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cc n is a multinational corporation headquartered in Japan. In


2009, Toyota Motor Corporation employed 71,116 people worldwide (total Toyota
320,808). TMC is the world's largest automobile maker by sales and production.

The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his
father's company Toyota Industries to create automobiles. Three years earlier, in 1934,
while still a department of Toyota Industries, it created its first product, the Type A
engine, and, in 1936, its first passenger car, the Toyota AA. Toyota Motor Corporation
group companies are Toyota (including the Scion brand), Lexus, Daihatsuand Hino
Motors, along with several "non-automotive" companies. TMC is part of the Toyota
Group, one of the largest conglomerates in the world.

Toyota Motor Corporation is headquartered in Toyota City, Aichi and in Tokyo. In


addition to manufacturing automobiles, Toyota provides financial services through
its Toyota Financial Services division and also builds robots.
History

Toyota started in 1933 as a division of Toyoda Automatic Loom Works devoted to the
production of automobiles under the direction of the founder's son, Kiichiro Toyoda. Its
first vehicles were the A1 passenger car and the G1 in 1935. Toyota Motor Co. was
established as an independent company in 1937.

Vehicles were originally sold under the name "Toyoda", from the family name of the
company's founder, Kiichirō Toyoda. In September 1936, the company ran a public
competition to design a new logo. Out of 27,000 entries the winning entry was the three
Japanese katakanaletters for "Toyoda" in a circle. But Risaburō Toyoda, who had
married into the family and was not born with that name, preferred "Toyota" because it

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took eight brush strokes (a fortuitous number) to write in Japanese, was visually simpler
(leaving off the diacritic at the end) and with a voiceless consonant instead of
a voiced one (voiced consonants are considered to have a "murky" or "muddy" sound
compared to voiceless consonants, which are "clear"). Since "Toyoda" literally means
"fertile rice paddies", changing the name also helped to distance the company from
associations with old-fashioned farming. The newly formed word was trademarked and
the company was registered in August 1937 as the "Toyota Motor Company".

In predominantly Chinese-speaking countries or regions using traditional Chinese


characters, e.g. Hong Kong and Taiwan, Toyota is known as .In predominantly Chinese
speaking countries using simplified Chinese characters (e.g. China), These are the
same characters as the founding family's name "Toyoda" in Japanese, which translate
to "fertile rice paddies" in the Chinese language as well.

From September 1947, Toyota's small-sized vehicles were sold under the name
"Toyopet" . The first vehicle sold under this name was the Toyopet SA but it also
included vehicles such as the Toyopet SB light truck, Toyopet Stout light truck, Toyopet
Crown and the Toyopet Corona. However, when Toyota eventually entered the
American market in 1957 with the Crown, the name was not well received due to
connotations of toys and pets. The name was soon dropped for the American market
but continued in other markets until the mid 1960s.

Company overview

The Toyota Motor Company received its first Japanese Quality Control Award at the
start of the 1980s and began participating in a wide variety of motorsports. Due to
the 1973 oil crisis, consumers in the lucrative US market began turning to small cars
with better fuel economy. American car manufacturers had considered small economy
cars to be an "entry level" product, and their small vehicles employed a low level of
quality in order to keep the price low.

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By the early sixties, the US had begun placing stiff import tariffs on certain vehicles.
The Chicken tax of 1964 placed a 25% tax on importedlight trucks. In response to the
tariff, Toyota, Nissan Motor Co. and Honda Motor Co. began building plants in the US
by the early eighties.[31]

In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one
company, the Toyota Motor Corporation. Two years later, Toyota entered into a joint
venture with General Motors called NUMMI, the ü   
  

 operating an automobile-manufacturing plant in Fremont, California. The factory
was an old General Motors plant that had been closed for two years. Toyota then
started to establish new brands at the end of the 1980s, with the launch of their luxury
division Lexus in 1989.

In the 1990s, Toyota began to branch out from producing mostly compact cars by
adding many larger and more luxurious vehicles to its lineup, including a full-sized
pickup, the T100(and later the Tundra); several lines of SUVs; a sport version of
the Camry, known as the Camry Solara; and the Scion brand, a group of several
affordable, yet sporty, automobiles targeted specifically to young adults. Toyota also
began production of the world's best-selling hybrid car, the Prius, in 1997.

With a major presence in Europe, due to the success of Toyota Team Europe, the
corporation decided to set up TMME,     

 
 
, to
help market vehicles in the continent. Two years later, Toyota set up a base in the
United Kingdom, , as the company's cars had become very popular among British
drivers. Bases in Indiana,Virginia and Tianjin were also set up. In 1999, the company
decided to list itself on the New York and London Stock Exchanges.

In 2001, Toyota's Toyo Trust and Banking merged to form the UFJ,     
  , which was accused of corruption by the Japan's government for making bad
loans to alleged Yakuza crime syndicates with executives accused of blocking Financial
Service Agency inspections The UFJ was listed among 
      largest
money-losing corporations in the world, with Toyota's chairman serving as a director.At

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the time, the UFJ was one of the largest shareholders of Toyota. As a result of Japan's
banking crisis, the UFJ was merged again to become Mitsubishi UFJ Financial Group.

In 2002, Toyota managed to enter a Formula One works team and establish joint
ventures with French motoring companies Citroën andPeugeot a year after Toyota
started producing cars in France.

Toyota ranked eighth on Forbes 2000 list of the world's leading companies for the year
2005. The company was number one in global automobile sales for the first quarter of
2008.

On December 7, 2004, a US press release was issued stating that Toyota would be
offering Sirius Satellite Radios. However, as late as January 27, 2007, Sirius Satellite
Radio and XM Satellite radio kits were not available for Toyota factory radios. While the
press release enumerated nine models, only limited availability existed at the dealer
level in the US. As of 2008, all Toyota and Scion models have either standard or
available XM radio kits. Major Lexus dealerships have been offering satellite radio kits
for Lexus vehicles since 2005, in addition to factory-equipped satellite radio models.

In 2007, Toyota released an update of its full size truck, the Tundra, produced in two
American factories, one in Texas and one in Indiana. "Motor Trend" named the Tundra
"Truck of the Year," and the 2007 Toyota Camry "Car of the Year" for 2007. It also
began the construction of two new factories, one to build the RAV4 in Woodstock,
Ontario, Canada and the other to build the Toyota Prius in Blue Springs, Mississippi,
USA. This plant was originally intended to build the Toyota Highlander, but Toyota
decided to use the plant in Princeton, Indiana, USA, instead. The company has also
found recent success with its smaller models²the Corolla and Yaris²as gas prices
have risen rapidly in the last few years.
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Toyota has been like a boxer on the ropes taking punch after punch from the
media, Congress, consumers, and other critics. Mohammad Ali used a strategy
called the rope-a-dope. Ali would lean against the rope taking punches in order to
tire his opponent out and counterattack when given the chance. In more general
use, rope-a-dope is when an entity places itself in what appears to be a losing
position in an attempt to become the winner. With the march 8, 2010
counterattack, perhaps Toyota is making its move to ³win´ in this crisis. It is still
far too early to tell. However, the counterattack is far cry from the apologies and
verbal punches Toyota has been absorbing the past few months.

Toyota has had a series of recalls related to sudden acceleration in vehicles. The
sudden acceleration is serious having caused a number of deaths as cars would
speed up often exceeding 100 mph. Toyota¶s recall have addressed floor mats and
then the gas pedal itself. Toyota service departments have often been open 24
hours to handle the repair/replacement of the gas pedals. The televisions airwaves
are filled with Toyota advertisements talking about the repair and testimonials from
customers saying how they still love their Toyota vehicles.

Recently Toyota has been taking punches from Congress that have been amplified
by the traditional and online media. The key charge is that Toyota has not really
found that problem. The argument is that the problem is really in the electronics,
not the mechanical system as Toyota says. This is pivotal distinction. If Toyota
has not solved the problem, its customers are still at risk from its flawed product.
At best, Toyota looks incompetent as it cannot find the problem, At worst, Toyota
looks like it is ignoring a safety problem by pretending the pedal design is at fault
when they know it is the electronics.

A key piece of evidence being used against Toyota is an ³experiment´ conducted by


David W. Gilbert, an automotive technology professor at Southern Illinois
University-Carbondale.

³Gilbert told a congressional hearing Feb. 23 that he recreated sudden acceleration


in a Toyota Tundra by short-circuiting the electronics behind the gas pedal ²
without triggering any trouble codes in the truck¶s computer.

The trouble codes send the car¶s computer into a fail-safe mode that allows the
brake to override the gas. Gilbert called his findings a ³startling discovery.´

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House lawmakers seized on the testimony as evidence Toyota engineers missed a


potential problem with the electronics that could have caused the unwanted
acceleration.

Toyota could no long rest against the ropes and is now fighting back. The
cornerstone of the counterattack is testimony from Stanford University professor
Chris Gerdes, director of Stanford University¶s Center for Automotive Research, and
a consulting firm, Exponent Inc. For most people, Stanford would seem more
credible that Southern Illinois. However, the Stanford Center for Automotive
Research and its engineering school receive money from Toyota. Gerdes maintains
his analysis is independent but there are reasons for doubt to creep in. Experts
seem to agree that the conditions found in Gilbert¶s ³experiment´ are extremely
unlikely to occur in the real world.

The stakes are high. In addition to reputation and sales loss, Toyota is facing
intensified Congressional scrutiny over the electronics concern. This includes
accusations that Toyota has ignored the safety issue since 2006. Toyota has hired
a former U.S. Secretary of Transportation to head an internal examination of its
quality and safety issues. A third-party expert is a way add credibility to such
investigations.

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you know how many hourly jobs GM has laid off from 2006 to July 2008? Take a
guess. How about 34,000? And now, they're talking about another 5,500 layoffs.
And now they're asking you and your government for a bailout to end their
troubled, outdated, low quality, wasteful production system. But, let's not focus on
fixing GM's problems with an infusion of cash. There's something even deeper going
on here that's really wrong. OK, here's a better question. How many hourly jobs
has Toyota 's American production system laid off in the same time frame? Zero.
That's right. ZERO. How? Isn't Toyota experiencing the same slow down in auto
sales as GM is? Yes, it is. And yes, Toyota has halted production at its Texas and
Indiana plants for the past 3 months. But the 4,500 people who work at those
plants have not been laid off. What!?!?! How? Why? The answer: Toyota has a
special culture, deep-rooted values, and respect for their workforce. Toyota €s
tradition is to NOT lay off employees during hard times. This tradition hasn't really
been put to the test until now. And Toyota has stuck to its guns and its values.c
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£This was the first chance we've really had to live out our values,£ says Latondra
Newton, general manager of Toyota €s Team Member Development Center in
Erlanger , Ky. £We're not just keeping people on the payroll because we're nice. At
the end of all this, our hope is that we'll end up with a more skilled North American
workforce.£c
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Interesting. But what does that last line mean? £At the end of all this, our hope is
that we'll end up with a more skilled North American workforce.£ It means that
while these employees were not manufacturing automobiles, they were in training.
They were doing safety drills, participating in productivity improvement exercises,
attending presentations on material handling and workplace hazards, taking
diversity and ethics classes, attending maintenance education and taking a stream
of online tests to measure and record their skill improvements. Toyota is shifted the
Texas and Indiana workers temporarily to Toyota plants whose assembly lines were

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moving at full speed, such as the Camry assembly plant in Georgetown, Ky. In
addition to all of this, the workers also spent some time painting the plants and
even helped build Habitat for Humanity homes. And they were getting paid.c
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Wow! So what is this costing Toyota ? The estimate is at least $50 million dollars,
plus the loss of revenue of shutting down production. Why is this value and
tradition worth so much to Toyota ? Why would they be willing to spend $50 million
rather than lay people off? It's because Toyota believes that its people, yes, its
PEOPLE are its greatest investment and its greatest asset. You hear so many
companies say that, but would they really put their money where their mouths are
when the rubber hits the road (no pun intended)? In Toyota €s case, the answer is
yes they would.c
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So what does Toyota get out of this? When, not if, the plants return to full
production, Toyota will have well trained employees on the front line, ready and
able to meet the demand for their vehicles. And not only will they be well trained,
they'll be happy and motivated to work. Because Toyota is willing to go to the mat
for their people, their people will be willing to do the same for Toyotac
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The lesson here: Unlike their counterparts GM and Ford, Toyota has always taken a
long-term strategic view about their employees. Toyota understands that laying off
thousands of employees for slowdowns or plant retooling is counter productive.
They wisely utilize the time to redistribute their workforce to understaffed plants,
provide additional training for the new products, and leverage their workforce to
speed the transition for newer products. Their philosophy has avoided labor
disputes and staffing shortages. It has kept the company as a leader in quality and
profitability over its shortsighted competitors. So, the message for you in all of this:
Really commit to upholding the value that your people, let me repeat that, your
PEOPLE are your greatest asset. Treat them with respect and dignity. Do everything
in your power and your imagination to keep them on the payroll during the rough
times. If you don't, you may not find those people again on the upside of the
downturn. And if you do, you'll have hyper-productive, motivated teams delivering
quality because they're committed on a deeper level to your company.

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What does Toyota's travails mean to green marketing?

That's a question that seems ripe these days, as the leading Japanese
auto maker gets a comeuppance for its allegedly serious safety defects --
and the more than eight million cars it has recalled worldwide as a result.

Toyota, after all, had become a darling of the eco-minded, a case study in
the green halo that can inure to old-line companies that bring
environmental innovation to mainstream audiences. Toyota seemed to
have done it the right way: with products that weren't just greener, but
better -- in this case, high-aesthetic, high-performance, affordable cars.

In some regards, Toyota's Prius gas-electric hybrid represented the green


consumer ideal: no tradeoffs -- a product that pushed all the right buttons. It
came from a trusted brand, didn't require consumers to change habits,
performed well, looked great, and provided an environmental benefit. It
made a public statement about the owner's green cred. It offered
consumers, as I've dubbed it, "Change without changing." There haven't
been many other consumer products from major brands, save for a handful
of household cleaners, that have fired on all those cylinders.

But now that ideal has experienced a crash-course in reality, a collision of


technological snafus and a corporate culture that shunned transparency for
expediency ² and may have committed criminal neglect. The result, as
everyone knows, is a massive global regulatory undertaking, media-fanned
anxiety on the part of Toyota vehicle owners ² and more than a little
handwringing on the part of environmentalists, who aren't sure what to
think of a company that had come to be seen as a corporate hero.

One evidence of that hero status comes from the Green Confidence
Index co-produced by my team at GreenBiz.com. Every month they ask

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2,500 Americans -- a demographically representative sampling of the adult


online population -- a simple but profound question: "What company, if any,
do you think of as being 'green'?" It's an unaided question, meaning that no
list of companies is provided. Respondents simply name companies that
are top of mind. For the past six months, Toyota has remained among the
top 8 companies named. (Walmart and Clorox have consistently been the
top two, while 64 percent of Americans aren't able to name any company
they consider to be green -- a story for another day.)

It will be interesting to see how the troubles will tarnish Toyota's green
sheen, especially since the company's recalls have been so widely and
persistently reported; this isn't some scandal limited to the blogosphere or
the green world.

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The ³Five Values´ were assembled as an ³action guide´ for the employees of Toyota
Industries. Each and every one of our employees is to think for themselves and
determine, ³What concrete action should we be taking and how should we change?´
They will then share these thoughts with each other, and by also sharing a similar set of
values they will aim to promote the future development of Toyota Industries.

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We, Toyota Industries Corporation and our subsidiaries, contribute to the


harmonious and sustainable development of society and the Earth through all
business activities that we carry out in each country and region based on our
Basic Philosophy.
We comply with local, national, and international laws and regulations as well as
the spirit thereof, and we conduct our business operations with honesty and
integrity.
In order to contribute to sustainable development, we believe that management
interacting with its stakeholders is of considerable importance, and we will
endeavor to build and maintain sound relationships with our stakeholders through
open and fair communication.
We expect our business partners to support this initiative and act in accordance
with it.

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Toyota's top management priority is to steadily increase corporate value over the long
term. In order to achieve that, Toyota builds favorable relationships with all of its
stakeholders, including shareholders, customers, business partners, local communities,
and employees. We are convinced that providing products that fully cater to customer
needs is essential to achieve stable, long-term growth. Given this situation, Toyota is
seeking to strengthen its corporate governance through various policies in order to
further enhance its competitiveness as a global corporation.

Toyota's Basic Approach to Corporate Governance

Specifically, Toyota has introduced a unique management system focused on prompt


decision making for developing our global strategy and speeding up operations.
Toyota also has a range of long-standing in-house committees and councils responsible

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for monitoring and discussing management and corporate activities to ensure


heightened transparency and the fulfillment of social obligations.
Furthermore, Toyota has a unique corporate culture that places emphasis on problem
solving and preventative measures. Toyota's approach is to build in quality through
manufacturing processes, enhancing the quality of everyday operations and
consequently strengthening corporate governance. Toyota's management team and
employees conduct operations and make decisions founded on that common system of
checks and balances and on high ethical standards.

Toyota's Management System - Systems for Ensuring Appropriate Management

In the current managerial system, introduced in 2003, the Chief Officers, who are
directors, serve as the highest authorities of their specific operational functions across
the entire company, while non-board Managing Officers implement the actual
operations. The distinctive feature of this system is that based on Toyota's philosophy of
emphasizing developments on the site, the Chief Officers serve as the link between
management and on-site operations, instead of focusing exclusively on management.
This system enables the management to make decisions directly with on-site
operations, by reflecting on-site personnel opinions on management strategy and swiftly
implementing management decisions into actual operations.
To monitor the management, Toyota has adopted an auditor system that is based on
the Japanese Corporation Act.
In order to increase transparency of corporate activities, four of Toyota's seven
corporate auditors are external auditors.
As a system to ensure appropriate management, Toyota has convened meetings of its
International Advisory Board (IAB) annually since 1996. The IAB consists of around ten
distinguished advisors from overseas with backgrounds in a wide range of fields,
including politics, economics, the environment, and business. Through the IAB, Toyota
receives advice on a diversity of business issues from a global perspective.
Under the basic policies established in May 2006, Toyota implements an internal control
system while conducting necessary enhancements. Responding specifically to a series
of quality issues that caused anxiety for Toyota customers, it established the ³Toyota
Special Committee for Global Quality´ in March 2010, and the ³Risk Management
Committee´ in June 2010.

    

  
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Working to ensure fair and transparent corporate governance by emphasizing frontline
operations and multidirectional monitoring.

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Draw out the goodwill, enthusiasm, and autonomous decision making abilities of the people who
perform work, based on the idea of "respect for people";
Establish structures within the work performance processes carried out by people and organizations
that incorporate internal controls and make possible checks and balances as well as management and
oversight by directors;
Establish inter-departmental organizations to supplement internal controls.
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1. Legal compliance by Directors 6. Appropriateness of the business operations of


2. Retention and management of information the group
relating to the execution of responsibilities by 7. Employees assisting the Corporate Auditors
Directors 8. Independence of employees described in the
3. Regulations and other systems related to the preceding item 7
management of risk of losses 9. Report to Corporate Auditors
4. Efficiency of execution of responsibilities by 10. Ensure the efficient execution of audits by the
Directors Auditors
5. Legal compliance by employees
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I would like to express my heartfelt thanks for the warm, ongoing support of our stakeholders
worldwide.

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Looking back on the past year, I am reminded of when I was appointed as president in June
2009; at the time, it felt like we were setting sail in stormy economic conditions. It was an
extremely severe operating environment in which we were unable to relax for even one
moment all year long.
From our withdrawal from F1 racing to the shutdown of production at New United Motor
Manufacturing Inc. (NUMMI), our former joint venture with GM, there were many hard choices
to make. Furthermore, I have been involved in a variety of meetings to explain our ongoing
commitment to safety and customer satisfaction. These included public hearings in the United
States and explanatory meetings in Japan and other countries with the support of related
personnel from across the company. During this time, I received constructive suggestions for
improvement as well as words of encouragement and support from many people. I am very
grateful to those who took the time to help us through this difficult time.

Fully leveraging the challenging experience of the past year as an asset, I have defined fiscal
year 2010 as the year when Toyota makes a fresh start, and I intend to steer the company
toward a new growth strategy.
Since its foundation, Toyota¶s unchanging mission has been to contribute to society by making
safe and reliable vehicles. This will continue to be our priority. In addition, Toyota has always
been a dynamic company. As the individual needs of our customers evolve, I consider the
response to ever-changing times as growth. I look forward to personal growth for myself and
ongoing growth of our company. To this end, it is important that our customers, shareholders,
regional communities, dealers, suppliers, employees and all other stakeholders support the
idea of Toyota¶s continuing growth as being a good thing.

The growth I want to pursue is not simply expansion to achieve a greater market share.
Instead, I envision sustainable growth driven by each employee and based on delivering high
quality and safety at an affordable price ² as demanded by our customers all over the world.
In today¶s world, it is imperative that we ³develop and promote the next-generation ecocar´ to
continue to serve people and society over the next 100 years as resources become more
constrained.

It is considered inevitable that the day of ³peak oil´ will come in the not-too-distant distant
future as the global oil production curve reaches its peak and turns downward. We must
accelerate the development of alternative-fuel cars while ensuring efficient use of precious oil
resources.
To meet such challenges, we will not only continue to refine existing hybrid technology but
also launch a home rechargeable plug-in hybrid vehicle (PHV) and an electric vehicle (EV) in
2012 and will push ahead in all possible directions beyond that.
Regarding EV development, in May 2010, we announced a business partnership with Tesla
Motors for the development of an electric vehicle.

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In the spring of 2010, during a visit to the United States, I had an opportunity to test drive one
of Tesla Motors¶ electric vehicles, an experience that I can only describe as feeling the wind of
the future. Not only was I impressed by Tesla's technological capabilities, but I also sensed
the energy that will enable them to produce the vehicle efficiently to meet market demands.
To capitalize on technological transitions that occur once every 100 years, I think the can-do
spirit, quick decision-making and flexibility of venture businesses are as necessary as the
methods of big corporations like Toyota. Toyota was also born as a venture business and that
spirit has contributed to its growth over the years. By working with Tesla, I strongly believe we
can reawaken the creative spirit in our own employees and accept the challenges of facing a
new future.

Also, as a new move toward achieving a lowcarbon society, Toyota is actively involved in a
large-scale PHV pilot project in Strasbourg, France, and in installing and conducting pilot tests
of nextgeneration power grids, which are currently called Smart Grids, in Boulder, Colorado,
USA, and in Toyota City and Rokkasho Mura village, Aomori Prefecture, Japan.

Respond to society¶s changing needs and enrich people¶s lives by making safe and reliable
vehicles. Never forget to appreciate our customers and all other stakeholders. Embracing
these principles, the hearts of all Toyota associates are united in an effort to make better
vehicles. I hope Toyota will receive your continued support.
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In order to contribute to the sustainable development of society and the earth, Toyota
believes that management emphasizing all stakeholders is of considerable importance,
in addition to environmental initiatives. Toyota maintains sincerity in its actions, honors
its promises and acts in a spirit of good faith in seeking to become a global enterprise
respected by all peoples around the world, as well as working conscientiously to provide
value to stakeholders through the business it conducts.
In August 2008, Toyota revised its CSR POLICY: Contribution towards Sustainable
Development that takes into consideration Toyota's relations with stakeholders. In
addition to applying this policy to all of its consolidated subsidiaries throughout the
world, Toyota expects its business partners to also support its principles.

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This section provides an introduction to Toyota's stance on responding to the diverse


needs of its stakeholders, providing background as well as a summary of its past and
present activities - both within Japan and overseas. Further details can be found by
clicking on the links for each year's environmental report and/or by accessing detailed
pages found within this site.
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Addressing Diversifying Customer Needs Based on the "Customer First, Quality First"
Policy

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 Respecting
Toward Achieving a Diversity and
Sustainable Society Developing Human
and Being a Good Resources While
Corporate Citizen Sharing the Toyota
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Realizing Stable 

Growth Sustainable
Society Achieved in
Collaboration with
Business Partners
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Toyota believes that it is important to meet


and discuss issues with its wide range of
stakeholders, and since 2001 has hosted the

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Toyota Stakeholder Dialogue every year. Toyota receives the stakeholders¶


expectations and opinions and shares them with the internal related divisions/persons,
which will be useful in future Toyota initiatives.

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The Ninth Toyota Stakeholder Dialogue was held in March 2010 with ³Toyota¶s
Environmental Initiatives towards Sustainable Development´ as its theme. Stakeholders
from government, non-governmental organizations/non-profit organizations, and
industry as well as other relevant experts attended the dialogue to engage in direct
discussions concerning Toyota¶s environmental initiatives addressing societal issues;
global warming and preservation of biodiversity.
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Toyota has established the CSR Committee as the body responsible for promoting
CSR, and the CSR Department as the organization for implementing CSR activities.
The collaboration of these two entities provides for long-term, company-wide CSR
promotion and activities.

Toyota CSR Committee

In order to coordinate and promote CSR activities, in October 2007 TMC established
the CSR Committee, whose membership includes directors at the vice president and
higher level and a representative of the corporate auditors. The CSR Committee was
formed by merging the Corporate Ethics Committee, which played a central role in
ensuring legal compliance, and the Corporate Philanthropy Committee, which
conducted social contribution activities, in order to promote closer collaboration and the
expansion and improvement of their respective activities.

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The committee is deliberating and issuing reports on the issues listed below:
- Planning global CSR policies and activities
- Corporate ethics, legal compliance
- Significant issues concerning, risk management
- Significant issues concerning, social contribution issues and new environmental issues


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CSR Department to Promote Toyota's CSR Initiatives

In June 2010, the Risk Management Committee was formed under the CSR Committee
in response to quality issues, and will be chaired by a CSR Committee member
responsible for risk management at the vice president level. Originally organized under
the CSR & Environmental Affairs Division, the CSR Office was transferred to the
Corporate Planning Division to achieve deeper company-wide expansion of CSR
initiatives.
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For Toyota, compliance does not mean simply observing laws; it means respecting
societal norms and corporate ethics, complying with the expectations of diverse
stakeholders, and engaging in fair corporate activities.
Establishing compliance requires steady and earnest efforts in the performance of day-
to-day operations. Toyota is promoting initiatives through the construction of
frameworks such as the Corporate Ethics Committee, a subcommittee of the CSR
Committee, and other internal organizations, and the development of human resources
to raise individual awareness of compliance.

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Education and Training to Ensure Thorough Compliance

To ensure that awareness of compliance extends from senior managers to all other
employees, TMC conducts on-the-job and special rank-specific training, disseminates
information on its website, and implements e-learning programs.

The Compliance Hotline

TMC contracted an outside law firm to establish a Compliance Hotline that allows
employees to consult in private in the event they have any questions or doubts
concerning issues of legal compliance.
The content of consultations is conveyed anonymously to a secretariat within TMC and
the facts confirmed, and the details are investigated with scrupulous care to ensure that
the identity of the consulting employee is not revealed. If the results of the investigation
indicate a compliance related issue, a response is immediately implemented. The
content of consultations are reported to the president and corporate auditors every
month.

In addition, each division within Toyota is responsible for reassessing compliance risks,
as well as implementing and maintaining measures to address those risks.

Toyota Code of Conduct

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The Toyota Code of Conduct (adopted in 1998 as the Code of Conduct for Toyota
Employees and revised in March 2006) organizes the basic attitudes necessary for
people working at Toyota to put the Guiding Principles at Toyota into practice and to
fulfill social responsibilities, and indicates specific points to keep in mind.
It is a tool to help employees maintain proper awareness as employees of Toyota, to
consider independently the conduct in which they should engage, and to carry out that

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conduct. All employees carry out their everyday operations based on a shared
awareness of these principles.

GIUDING PRINCIPLES OF TOYOTA


1. Honor the language and spirit of the law of every nation and undertake open
and fair corporate activities to be a good corporate citizen of the world.
2. Respect the culture and customs of every nation and contribute to economic
and social development through corporate activities in the communities.
3. Dedicate ourselves to providing clean and safe products and to enhancing the
quality of life everywhere through all our activities.
4. Create and develop advanced technologies and provide outstanding products
and services that fulfill the needs of customers worldwide.
5. Foster a corporate culture that enhances individual creativity and teamwork
value, while honoring mutual trust and respect between labor and
management.
6. Pursue growth in harmony with the global community through innovative
management.
7. Work with business partners in research and creation to achieve stable, long-
term growth and mutual benefits, while keeping ourselves open to new
partnerships.
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FIVE MAIN PRINCIPLE OF TOYOTA


Always be faithful to your duties,
thereby contributing to the Company and to the overall good.
Always be studious and creative, striving to stay ahead of the times.
Always be practical and avoid frivolousness.
Always strive to build a homelike atmosphere at work that is warm and friendly.
Always have respect for God, and remember to be grateful at all times.
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Starting in 2007, Toyota, the Department of Environment and
Natural Resources in the Philippines, the Penablanca Municipal
Government, and Conservation International (CI), an environmental
NGO, have been engaged in tree-planting activities in the town of
Penablanca, Cagayan Province (about 500 km north of Manila),
located in the northern Luzon of the Philippines. The project calls
for 1,772 ha of land to be planted over a three-year period from
September 2007.c c
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The project area encompasses the headwaters of the Cagayan River that supports the country¶s

largest rice-growing region. In addition, as threatened endemic flora and fauna can be found in this area
regarded as an important region for protecting biodiversity. However it is becoming gradually due to
unsustainable forest use practices such as firewood collection for cooking, charcoal making, and slash

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From the perspective of engaging in a variety of environmental efforts, Toyota aims to create a
systemcombines reforestation with a means of supporting the livelihood of local communities, by providing
the reforestation expertise and tree-planting techniques developed through its activities in China.




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Toyota is implementing measures that include establishing a
forest for harvesting fuel wood and promoting the use of rice hull
stoves in cooking in order to control natural forest deforestation
resulting from fuel wood collection.

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An effort is being made to restore the rainforest by planting
various plants that are indigenous to the area. For example,
indigenous species that produce fruits for fruit-eating birds are Cultivation of seedlings of plant
also being planted to protect biodiversity. indigenous to the areac
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In order to improve their economic conditions, people living in the
area are being encouraged to plant seedlings of fruit trees
(mango, cacao, coffee, etc.) provided free of charge. The project
is also supporting the establishment of a reforestation fund
system. Farmers put some percentage of their income from the
fruit trees into the fund, which will be used to sustain and expand
future reforestation.
Experimental use of rice hull
Its joint tree-planting project obtained a gold rating under the
stoves in cookingc
widely used, international Climate, Community and Biodiversity c

Project Design Standards (CCB Standards)* on December 2009.


The standards enable evaluation of forestry initiatives from a
multifaceted perspective, taking not only Co2absorption but also
preservation of biodiversity and contribution to the lives of local
community into account.c
c
* The CCB standards-implemented by The Climate, Community
and Biodiversity Alliance (CCBA), a partnership of NGOs and
multinational corporations - are used to conduct multi-faced
evaluations of forest preservation projects. The gold rating is the
most high-level certification.c

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