Corporate Social Responsibility
50
52
54
56

Responsibility to Our Customers
Responsibility to Our Business Partners
Responsibility to Our Associates
Responsibility to Our Local Communities

Toyota Industries Report 200849

Corporate Social Responsibility

Responsibility to Our Customers

Placing Top Priority on Maintaining and Improving Quality
Quality is a Key Management Issue Diagram 1
Carrying on the spirit of the teachings of Toyota Industries’ founder
Sakichi Toyoda that “A product should never be sold unless it has
been carefully manufactured and has been tested thoroughly andsatisfactorily,” Toyota Industries believes quality is its lifeline and a key
management issue. Maintaining and improving quality is our mostimportant responsibility to our customers and forms the basis of ourcorporate social responsibilities.
Toyota Industries encourages all employees to be an active
part of its efforts to maintain and improve quality in all areas of its
corporate activities, most notably “product quality,” “marketing
quality” and “total quality.” “Product quality” is embodied in the
durability, safety and eco-friendliness of our products, “marketing
quality” in excellent sales and service and “total quality” in our overall
corporate image and brand strength.

Types of Quality Sought by Toyota Industries
Diagram 1

Quality levels that
customers truly expect

Total
quality

Marketingquality

Manufacturing
quality
Designquality● Sales● Eco-friendliness ●Workmanship ● Service●Durability ● Safety● Brandstrength● Corporate
image, etc.

Product quality
Brand identity

Establishing Daily Quality Assurance Systems
Diagram 2

Developing and providing products from the customer’s viewpointsummarizes Toyota Industries’ comprehensive “market-in” approach.
In all processes, predetermined procedures are carried out
according to instructions in order to ensure that no defective products
are sent to post-processes and thereby achieve manufacturing
through self-conclusion of the process. We believe this is the basis
for ensuring high-quality products.
Whenever any of Toyota Industries’ business divisions develops
a new product, a design review (DR) system is utilized to evaluate
quality at all stages until customer satisfaction is realized. This
ensures that no product progresses to the next stage unlessestablished target levels have been achieved.
Once new products are launched and important customer
information reaches the quality assurance departments of eachbusiness division, it is immediately fed back to the responsible
department (such as design and manufacturing) to quickly devise

50

Toyota Industries Report 2008

countermeasures. At the same time, the DR system is reviewed toprevent the recurrence of any problems in subsequent models.
While making sure to undertake all measures to prevent defective
products from proceeding to the next stage of the production process
or leaving the factory, we also proactively tackle quality improvements
throughout five stages, starting from cleanliness and neatness.
As part of such efforts, in 2006 we initiated a new “Thank-youfor-finding-the-defect award.” This honor recognizes workers who
sensed something unusual or different in their work and thereby
detected a defect in the early stages, along with their superiors who
took the necessary actions to help solve the problem.

Improving Quality throughout the Global
Supply Chain by Reflecting Customer
Opinions
In manufacturing, Toyota Industries devotes enormous efforts to
the research and development of new functions, endeavoring todevelop products that are ahead of the times. Using the DR system,
general managers of each business division evaluate every step of the
production process from product planning and design to production
preparations, production, initial quality and customer satisfaction levels.
For example, in the Textile Machinery Business, when we deliver
new machines to textile manufacturers in various parts of the world,
we ask them to evaluate the product. These comments are in turnutilized in the development of new products and the improvement of
our after-sales service.
In the Materials Handling Equipment Business, in which
distributors and dealers handle sales and after-sales service, we
attempt to ensure that customers can use our products in an
excellent condition without any inconveniences. Distributors anddealers work together to optimize their response to customers while
Toyota Industries directly interfaces with customers through customer
consultation desks. Sales staff at distributors, dealers and Toyota
Industries also visit customers to conduct actual usage fact-finding
surveys.
Individual comments and requests received from customers inthis way are promptly fed back to the relevant department, such as
design, and a response is subsequently provided to the customer
through dealers.
As a company that supplies products to the global market, we
believe that customer confidence in our quality is synonymous with
the Toyota Industries brand, a precious element of our corporate
value that must be preserved. We therefore aim to continue
implementing quality assurance activities that encompass our entire
global supply chain, including affiliates and business partners inJapan and overseas.

Dealing with Significant Quality Issues
In cases where serious quality issues arise, such as accidents that
result in personal injury or property damage due to quality, the quality
assurance department of the responsible business division must,in accordance with our Rules for Dealing with Significant Quality
Issues, minimize the trouble to customers by promptly devisingcountermeasures; at the same time, the general manager of thebusiness division must report the issue to the president and theexecutive vice president in charge of quality. In addition, based on
information provided to the Global Quality Control Department at
the head office through the Significant Quality Issues Notification
Form, the director in charge of quality will carry out quality audits as
deemed necessary to prevent recurrence and ensure deployment ofcountermeasures in similar areas.

Distributing Quality Guidelines
Reflecting on the previous year’s quality-related issues andidentifying important quality improvements for the coming fiscal
year, the president issues the Quality Guidelines to the entire Toyota
Industries Group at the beginning of each fiscal year. At each of the

Quality Assurance and Quality Control Structurebusiness divisions, the executive vice president in charge of quality
confirms the implementation of the guidelines through the Quality
Functional Committee, including on-site quality inspections. In orderto sufficiently raise customer satisfaction, during fiscal 2008 we went
back to the basics of our customer-first activities and identified andreviewed each business division’s and department’s shortcomings
relative to the Quality Guidelines.
Toyota Industries remains committed to undertaking any andall measures to achieve “zero inconvenience” to our customers. We
will continue to promote quality assurance activities through selfconclusion of the process to ensure there is no outflow of defects
from respective processes.

Diagram 2

Product Development

Head Office

Production

Individual Divisions and Departments
Quality enhancement steps during the
manufacturing process

Nine Design Reviews (DR)Inspecting

President

DR0

Commercial productplanning review

DR1

Product planning review

DR2

Prototype design review

DR3

Pilot production review

DR4

Production design review

DR5

Production preparation
review

DR6

Mass production review

DR7

Initial production review

DR8

Customer satisfaction
review

High

ReportingDirectives

Reporting

Reports on
items coveredby theRegulations for
Dealing with
Significant
Quality Issues

Review DR system andimprove processassurance levels

Defectprevention
activities
Self5
conclusionof respective
Raise
processes
process
assurance Measures to deallevelswith problem origins;
4
prevent outflow of
defective products
Process
manage- ・Check sheets andcontrol charts
3 ment・Automation
Streamline
・Managing change points
standards
andStandardization, work
manuals
procedure instruction
2
sheets1

Cleanliness
Neatness

5S (2S+3S)

Prevent
outflow of
defective
items(inspections)Issues to be addressed at
the mass production stage
Issues to be addressed
regarding the system

Global Quality
Control
Department

Next
product
development

Individual
department reviews

Issues to be addressed at
the new productdevelopment stage

Move onto thedevelopment of
next
products

Auditing

Quality assurance departments in business divisions
Reporting

Replies and responses

Customer information (requests, opinions, etc.)

Customers

Toyota Industries Report 200851

Corporate Social Responsibility

Responsibility to Our Business Partners

Aiming for Co-Existence and Co-Prosperity
with Business Partners
Procuring Parts, Materials and Equipmentfrom around the World through Fair Trading
Practices
Toyota Industries procures parts, materials and equipment in a varietyof areas from business partners all over the world. We work toward
the realization of co-existence and co-prosperity with our business
partners from a long-term perspective. Through fair trading practices,we purchase high-quality products at lower costs while cooperatingwith our business partners in responding to environmental
conservation and other social demands.

Procurement Policy
Fair Competition Based on an Open-Door Policy
We have an open and fair entry process that allows all potential
suppliers, regardless of nationality, size and experience, the same
opportunity to offer us their products or services. We select ourbusiness partners based on economic reasons such as the quality,
price and volume of their products, as well as on their adherence
to delivery times. In addition, we also comprehensively consider
such matters as environmental awareness, company stability andtechnological development ability.

Amicable Relationship of Mutual Benefit Based on
Mutual Trust
At Toyota Industries Corporation, we work hard to realize an amicable
relation of mutual benefit with our suppliers based on mutual trust.
We also believe that it is important to promote friendly communication
with our suppliers by means of our procurement activities.

Environmentally Friendly Products Based on “Green
Procurement”
In order to create environmentally friendly products, we aim to
procure parts, materials and equipment that have low environmental
impact from suppliers that always give sufficient consideration to theenvironment.

Localization of Business Based on Good Corporate
CitizenshipAs a company that undertakes local production overseas, we
promote procurement from local suppliers in order to contribute to
the local community.

in order to explain annual procurement policies and to gain theirunderstanding and cooperation with our efforts.
We also hold topic-based meetings for important matters related
to corporate social responsibilities so that our business partners
can share information on our respective needs and reinforce ourrelationships with them.

Offering Business Opportunities to SuppliersWorldwide
Toyota Industries offers open procurement opportunities tosuppliers worldwide through its Website to achieve broad andopen procurement. To ensure fairness and equity, we publicly makeavailable our standard procurement procedures from marketing to
the conclusion of contracts so that suppliers clearly understandthis process. To apply, potential suppliers must register the statusof their environmental certifications, such as ISO 14001, as well asother basic information that includes the scale of their business andfinancial results.

Compliance with Subcontracting Act
Toyota Industries stresses compliance with the Act against Delayin Payment of Subcontract Proceeds, etc., to Subcontractors(hereinafter Subcontracting Act) in its commitment to fair trading
practices. As of March 2008, some 800 suppliers are covered by
the Subcontracting Act among our approximately 1,300 suppliers
worldwide.
In fiscal 2008, the Purchasing Department, which is responsible
for ensuring compliance with the Subcontracting Act, held 43
in-house training seminars regarding this act, training a total of
2,650 employees involved in procurement in their respective
business divisions. The department also publishes a monthly“News Concerning Subcontracting Act” newsletter via the Intranet
in its efforts to keep employees up-to-date regarding legislative
amendments and important notices.
Since fiscal 2006, Toyota Industries has been providing a hotline
to handle complaints and consultations from business partners
regarding the Subcontracting Act. Such efforts in turn provide aplatform for maintaining mutual trust and improving our procurement
activities.
Although the hotline is placed within the Purchasing Department,
fairness is maintained by having impartial personnel who are notresponsible for business transactions in charge of the hotline.

Compliance with the Law
It is Toyota Industries’ policy to strictly abide by both the letter andspirit of laws and regulations and to also carefully handle and protect
our partner’s confidential corporate information.

Conducting Procurement Policy Explanatory
Meetings
Toyota Industries strives to communicate with business partners invarious forms in its efforts to enhance mutual trust. For example,
we hold procurement policy meetings for major business partners

52

Toyota Industries Report 2008

Supporting Business Partner Reforms
Toyota Industries supports business partners’ efforts to improvetheir management platform in order to consistently procure better
products. For Hoeikai, which is comprised of 65 business partners
working with Toyota Industries, we proactively support quality andcost improvements, safety and health management as well as
environmental conservation.
In fiscal 2008, a total of 904 people attended quality training
programs held for our business partners on 30 occasions. In addition

to providing guidance and cooperation directed toward improving
manufacturing processes at business partners’ production sites
on 51 occasions, we also held a Safety, Health and Environment
Convention. Furthermore, we encourage major business partners toenroll in the TPS dojo* to facilitate the development and strengtheningof personnel well-versed in the Toyota Production System (TPS). In
fiscal 2008, we accepted six people from five business partners.
* TPS dojo: A training program established in January 2000 for workers to experience
for themselves a basic education in the Toyota Production System (TPS) as a means ofdeveloping “thoughts and actions” and acquiring kaizen (continuous improvement) skills.

Promoting Environmentally Friendly
Procurement
Based on our Green Procurement Guidelines, we promote
procurement of products with minimal environmental loads frombusiness partners with an established environmental management
system.
We make it a rule for parts and raw materials suppliers to acquire
external certification on their environmental management systems
such as ISO 14001.
In order to adhere to regulations regarding the use of substancesof concern, we require the suspension and reduction of use as wellas the management of usage of these substances if they are included
in our products or manufacturing processes.
In March 2005, we held an Environmental Response Meetingfor almost all our business partners in seeking to establish amanagement system for substances of concern. Follow-throughToyota Industries’ Substances ofConcern Management System

Supporting Compliance at Suppliers
In response to growing demand for greater corporate social
responsibility, Toyota Industries requires all business partners to fullycomply with laws and regulations.
In April 2007, we held a Procurement Policy Explanatory Meeting,in which we presented a summary of related laws and regulations
and requested full compliance. We also held a total of four study
sessions on various laws and regulations in an effort to help raise thelevel of knowledge and compliance awareness among our business
partners. We plan to continue these programs according to aprearranged annual schedule.

TopicsHolding Compliance Seminars for Major
Business Partners

Company-Wide Regulation

Products

Production

Research &Development Center

Plant Engineering &Environment Department

Each business division
Engineering Department / Production
Engineering Department

Technology

efforts are being carried out with regard to setting specific targets.
Our 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 thesubstances contained in parts. Before purchasing products that will
become a component of Toyota Industries’ products, the informationin these reports is confirmed by the quality assurance departmentsof each business division. For products that will be used in our
manufacturing processes, confirmation is carried out by the Plant
Engineering & Environment Department before purchasing.
In addition, we visit our business partners’ production plants
as deemed necessary in order to carry out process inspections.
Furthermore, in an effort to strengthen management of substances ofconcern, analysis equipment was introduced in fiscal 2005 to carryout random inspections of supplied products.

Specifications

On October 18 and 25, 2007, Toyota Industries heldcompliance seminars for major business partners. We
provided detailed and updated interpretations regarding thespirit of the law and compliance requirements in the areas ofhealth and safety administration, environmental conservation,
labor management, contracts, the Subcontracting Act andthe management of classified materials, and requested fullcompliance.

Confirmation of results

Procurement

Confirmation

Purchasing Department at
Head Office (materials andoils)
Purchasing departments ateach business division(parts)

Products: Quality assurance
departments at eachbusiness division
Production: Plant
Engineering & Environment
Department
Confirmationof results

Green Procurement
Guidelines andspecifications

Procurement

Audit

Non-use declaration ofprohibited substances
Data on substances of concern

Business Partners

Toyota Industries Report 200853

Corporate Social Responsibility

Responsibility to Our Associates

Maintaining Workplaces Where Associates Can Work
Actively and Safely
Ensuring Occupational Health and Safety

Initiatives for Realizing “Zero Danger”
In accordance with our fundamental policy of “creating workplaces
and people capable of autonomously maintaining occupational healthand safety,” Toyota Industries strives to prevent industrial accidents
and realize safe work environments to achieve “improvement fromzero accidents to zero danger.”In fiscal 2008, activities in this area were carried out under threemajor policies, namely firmly establishing an occupational health andsafety management system (OHSMS) to enhance workplace strengths
while promoting activities to raise work ethics; pursuing equipment
safety; and promoting improvements in work environments.
Besides in operational departments, we are striving to establishOHSMS activities in administrative departments as well.
An analysis of the cause of industrial accidents revealed
numerous instances involving relatively inexperienced workers. To
address this issue, we carried out highly focused prevention activities,
which included preparing detailed work procedure manuals andundertaking work observations and interviews at worksites under the
principle of on-site checking.
In pursuing equipment safety, since 2005 a lockout* is being
fully introduced in an effort to thoroughly prevent industrial accidents
caused by the erroneous operation of machinery by others. We havefurther extended the lockout to outside subcontractors carrying
out work operations inside our plants, with the aim of preventing
industrial accidents by all workers at our plants.
Recognizing the importance of safety countermeasures andinstructions whenever we place orders for work performed byoutside subcontractors, we are making preparations to introduce a
qualification system for persons placing such orders, with introduction
scheduled for fiscal 2009.
* Lockout: This is a system where locks will be used to ensure that the shutdown state ofmachinery will be maintained once the power to that machine has been cut off. This willallow workers to protect themselves against being injured by incorrect operation of themachinery by other persons.

Frequency Rate

Severity Rate

1.50

0.12
1.01

1.01

0.07

0.07

0.55

0.55

0.55

0.11

0.17

0.07

Toyota Industries promotes a diversity of activities to help supportand maintain the health of our associates. In response to themedium-term task of promoting Company-wide health improvement
programs concerning risks associated with aging and greater stress,
we have implemented a variety of measures to prevent lifestylediseases. Efforts include providing health guidance for persons withmetabolic syndrome from fiscal 2008, as well as holding age-based,
one-day health education courses targeting all associates aged 30,
35, 40, 45, 50, 55 and 59.
Mental health care activities include strengthening self-care/linecare education and health consultation hotlines as well as introducing
a preparatory work system, which allows associates to work half days.

Principal Health Improvement and Mental Health Care
Programs Implemented
Program

Details

Lifestyle disease
prevention

Introduce specific health examinations for metabolic
syndrome
Implement guidance on health maintenancefollowing specific health examinations
Provide age-based, one-day health education
courses

Job monitoring

Anticipatory management for proper job posting(restrictions on overseas travel, late-night workand overtime work)

0.08

Strengthening
support systems

Support a return to work through preparatory work
system0.04

06

ToyotaIndustries

07

08

Transport equipment
industry in Japan

0.002
0
(FY)

06

0.009

0.006

07

08

Manufacturingindustry in Japan

Frequency rate
Number of occupational injuries resulting in lost workdays ÷ Total working hours x 1,000,000(Value indicates the frequency of occurrence of occupational injuries per 1 million working hours.)
Severity rate
Workdays lost ÷ Total working hours x 1,000(Value indicates the severity of occupational injuries per 1,000 working hours.)

54

Health Management and Improvement

0.11

0.08

0.50

(FY)

0.09

In cooperation with the relevant internal departments, Toyota
Industries holds study sessions for our subsidiaries in Japan focused
mainly on compliance-related themes while carrying out periodic
on-site inspections and providing guidance. Additionally, we issue
reports on industrial accidents at subsidiaries, strengthen activities tooffer specific industrial accident countermeasures as well as conduct
on-site checking. By taking these measures, we are working to raiselevels of occupational health and safety.

1.02

1.00

0

0.09

Supporting the Improvement of Health and
Safety Activities at Subsidiaries

Toyota Industries Report 2008

Report on Explosion
On May 7, 2008, an explosion occurred at the Obu Plant,
claiming the life of one associate. To prevent a recurrence of suchan accident, we are investigating the cause of the explosion,
while identifying the causes of other hazardous incidents at all
workplaces and devising preventive countermeasures.

Human Resources

Enhancing Team Strength and Spirit
In order for each associate to be enthusiastic about their work, aswell as to ensure continued development of the Company, increasingteam strength (organizational power) is essential.
Team strength is comprised of technical skills, which serve as
the originating source of manufacturing; management skills, which
fully utilize technical skills; and teamwork, which supports the first
two techniques. While further enhancing our team strength, which
also serve as a strong asset of the Toyota Industries Group, we are
striving to extend and hand down team strength beyond businessdomains, generations and geographic regions.

At the International Skills Festival for All, Japan 2007, held in
November 2007, Koji Tsuchiya won the gold medal as Japan’s
representative in the mechanical device control category. Thereafter,
11 Toyota Industries associates participated in the National Skills
Competition in February 2008 and earned a total of seven medals,
including three gold medals.
Number of medals won at
National Skills Competition(Medals)

3

Gold

3

Silver1

Bronze3Technical Skills

Management Skills

Expertise,skills and know-how

Team
Strength

TPS, QC, SQC, etc.
Skills developed by identifying
problem areas and finding solutions
Management to unite a broad rangeof abilities

LeadershipTo pursue improvements thoroughly
until the final goal is achieved

Teamwork
Spirit of harmony
Well-rounded humanity

Associate Relations Built on Mutual Trust
Mutual trust between associates and management is one of thebasic principles of Toyota Industries in the area of associate relations.
In realizing this principle, we have established the Labor-Management
Council along with various types of meetings and numerous forums
for exchanging opinions as we work to nurture a vibrant corporate
culture. Additionally, we carry out audits to ascertain that this principle
has firmly taken root at overseas Group companies.

Human Resources Development
Cultivating Global LeadersWith approximately half of our associates working at Group
companies outside Japan, Toyota Industries is undertaking efforts
to develop human resources capable of playing globally activeroles that transcend national and regional boundaries. In working toachieve this objective, we began implementing Global Management
Training (GMT) for managers of overseas Group companies in2005. Moreover, in fiscal 2008, we commenced construction of the
Hazu Academy, a global learning center, in Hazu, Aichi Prefecture.
The academy will function as our base for developing truly global
leaders in Japan and overseas.

Improving Techniques and Skills
In January 2007, Toyota Industries established the Technical Learning
Center to nurture engineers possessing expertise and execution
capabilities as well as highly skilled technicians capable of handlingthe fundamentals of manufacturing.

1
(FY)

06

2
07

08

Gold medal winner Koji Tsuchiya

Ensuring Equal Opportunities and Respecting
Diversity
Toyota Industries is working to establish fair and impartial workplaces
where a diverse range of human resources can fully exercise theircapabilities. To realize such workplaces, we are implementing ahost of measures. This includes support that allows associates toachieve a balance between work and child care or nursing care;
employment and skills development support for the persons withdisabilities support for re-employment after mandatory retirement;
and opportunities that enable temporary associates to become
regular associates.

Supporting a Balance between Work and Child Care/
Nursing Care
Toyota Industries provides support for helping associates achievea balance between work and child care or nursing care. As a primeexample, in October 2007 Toyota Industries and four companies in
the Toyota Group jointly opened a day-care center for associates.
Situated in Kariya, Aichi Prefecture, the new center is open to preelementary school children. We have also publicized to all associates
the opinions of male associates who have taken child care leave.
In March 2008, we published a handbook to promote a deeper
understanding and use of various internal systems.

Support for the Employment and Skills Development of
Persons with Disabilities
Toyota Industries established an internal promotion team to facilitate
the employment of persons with disabilities. In fiscal 2008, theemployment rate of persons with disabilities was 1.93% (168people, non-consolidated basis). We are also actively promoting the
support of in-house skills development for persons with disabilities.
In February 2008, actual examples of these efforts were introduced
at the “60th Anniversary of the Universal Declaration of Human
Rights/22nd National Human Rights Enlightenment Workshop.”

Toyota Industries Report 200855

Corporate Social Responsibility

Responsibility to Our Local Communities

Co-Existing in Harmony with Local Communities
Toyota Industries carries out a broad range of social contribution
activities based on its Guiding Principles for Corporate Citizenship,with particular emphasis on social welfare, youth development andnature and environmental conservation. At the same time, we placehigh value on fostering good relations with local communities, making
efforts to promote close communications via regular meetings
with residents. Further, as a responsible corporate citizen, we also
vigorously participate in various activities, including cleanup, traffic
safety and crime-prevention activities.

Guiding Principles for Corporate Citizenship
Basic Philosophy
Toyota Industries is respectful of the people, culture and traditionsof each region and country in which it operates. We also work topromote economic growth and social development in these regions
and countries.

Basic Perspective
While striving to achieve sustainable growth as a company, we strive
to fulfill our role as a good corporate citizen and actively undertakesocial contribution activities in every community where Toyota
Industries does business in our efforts to help realize a prosperous
and healthy society.
To accomplish this, Toyota Industries actively promotes
cooperative support activities with the objective of contributing tolocal communities through the provision of human resources, facilities
and funds. Each of our employees also endeavors to be of service tothe community through such means as volunteer activities.

with local communities and enhancing internal education andenlightenment programs. We have also organized the Social
Contribution Subcommittee under the Corporate Code of Conduct
Committee, which is directly controlled by the president. This
subcommittee deliberates together with relevant departments on theformat and specific details of social contribution plans. In 1997, weestablished the Heartful Club as an internal volunteer organization
to encourage each employee to proactively participate in social
contribution activities. The Heartful Club is composed of volunteers
that include current and former employees of Toyota Industries andits subsidiaries as well as their families, and engages in a range ofactivities aimed at raising awareness of volunteerism and contributing
to social prosperity.

Breakdown of Social Contribution Activities in FY2008
Community activities/
social welfare/others 15%
International
exchange/cooperation 3%
Arts and culture 6%
Health andmedical science 8%852
million yen

Science and research 25%

Education/social education 43%

Social Contribution Promotion Structure
We established the Corporate Citizenship Office as a dedicatedorganization within the General Administration Department at
the Head Office. Through this office, we promote initiatives for
implementing voluntary programs, facilitating communications

Society
Local communities/NPOs/NGOs/
social welfare organizations

Corporate social contribution activities
Direct•Voluntary programs•Lending of facilities
and equipment•Dispatching employees•Donations

Indirect•Establishing and supporting
environments for volunteer
activities•Disseminating information on
volunteering•Implementing employee education

Social contribution
activities by each
employee

Corporate Citizenship Office, General Administration Department

Corporate Code of Conduct Committee/Social Contribution Subcommittee

56

Toyota Industries Report 2008

Volunteer Support CenterWe established the Volunteer Support Center in recognizing theimportance of each employee’s compassion to contribute to society.
The center serves as a base to facilitate participation in social
contribution activities by as many employees as possible. Anotherpurpose is to work together with local communities for the bettermentof society while nurturing relationships with respective communities.
Through a variety of initiatives mainly undertaken via the center, weare cultivating a flexible and creative corporate culture. Concurrently,
we aim to take a proactive approach toward working with membersof local communities in solving a host of social issues as we strive tocreate a better future.

Examples of Social Contribution Activities

Social Welfare Activities

Nature Protection and Environmental Conservation

Shokki Festa Welfare Corner

Present from the Forest Program

Every May, we hold the Shokki Festa, a festivalthat serves as a forum for promoting interaction
between members of local communities andToyota Industries employees and their families.
The festival includes a social welfare corner wherebooths are set up by vocational aid centers tosell their own products. Besides providing people
with disabilities with the opportunity to sell theirproducts, the festival also allows vocational aid centers to widely
publicize their activities. In fiscal 2008, a total of 13 vocational aid
centers set up booths and generated sales exceeding ¥270,000.

In cooperation with Friends of the Earth Japan, an international
environmental NGO, we create wooden “friendly pallets” throughthe use of lumber harvested from forest thinning in Japan. By
actively encouraging the participation of pallet manufacturers andusers, we took part in the maintenance of 10.7 hectares of forest,
which significantly exceeded our targets, and created 30,000“friendly pallets” in fiscal 2008. We will continue such support witha view toward promoting environmental conservation through themaintenance of forests and revitalizing Japan’s forest industry throughincreased demand for thinned wood.
Thousand30

Clam Digging Excursions
Every May, we invite people with disabilities
living in communities near our plants toparticipate in clam digging excursions. As
part of a program to gain social experience,
students from the Technical Training School
set up tents, assist participants with disabilities and engage in beachcleanup activities. This is a truly meaningful event, providing people
with disabilities with an opportunity to interact with nature and othermembers of society while enabling students to acquire volunteer
experience.

Youth Development

Volume of Production of“Friendly Pallets”
Production
Plan

20
10
0

Jun.

Sep.

Dec.

Mar.

Beautification of Local Communities
Every September, Toyota Industries carries
out Company-wide beautification activities.
In fiscal 2008, more than 4,000 employees,
including those from 19 subsidiaries,
participated. Also, our Managers’ Councils,
which consist of employees grouped by job
position, along with Toyota Industries Council of Retired Employees,
take part in annual cleanup activities on a regular basis. Additionally,
we participate in the Adopt-an-Area Program beautification activities
carried out in cooperation with local government.

Support for Youth Invention Clubs
With the aim of developing youth fullof creativity, we provide various formsof support for Youth Invention Clubs in
Nagoya, Kariya, Obu, Takahama and Anjo.
For example, we assist the Obu YouthInvention Club with administrative expenses. We also dispatch
instructors and volunteers and lend buses for a number of events,
including classes on weaving machinery during summer vacations
and handmade kite-flying competitions.

Kariya Rugby School
Twice a month, Toyota Industries holds the
Kariya Rugby School for elementary andjunior high school students at our athleticgrounds. Approximately 70 students
currently participate, with instruction
provided mainly by former members of Toyota Industries’ rugby club.
Serving as “big brothers,” the former rugby club members teachyoung students not only about the joy of sports but also about theimportance of rules and communication. The Kariya Rugby School
also enjoys appreciation from participating students’ families.

Community Activities
Traffic Safety Activities
As an automotive-related manufacturer,
Toyota Industries is working to achieve thegoal of zero traffic accidents as a positive
example to society. To this end, we provide
employees with various education andenlightenment programs and support community-based traffic safety
activities. Our employees station themselves near plants to carry out
patrol activities at times such as during national traffic safety campaigns
and on Zero Traffic Accident Day together with local governments andother Toyota Group companies. In fiscal 2008, the Company’s 13,000
employees participated in these activities. In cooperation with local
governments and police authorities, we are carrying out enlightenment
activities aimed at preventing traffic accidents.

Crime-Prevention Patrols
Each month on dates that contain the numeral five, our employees
volunteer for crime-prevention patrols. At year-end, we also take partin crime-prevention patrols in local communities in cooperation with
police authorities.

Toyota Industries Report 200857