.

Immediate Response

There were no reported casualties or injuries ordamage to our facilities. The disaster, however,caused suspension or partial suspension of operations
at some of our domestic plants due to shortages inparts supply.
As of early July, except for some plants, production
had almost recovered to pre-earthquake levels throughmeasures that included switching to alternative partsand providing support to our business partners.
We will continue to make our utmost efforts for thecomplete normalization of production activities whileworking to reinforce our risk management structure.

Guided by a strong ambition to “contribute to society
and the world through monozukuri (manufacturing),”
Toyota Group founder Sakichi Toyoda devoted himself
to “endless creativity, inquisitiveness, and the pursuit of
improvement” and made various inventions including
the non-stop shuttle-change Toyoda Automatic Loom,Type G. The spirit of Sakichi is enshrined in the Toyoda
Precepts, formulated in 1935 and passed down today
in our Basic Philosophy, which we established in 1992
and revised in 1998.
The business environment surrounding Toyota
Industries is continuing to evolve rapidly anddramatically. Regardless of changes in the businessenvironment and values, we remain unchanged in ourbelief that realizing our Basic Philosophy is thecornerstone of the Toyota Industries Group’s corporatesocial responsibility (CSR). Acting on this belief, inMarch 2009 we formulated and implemented the
Toyota Industries Group CSR Policy, which clarifies ourrelationships with stakeholders, namely customers,
employees, business partners, shareholders and local
and global communities.
The CSR Policy is divided into nine areas, and the
CSR Committee* confirms and evaluates theimplementation status of this policy and promotes
CSR activities.
* Chaired by the president, the committee convenes twice per year and consistsof directors, managing officers and corporate auditors.

CSR Areas

Customer First
SocialContributions

Environmental
Conservation• Always be faithful to your duties,
thereby contributing to the Company and to theoverall good.
• Always be studious and creative, striving to stayahead of the times.
• Always be practical and avoid frivolousness.
• Always strive to build a homelike atmosphere at workthat is warm and friendly.
• Always have respect for God, and remember to be
grateful at all times.

Basic Philosophy[Respect for the Law]
Toyota Industries is determined to comply with theletter and spirit of the law, in Japan and overseas, andto be fair and transparent in all its dealings.
[Respect for Others]
Toyota Industries is respectful of the people, culture,and traditions of each region and country in which it
operates. It also works to promote economic growthand prosperity in those regions and countries.
[Respect for the Natural Environment]
Through its corporate activities, Toyota Industries
works to contribute to regional living conditions andsocial prosperity and also strives to offer products andservices that are clean, safe and of high quality.
[Respect for Customers]
Toyota Industries conducts intensive product research
and forward-looking development activities to create
new value for its customers.
[Respect for Employees]
Toyota Industries nurtures the inventiveness and otherabilities of its employees. It seeks to create a climate ofcooperation, so that employees and the Company canrealize their full potential.

CSR Policy (Preamble)
Respect for
Employees

Contributing to Sustainable
Development in Harmony
with Society and the Earth

Safety and
HealthFair andTransparent
Business
Activities

ComplianceManagementof Confidential
Information

Toyoda Precepts

Corporate Philosophy

Impact of the Great East Japan Earthquake and Toyota Industries’ Response

Effects on the Toyota Industries Groupand Further Response■ Relief funds• The Toyota Industries Group made monetary
donations through Japan Platform, a non-profit
organization (NPO), and other organizations.
■ Fund-raising activities• Toyota Industries’ management and employees aswell as various employee associations madedonations to the Central Community Chest ofJapan and other organizations.
■ Relief supplies• We donated a total of 31 lift trucks and small
shovel loaders to the affected areas.
• We started sending out daily commodities,
including water, food and hygiene products, withina day after the earthquake.

(Toyoda Precepts, Basic Philosophy and CSR Policy)

Corporate Social Responsibility

Corporate Social Responsibility

Immediately following the earthquake that occurred on
March 11, 2011, Toyota Industries set up an
earthquake countermeasures task force at the Disaster
Control Center located within the Head Office in Kariya
City, Aichi Prefecture. Initial efforts included accounting
for our employees and their families, collecting
information on the quake-caused damage to affiliatedcompanies, customers and business partners, anddevising a plan to proceed with production operations.

Major Support Activities

Corporate Philosophy

Timely andProper
Disclosure

We, Toyota Industries Corporation and our
subsidiaries, contribute to the harmonious andsustainable development of society and the Earththrough all business activities that we carry out in eachcountry and region based on our Basic Philosophy.
We comply with local, national, and internationallaws and regulations as well as the spirit thereof, andwe conduct our business operations with honesty andintegrity.
In order to realize sustainable development, we carryout management with an emphasis on stakeholders,
and we will endeavor to build and maintain soundrelationships with our stakeholders through open andfair communication.
We expect our business partners to support thisinitiative and act in accordance with it.
Access Toyota Industries’ Website for details.
http://www.toyota-industries.com/corporateinfo/philosophy/

38

Toyota Industries Report 201139

Corporate Governance■ Corporate Governance Structure■ Internal Control System

Corporate Social Responsibility

Toyota Industries strives to enhance the long-term
stability of its corporate value and maintain society’s
trust by earnestly fulfilling its CSR commitments inaccordance with its Basic Philosophy.
To that end, Toyota Industries strives to enhance its
corporate governance based on the belief thatmaintaining and improving management efficiency andthe fairness and transparency of its corporate activities
is of utmost importance.

Toyota Industries convenes monthly meetings of theBoard of Directors to resolve important management
matters and monitor the execution of duties bydirectors. Outside directors attend meetings of theBoard of Directors, in which they give opinions and ask
questions as deemed necessary to ensure legality andvalidity of decisions of the Board of Directors as well as
directors’ execution of duties. Additionally, we haveadopted the Managing Officers System, which enables
managing officers to focus solely on the execution of

Toyota Industries has adopted a board of corporate
auditors system. Two full-time corporate auditors andthree outside corporate auditors attend meetings ofthe Board of Directors to monitor the execution ofduties by directors. At the same time, meetings of theBoard of Corporate Auditors are held once a month todiscuss and make decisions on important mattersrelated to auditing. The full-time corporate auditors
carry out auditing by attending primary meetings andreceiving reports directly from directors. Additionally,
we have assigned dedicated personnel, while
corporate auditors monitor the legality and efficiency ofmanagement through collaboration with independent
auditors and the Audit Department.
As a publicly listed company, Toyota Industries
strives to ensure the fairness and transparency ofmanagement. Following the Securities Listing
Regulations stipulated respectively by the Tokyo Stock
Exchange, Osaka Securities Exchange and Nagoya
Stock Exchange, we designated as independent
auditors two outside auditors who have no conflicts ofinterest with our shareholders to further enhance ourcorporate governance.

General Meeting of Shareholders
Selection/
Dismissal

Selection/
Dismissal

ReportingSelection/
Dismissal

Reporting
Cooperation

Corporate GovernanceCorporate Governance

Implementation Structure

Board of Corporate Auditors System

In accordance with the Corporation Law of Japan, in
May 2006 Toyota Industries’ Board of Directors
adopted the Basic Policies for the Establishment of anInternal Control System (Basic Policies) to ensurecompliance, risk management as well as theeffectiveness and efficiency of business operations.
The CSR Committee, during its meeting held in March,assesses the progress made in implementing the
Basic Policies in the year under review and determines
actions for the coming year, including reviewing theimplementation structure and enhancing day-to-day
operational management.
Furthermore, based on the Financial Instruments
and Exchange Law (so-called Japanese SarbanesOxley Act), we have built and continued operating andevaluating an internal control system to maintain thereliability of financial reporting, while assessing theeffectiveness of our internal controls and undergoingaudits by independent auditors. We determine which
Toyota Industries Group companies, including
consolidated subsidiaries in and outside Japan, to
include in the scope of the effective assessment,
taking into consideration the degree of impact on thereliability of our financial reporting. As for the companylevel, process-level, IT in general and financial reporting
controls, the Audit Department reviews the status andprogress and provides guidance on remedial actions if
efforts are not adequate.
We determined that our internal controls overfinancial reporting as of the end of fiscal 2011 areeffective, and accordingly, submitted an Internal
Control Report in June 2011. The report was reviewed
by independent auditors and judged fair in their
Independent Auditors’ Report.

Corporate Social Responsibility

business operations and speed up decision making.
The Management Committee, which is composed of
directors above the executive vice president level aswell as relevant directors, managing officers andcorporate auditors, deliberates on a variety of issues
concerning important management matters such as
corporate vision, management policies, medium-termbusiness strategies and major investments.
Toyota Industries has a divisional organization
system, with significant authority delegated to eachbusiness division. For especially crucial matters,
however, we have established the Business Operation
Committee to enable the president to meet with theheads of each business division regularly to monitor
and follow the status of their business execution. To
strengthen our business structure, in June 2010 we
set up the new position of business division executive
director to perform such duties as drawing up
strategies, while the division heads concentrate on theexecution of business operations. At meetings of theManagement Council, directors, managing officers andcorporate auditors convene to report and confirm themonthly status of business operations and shareoverall deliberations at Board of Directors meetingsand other management-related information. Matterspertaining to quality, safety, human resources, theenvironment and other aspects are discussed atcorresponding functional meetings and by respective
committees.

Basic Perspective of Corporate
GovernanceIndependent Auditors

Board of Corporate Auditors
Board of Directors

Monitoring

ReportingMonitoring Monitoring
Appointment/
Monitoring

Corporate Auditor’s Office

ReportingDiscussion/
Reporting*1: Functional Meetings

President
Directives

Management Committee

Management Council(Deliberates on importantmatters frommanagement’s perspective)(Reports on and confirms
execution ofbusiness operations)

Directives

Discussion/
ReportingDirectives

Reporting(monthly)Business Operation
Committee(Follows up on the executionof business operations)
Directives

Reporting

Functional Meetings*1
Committees*2
Policies

Directors/Managing Officers
Business Divisions/In-House Company/Departments
Subsidiaries/Affiliates

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Toyota Industries Report 2011

Reporting

ReportingDirectives

ReportingAccounting
Audit

Quality*2: Committees
Emergency Profit
Improvement
CSR

Audit Dept.

Human Resources
Environmental

Internal
Audit

Reporting

Production

Human Resources
Development

Technologies

Safety and Health

etc.

etc.

These entities deliberate and follow up on issues in respective areas.

Emergency Profit Improvement Committee
In response to the rapid downturn in our business environment,
Toyota Industries has established the Emergency Profit Improvement
Committee on December 1, 2008 directly under the president.
Aiming to reduce expenses and other costs, we are carrying out
profit improvement activities throughout the Company via sevendifferent subcommittees.

41

■ Compliance■ Risk Management

Basic Perspective

Implementation Structure

Portable Code of Conduct
Handbook for employees in China(TIK, TIAP, TACK)

Representativecompliance officer
for Europe

Europe: 28 compliance officers

AndreasLundh

North America: 11 compliance officers
Representativecompliance officer
for North America

Asia: 5 compliance officers

Timothy A.
BarkerComplianceofficer for India

T R Nagaraj

Based on the Basic Policies for the Establishment ofan Internal Control System, Toyota Industries is
working to strengthen regulations and a structure topromote risk management. Our proactive measures
are designed to prevent and control potential risks,
and when a risk becomes apparent, to ensure quick
and precise actions to minimize impact.

Basic Perspective
Toyota Industries recognizes the importance ofappropriately managing confidential information andincludes “management of confidential information” as
one of the CSR areas. We are making our utmost
efforts to safeguard and manage confidential
information.

Implementation Structure
Implementation Structure
Business divisions and other departments at the Head
Office develop and promote annual action policies that
integrate measures to prevent and control risks related
to quality, safety, the environment, export transactions,disasters and information security. Progress is
assessed and followed up by each functional
committee such as the CSR Committee and theEnvironmental Committee. The functional departments
at the Head Office define rules and procedures,conduct training and auditing of business operations
and carry out on-site checks from a Group-wide
perspective in an effort to support the activities ofbusiness divisions and consolidated subsidiaries.
Our Crisis Response Manual, which lays out basic
rules to follow when a risk becomes evident, aredistributed not only to top management and heads ofdepartments but also to consolidated subsidiaries.
These basic rules set out procedures and the means
for immediately reporting the occurrence of a risk to
top management, identifying the magnitude of its
impact on society and on our business activities, andtaking appropriate actions to minimize its impact.
In Japan, we conduct immediate action training
and have in place a set of specific rules to follow upon
the occurrence of an earthquake. These rules arecompiled in our Rules in Case of Earthquakes, which
all employees are
required to carry at all
times.

Code of Conduct for TMHE
Group employees in Europe

Corporate GovernanceCorporate Governance

We have put in place a system to promote compliancethroughout the Toyota Industries Group. As part ofefforts to facilitate compliance activities, we have set
up the Compliance Committee and appointed acompliance officer* responsible for overseeing its
operation in each of our consolidated subsidiaries inand outside Japan. Under our CSR Policy, we havealso devised code of conducts befitting the laws andpractices of each country as well as the line ofbusiness at each subsidiary. We are working tofamiliarize every employee with the details via a rangeof educational programs.
We regularly provide executive training in Japanand hold regional compliance officers meetings outside
Japan to make a timely response to any amendments
to laws and regulations, share information on measures
adopted to handle violations or issues and take thenecessary action to prevent recurrence of any problems.
Moreover, Toyota Industries performs a CSR
self-assessment to confirm the status of complianceon an annual basis using a checklist comprised of 60
to 250 items defined for each of the applicable laws.

Basic Perspective

Corporate Social Responsibility

Corporate Social Responsibility

We believe that compliance means more than themere adherence to laws and regulations. It is based on
the behavior of each and every employee inaccordance with ethics and social norms.

If any of these items are found to be insufficient, each
responsible department and respective subsidiaries
work together to make
improvements.
We also operate acompliance hotline thatallows employees and theirfamilies to seek advice oncompliance-related matterswithout being exposed tonegative consequences, aswell as to make adequate
responses. The compliancePamphlet regarding compliancehotline is also madehotlineavailable to our subsidiaries
in Japan. We regularly hand out a pamphlet tosubsidiaries’ employees to inform them of the service.
Major consolidated subsidiaries outside Japan are also
setting up and disseminating information on a similarcompliance hotline through their respective complianceofficers.
As a symbol of these
global activities, the CSR
Committee adopted a logothat combines an image ofthe globe and the message“Doing Business with
Integrity.” This logo is usedon various educational andother in-house materials toraise awareness of theimportance of complianceamong employees.

■ Management of Confidential Information

Under the CSR Policy, we have implemented a system
to promote management of confidential information. To
take appropriate actions against the leakage of theconfidential information or personal data of customers
or employees and to comply with the Unfair
Competition Prevention Act and the Personal
Information Protection Law, the CSR Committee
determines policies, while the Information Security
Subcommittee (led by an executive in charge ofgeneral administration) promotes activities toimplement preventive measures.
Specifically, we perform periodic reviews of ourConfidential Information Management Regulations(originally formulated in April 1987 and last revised in
February 2011) and encourage information security
administrators*1 and information security managers*2
to cultivate awareness among their staff throughworkplace meetings.
Our consolidated subsidiaries around the world
have also developed guidelines for management ofconfidential information and have been promoting
preventive activities mainly through their respective
managers of confidential information.
Examples of such activities include antitheftmeasures, requiring employees to obtain permission
when taking their PCs off the premises and restricting
the copying of electronic data on recording media.
*1: Head of eachdepartment*2: A person within thedepartment,
appointed by theheadCompliance officer
for South America

Edson
Masayuki
UhiedaSouth America: 3 compliance officers* A total of 83 compliance officers as of March 31, 2011
(Subsidiaries in Japan: 36; subsidiaries outside Japan: 47)

42

Toyota Industries Report 2011uct
Code of Conduct
for Raymond
employees inNorth America

Rules in Case of Earthquakes

43Types of Quality Soughtby Toyota Industries●Durability●Ease of use

du●Brand strength●Corporate image●Sales●Service●Workmanship

Designqualitylisten to customer voices and incorporate these into
R&D on new products and functions that anticipate theneeds of the times.
In the lift truck and textile machinery fields, forexample, we operate customer consultation desks andservice centers to directly interface with customers.
We promptly respond to their feedback, while theircomments and requests are fed back to the designand other relevant departments for use in productimprovements and new product development.
As a Company-wide effort, each department
faithfully follows the concept of “jikoutei-kanketsu (build
in quality with ownership)” to incorporate quality ineach process to ensure that no defective products aresent to post-processes. Each department collaborates
to identify quality-degrading factors and theirunderlying causes and puts in place adequate
measures to prevent defects from occurring or
recurring to deliver safety and reassurance to ourcustomers.

Ensuring Customer Safety andReassurance
To provide safe products that customers feel satisfied
and use with a feeling of reassurance, we constantly

44

Toyota Industries Report 2011

Adhering to the Basics of Quality
Assurance
Every year, we issue the Quality Guidelines, which
identify priority quality implementation items to all
production bases in and outside Japan. The progress
made in implementing these guidelines is reviewed atmeetings of the Quality Functional Meeting, while the
top management personally visits production bases inand outside Japan to conduct genchi genbutsu (goand see for yourself) inspections. In fiscal 2011, weplaced top priority on customer viewpoints, prevention
and creating workplaces focusing first and foremost on
quality. Issues raised through these activities are taken
to the Company-wide Council of Heads of Quality
Assurance Departments for the earliest possible
resolution.
In fiscal 2012, we will continue to promote ourCustomer First philosophy, placing particular emphasison enhancing our product planning capabilities,
undertaking actions to prevent defects from occurringand recurring, and building a business structure
matched to customers’ expectations.
Toyota Industries is committed to improving thelevel of customer satisfaction. To that end, we strictly
follow the procedures for each process as specified
and work to ensure that no defective products are sent
to post-processes. We are resolutely implementing thisvery basic practice of quality assurance at production
bases in and outside Japan.

In accordance with our fundamental policy of “creating
workplaces and people capable of autonomously
maintaining occupational health and safety,” Toyota
Industries strives to prevent industrial accidents andrealize better work environments to achieve “zeroaccidents.”
In fiscal 2011, we carried out activities under thefollowing three principal policies.
■ 1) Create a Foundation for Realizing a SafetyOriented Culture
We worked to create a safety-oriented culture withsuch measures as establishing a safety dojo in eachplant and strengthening activities to further raise safety
awareness in addition to basic safety activities asprioritized by each plant.
■ 2) Promote Risk Assessment Activities
We continued to promote risk reduction activities byidentifying crucial processes and performing a review
of each process in accordance with the risk
assessment manual to find and counter any issues.
■ 3) Enhance Safety in the Fundamental Aspectsof Lift Truck Operations
While continuing to require lift truck operators to wear
seat belts at all times, were-evaluated the operating
range of each lift truck andseparated zones designated
for walking and operating lift
trucks.

well as conduct periodic on-site inspections and offer
guidance.
If an industrial accident occurs at any of the Toyota
Group companies or other affiliated companies, details
are sent to each Toyota Industries Group company
and the information is shared for prevention purposes.
During work hours, we conduct a genchi genbutsu
check to raise the safety and health level in each
workplace.
We also have introduced a safety dojo at
subsidiaries outside Japan to help build a foundation
for achieving higher safety and health levels by
nurturing human resources who can autonomously
conduct basic safety practices and introducing a risk
assessment system.

Relationship with Our Associates

Relationship with Our Customers

Placing top priority on our Customer First philosophy,
Toyota Industries undertakes product developmentfrom the customer’s viewpoint.
At Toyota Industries, development of a new
product entails defining specific goals andincorporating quality in every stage from productplanning and development to production preparation,
production, sales and after-sales services. A design
review (DR) is performed at each development
milestone. This system allows a product to proceed to
the next stage only when a responsible businessdivision head examines and approves whether the
product has reached the target quality level from amanagement viewpoint. Should a defect occur after
the product launch, the quality assurance departmentsof each business division immediately devise
necessary measures and review the productdevelopment process to prevent recurrence insubsequent models.

Building a Safety-Oriented Culture that
Aims for Zero Accidents

Brand identity

Site inspection by the president

Ensuring the Highest Quality

Relationship with Our Associates

Corporate Social Responsibility

Corporate Social Responsibility

Carrying on the spirit of founder Sakichi Toyoda,
Toyota Industries strongly believes that quality is the
lifeblood of a company. Maintaining and improving
quality to ensure customer safety and reassurance is
our most important responsibility to our customers.
A “Customer First” philosophy forms the basis of our
CSR approach.
Toyota Industries strives to maintain and improve
the total quality of our corporate activities, which
encompasses “product quality,” “marketing quality”
and “management quality.” “Product quality” isembodied in the safety, eco-friendliness, durability,ease of use andworkmanship of our
products, “marketing
quality” in excellent
sales and service and“management quality”
in our overall
corporate image andbrand strength.

●Safety●Eco-friendliness

ct

qu
alit

y

Quality levels that
customers truly
expectPro“A product should never be sold unless it
has been carefully manufactured and has
been tested thoroughly and satisfactorily.”

ent
em
ity
nag
ual
Ma ity
l
q
ng
g
uri
qua
tin
a ct
rke
nuf
Ma
Ma alityqu

Relationship with Our Customers

Health Management and Improvement
As a task for the medium term, we are promoting
associate health improvement programs to counter
risks associated with aging and greater stress.
Specifically, we provide health guidance for
persons with metabolic syndrome and conductperiodic age-based health education to maintain andpromote their health and wellness.
Mental health care activities include
providing self-care/line-care education,building closer collaboration withexternal medical institutions andenhancing our work-resumption support
systems.

We regret to report that on
November 23, 2010, a fatal
accident occurred at the
Takahama Plant. We are
Separating walking and lift truck operating zones
deeply saddened by this(Kariya Plant)
terrible loss. Pledging never torepeat this kind of accident, we conducted aninvestigation into the cause and drew up a set ofcountermeasures. We conducted a comprehensive
inspection of all equipment at the Takahama Plant andimplemented measures to address problems that wereidentified. Similar measures have been carried out at allother plants as well. We also held an emergency
meeting in each of our workplaces to alert and raisesafety consciousness among our associates.

Associate Wellness and Mental Health Care Activities

Activities

Descriptionss Specific health examinations for metabolic
Health guidance
syndrome
on lifestyles 'UIDANCE ON HEALTH MAINTENANCE FOLLOWING
diseases
specific health examinations
s !GE BASED HEALTH EDUCATION COURSES
Mental healthcares *OB RANK BASED MENTAL HEALTH CARE EDUCATION
s 2ETURN TO WORK SUPPORT THROUGH PROBATIONARY
employment system

Assisting Consolidated Subsidiaries inAchieving Even Higher Safety and Health
LevelsFor our consolidated subsidiaries in Japan, we havebeen working with the relevant departments to hold avariety of seminars on such topics as compliance as

A safety dojo practice at Toyota Industrial Equipment, S.A. (TIESA), a materials
handling equipment production company in France

45

Relationship with Our Business Partners
Establishing Work Environments Where
Diverse Human Resources Can Play
Active Roles

Enhancing Team Strength“Wisdom” =Management Skills“Skills” =Technical Skillss 3KILLS DEVELOPED BYIDENTIFYING PROBLEM AREAS
AND FINDING SOLUTIONS
s -ANAGEMENT TO UNITE
A BROAD RANGE OF ABILITIESTeam Strength
LeadershipTo pursue improvements
thoroughly and continuously“Spirit” = Spirit of harmony

4EAMWORK
7ELL ROUNDED HUMANITY

We believe that team strength is made up of“technical skills” that form the basis of manufacturing
operations, “management skills” to make maximum
use of technical skills and “spirit of harmony” that
supports both. While further enhancing our teamstrength, we are striving to extend and hand it down
beyond all business domains, generations andgeographic regions.
One example of such initiatives is a training
program targeting all administrative staff and engineers
to increase their problem-solving capability. In fiscal
2011, we launched this training program at businessbases outside Japan, with the aim of sharing the way
we work, our perspectives and our values throughout
the Toyota Industries Group.
We are currently working to enhance the skills of
our technical staff primarily by providing training
programs at the Technical Learning Center. At the 48th
National Skills Competition held in October 2010,
Toshiyasu Inaki won a gold medal in the “welding”
category. He will compete at WorldSkills London
2011 along with other skilled professionals fromaround the world.

46

Toyota Industries Report 2011

■ Balance between Work and Child/Nursing Care
We have already rolled out several initiatives to help
our associates balance their work and family. For
example, we regularly hold exchange meetings
regarding child/nursing care tofacilitate communication amongstaff members and increaseawareness. During fiscal 2011,
we set up a page on our intranet
to help associates maintain abalance between work and child/ Diversity Navi exchange
meeting
nursing care.
■ Employment of Persons with Disabilities
We respect the idea of people with and without
disabilities working together and sharing life and workvalues. Under this basic policy, we continue to employ
persons with disabilities every year. They are assigned
to a variety of sections and work with other staff
members to perform their designated tasks. In fiscal
2011, the number and ratio of associates withdisabilities on a non-consolidated basis were 186 and2.05%, respectively.
■ Re-Employment of Retirees
We have established a system to rehire staff ofretirement age, offering them an opportunity to makethe best use of their advanced expertise and skills incarrying out business operations. We have also been
making Company-wide efforts to set up a comfortableworking environment for senior associates.

Creating a Bright, Energetic and Caring
Work Environment
Toyota Industries is creating a work environment that
fosters a dynamic workforce and allows every member
to demonstrate his or her capabilities both as anindividual and as a team. To that end, we believe it isimportant to cultivate teamwork via close communication.
Throughout the world, we are proactively encouraging
communication not only during work hours but also
through social gatherings, sports days, summer
festivals, ekiden long-distance relay races and cheersquads for various sports events.

We have a fair entry process that allows all potential
business partners, regardless of nationality, size andexperience, the same opportunity to offer us theirproducts or services through our Website to achieve
broad and open procurement.
We comprehensively evaluate our business
partners based on quality, price, their adherence todelivery times, technological capabilities and company
stability. We also assess their initiatives for safety, theenvironment and compliance as we strive for the timely
procurement of excellent products at lower costs
based on fair business transactions.

Co-Existence and Co-Prosperity Basedon Mutual Trust
We work hard to realize co-existence and co-prosperity
with our business partners based on mutual trust. We
hold annual procurement policy meetings for major
business partners to gain their understanding andcooperation. In order to consistently procure better
products, we also conduct quality and technical skills
training programs and provide guidance directed
toward improving manufacturing processes atbusiness partners’ production sites.

Reducing Environmental Impact throughEnvironmentally Preferable Purchasing
In order to create environmentally friendly products, we
aim to procure parts, materials and equipment frombusiness partners that always give sufficientconsideration to the environment. Based on ourEnvironmentally Preferable Purchasing Guidelines, we
require our business partners to establish anenvironmental management system. Particularly forparts and raw materials, we make it a rulefor business partners to acquire external
certification on their environmental
management systems such as ISO 14001.
Regarding environmental impact, we
require the suspension and reduction of
the use of substances of concern as wellas the management of usage of thesesubstances if they are included in our
products or manufacturing processes. For
products that will become a component of
Toyota Industries’ products or that will be
used in our manufacturing processes, ourLocalization of Business for Good
Corporate CitizenshipAs a company that undertakes local production
outside Japan, we promote procurement from local
business partners in order to contribute to the local
community.

Relationship with Our Business Partners

Relationship with Our Associates

s %XPERTISE
s 3KILLS
s +NOW HOW

TPS, QC, SQC, etc.

We are implementing a variety of measures to create
work environments where a diverse range of humanresources can fully exercise their capabilities. These
measures include supporting a balance between workand child/nursing care, supporting the employment of
persons with disabilities and enhancing are-employment system for associates who reach themandatory retirement age.

procurement system requires our business partners to
submit in advance a non-use declaration of prohibited
substances as well as data on substances of concern,
including a report on the substances contained inparts. Only after confirmation is carried out do wepurchase these parts.
Corporate Social Responsibility

Corporate Social Responsibility

Toyota Industries believes that increasing teamstrength is vital to forming a dynamic workforce andachieving sustainable corporate growth. We intend tobuild a more solid team strength by combining the“skills,” “wisdom” and “spirit” of each associate.

Fair Competition Based on an Open Door
PolicyFurther Promoting CSR
We provide educationinternally to all relevant
persons for the purposeof strictly complying
with the competition
laws of each country
and to maintain fairbusiness transactions. It
is Toyota Industries’ andour business partners’
policy to strictly abide
by both the letter andMeeting on CSR Guidelines for Business Partners
spirit of laws andregulations while also carefully handling and protecting
confidential corporate information of our business
partners and Toyota Industries.
In fiscal 2011, we developed the CSR Guidelines
for Business Partners, which describe our CSR-related
requirements for our business partners in Japan, andheld a meeting to explain the details to partners. We
also held three study sessions for our major business
partners to encourage their respective CSR activities.
We will
continue topromote activities
around the world
to comply with
CSR throughout
our supply chain.

Materials provided to business partners

47

Relationship with Our Shareholders and Investors
Our Policy regarding Information
Disclosure

Toyota Industries regards returning profits toshareholders as one of the most importantmanagement policies. Accordingly, we strive tocontinue paying dividends and meet the expectationsof shareholders upon taking into consideration suchfactors as business results, demand for funds and thepayout ratio. For fiscal 2011, Toyota Industries paid
annual cash dividends per share of ¥50.0 (interim cash
dividend per share of ¥25.0 and year-end cash
dividend per share of ¥25.0).
■Cash Dividends per Share (Annual)(¥)

60

Toyota Industries strives to promote goodcommunications with its shareholders and investors
and reflect their comments and requests in ourbusiness activities.
For institutional investors and securities analysts,
our management conducts briefing sessions to explain
our quarterly financial results. We also hold small andindividual meetings on an as-needed basis. For
individual investors, we hold corporate briefings to
explain an overview of our business activities andfuture initiatives.
For the purpose of fostering a better understandingof our business activities, we invite our shareholders
for a plant tour immediately following the generalshareholders’ meeting.
Additionally, the Toyota Industries Website features
an Investor Relations page for prompt information
disclosure. We use RSS feeds (in Japanese) to provide
the latest information in a timely manner.

50
40
30
20
10
0
(FY)

07

08

09

10

11

Actively Promoting Social Contribution
Activities

Three Pillars of Our Social Contribution
Activities

While striving to achieve sustainable growth as acompany, we work to fulfill our role as a good
corporate citizen and actively undertake social
contribution activities in every community where we dobusiness in our efforts to help realize a prosperous andhealthy society.
To accomplish this, Toyota Industries proactively
offers cooperation and support with the objective ofcontributing to local communities by providing humanresources, facilities, funds and know-how. Each of ouremployees also strives to contribute to society throughsuch means as volunteer activities.

Toyota Industries is committed to building a close
relationship with every local community in which we
operate, placing particular emphasis on youth
development, the environment and social welfare.

■ Youth Development
With the aim of contributing to the sound growth ofyouth through monozukuri (manufacturing) and work
experiences, we hold events jointly with YouthInvention Clubs, conduct workplace visits and engage
in other activities.
■ Environment
As a member of the local community, we carry out arange of environment-related activities, including
promoting the use of wood thinned from forests in
Structure for Promoting Social
Japan and conserving forests through employee
Contribution Activities
volunteer programs to contribute to the developmentof a sustainable society.
The Corporate Citizenship■ Social Welfare
Society
Office within the General
To help develop local
Local communities/NPOs/NGOs/
social welfare organizations
Administration Departmentcommunities where everyone
at the Head Office
enjoys an active life, we holdSocial contribution
Corporate social contribution activities
activities by each
DirectIndirectdeliberates on details of ourvarious social welfare events
employee●Voluntary programs●Establishing andsocial contribution activities
to encourage exchange withsupporting●Lending of facilities andHeartful Club
environments forequipmentwith other relevant
persons with disabilities andinternal
volunteervolunteer activities●Dispatching employeesorganization●Donations●Providing information
departments at meetings ofconduct joint fund-raisingon volunteering
the CSR Committee, which
programs with our●Implementing employee
education
has been established underconsolidated subsidiaries in
our CSR Policy.
Japan.
Corporate Citizenship Office, General Administration Department

Relationship with Our Local Communities

Relationship with Our Shareholders and Investors

Timely and Appropriate Information
Disclosure to Shareholders and Investors

Dividend Policy

Corporate Social Responsibility

Corporate Social Responsibility

Toyota Industries continually carries out timely andappropriate information disclosure for shareholders
and investors. In this way, we raise managementtransparency so that we obtain an appropriatecompany valuation in stock markets. We provide not
only information required under disclosure laws andregulations but also information that fosters a better
understanding of our management policy and businessactivities.

Relationship with Our Local Communities

CSR Committee

Activity Examples (in Japan)■ Available Publications• Financial Results• Annual and Quarterly Financial Reports• Shareholder Reports• Toyota Industries Reports*

Mini Concerts at Elementary Schools* This publication combines our Annual Report and CSR and Environmental Report.

Meeting with institutional investors

In fiscal 2011, Toyota Industries started organizing miniconcerts at elementary schools located in Obu andTakahama cities, Aichi Prefecture. We will continue topromote thisactivity to provide
an opportunity forchildren to refine
their senses withgreat music by
first-ratemusicians.

Mini concert at an elementary school in Obu City

48

Toyota Industries Report 2011

“RECOLO no Mori” Forest Program
Wanbishi Archives Co., Ltd., a subsidiary engaged in
information storage, management, collection anddelivery services, planted 500 Zelkova trees in June
2010. This tree-planting activity is
named after its confidential
document destruction service,“RECOLO” (recycle ecology
locker). The name embodies its
employees’ desire to promote
paper recycling through theirbusiness activities.

“RECOLO no Mori” forest

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Activity Examples (outside Japan)[India] Environmental Conservation
Initiatives[Germany] Growing Hand in Hand with
the Local Community

Corporate Social Responsibility

TD Deutsche Klimakompressor GmbH (TDDK), a car
air-conditioning compressor production subsidiary,
sends gifts to local kindergartens and promotesinternational exchange between local children and thechildren of Japanese employees working for TDDK.
TDDK also participates in sports and other local
events, building a strong bond with the local
community.

Tree-planting event

Children taking part in an international exchange gathering

Relationship with Our Local Communities

Kirloskar Toyoda Textile Machinery Pvt. Ltd. (KTTM), a
subsidiary manufacturing and selling spinning frames,
invites local children to its tree-planting event every
year. KTTM also visits elementary schools andprovides a lecture on the environment, thereby making
a joint effort with the local community to promote
environmental conservation.

[Italy] Plant Tour and Social Gathering
Events50[U.S.A.] Supporting NPOs

L.T.E. Lift Truck Equipment S.p.A. (LTE), a materials
handling equipment production subsidiary, invites
members of the local community and hosts plant tours
and social gathering events. In November 2010, LTE
invited local high school students for a plant tour andsocial gathering with its employees, thereby providing
an opportunity to gain a better understanding of thebusiness activities of the company.

Toyota Material Handling, U.S.A., Inc. (TMHU), amaterials handling equipment sales subsidiary,
promotes social contribution activities for the local
community. In 2010, TMHU held a fun campaign called
Denim for Dollars, in which employees donate aminimum of US$5 to wear casual clothing to work on
the last Friday of the month. The year-long program
raised US$4,000, which was donated to local NPOs.

Plant tour with local high school students

Employees supporting NPO activities

Toyota Industries Report 2011