Corporate GovernanceCorporate GovernanceCorporate Governance StructureInternal Control System
ComplianceManagement of Confidential Information
Risk Management

P44–45
P46
P46–48P49
P49–50Toyota Industries strives to enhance its corporate value in a stable manner over the long term and maintains society’s
trust by earnestly fulfilling its social responsibilities in accordance with its Basic Philosophy. To that end, Toyota Industries
endeavors to further enhance its corporate governance in its efforts to maintain and improve management efficiency andthe fairness and transparency of its corporate activities.

Basic Perspective on Corporate Governance

Implementation Structure
Toyota Industries convenes monthly meetings of the Boardof Directors to resolve important management mattersand monitor the execution of duties by directors. We also
appoint outside directors who have a wealth of experienceand knowledge concerning business management. They
attend meetings of the Board of Directors and give opinions
and ask questions as deemed necessary. Through thissupervisory function of outside directors, we ensure thelegality and validity of the Board’s decisions as well as
directors’ execution of duties from an objective perspective.
The Management Committee, which is composed of
directors at the executive vice president level and above
as well as senior executive officers and other executives,deliberates on a variety of issues concerning important

Shareholders’ Meetings
Selection/Dismissal

Reporting

Cooperation

Independent Auditors

Accounting
Audit

Executive Compensation
Committee

Selection/Dismissal

Reporting

Audit & Supervisory Board
Board of Directors

ReportingExchange of Opinions

Executive Appointment
Committee

Appointment/Monitoring

Management Committee(Deliberates on important matters from management’s perspective)

Management Council

Selection/Dismissal
Cooperation

Audit & Supervisory
Board Office
Cooperation

Direction/
Supervision

Monitoring*1: Functional
Meetings

President

Business Operation Committee(Follows up on the execution of business operations)

Discussion/
ReportingMonitoring

Human Resources

CSR

Quality

Environmental

Production

Export Transaction
Controls

Procurement

Safety and HealthTechnologies

Profit Improvement

Reporting
Audit Dept.

(Reports on and confirms execution of business operations)Internal Audit

Functional Meetings*1, Committees*2
Senior Executive Officers

Business Divisions/In-House Company/Departments
Subsidiaries/Affiliates(As of June 11, 2019)
Toyota Industries’ Corporate Governance Reports are available at: https://www.toyota-shokki.co.jp/ (in Japanese).

44

Toyota Industries Report 2019

*2: Committees

These entities deliberate andfollow up on issues in respective areas.

As our policies concerning selection (and dismissal) of senior
management and appointment of director candidates, we
carry out comprehensive evaluations from the viewpointof placing the right persons in the right positions. We seeka balance between making sound and quick decisions,managing risk appropriately and monitoring execution ofbusiness operations and covering a specific function orbusiness division of Toyota Industries.
In appointing audit & supervisory board member
candidates, we also perform comprehensive evaluations
from the viewpoint of placing the right persons in the rightpositions, while ensuring a balance among the financial,accounting and legal insights, knowledge on our businessfields and the diversity of perspectives on corporate
management.
Based on these policies, we review proposals, exchange
views and confirm details at the Executive Appointment
Committee, which includes independent outside directors,
and submit these proposals to the Board of Directors forresolution.

Appointment of Independent Members ofManagement
As a publicly listed company, Toyota Industries strives toensure the fairness and transparency of management.
Following the Securities Listing Regulations stipulated by
the Tokyo Stock Exchange and Nagoya Stock Exchange,

Evaluation of the Effectiveness of the Board of
Directors
Through interviews with outside directors and audit &supervisory board members, Toyota Industries asks themto evaluate the effectiveness of the Board of Directors andcollects their feedback. The results of their evaluation aresummarized below.
(1)	Appropriate decision-making and management
oversight are ensured by holding several discussions
on important matters and following up on the progress
after the resolution of these important matters.
(2)	The atmosphere is open, encouraging directors tofreely make comments and engage in lively discussion.
(3)	Meeting materials are simple and clear, andexplanations are right to the point.
As shown above, Toyota Industries’ Board of Directors
has been evaluated as effective. We will continue to makeefforts for further improvement.

Audit & Supervisory Board System
Toyota Industries has adopted an audit & supervisoryboard system. Two full-time audit & supervisory board
members and two outside audit & supervisory board
members attend meetings of the Board of Directors tomonitor the execution of duties by directors. At the sametime, meetings of the Audit & Supervisory Board are held
once a month to discuss and make decisions on importantmatters related to auditing. The full-time audit & supervisoryboard members carry out auditing by attending primary
meetings and receiving reports directly from directors.
Additionally, we have assigned dedicated personnel, while
audit & supervisory board members monitor the legality

Financial Section /Corporate Information

Selection/Dismissal

Selection and Dismissal of Senior Management andAppointment of Director and Audit & Supervisory
Board Member Candidates

Compensation for senior management and directors
consists of monthly salaries and bonuses. Our policy is tolink their compensation with the business performance ofToyota Industries, reflecting their duties and performancein compensation. Bonuses, in particular, are determinedbased on consolidated operating profit of each fiscal year
while comprehensively taking into consideration dividends,
employees’ bonus level, trends among other companies,
medium- to long-term business performance and pastrecords of bonus payments.
As procedures to determine compensation, we review
proposals based on this policy, exchange views and confirm
details at the Executive Compensation Committee, which
includes independent outside directors, and submit these
proposals to the Board of Directors for resolution.

Promotion of ESG Initiatives

Toyota Industries regards the most important managerial
task is to earn trust broadly from society and enhance ourcorporate value on a stable, long-term basis. We aim to do
this by implementing our Basic Philosophy, which consistsof “Respect for the Law,” “Respect for Others,” “Respect
for the Natural Environment,” “Respect for Customers”
and “Respect for Employees,” and by earnestly fulfilling oursocial responsibilities. Our basic focus is on contributing
to the creation of an enriched society through businessactivities, and we believe it is essential to cultivate good
relationships with stakeholders, including shareholders,customers, business partners, creditors, local communities
and employees.
Accordingly, we strive to enhance our corporate
governance in order to maintain and improve management
efficiency, fairness and transparency. For example, wehave established a structure to quickly and flexibly respondto changes in the business environment and have beenworking to augment management oversight and ensure thetimely disclosure of information.
More specifically, the following basic policies drive ourinitiatives.
(1) We seek to ensure shareholders’ rights and equality.
(2)	We seek to promote appropriate collaboration with

Determination of Compensation for Senior
Management and Directors

Strategies and Businesses

stakeholders other than shareholders (including
customers, business partners, creditors, local
communities and employees).
(3)	We seek to conduct appropriate information disclosureand ensure transparency.
(4)	We seek to perform the roles and duties of the Boardof Directors appropriately in order to make decisions in
a transparent, fair, quick and resolute manner.
(5)	We seek to promote a constructive dialogue withshareholders.

respectively, to further enhance our corporate governanceToyota Industries has appointed as independent membersof management two outside directors and two outside audit& supervisory board members who are deemed to have noconflicts of interest with our shareholders.

Company Introduction

Corporate Governance Structure

management matters such as our corporate vision,
management policies, medium-term business strategies andmajor investments.
Toyota Industries has a divisional organization system,with significant authority delegated to each businessdivision. For especially crucial matters, however, we haveestablished the Business Operation Committee to enable
the president to meet with the heads of each businessdivision regularly to monitor and follow the status of theirbusiness execution. At meetings of the Management
Council, directors, audit & supervisory board members andsenior executive officers convene to report and confirm themonthly status of business operations and share overall
deliberations at Board of Directors meetings and othermanagement-related information.
In addition, issues pertaining to human resources,quality, production, procurement and technologies are
discussed at the corresponding functional meetings. We
have also put in place committees to deliberate on more
specific matters, such as corporate social responsibility(CSR), the environment and export transaction controls.
These functional meetings and committees discuss
important matters and action themes in respective areas.
Moreover, we strive to maintain and improve internal
controls by establishing the Audit Department andconducting internal audits of Toyota Industries’ businessdivisions and departments as well as our subsidiaries.

45

Corporate Governanceand efficiency of management through collaboration withindependent auditors and the Audit Department.
Initiatives for Enhancing Corporate GovernanceWe believe that compliance means both adhering to laws
and regulations as well as ethics and social norms. In orderto ensure compliance, it is vital to instill an awareness ofcompliance in each and every employee.
Under the strong leadership of top management, we
promote compliance throughout the Toyota Industries
Group by formulating a Code of Conduct and thoroughly
informing employees together with checking and monitoring
compliance.

Declaration by the president
Compliance Subcommittee

2 Formulating Rules

Employee Code of Conduct
Internal rules

Informing
3 Thoroughly
Manuals
Employees

Education on relevant laws and regulations

and4 Checking
Monitoring

Establishment and Reinforcement of
Implementation Organization
To promote compliance throughout the Toyota Industries
Group, we have established the Compliance Subcommittee(led by the head of the Corporate Headquarters) as asubordinate organization to the CSR Committee. Every year,
the subcommittee formulates an action plan and conducts afollow-up check on the progress of corresponding activities
twice during that year.
Organization for Promoting Compliance

Activity reports

Toyota Industries Report 2019

As for antitrust laws, in fiscal 2019 we reviewed ourantitrust law compliance structure, including an emergency
response structure and related regulations. Additionally,
we continue to operate a system to conduct a check andreview before and after employees of Toyota Industries
contact competitors and conduct enlightenment activities
during our antitrust law compliance month. In this way, we
aim to ensure thorough compliance with antitrust laws.

Thoroughly Informing Employees about Applicable
Laws and Regulations

Departments in charge of legal compliance: 11
Supporting department: 1

Internal Control Audit Report

Audit on internal controls by independent auditors

Educational material on bribery
prevention in English

Action plans

Compliance Subcommittee

Toyota Industries
Corporation

Educational material on bribery
prevention in Japanese

Consolidated subsidiaries
in Japan

Consolidated subsidiaries
outside Japan

Compliance committees

Compliance officers

Toyota Industries provides required legal knowledge toemployees according to their job ranks or positions,familiarizing them with the initial responses that should be
followed upon the occurrence of a problem and educatingthem on risk management. To increase complianceawareness, we also provide guidance on the Toyota
Industries Corporation Employee Code of Conduct throughnew employee education, rank-based education andworkplace meetings.
We have created and disseminated e-learning material
on one specific topic every month in order to cultivate adeeper understanding of compliance among employees

Management of confidential information; Import controls;
Prevention of misconduct; Safe and correct use of ladders andstepladders; Basics of contracts; Clear communication; Basics
of quality; Points to be noted when making money transfers orbank transfers; Commuting accidents; Blocking relationships
with antisocial forces

Early Detection and Prevention of Issues via
Compliance Hotline
The Toyota Industries Group has in place a whistle-blower
system for employees and their families (including suppliersin Japan) to report and seek consultation on compliancerelated issues. In Japan, North America, Europe and China,
in particular, we operate a compliance hotline (external
helpline) that allows employees and their families to seek
advice from external experts on compliance-related matterswithout being exposed to negative consequences. In fiscal
2019, we received 86 reports and inquiries from within
Toyota Industries and from its consolidated subsidiaries
in Japan on such matters as labor management, working
environment and ethics. After verifying each report andinquiry, we have taken appropriate action regarding eachcase. Our responses have been reviewed and judged
appropriate by external lawyers.
Through these initiatives, we ensure the early discovery
and prevention of issues and intend to become a “company
on which society places greater trust.”

Activities in the Toyota Industries Group Each company of the Toyota Industries Group has set
up a compliance committee (in Japan) and appointed acompliance officer (outside Japan) in an effort to promoteautonomous activities in respective communities incollaboration with the Compliance Subcommittee. In fiscal
2019, we continued to carry out activities in line with local
needs.

Financial Section /Corporate Information

CSR Committee

Annual financial report

Internal Control Report46

CSR self-assessment
Audit

Example Topics of e-Learning Materials in Fiscal 2019

Promotion of ESG Initiatives

Internal Control Assessment System (Based on J-SOX)

1 Leadership/
Organization

Toyota Industries has formulated and distributed to
executives and all employees the Toyota Industries
Corporation Employee Code of Conduct, which serves asconduct guidelines that should be observed by employees.
Consolidated subsidiaries in and outside Japan (31 in Japanand 79 outside Japan) have formulated their own Codeof Conduct appropriate to their respective business lines
and corporate cultures and have been working to instill anawareness among their employees.
Simultaneously, to prevent significant risks of bribery
and violations of antitrust laws, in addition to the Code of
Conduct we have formulated corresponding regulations
and been undertaking activities to familiarize employeeswith these regulations. Regarding bribery, Toyota Industries
formulated the Global Guidelines for Bribery Prevention.
Particularly, in countries with a high risk of bribery, eachcompany has developed internal rules in accordancewith the applicable laws in respective countries and been
conducting activities to familiarize employees with them. In
fiscal 2019, to support bribery prevention education at ourconsolidated subsidiaries in and outside Japan, we createda video in Japanese, English, Chinese, Spanish, Portuguese,Indonesian, Vietnamese and Thai.

of Toyota Industries Corporation and our consolidated
subsidiaries in Japan and to create an environment in which
employees foster compliance consciousness on their own.
In fiscal 2019, we invited external lawyers to holdexecutive legal seminars on “points to be noted in relation
with labor issues (work style reforms, various forms ofharassment, etc.)” for directors, managing officers and audit& supervisory board members.

Strategies and Businesses

In accordance with the Companies Act, in May 2006 Toyota
Industries’ Board of Directors adopted the Basic Policies
for the Establishment of an Internal Control System (Basic
Policies) to ensure compliance, risk management as well as
the effectiveness and efficiency of business operations by
incorporating these policies into each business segment’s
annual policies and day-to-day routine management. The
CSR Committee, at its meeting held in March, assesses the
progress made in implementing the Basic Policies in theyear under review and determines actions for the coming
year, including reviewing the implementation structure andenhancing day-to-day operational management.
Furthermore, based on the Financial Instruments andExchange Law (so-called Japanese Sarbanes-Oxley Act(J-SOX)), we have established and appropriately operated
an internal control system to maintain the reliability offinancial reporting. The system’s status and progress
are reviewed by the Audit Department and audited byindependent auditors. We determine which Toyota Industries
Group companies fall within the scope of J-SOX based on
the degree of impact on the reliability of financial reporting.
We determined that our internal controls over financial
reporting as of the end of fiscal 2019 were effective, andaccordingly, submitted an Internal Control Report in June
2019. The report was reviewed by independent auditors andjudged fair in their Internal Control Audit Report.

Review of internal
Improvement of Detection ofcontrols byinternal controls deficiencies Audit Department

Basic Elements of Compliance Activities

Basic Elements of Compliance Activities

Internal Control System

Internal control activities undertaken by eachdepartment and consolidated subsidiary(Establishment and operation of internal controls)

Formulation of Code of Conduct and Dissemination

Company Introduction

1971 Introduced a divisional organization system
2006 Reduced the number of directors (from 30 to 17)
2006 Introduced a managing officer system
2010 Appointed independent members of management
2016 Reduced the number of directors (from 17 to 11)2017	Conducted an evaluation of the effectiveness of the Boardof Directors
2019	Revised executive management structure and reduced thenumber and rank of executives

Compliance

Activities in North America We held the Compliance Officer Conference in North
America with the participation of compliance officers from19 companies. Topics included cases that provide good
examples of our response to reports made by whistleblowers, response to the leakage of confidential information
and reaffirming the need to comply with antitrust laws. Afterthe conference, these 19 companies have been conducting
activities in a mutually coordinated manner.

47

Corporate Governance

Activities in Europe 
In Europe, we held the Compliance Conference withfour major companies, including Vanderlande Industries
Holding B.V., which became a subsidiary in fiscal 2018, toincrease related knowledge and responsiveness by sharing
compliance activities of each company and carrying out
case studies of initial response to an emergency. As a tool
to support compliance officers, we have developed anddistributed a new checklist to evaluate the progress incompliance activities and encourage improvements.

Activities in Asia, Oceania and South America In fiscal 2019, we reaffirmed with compliance officers ofeight companies in Asia the roles and abilities requiredof compliance officers. We strive to raise complianceawareness of employees and deepen their understanding
regarding bribery prevention and response to reports madeby whistle-blowers.
In India, we held the Compliance Officer Conference withthree companies in India to share the progress of and issues
in compliance promotion activities of each company anddiscuss future activities.

Management of Confidential Information
Basic Perspective

Activity Examples

Activities up to fiscal 2018
Compliance Committees (in Japan) and Compliance Ofﬁcers (outside Japan) (As of March 31, 2019)38 companies

Compliance officer
in China (TIMC)

Andreas Lundh

Zhu Lingling

North America:

China:

21 companies

7 companies

Compliance officer
in North America(TINA)

Sheena Seger

Japan:

31 companies
Compliance officer
in Indonesia (TACI)

Raharjo Hardiyanto

New activities in fiscal 2019

Asia, Oceania and South America:

13 companies

TINA: Toyota Industries North America, Inc.
TMHE: Toyota Material Handling Europe AB
TIMC: Toyota Industries Management (China) Co., Ltd.
TACI: P.T. TD Automotive Compressor Indonesia

48

Toyota Industries Report 2019

• Checking the status of confidential information management at
Purchasing departments• Strengthening the security of production bases• Extending the target group of participants
for incident/accident response training
from the General Administration
Departments of the Head Office andeach plant and Engineering, Production
Engineering and Purchasing departments
to Planning and Sales departments
Incident/accident response training
within each business division, etc.

Basic Perspective
Based on the Basic Policies for the Establishment of anInternal Control System in compliance with the Companies
Act, Toyota Industries is working to strengthen regulations
and a structure to promote risk management. We regard
the following aspects as the basics of risk management andimplement initiatives accordingly.
(1)	Incorporating measures to prevent and reduce
potential risks into daily routines and following up on
the progress of implementation(2)	Ensuring quick and precise actions to minimize theimpact on business and society when a risk becomesapparent

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, personnel, exporttransactions, disasters and information security. Progress is
assessed and followed up by each functional management
entity such as the CSR Committee and the Environmental
Committee. At the same time, functional departments atthe Head Office such as those responsible for quality, safety
and the environment formulate rules and regulations andcreate manuals from a Group-wide perspective, including
consolidated subsidiaries. By confirming and following up
on the progress through operational audits and workplaceinspections, they provide support for raising the level of risk
management at each business division and consolidated
subsidiary.
We have also formulated the Crisis Response Manual,
which defines our initial response to a problem or a crisis.
This manual lays out basic rules to be followed when a risk
becomes evident and a problem or crisis occurs. The aim isto ensure quick reporting to top management, perform an
accurate assessment of the impact on society and businessactivities and minimize damage through appropriate actions.
The content is reviewed and revised as deemed necessary
in response to changes in businesses and the surrounding
environment.

Financial Section /Corporate Information

Europe:Compliance officer
in Europe (TMHE)

Activities by Toyota Industries• Rank-based group education• Restrictions on taking photographs on company premises• Attaching a security cable with a lock to all PCs to prevent
unauthorized removal off the premises• Restricting the copying of electronic data on recording media• Monitoring of email correspondence• Requiring employees to sign a confidentiality agreement uponretirement• Verifying the status of confidential information management at
Engineering and Production Engineering departments• Providing training on response to targeted attacks through e-mailActivities in collaboration with other Toyota Group companies• “Information Security Awareness Month” activities in May andOctober to raise employee awareness and conduct auditing by
checking off-the-premises removal of PCs and recording media, etc.

Risk Management

Promotion of ESG Initiatives

Compliance Officer Conference in China

We recognize that the personal information of customers,
employees and business partners as well as information
concerning our technologies and sales activities are assetsthat need to be protected. Accordingly, we are making ourutmost efforts to safeguard confidential information andstrengthen its management as one of the CSR areas.

*1: Head of each department*2: A person within the department, appointed by the head

Strategies and Businesses

Compliance Officer Conference in India

Toyota Industries has set up the Information Security
Subcommittee (led by an executive in charge of the General
Administration Department) as a subordinate organization
to the CSR Committee to promote proper management ofconfidential information, taking appropriate actions against
the risk of leakage of confidential information and complying
with laws such as the Unfair Competition Prevention Act andthe Act on the Protection of Personal Information.
To thoroughly implement the initiatives adopted by thesubcommittee, we appoint information security managers*1
and information security administrators*2 at eachdepartment. We strive to raise awareness about information
security among their staff by holding workplace meetingsand conducting self-checks regarding their information
security practices.
In fiscal 2019, to counter risk for leakage of confidential
information we implemented the following initiatives.
(1)	Verify the status of confidential information
management at each workplace		On-site inspection at and improvement guidance toPurchasing as well as Engineering and Production
Engineering departments(2)	Strengthen the security of production bases
		Enlightenment activities to prepare for cyber attacks
against our production bases and implementation ofrequired measures at production lines
Our consolidated subsidiaries in and outside Japan
also appoint respective information security managers
and information security administrators. We have also
developed common guidelines concerning management ofconfidential information, which have been distributed among

these subsidiaries, and follow up on their activities on aperiodic basis in our efforts to raise the level of confidential
information management throughout the Toyota Industries
Group.

Company Introduction

Activities in China 
In China, compliance officers from 10 companies attended
the Compliance Officer Conference. Through the creationand dissemination of educational materials for use at allbases in China as well as by comparing and re-examining
the rules of each company, we work to raise complianceawareness of employees and formulate and improve
appropriate rules on an ongoing basis.

Implementation Structure

Response to Possible Major Earthquake
We consider the impact of a major earthquake as one of
the most significant risks and have accordingly formulated
a business continuity plan. Based on the three basic
policies of placing maximum priority on human life, placing

49

Relationship with
Our Stakeholders

Corporate Governance

top priority on the recovery of local communities andensuring the quickest possible recovery, we are making
Company-wide efforts in three relevant areas, specifically,“precautionary, pre-disaster mitigation,” “initial response tobe followed immediately after the disaster” and “restorationof production.”collect information on damages to both inside and outside
the company premises, swiftly make decisions anddisseminate these decisions throughout Toyota Industries.
We are setting up a system to ensure prompt responseeven during nighttime or on a weekend or holiday by
selecting members from the functional departments who live
close to the Head Office.

Disaster Prevention Response Headquarters (Established in Kariya Plant)

e-Lab (information
systems headquarters)

Remote Sites

Educational Sites

Affiliated Companies

Company dormitories
Company resort
facilities

Suppliers

Adhering to a quality first approach, Toyota Industries practices monozukuri (manufacturing) that quickly responds tothe diverse, ever-changing needs of customers.

Collecting information from external sources

2. Training at Plant Response Headquarters
In fiscal 2019, we focused on practical training by using
predetermined procedures and forms and provided
appropriate training to the head (plant manager) andmembers of each Plant Response Headquarters. By
conducting training repeatedly, we intend to create astructure under which every member understands his or herrole and responds to the situation flexibly.

Efforts to Cultivate Personnel to Engage in Disaster
Prevention Activities
1. Training at Disaster Prevention Response
Headquarters
As one important role assigned to the Disaster Prevention
Response Headquarters that oversees Company-wide
disaster response, we conduct training in which employees

Toyota Industries Report 2019

4. Training for Identifying Disaster Damage
We repeatedly conduct drills jointly with our affiliatedcompanies and business partners in order to familiarize
them with the use of IT tools to quickly identify the damage
status during a disaster.

Types of Quality Sought by Toyota Industries

Quality levels that
customers truly
expectProduct quality●Safety●Eco-friendliness●Durability●Ease of use

Designquality●Brand strength●Corporate image●Sales●Service●Logistics●Workmanship

Manufacturing capabilities“Every one of us should fulfill the roles
assigned to us and deliver our best
quality products to customers.”
Under our “Customer First” philosophy, Toyota Industries
undertakes product development that meets customer
expectations by capturing market needs and understanding
how our products are actually used by customers.
At Toyota Industries, development of a new productentails defining specific goals to incorporate quality in every
stage from product planning and design to production

preparation, production, sales and after-sales services. We
perform a design review (DR), which allows a product toproceed to the next stage only when a responsible businessdivision head examines and approves whether the producthas reached the target quality level.

Quality Assurance Activities Based on
the Quality Guidelines
Quality forms the basis of our operations. As such, weformulated our Quality Vision, which defines our philosophy
in ensuring quality.
Quality Vision
Each and every member of the Toyota Industries Groupmakes sure to build in quality with ownership (Jikotei
Kanketsu) at their own workplaces and positions to supply
appealing products/services that exceed the expectationsof customers around the world with safe and reliable quality.

To achieve the goal of this vision, we issue the Quality
Guidelines, which identify priority quality-related issues tobe implemented in each fiscal year, to all production basesin and outside Japan and engage in quality assurance
activities accordingly. The implementation status of theseguidelines is reviewed by top management at the Quality
Functional Meeting chaired by the head of the Production
Headquarters*1 for identifying additional issues anddevising countermeasures. Issues raised are followed up at
meetings of the Company-wide Council of Heads of Quality
Assurance Departments chaired by the head of the Quality
Control Department*1. The Company-wide Council for
Quality Improvement, also chaired by the head of the Quality
Control Department*1, takes up issues in and addresses the
Quality Assurance Activities Based on the Quality Guidelines
Checking and identifying issues of Company-wide quality
status and progress in implementing the guidelines

Implementing Company-wide
guidelines

Quality Functional Meeting

Company-wide Council ofHeads of Quality
Assurance Departments

Financial Section /Corporate Information

Starting from fiscal 2017, we have been undertaking
enlightenment activities for employees and their families as ameasure to promote disaster prevention and avoid disasterinflicted damage at home. Specifically, we encourage themto take three actions: preventing the overturning of furnitureand securing an evacuation route; deciding how to contact
and where to meet with family members in a disaster; andstockpiling emergency goods, food and other necessities.
Up until fiscal 2018, our activities had targeted personnel
in charge of promoting disaster prevention and members of
initial response and production restoration teams. The scope
was extended to all employees in fiscal 2019.

3. Training Tailored to the Plant Environmenta) Power Restoration Drill
		Based on the procedures to restore power supplies,
including electricity and gas, which are essential inrestoring production activities, each plant conducts
genchi genbutsu (go and see for yourself) training on aperiodic basis. Through the training, we are identifying
problems and making improvements to step up ourefforts to ensure quick restoration activities.
b) System Restoration Drill		The e-Lab, responsible for managing Toyota Industries’
data servers, has created procedures to restore critical
data after a disaster. We conduct restoration drills
jointly with Toyota Industries IT Solutions, Incorporated,a consolidated subsidiary engaged in development
and operation of information infrastructures andsystems, and work to improve our readiness for quick
restoration.

Carrying on the spirit of founder Sakichi Toyoda, Toyota
Industries strongly believes that quality is the lifebloodof a company. Focusing on quality first and ensuring
customer safety and reassurance are our most important
responsibilities to our customers and form the basis of ourapproach to CSR.
Toyota Industries strives to maintain and improve thetotal quality of our corporate activities, which encompasses
not only “product quality” but also “marketing quality” and“management quality.” “Product quality” is embodied in
the safety, eco-friendliness, durability, ease of use andworkmanship of our products, while “marketing quality”
entails excellent sales and service in addition to these
attributes and “management quality” further enhances ouroverall corporate image and brand strength in terms of all ofthese attributes.

ent
em
nag
it y
g
Ma lity
ual
q
turin
qua
ufac
ting
Man lity
r ke
Ma
qua

Promoting Disaster Prevention at Home andRelated Enlightenment Activities

Confirming initial response actions“A product should never be sold unlessit has been carefully manufactured andfully tested in the commercial trial, withcompletely satisfactory results.”

Promotion of ESG Initiatives

Tokyo Office
Toyota L&F Customer
Center Tokyo
Toyota L&F Customer
Center Osaka
TMHG Training Center(Handa)Analyzing damage information

50

Reviewing policies on resumption ofoperations and how to return home

Strategies and Businesses

Disaster Prevention Structure

Kariya Plant
Obu Plant
Kyowa Plant
Nagakusa Plant &Morioka Works
Takahama Plant
Hekinan Plant
Higashichita Plant
Higashiura Plant
Anjo Plant

P51–52
P53
P54
P55–58
P59–60Company Introduction

We strive to reinforce our disaster prevention structure toenable a smooth transition from the initial response stage tothe production restoration stage.
The Disaster Prevention Response Headquarters,
led by the central general safety and health supervisor
and consisting of representatives from the functional
departments at the Head Office, is responsible for collecting
information from plants and other relevant parties andmaking Company-wide decisions based on the informationcollected.

Key Facility

Relationship with Our Customers
Relationship with Our Business Partners
Relationship with Our Shareholders and Investors
Relationship with Our Associates
Relationship with Our Local Communities

Relationship with Our Customers

Disaster Prevention Structure

Plant Response
Headquarters

Relationship with Our
Stakeholders

Quality Vision
Quality roadmap
Company-wide
Council for Quality
Improvement

A

P

PDCA*2cycle

DQuality Guidelines

C

Quality assurance activities at all bases in and outside Japan
Quality Guideline 1
Product development

Quality Guideline 2
Prevention of occurrence
and recurrence

Quality Guideline 3
Quality assurance atbusiness partners

Quality Guideline 4
Human resources/
workplace development51