Corporate Social Responsibility
Corporate GovernanceP44−49Relationship with Our Customers

P50−51
P52

Relationship with Our Business Partners

Audit & Supervisory Board System

Relationship with Our Shareholders andInvestors

P53

Relationship with Our Associates

P54−57

Relationship with Our Local Communities

P58−59Toyota Industries strives to enhance its corporate value ina stable manner over the long term and maintains society’s
trust by earnestly fulfilling its social responsibilities inaccordance 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 and the fairness and transparencyof its corporate activities.

nn Corporate Governance Structure
Implementation Structure
Toyota Industries convenes monthly meetings of the Boardof Directors to resolve important management matters andmonitor 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 ofShareholders’ Meetings
Selection/
Dismissal

Selection/
Dismissal

Reporting

Independent Auditors

Reporting

Audit & Supervisory Board
ReportingAccounting
Audit

Selection/
Dismissal

Cooperation

Executive Compensation
Committee

Exchange ofOpinions

Executive Appointment
Committee

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

Board of Directors
Appointment/
Monitoring

Discussion/
ReportingMonitoring
Selection/Dismissal
Cooperation

Audit & Supervisory
Board Office

Monitoring

Cooperation*1: Functional
Meetings

President

Human Resources

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

Direction/
Supervision

Audit Dept.
Internal Audit

Functional Meetings*1, Committees*2
Managing Officers

Business Divisions/In-House Company/Departments
Subsidiaries/Affiliates(As of June 9, 2017)
Toyota Industries’ Corporate Governance Reports are available at: https://www.toyota-shokki.co.jp/ (in Japanese)

44

Toyota Industries Report 2017

CSR

Quality

Environmental

Production

Export Transaction
Controls

Procurement

Safety and HealthTechnologies

As a publicly listed company, Toyota Industries
strives to ensure the fairness and transparencyof management. Following the Securities Listing
Regulations stipulated by the Tokyo Stock Exchange
and Nagoya Stock Exchange, respectively, tofurther enhance our corporate governance Toyota
Industries has appointed as independent members ofmanagement two outside directors and two outside
audit & supervisory board members who are deemed
to have no conflicts of interest with our shareholders.

nn Internal Control System
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

Profit Improvement

We believe that compliance means both adhering to laws
and regulations and observing ethics and social norms. In
order to ensure compliance, it is vital to instill an awarenessof compliance in each and every employee.
Under the strong leadership of top management, we
promote compliance throughout the Toyota Industries
Group, including consolidated subsidiaries in and outside
Japan, by formulating a Code of Conduct and thoroughly
informing employees together with checking and monitoring
compliance.
n Four Pillars of Compliance Activities

Spiral Up

1

2

3

4

Leadership/
Organization

Formulating
Rules

Declaration by
the president

Employee Codeof Conduct

Thoroughly
Informing
Employees

Checking
andMonitoring

Compliance
Subcommittee

Internal rules

Education on
relevant laws
and regulations

CSR selfassessment
Audit

Manuals

Establishment and Reinforcement of
Implementation Organization
To promote compliance throughout the Toyota Industries
Group, we have established the Compliance Subcommittee(led by an executive in charge of the Legal Department) as asubordinate organization to the CSR Committee. Every year,
the subcommittee formulates an action policy and conductsa follow-up check on the progress of corresponding
activities twice during that year.
n Organization for Promoting Compliance
CSR Committee
Activity reports*2: Committees

Reporting(Reports on and confirms execution of business operations)Appointment of Independent Members ofManagement

Four Pillars of Compliance Activities

n Internal Control Assessment System (Based on J-SOX)
Internal control activities undertaken by eachdepartment and consolidated subsidiary(Establishment and operation of internal controls)

Annual financial report

Internal Control Report
Review of internal
Improvement of Detection ofcontrols byinternal controls deficiencies Audit Department

These entities deliberate andfollow up on issues in respective areas.

Corporate Governancedirectors at the executive vice president level and above as
well as relevant managing officers and audit & supervisoryboard members, deliberates on a variety of issues
concerning important management matters such as our
corporate vision, management policies, medium-termbusiness strategies and major 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, managing officers and audit &supervisory board members convene to report and confirm
the monthly 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.

nn ComplianceCorporate Social
Responsibility

Corporate GovernanceToyota Industries has adopted an audit & supervisoryboard system. Two full-time audit & supervisory board
members and three 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
and efficiency of management through collaboration withindependent auditors and the Audit Department.

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 2017 were effective, andaccordingly, submitted an Internal Control Report in June
2017. The report was reviewed by independent auditors andjudged fair in their Internal Control Audit Report.

Policies

Compliance Subcommittee
Departments in charge of legal compliance: 12
Supporting department: 1

Toyota Industries
Corporation

Consolidated
subsidiaries in Japan

Consolidated subsidiaries
outside Japan

Compliance committees

Compliance officers

Internal Control Audit Report
Audit on internal controls by independent auditors

45

Formulation of Code of Conduct andDissemination

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. Through new employee
education, rank-based education and workplace meetings,
we provide easy-to-understand guidance on “what to do”
and “what not to do” in order to improve their complianceawareness based on laws and corporate ethics, using then Example Topics of e-Learning Materials

Courses started up to fiscal 2016
•Environment (water quality and waste) •Japan’s Personal Information
Protection Law •Compliance hotline •Prevention of bribery •Insider
trading regulations •Copyrights •Japan’s subcontracting law (general
overview) •Sexual harassment and abuse of power in the workplace•Product liability •Basics of contracts •Export/import transaction
controls •Management of confidential information •Illegal activities•Response to industrial accidents, etc.

Courses established and revised in fiscal 2017
•Compliance •Traffic safety •Japan’s subcontracting law (prevention ofdelay in payment) •Human rights •Environmental risks •Coping withstress, etc.
*Provided to all employees of Toyota Industries Corporation and its consolidated
subsidiaries in Japan. Additional and revised courses are under consideration.

46

Toyota Industries Report 2017

Japanese-language Code of Conduct
video material

English-language Code of Conduct
video material

Compliance Hotline
The Toyota Industries Group has in place a whistle-blower
system for employees to report and seek consultationon compliance-related issues. In Japan, North America,
Europe and China, in particular, we operate a compliancehotline (external helpline) that allows employees and theirfamilies to seek advice from external experts on compliancerelated matters without being exposed to negative
consequences, as well as to ensure the early discovery
and prevention of issues. In fiscal 2017, we received 70
reports and inquiries from within Toyota Industries and fromits consolidated subsidiaries in Japan on such matters aslabor management, working environment and ethics. Afterverifying each report and inquiry, we have taken appropriate
action regarding each case. We also started operating a
hotline for our major business partners to report and inquire
about possible compliance violations by Toyota Industries
employees. Through this initiative, we ensure the early
discovery and prevention of issues and intend to becomea “company on which society places greater trust.” We plan
to make this hotline available to more business partners in
the future.

We have set up compliance committees at subsidiaries inJapan and appointed compliance officers at subsidiaries
outside Japan in our efforts to promote autonomous
activities in respective communities in collaboration with theCompliance Subcommittee. In fiscal 2017, we continued tocarry out activities in line with local needs.
n Activities in Japan 
We held a conference of compliance personnel from 31
consolidated subsidiaries in Japan to share the latest
information on applicable laws, introduce tools for employee
education and exchange views on responses when a caseof misconduct occurs.
n Activities in North America We held the Compliance Officer Conference in North
America with participation of compliance officers from 20
bases. A lecture by a lawyer and a presentation on required
actions were given about often changing legal systems
in the United States, including obligations imposed on
government contractors and response to labor law changes.
After the conference, these 20 bases have been fully
implementing coordinated measures.
n Activities in Europe 
In Europe, the regional headquarters have been promoting
employee education on the Code of Conduct at respective
bases. In terms of preventive legal measures, theseheadquarters have been identifying and assessing
compliance risks and implementing appropriate measures
for selected priority matters.
n Activities in China 
In China, compliance officers from seven bases attended
the Compliance Officer Conference. In fiscal 2017, thefocus of activities was placed on “moral (education)” and“labor laws,” and we created and disseminated relevant
educational materials for use at all bases in China. Eachbase conducted education using these materials. We also

held a legal seminar for managers in the procurement
department of each base to increase their knowledge on
legal matters related to daily operations and improve theirawareness of compliance.
n Activities in Asia, Oceania and South America We have been providing compliance officer training with theaim of upgrading compliance activities. In fiscal 2017, we
provided guidance on how to conduct employee educationand held case studies on responses to misconduct forcompliance officers from five bases in India, Indonesia andVietnam.
n Cross-Regional Activities 
We held the Four Regions Compliance Conference in the
United States attended by 19 compliance personnel fromfour regions (Japan, North America, Europe and China) toshare information on and discuss the establishment of awhistle-blower system appropriate for each region. We also
selected a new compliance logo of the Toyota Industries
Group. Using this logo, we will strive to further increase
compliance awareness.

Corporate GovernanceThoroughly Informing Employees about
Applicable Laws and Regulationsn Promoting Education on Code of Conduct
In fiscal 2017, we developed a video material describing theCode of Conduct, which employees of the Toyota Industries
Group should observe, in seven languages (Japanese,
English, Chinese, Spanish, Portuguese, Indonesian and
Vietnamese) to assist relevant education in our consolidated
subsidiaries in and outside Japan. The material has been
distributed to the corresponding subsidiaries and used intheir respective education programs.

Activities in the Toyota Industries Group

Corporate Social
Responsibility

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,
and has been providing familiarization training. Subsidiaries
in and outside Japan have formulated their own Code of
Conduct appropriate to their respective business lines
and corporate cultures. Toyota Industries’ 31 consolidated
subsidiaries in Japan and 74 consolidated subsidiaries
outside Japan have already created their own Code of
Conduct and have been working to instill an awarenessamong 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, eachbase has developed internal rules in accordance with theapplicable laws in respective countries and been conducting
activities to familiarize employees with them. As for antitrust
laws, we have put in place a system to conduct a checkand review before and after employees of Toyota Industries
contact competitors. We are also familiarizing all employeesthat they are prohibited from any acts that may possibly
constitute a violation of antitrust laws. Since fiscal 2016, wehave set up antitrust law compliance month and have been
conducting enlightenment activities at relevant departments.

Toyota Industries Corporation Employee Code of Conduct
as an instructional material.
Over the four years since fiscal 2014, we have created
and disseminated 39 e-learning materials (including revisions
to the existing materials) in order to cultivate a deeper
understanding of compliance among employees of Toyota
Industries Corporation and its consolidated subsidiaries inJapan and to create an environment in which employees
foster compliance consciousness on their own.
In addition, in fiscal 2017 we invited external lawyers
to hold executive legal seminars on “management ofsubsidiaries in China” and “post-acquisition managementof subsidiaries” for directors, managing officers and audit &supervisory board members.

Four Regions Compliance Conference

New compliance logon Compliance Committees (in Japan) and Compliance Ofﬁcers (outside Japan) (As of March 31, 2017)
Compliance officer
in Europe (TMHE)

Compliance officer
in China (TIMC)

Andreas Lundh

Europe:37 companies

Zhu Lingling

Compliance officer
in North America(TINA)

North America:
19 companies

China:
7 companies

Sheena Seger

Japan:
31 companies
Compliance officer
in Australia (TMHA)

Robert Watkins

Asia, Oceania and South America:
11 companies

TINA: Toyota Industries North America, Inc.
TMHE: Toyota Material Handling Europe AB
TIMC: Toyota Industries Management (China) Co., Ltd.
TMHA: Toyota Material Handling Australia Pty Limited47

nn Management of Confidential
Information
Basic Perspective
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.

n Activity Examples

Activities up to fiscal 2016
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 andchecking the history of electronic data being taken off the premises
upon retirement
Activities 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 personal computers andrecording media, 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 progressof 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 Officedevelop and promote annual action policies that integrate
measures to prevent and control risks related to quality,
safety, the environment, personnel, export transactions,disasters and information security. Progress is assessed
and followed up by each functional management entity suchas the CSR Committee and the Environmental Committee.
At the same time, functional departments at the Head
Office such as those responsible for quality, safety and theenvironment formulate rules and regulations and manuals
from a Group-wide perspective, including consolidated
subsidiaries. By confirming and following up on the progress
through operational audits and workplace inspections, 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.

Disaster Prevention Structure
We strive to reinforce our disaster prevention structure toenable smooth transition from the initial response stage tothe production restoration stage.
The Disaster Prevention Response Headquarters,
led by the executive vice president and consisting ofrepresentatives from the functional departments at the
Head Office, is responsible for collecting information fromplants and other relevant parties and making Company-widedecisions based on the information collected.
n Disaster Prevention Structure
Disaster Prevention Response Headquarters (Established in Kariya Plant)
Plant Response
Headquarters
Kariya Plant
Obu Plant
Kyowa Plant
Nagakusa Plant &Morioka Works
Takahama Plant
Hekinan Plant
Higashichita Plant
Higashiura Plant
Anjo Plant

Key Facility
e-Lab (information
systems headquarters)

Remote Sites

Educational Sites
Company dormitories
Company resort
facilities

Our consolidated subsidiaries in and outside Japan
also appoint respective information security managers andinformation security administrators. We have also developed
common guidelines concerning management of confidential
information, which have been distributed among thesesubsidiaries, and follow up on their activities on a periodic
basis in our efforts to raise the level of confidential information

Tokyo Office
Toyota L&F Customers
Center (Chiba)
TMHG Training Center(Handa)48

Toyota Industries Report 2017b) Tabletop Exercise
We provide training to the head (plant manager) andmembers of each Plant Response Headquarters to ensurethat we promptly make an initial response, offer support
to local communities and launch restoration activities incase of a disaster. In fiscal 2017, we added training on theprocedures to formulate a restoration plan to further raiseawareness of each member for disaster prevention.

Determining whether to stop operations
and how to provide support activities

Efforts to Cultivate Human Resources throughTraining
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 simulation training in which
employees collect information on damages to both inside andoutside the company premises, swiftly make decisions anddisseminate these decisions throughout Toyota Industries.
Since fiscal 2015, assuming the occurrence of a disaster
during nighttime and on a weekend or holiday, we havebeen providing training to members selected from thefunctional departments who live close to the Head Office inorder to further enhance our real-time response capabilities.

Reviewing policies on resumption ofoperations and how to return home

Identifying inadequacies and items to
be improved

Suppliers

Response to Possible Major Earthquake
We consider the occurrence of a major earthquake as oneof the most significant risks. Since fiscal 2011, we havebeen implementing disaster prevention measures that focus
on three basic policies, namely placing maximum priority
on human life; placing top priority on the recovery of local
communities; and ensuring the quickest possible recovery.
Furthermore, we divide these measures into the three
categories of “precautionary, pre-disaster mitigation,” “initial
response to be followed immediately after the disaster” and“restoration of production,” and are respectively making

Discussion at a workshop

Affiliated Companies

New activities in fiscal 2017
• Checking the history of hard copies being taken off the premises
upon retirement• Reviewing the content of security incident or accident training at theheadquarters, etc.

response capabilities by reviewing and revising our disasterprevention structure and flow of activities, thereby ensuring
a quick and smooth transition from initial response activities
to restoration activities.

Disaster response meeting

2. Training at Plant Response Headquartersa) Workshops
In fiscal 2017, the major topic of our Company-wide
discussion was the “creation of a structure that is truly
functional in an emergency.” We worked to increase our

Corporate GovernanceToyota 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 2017, to counter an increase in risk for leakageof confidential information we decided to perform a morethorough check of the history of data being taken off thepremises upon retirement as well as reviewed the content of
security incident or accident training at the headquarters.

nn Risk Management

Company-wide efforts.
In fiscal 2017, based on the results of a review of ourefforts in the previous fiscal year, we conducted training
such as disaster drills in more realistic settings. We intend tocontinuously upgrade our activities.

Corporate Social
Responsibility

Implementation Structure

management throughout the Toyota Industries Group.
*1: Head of each department*2: A person within the department, appointed by the head

Discussing a restoration plan

3. Training for Restorationa) Power Restoration Drill
Each plant has developed procedures to restore power
supplies, including electricity and gas, which are essential
in restoring production activities. Starting from fiscal 2015,
each plant conducts genchi genbutsu (go and see foryourself) training on a periodic basis. Through the training
we are identifying problems and making improvements tostep up our efforts to ensure quick restoration activities.
Since fiscal 2016, we have selected a model businessdivision and standardized
restoration procedures.
We are conducting
phased implementationof the initiatives taken
at the model businessdivision throughout Toyota
Drill to restore a primary power source
Industries.
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 annual restoration drills jointlywith Toyoda High System, Incorporated, a consolidated
subsidiary engaged in development and operation of
information infrastructures and systems, and work to
improve our readiness for quick restoration.
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.

49

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

Quality forms the basis of our operations and is essential
in attaining the goals of our Vision 2020. As such, weformulated our Quality Vision 2020, which defines ourphilosophy in ensuring quality.
Quality Vision 2020
All members in the Toyota Industries Group ensure
quality first and build in quality with ownership at theirown workplaces and positions in an effort tocontinuously supply attractive products/services that
anticipate global customers’ needs.
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

n Types of Quality Sought by Toyota IndustriesnQ uality Assurance Activities Based on the Quality Guidelines
ent
em
nag
lity
g
Ma lity
qua
turin
qua
ufac
ting
Man lity
r ke
Ma
qua

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

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

Implementing
Company-wide
guidelines

Quality GuidelinesP

A

PDCA*1cycle C

Quality Functional
MeetingCompany-wide Council of Heads of
Quality Assurance Departments

D

Quality assurance activities atall bases in and outside Japan

Manufacturing capabilities(from Toyota Industries’ Quality Guidelines)
Placing top priority on our “Customer First” philosophy,
Toyota Industries undertakes product development thatmeets customer expectations.
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.
Should a defect occur after the product launch, thequality assurance departments of each business division

Genchi genbutsu
inspections by
the president

Quality Vision 2020
•Quality roadmap●Workmanshipnn “We should express our gratitude to
our customers by providing them ourbest quality products.”

Checking and identifying issues ofCompany-wide quality status and progressin implementing the guidelines

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
development

Company-wide,
horizontallyaligned activities
Activities to increase
quality awarenessQualityeducation

Toyota Industries Report 2017

nn Initiatives to Prevent Defects
To achieve a level higher quality control and assurance,heads of all business divisions, quality assurance
departments and engineering departments share
information on defect prevention activities upon new productdevelopment or launch of mass production at the Quality
Confirmation and Defect Prevention Meeting. Additionally,
we provide education on a periodic basis not only toemployees of Toyota Industries but also to our business
partners to improve work procedures and mechanisms fordefect prevention.
If a defect is found in a product after its launch, we
implement thorough measures to prevent a recurrence andapply the results to other business divisions.
We have been strengthening measures to prevent theoccurrence of similar defects in all products we develop andmanufacture in the future.

nn Initiatives to Raise Quality AwarenessTo ensure that we live up to our customers’ expectationsin terms of quality, we believe it is important to have ahigh degree of quality awareness on an individual level.
That is why we engage in various activities to raise quality
awareness, including organizing various events during
Quality Month. As a new initiative in fiscal 2017, wepublished two quality-related booklets to promote higher
quality awareness.
One of the booklets, which is for all employees, reaffirms
the origin of our quality assurance activities and includes
such topics as the introduction of a Company-wide quality
management structure in 1982 and details of the Deming
Prize we received in 1986. This booklet was translated into
English and distributed to major production bases outside
Japan.
Based on the results of quality awareness questionnairesthat have been conducted since fiscal 2016, we also
created a booklet for engineering departments to facilitate
the application of statistical quality control methods.

nn Promoting Human Resources
Development
Toyota Industries provides systematic quality education to
all employees to help them acquire quality assurance skills
needed in actual operations.
Our production bases outside Japan also promotekaizen efforts and human resources development throughquality control (QC) circle activities. We visit subsidiaries
outside Japan to give hands-on instructions for promoting
QC circle activities and train QC circle instructors. As avenue for presenting activity results, we hold the Global QC
Circle Convention and Regional QC Circle Convention every
year and provide workshop sessions to raise skills.
We are working to reinforce our foundation for quality
assurance based on the belief that manufacturing starts withnurturing excellent personnel.

Global QC Circle Convention

Quality Confirmation andQuality audit at
Defect Prevention Meeting business partners*1: PDCA (Plan, Do, Check, Act)

Booklets to raise quality awareness
Genchi genbutsu inspection by the president

50*2: As of March 31, 2017

Since improving the quality of our products requires
concerted efforts with our business partners in and outside
Japan, we are strengthening joint quality assurance activities
with major business partners.
In each quality audit, we determine priority areas,
confirm the improvement status of the previously identified
deficiencies and provide quality education on items
that should be reinforced in order to cultivate a deeper
understanding of kaizen (improvement). As a result of these
activities, in fiscal 2017 we successfully reduced the quantityof defective products delivered to us by about 30% from theprevious fiscal year.
These activities enable our business partners to attainthe level of quality assurance that Toyota Industries requires
and establish a culture to foster quality assurance on theirown.

Relationship with Our Customers(from 80 Years of Toyota Industries through Photos)
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.

nn Activities Based on the Quality
Guidelines

nn Providing Support to Business Partners

Corporate Social
Responsibility

nn “A product should never besold unless it has been carefully
manufactured and fully tested in thecommercial trial, with completely
satisfactory results.”

immediately devise necessary measures. At the sametime, a probable cause is identified from both technicaland structural aspects, and if deemed necessary, the new
product development system itself is reviewed to prevent a
recurrence in the successor model.

Functional Meeting chaired by the head of the Production
Headquarters*2 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*2. The president also checks
on the outcome of these activities through genchi genbutsu
inspections.

Regional QC Circle Convention in China

51

n Participants of Japan’s
Subcontracting Law Seminar

Relationship with Our Business Partners

Affiliated companies
Toyota Industries(Persons)

1,200

Toyota Industries encourages open procurement andseeks co-existence and co-prosperity with our business
partners (suppliers) based on mutual trust. We also facilitate
environmentally preferable purchasing, CSR-oriented
procurement practices, human resources development anddisaster prevention activities for a possible major earthquake.

nn Basic Perspective
Toyota Industries continually carries out timely andappropriate information disclosure for shareholders andinvestors. In this way, we raise management transparency
so that we obtain an appropriate company valuation instock markets. We proactively provide not only information
required under disclosure laws and regulations but also
information on our management policy and businessactivities. Also, we engage in various investor relations
activities to facilitate productive dialogue with shareholders
and investors.

sessions mainly in regions in Japan where our bases arelocated to promote an understanding of our businessand management policies. Our Website also provides
descriptions of our business details and strengths in aneasy-to-understand manner.
Opinions and requests we collect through various meansof communications with shareholders and investors are fed
back to executives and relevant business divisions to reflect
them in our future business activities.
n Major IR Activities
For institutional investors and securities analysts in Japan•Quarterly financial results briefings •Individual interviews/visits•Small meetings •Teleconferencing •Company-hosted business information
sessions/plant tours •Issuing/delivering Toyota Industries Reports
For institutional investors outside Japan•Individual interviews/visits •Teleconferencing •Participation in conferences
hosted by securities companies •Issuing/delivering Toyota Industries Reports
For individual shareholders and investors

nn Co-Existence and Co-Prosperity
Based on Mutual Trust
We work hard to realize co-existence and co-prosperity withour business partners based on mutual trust. Every year,
we hold procurement policy meetings and top manager
seminars for major business partners to facilitate mutual
understanding and cooperation. In addition, we provide
such programs as quality management and technical skills
training, guidance directed toward kaizen at their production
sites and safety and health education throughout the year.

nn Reducing Environmental Impact
through Environmentally Preferable
Purchasing
In order to create environmentally friendly
products, we aim to procure parts, raw materials
and equipment from business partners that give
sufficient consideration to the environment.
In October 2016, we published the sixth
edition of our Environmentally Preferable
Purchasing Guidelines, which we haveformulated to enforce “green” purchasing.
In the sixth edition, we responded to theEnvironmentally Preferable increasing global call for stricter environmental
Purchasing Guidelines
requirements throughout the product lifecycleby adding to the guidelines the goals we are pursuingfor the year 2050 as well as provisions to ensure greater
environmental management in our entire supply chain.

nn Localization of Business for Good
Corporate Citizenshipnn Efforts toward Future-Oriented Trade
Practices
In September 2016, the Ministry of Economy, Trade andIndustry released Basic Policies for Future-oriented Trade
Practices, requesting all industries in Japan to “formulate
voluntary-based action plans toward the further introductionof fair trade and the improvement of added value acrosswhole supply chains.” Accordingly, we conducted a review ofour payment conditions for subcontracting business partners
and decided to entirely switch from payment in bills andnotes to payment in cash starting from fiscal 2018. As part ofour efforts to become a “company on which society places
greater trust,” we established a business partner hotline,
through which we receive their opinions and inquiries andexternal lawyers take appropriate action for each case.

nn Business Continuity Plan (BCP)
Activities for Possible Major
Earthquake
In the wake of a series of earthquakes that hit Kumamoto in
2016, we reviewed our previous BCP activities and identified
deficiencies. In further promoting our BCP activities, we aremaking concerted efforts with business partners to reduce
associated risks by implementing specific measures. In fiscal
2017, as a new initiative to ensure the smooth launch of a
production restoration phase after a disaster, we provided
production restoration workshops (tabletop exercises) to ourmajor business partners.
n BCP Activities
Topic

In view of increased local production outside Japan, we
promote procurement from local business partners in order
to contribute to the local community through consolidated
subsidiaries as a good corporate citizen.

We proactively provide education to enhance procurement
knowledge both internally and externally. In fiscal 2017,52

Toyota Industries Report 2017

FY2014FY2015FY2016FY2017

Reinforcing disaster mitigation
Production
restoration
Hoeikai (business partners)

Scope of activities
Supply chain surveys
Mitigation workshops
Activities

nn Promoting Human Resources
Development

Action policy

FY2013
Determining
current status

Disaster mitigation plans
Genchi genbutsu confirmation
Training for determining
extent of damage
Production restoration
workshops

Suppliers of major parts
Improving accuracy through periodic surveys
Tabletop exercises
Formulation, aggregation and review
Confirmation
Periodic training
Tabletop
exercisesnn General Shareholders’ Meeting
We hold our annual general shareholders’ meeting
early to avoid the date on which many companies holdtheir respective shareholders’ meetings so that moreshareholders can attend. We are further facilitating theexercise of voting rights of our shareholders by allowing
them to exercise such rights via the Internet and by joining
the electronic voting platform for institutional investors.
We held our 138th General Shareholders’ Meeting on
June 10, 2016, in which a record-high 475 shareholders
participated. To foster a better understanding of ourbusiness activities, we invited our shareholders for a lift truck
plant tour following the general shareholders’ meeting.
n Number of Participants•Company information sessions •Company-hosted plant tours•Issuing/delivering notice of general shareholders’ meeting•Issuing/delivering business reports

Company-hosted information session for the Materials Handling Equipment Business(September 2016)(Persons)

134th

135th

136th

137th

138th

Shareholders’ meeting

363

396

348

418

475

Plant tour

132

185

144

163

198

nn Investor Relations Activities
For institutional investors and securities analysts, ourmanagement conducts briefing sessions to explain ourquarterly financial results, including business performance,
progress achieved at each business division and future
initiatives. In addition to accepting individual interviews
and making visits to institutional investors, in fiscal 2017
we hosted information sessions for the Materials Handling
Equipment Business and car air-conditioning compressor
plant tours. These events serve to showcase our business
policies, our approach to manufacturing and on-site
initiatives and facilitate a deeper understanding of
Toyota Industries.
As for institutional investors outside Japan, we visit
some of them to explain our management policies andbusiness overview. We also participate in conferences
hosted in Japan by securities companies and hold individual
meetings.
For individual investors, we hold company information

Q&A session after a car air-conditioning compressor plant tour hosted by Toyota Industries(December 2016)

Relationship with Our Business Partners / Relationship with Our Shareholders and Investors

To achieve open procurement, we provide fair and equal
opportunities to all potential business partners on our Website.
We comprehensively evaluate our business partners
based on such factors as quality, price, adherence todelivery times, technological capabilities and management
information. We also assess their initiatives for safety, theenvironment and compliance as we strive for the timely andstable procurement of excellent products at lower costs
based on fair business transactions.

We aim to obtain an appropriate company valuation instock markets through timely and appropriate information
disclosure while promoting good communications withshareholders and investors.

Corporate Social
Responsibility

nn Fair Business Transactions Based on
an Open Door Policy

we provided training on
Japan’s subcontracting law to 1,000800
strengthen compliance, with600
seminars attended by 1,030
Toyota Industries employees
400
and 150 participants from200
affiliated companies. We
0(FY) 13 14 15 16 17
also held seminars for
those who have missed previous ones, and all applicable
individuals have completed this training. Along with sharing
a model to develop procurement professionals across all
procurement departments of Toyota Industries with the aimof improving the knowledge of procurement personnel, we
have started providing basic education on procurement aswell as financial education. We also work with Hoeikai, anorganization consisting of our business partners, to provide
support to strengthen the management platforms of member
companies through Toyota Production System (TPS)
activities in manufacturing and QC circle activities.

Relationship with Our Shareholders and Investors

nn Returning Profits to Shareholders
We strive to continue paying dividends from retained
earnings at the consolidated dividend payout ratio of roughly
30% and meet the expectations of shareholders upon
comprehensively taking into consideration such factors as
business results and demand for funds.
For fiscal 2017, Toyota Industries increased annual cash
dividends by ¥5.0 over the previous fiscal year and paid
annual cash dividends per share of ¥125.0 (interim cash
dividend per share of ¥60.0 and year-end cash dividend pershare of ¥65.0).

53

n Frequency Rate of Lost Workday Injuries (Non-Consolidated)

Our ultimate goal is to create safe and secure workplaces
for everyone, where each and every associate can exercise
their diverse potentials and play active roles.

1.0

0.4
0.2

Toyota Industries
(FY)

13

14

15

16

(Source: Survey on Industrial Accidents, Japan’s Ministry of Health, Labour and Welfare)

Health and safety inspection by central
general safety and health supervisor

Inspection of gas-fired equipment by
top management

Overseas, we again held a health and safety regional
meeting at bases in Europe and North America.
These meetings focused on increasing collaboration
among bases in each region and aimed to ensure legal
compliance, build a safety-oriented culture and improvehealth and safety technology and measures. Participants
exchanged views on how to apply cause analysis methods
to prevent a recurrence of an industrial accident and how
to ensure safety in logistics operations while using vehicles
within a plant. For the former, in particular, we created amanual that compiles issues found so far to deepen anunderstanding of the importance of cause analysis and ourapproach to preventive measures.

Toyota Industries Report 2017

As a task for the medium term, we are promoting healthimprovement of associates, mainly focusing on preventionof lifestyle diseases and mental health support activities, tocounter risks associated with aging and greater stress.
For prevention of lifestyle diseases, we conduct periodic
age-based health education for all associates. We also
feed back to associates the results of an annual healthcheckup and measurements conducted on the same day,including physical fitness, body fat percentage and amountof fat around internal organs, along with advice to improve
lifestyle habits. Our health checkup is designed to provide
motivation for better health by letting associates think about
their health over the course of the one-day program.
In addition, we conduct enhanced follow-up activities
after annual health checkups. As one effort, we provide
health promotion guidance to associates below the ageof 40 in addition to specific health guidance required by
the Japanese government. By doing so, we encourage
associates to improve lifestyle habits early on in order toprevent or ameliorate symptoms of metabolic syndrome.
Our company cafeterias also offer healthy meals to help
associates maintain and promote their health.
As part of mental healthsupport activities, we havein place a system to offer
early consultation through ahealth-related hotline. Other
activities include upgrading
our self-care/line-care

nn Enhancing Team Strength
Toyota Industries believes that it is essential to enhanceteam strength so that each associate can work with vitality
and the Company can achieve sustainable growth.
We believe that team strength is made up of “technicalskills” that form the basis of manufacturing operations,“management skills” to make maximum use of technicalskills and a “spirit of harmony” that supports both. Whilefurther enhancing our team strength, we are striving toextend and hand it down beyond all business domains,
generations and geographic regions.
Technical Skills

Expertise/skills/know-how

LeadershipTo pursue improvements
thoroughly and continuously

Spirit of Harmony

Participants of age-based health education (non-consolidated)(2,142 persons)
Persons having completed guidance program on prevention oflifestyle diseases (non-consolidated)(717 persons)
Stop smoking enlightenment events•World No Tobacco Day: One-day no smoking (May 31)•No Smoking Days: Half-day no smoking (for nine days)
Participants of stop smoking campaigns (held jointly with healthinsurance association)(29 persons)Participants of walking events (held jointly with health insurance
association)(5,025 persons)

Return-to-work support* Skills competition for determining
Japan’s top young engineers

Workplaces

Preventing
relapses

Improving support via the introduction of a stress check system
Encouraging associates Raising awareness of
to be more aware ofhealth-related hotline
their health and offering
advice on healthimprovement measures

Interviews as partof health checks

Technical Skills<Consultation
system>• Industrial healthstaff (in-house)• External institutions

Individuals

Providing information on mental healthEarly
detection/
early
resolution

Teamwork
Well-roundedhumanity

To develop skills to support manufacturing, the Technical
Learning Center, one of our training facilities, plays thecentral role in associate education, offering basic skills
training at the Technical Training School and facilitating
efforts to enhance the skills of young technical staff throughin-house skills contests. We also work to cultivate highly
skilled specialists through participation in the national andinternational skills competitions.
At the 54th National Skills Competition* held in 2016, theToyota Industries teamwon one gold medal in
the “electrical welding”
category and received
prizes in various othercategories, thereby
attaining medals forthe 16th consecutive
competition.

n Improving Mental Health Support Systems(Introducing a Stress Check System)

Health and safety regional meeting at a base in North America

TPS, QC, SQC, etc.

Team Strengthn Major Health Promotion Activities in Fiscal 2017

Preventive
measuresManagement Skills
Ability to identify and resolve issues
Ability to merge multiple levels of skill

Age-based health education

Objective

Relationship with Our Associates

among associates to achieve zero industrial accidents.
There was an industrial accident at another company,
which involved an explosion in a heating furnace thatuses combustible gas. Following the accident, ourtop management conducted focused inspections on
gas-fired equipment used within the Toyota Industries
Group. Using the information released by public offices
and other organizations, we performed checks on theventilation setting at the time of ignition, safety devices
used to check the combustion conditions, functions of
the automatic and emergency gas shut-off valves andthe contents of operational manuals, and confirmed thatour procedures and equipment ensure safety in all of ourassumed scenarios. We will continue to seek the latest
safety technology for increasing safety and endeavor to
curb industrial accidents by repeatedly conducting risk
assessments.

Health and safety regional meeting at a base in Europe

54

17

nn Initiatives for Health Management
and Improvement

education to prevent new cases of mental health problems
and operation of a return-to-work support program forpersons on long-term leave for prevention of relapses. We
have successfully achieved positive results through these
activities.
In fiscal 2017, we introduced a stress check system andconducted a check on all associates. The results were fed
back to all participants with suggestions for improvement,
and we set up an individual interview with a doctor for thosewishing to do so. We also provided feedback of group
analysis results to each workplace, as encouraged by
the Ministry of Health, Labour and Welfare. We promoted
effective data utilization in improving working environments
by feeding back the results along with tips for improvement
to all department heads. Our in-house industrial health staff
and external institutions also provided improvement support
to departments needing to implement countermeasures.

Corporate Social
Responsibility

In accordance with our fundamental policy of “creating
people capable of autonomously maintaining occupationalsafety and health,” Toyota Industries strives to prevent
industrial accidents and occupational disorders as well as
realize better work environments.
Based on the idea of building “a homelike atmosphereat work that is warm and friendly” as stated in the Toyoda
Precepts, we clarified the “true meaning of safety” and“optimal safety we seek” and formulated the Safety Visionin fiscal 2014. Under this vision, all associates of the Toyota
Industries Group are undertaking the task of establishing asafety-oriented culture.
Safety Vision
In fiscal 2017, we
continued to promote
Each and every associate in the Toyota Industries Group,
guided by the spirit of our corporate creed,primarily “activities
aims to create a corporate culture
aimed at establishing athat places a top priority on maintaining safety in all areas
and focuses on mutual courtesy and safety
safety-oriented culture”
as well as realizing workplaces
where associates work each day
and “safety measureswith a sense of happiness and pride.
from human, object
July 1, 2013
and administrative
standpoints based on risk assessment.”
For a safety culture to firmly take hold, strong awarenessamong all associates is vital. It is equally important thatthey recognize health and safety issues in the workplace
and plan and sustain their own activities to reduce
industrial accidents under the leadership of managers andsupervisors.
To this end, managers and supervisors observe
workplaces from a viewpoint of workers and strive to
visualize issues through genchi genbutsu dialogue, sharegoals with workers and cultivate a sharper sensitivity to
problems.
Since many of the issues that have become apparent
often show trends specific to individual business divisions,
we hold sessions to report the results of work observations
to encourage matching response actions within eachbusiness division.
As typical examples of safety culture activities, we
encourage point-and-call practices to check safety, instructassociates to use hand rails when going up or down stairs
and let associates remind each other to mutually raiseawareness. As a result of these activities, we have increased
opportunities to hold safety dialogue within Toyota Industries
and cultivated stronger awareness among all associates,making steady progress toward zero industrial accidents.
In fiscal 2017, we continued to record no accidents
caused by production facilities. However, as there were
human-induced accidents, such as injuries while handlingheavy objects and while walking, the frequency rate of lost
workday injuries rose to 0.06. We will continue to implement
and expand unfaltering initiatives to instill a safety culture

Manufacturers of transportation Good
machinery and equipment

0.60nn Building a Safety-Oriented Culture
That Aims for Zero Industrial
Accidents

Manufacturing industry

0.8

We will continue to reinforce ties among bases within
Japan and among bases in each region, with the ultimate
goal of establishing the highest level of health and safety
culture in respective regions.

Mental health education

Relationship with Our Associates

(%)
1.2

Understanding thecauses of stress in theworkplace andimproving working
environments

54th National Skills Competition (electrical welding)55

n Number of Medals Won at the National Skills Competition
FY2013

FY2014FY2015FY2016FY2017

Gold medal

—

1

1

1

1

Silver medal

1

2

3

2

3

Bronze medal

4

3

1

3

1

Total

5

6

5

6

5

Management Skills

Spirit of Harmony

nn Establishing Work Environments
Where Diverse Human Resources
Can Play Active Roles
We are implementing a variety of measures to create work
environments where a diverse range of human resources
can fully exercise their capabilities. These include promoting
active roles of female associates, supporting the employmentof persons with disabilities and creating an environment inwhich older associates can work more actively.
Promoting Active Roles of Female Associates
We have been formulating plans to harness a more diverse
range of human resources and continuing to carry out
activities since 2008.
We have been working to enhance support systems
through such measures as introducing “a shorter work-hoursystem for child care.” We also introduced a telecommuting
system in April 2014. As a result, the average length ofservice increased overall in administrative and engineering
positions, with a significant rise for female associates.
n Average Service Years by Male and Female Associates(Administrative and Engineering Positions, Non-Consolidated)(Years)20

Menn Action Plan

Implementation
FY2016FY2017FY2018(1) Launch, message from president

Changing
mindsets (2) Awareness seminar for managerial staff
amongmanagerial (3) Follow-up on individual developmentplans
staff and (4) Getting spouses involved inacross all
pre-maternity leave seminars
associates(5) Lectures by male role models(Ongoing)(1) Sending associates overseas for training
at an early stage in their careers
Career(2) Career training and interviews forsupport for
female assistant managers
female(3) Role model exchange meetings
associates(4) Early return-to-work support(pre-maternity leave seminars)(Ongoing)

Promoting (1) Expanding telecommuting options
flexibleworking (2) Establishing satellite offices
practices (3) Installing refrigerated delivery lockers~ FY2010

FY2011FY2012FY2013•Extending the period of child care leave•Introducing a leave system to allow
parental care of children with illnesses•Establishing on-site day care center•Introducing a “welcome-back” system*[Administrative position](Persons)
40

(%)
50

(Persons)
150

40

Cultivating career consciousness•Individual interviews with female assistant managers and their superiors•Formulating individual•Sending trainees•Training for career development for assistant managers
development plansoverseas

Setting targets for the number of female associates in managerial positions
Tripling the number of female associates in managerial positions by 2020
Toyota Industries [25 (2014); 31 (2017); 75 (target for 2020)]

are working and to raise awareness of human resources
development that takes into account their life events.
In order to create an environment to allow associates whoare balancing work and child/nursing care to work with higher
motivation and pursue career development, we expanded our
telecommuting system in October 2016, which promotes theearly return to work from a break in their career.
Rather than merely appointing more female associates
to managerial positions, we are working to improve
workplaces so as to offer females a wider range of jobs andhigher quality of work and to enable female associates tofulfil their individual potential.
We were certified by the Aichi Labour Bureau asa “Female-Friendly Company” in January 2016 andreceived “Eruboshi (“L Star”: L stands for Lady, Labourand Laudable)” certification from the Ministry of Health,Labour and Welfare in October of the same year. The latter
certification is given to companies making excellent efforts inpromoting active female roles in the workplace.
In March 2017, we were selected as a
Semi-Nadeshiko Brand, a status investors
may find appealing when making investment
decisions. The designation is granted to publicly
listed companies that are outstanding in termsof encouraging the empowerment of women.
We will continue to promote activities
aimed at creating more active roles for female
associates.

30

Training for career development for female assistant managers

100

50

56

Toyota Industries Report 2017

0Female•“Eruboshi” certification•Selected as Semi-Nadeshiko Brand* A system to enable reinstatement under certain preconditions

20

10

Male

•Female associate exchange meetings•Project for promoting active roles
among 6 Toyota Group companiesof female associates•Seminars for female associates in•Message from president
managerial positions•Seminars for female students in science track•Starting to recruit main career track female associates (for engineering positions in fiscal 1987 and administrative positions in fiscal 1997) •Increasing recruitment of female associates from non-engineering university departments

20

Mar. 31, ’17•Expanding telecommuting options•Installing delivery lockers

Increasing the ratio of female associates

(%)
40

20

Mar. 31, ’07•Introducing a telecommuting system•Opening a Diversity Navi page on the intranet•Holding exchange meetings and lectures to share experiences of female associates in balancing work and family[Engineering position]

30

Mar. 31, ’97

FY2017

Female associate exchange meeting among six Toyota Group companies

Employment of Persons with Disabilities
We respect the idea of people with and without disabilities
working together and sharing life and work values. Under
this basic policy, we continue to employ persons withdisabilities every year. They are assigned to a variety ofsections and work with other members to perform theirdesignated tasks. In fiscal 2017, the ratio of associates withdisabilities on a non-consolidated basis was 2.27%.
■ Ratio of Associates with Disabilities (Non-Consolidated)
(%)
2.3
2.2
2.1
2.0
0

(FY)

13

14

15

16

17

Creating a Work Environment for Older Associates

150

FY2016

Cultivating corporate culturen Hiring of New Graduates (Non-Consolidated)

305FY2015•Introducing a shorter work-hour system for child care

Women

10

FY2014

Enhancing support systems

Relationship with Our Associates

We are creating a bright, energetic and caring work
environment that fosters a dynamic workforce and allows
every member to demonstrate his or her capabilities both as
an individual and as a team. We are proactively encouraging
communication not only during work hours but also throughsocial gatherings, sports days, summer festivals, Groupwide ekiden long-distance relay races and cheer squads forvarious sports events.

n Initiatives for Promoting Active Roles of Female Associates

Corporate Social
Responsibility

We conduct TICO Business Practices (TIBP) training
targeting associates in administrative and engineering fields,with the aim of mutually sharing the thinking and values that
the Company gives importance to, as well as to improve
our associates’ problem-solving capabilities. TIBP training
programs are also provided at subsidiaries outside Japan in
our efforts to raise the level of management skills throughout
the Toyota Industries Group.

In addition, by introducing “a return-to-work (“welcomeback”) system,” which allows associates who have left work
to care for children and family members or to accompany
their spouse for a job transfer to get reinstated under certain
preconditions, we provide an environment for associates towork at Toyota Industries for longer years with peace of mind.
In terms of measures to promote more active roles forfemale associates, we have set the target of increasing theratio of female graduate recruits to 40% in administrative
positions and 10% in engineering positions, and tripling thenumber of female associates in managerial positions by
the year 2020 compared with 2014, and intend to step up
activities to achieve our goal.
In 2015, we set up a project to promote more activeroles for female associates, comprising 11 males andfemales from different departments.
This project was key for the identification of issues andformulation of policy proposals in promoting the increased
active roles of female associates through discussions andexchanges among project members and stakeholders.
The results of these discussions formed the basis for thedevelopment of a Company-wide action plan in clarifying theinitiatives for this project.
In carrying out the action plan, we specifically focus on
the initiatives to change the mindset among managerial staff
and across all associates, provide female associates career
support and promote flexible working practices.
In fiscal 2017, we held a seminar for about 1,000
managerial staff members who directly engage in thementoring and development of associates. The aim was topromote an understanding of how female associates regard
their career paths as well as the environment in which they1010(FY) 13

14

15

16

17

0

0

(FY) 13

Female

14
Male

15

16

17

0

Ratio of females

We focus on creating a better work environment for older
associates by adjusting the height of jigs in production lines
and modifying processes to compensate for deterioration ofvision so that they can work with less stress.
Moreover, since the introduction of a re-employment
system for associates who reach the mandatory retirement
age of 60, the number of associates who choose tocontinue working has been increasing. In response, we hold
“55 Career Training” for associates reaching the age of 55 togive them an opportunity to envision life and work after theage of 60 and think about how they should work during theremaining pre-retirement period.

Seminar for managerial staff members

57

Relationship with Our Local Communities
With a view toward creating an enriched and healthysociety and ensuring its sustainable growth, we fulfill ourrole as a good corporate citizen and actively undertakesocial contribution activities in every region where we
do business.

* Voluntary organizations formed by employees at each job levelnn Structure for Promoting Social
Contribution Activities
The CSR Committee deliberates on policies of our social
contribution activities while the Social Contribution Group
within the General Administration Department at the Head
Office takes the initiative in carrying out activities.

Activities

SocialwelfareEvents to interact with persons with disabilities• “Walk Rally (orienteering),” harvest festival, festival
Support for welfare facilities• Support for charity bazaars at facilities by providing goods• Volunteer work for facility cleanup/repair/pruning/weeding•S upport for sales of products from facilities for persons withdisabilities by providing opportunities to set up stalls• Volunteer listening activities at elderly care facilities
Donation to a breast cancer enlightenment NPO througha charity running event (Belgium) (P59)
Support for feeding the homeless and needy (Australia)
Donating Christmas presents for less fortunate children (U.S.A.)

Support for Youth Invention Clubs•M onozukuri workshops for elementary school children
during summer vacations•H olding handmade kite-flying competitions
Youth•R unning craft corners at local events
development Providing plant-hosted environmental education to elementary
school children
Holding mini concerts at elementary schools
Donation to an organization supporting sound youth
development (U.S.A.) (P59)

Participation in local traditional event (Mando Festival)
Road cleanup activities in areas around plants
Activities to raise awareness for traffic safety
Crime prevention patrols
Community
Holding a drill on how to use fire extinguishers at ancontribution
elementary school (P58)
Highway cleanup activities (U.S.A.)
Donating toilets and desks to elementary schools andconducting health and hygiene education (India) (P59)
Other

Holding charity concert
Support for international NGO in collecting spoiled postcards,
bell marks and others
Periodic blood donation drives

Activity Examples of Toyota Industries and Consolidated Subsidiary (Japan)
Environmental
Protection

58

Consolidated SubsidiaryCommunity
Contribution

Donating Benches Made of Thinned Wood

Holding a Drill on How to Use Fire Extinguishers at an
Elementary School

In collaboration with Aste, a public interest foundation
engaging in forest conservation, Toyota Industries donated
12 benches made of thinned Japanese cypress tokindergartens and children’s day care centers. This initiative
aims to promote the sound development of forests andeffectively utilize thinned wood. At a donation ceremony
held at a kindergarten, we
performed a skit to explain
what is happening tosatoyama (village forests)
in an easy-to-understandmanner and convey theimportance of conserving
forests to children.

SKM Corporation, engaging in building management,
security services for facilities and management andbrokerage of real estates, conducted a drill on how to use
fire extinguishers for about 90 fourth graders at a nearby
elementary school, utilizing the skills accumulated throughroutine training by its security department. On the day of thedrill, after a lecture on
fires and a Q&A session,
each child actually shot
off a fire extinguisher. We
will continue to contributeto local communities
through these and similar
activities.

Skit by employees participating ina donation ceremony
Toyota Industries Report 2017

Social Welfare

Donation to a Breast Cancer Enlightenment NPO through a
Charity Running Event

Toyota Material Handling Belgium NV/SA (TMHBE)
Subsidiary engaging in sales and servicing of materials
handling equipment

From TMHBE, 18 employees participated in a charity
running event to support the Susan G. Komen®
organization, an NPO fighting against breast cancer. The
event solicits donations from runners according to the
distance they run, and the company donated the matchingamount to the NPO. The funds raised through the eventare used to support efforts to increase the breast cancer
examination rate, help patients find a job and promote
therapeutic research.

Environmental
Protection

Indonesia

Cooperating in a Government-Led Environmental Program

P.T. TD Automotive Compressor Indonesia (TACI)
Subsidiary producing car air-conditioning compressors

TACI cooperated in the Adiwiyata Program, anenvironmental program for the sustainable growth of society
run by the Ministry of Environment and Ministry of Educationof Indonesia. The program encourages respective schools
to address environmental issues and convey to children theimportance of environmental conservation. At a school in
Cikarang, 20 TACI employees supported the developmentof a system to produce a fertilizer from organic waste.

Initiatives for forest conservation•T ree thinning activities for conservation of prefecture-owned
forests
Environmental • P roducing and donating benches made of thinned
wood (P58)
protection•T ree-planting activities for reforestation
Cooperating in a government-led environmental program(Indonesia) (P59)(Activities without country designation were conducted in Japan.)Toyota Industries Corporation

Belgium

Drill for children to practiceusing a fire extinguisher

Employees who cooperated in the environmental program

Employees who participated in the charity running event

U.S.A.

Youth
Development

Donation to an Organization Supporting Sound Youth
Development

Community
Contribution

India

Donating Toilets and Desks to Elementary Schools andConducting Health and Hygiene Education

TD Automotive Compressor Georgia, LLC (TACG)

Toyota Industries Engine India Pvt. Ltd. (TIEI)

Subsidiary producing car air-conditioning compressors

Subsidiary producing engines

In September 2016, TACG employees collected snacks
and beverages and raised donation funds for the Boys &Girls Clubs of America. The organization offers a variety of
support programs for economically or socially challenged
youth having difficulty leading a stable life to help themachieve sound growth.

Employees who participated in the donation drive

Relationship with Our Local Communities

Based on “Respect for Others” as described in our Basic
Philosophy, we strive to fulfill our role as a good corporate
citizen in every region where we do business and actively
engage in social contribution activities to realize an enriched
and healthy society. In our activities that emphasize social
welfare, youth development, environmental protection andcommunity contribution, we not only provide cooperationand support through personnel, facilities, funds and knowhow but also strive to closely connect with participants.
To foster employees’ awareness of their ties to society
and raise their interest in contributing to society, we
make enlightenment efforts such as providing a venue forvolunteer activities and sharing information on volunteer
activities that encourage the participation of all employees.
Employee associations* are actively undertaking various
activities to contribute to local communities, mainly in theareas of supporting welfare facilities and protecting thenatural environment.

Theme

Activity Examples of Consolidated Subsidiaries (Outside Japan)

Corporate Social
Responsibility

nn Activities as a Good Corporate
Citizenn Major Social Contribution Activities of Toyota Industries andGroup Companies

TIEI constructed girls’ restrooms at an elementary schoolin the Krishna district, which is located near its plantand had been in need of more girls’ restrooms. TIEI also
donated desks and chairs to and conducted health andhygiene awareness education at other elementary schools.
Along with these efforts, TIEI conducted a variety ofcommunity contribution activities, including planting trees forbeautification of areas surrounding its plant.

Employees who participated in awareness education

59