Table of Contents
Message from the President
Transforming into a Mobility Company
Initiatives for Sustainable Growth
Corporate Data
Initiatives for Sustainable Growth Corporate Philosophy Corporate Governance Messages from the Outside Directors Toyota Environmental Challenge Respect for Human Rights and SCM Employees Risk Management Compliance
Customer First and Quality First Working to Better the World around Us
Respect for Human Rights and Supply Chain Management
making over the decades has been made possible
thanks to the support of our many stakeholders.
Going forward, Toyota will continue to work hand-in-
hand with employees and respect all its stakehold-
ers as it continues to contribute to society as a
mobility company.
utilize individuals’ capabilities, ability to think, and cre-
ativity. To this end, it is necessary to ensure a shared
understanding among all employees of the Company’s
management situation, business environment, and
management issues. We therefore emphasize thor-
ough dialogue with employees. In addition, based on
the Universal Declaration of Human Rights, we
respect our employees’ right to freely associate while
also respecting their right not to be compelled to
belong to an association in compliance with the laws
of the countries in which we operate.
Regardless of the presence or absence of labor
unions, Toyota takes every opportunity it can to
engage in thorough dialogue with employees and build
sound labor-management relations. We believe that
such relations encompass dialogue and discussion
with employees or their appropriate representatives.
Moreover, to ascertain the status of dialogue with
employees and issues related to freedom of associa-
tion, we periodically send out and collect question-
naires from our subsidiaries and request improvements
to policies and activities based on the responses as
needed. For affiliates that require concentrated initia-
tives, associates from TMC are dispatched to review
the affiliate’s policies and activities and work together
to enhance communication with and training for
employees regarding Toyota’s policies concerning
freedom of association and legal compliance.
employment. First, we confirm the composition of
employees at our affiliates in each country and
Fundamental Approach
identify affiliates requiring prioritized examination of
non-permanent employment relationships. Associates
from TMC are dispatched to affiliates thus identified
and, if deemed necessary, implement improvements,
such as reassignments and changes to employment
rules related to contract terms. In addition, we review
and seek to continuously improve the working condi-
tions of fixed-term contract employees at TMC itself.
Toyota complies with local, national, and international
laws and regulations as well as the spirit thereof and
conducts business operations with honesty and
integrity. With the goal of contributing to sustainable
development, we place value on all stakeholders in
the management of our businesses, endeavoring to
build and maintain sound relationships with them
through open and fair communication.
At present, with our customers’ needs and the very
concept of automobiles constantly changing, Toyota
is endeavoring to transform itself from an automobile
company to a mobility company, that is, a provider of
all kinds of mobility-related services. As we face new
competitors and an evolving business domain, based
on the management philosophy of “respect for
people,” Toyota’s employees are each harnessing
their knowledge and giving their best efforts to help
the Company survive in an environment marked by
constant, major change. To meet the expectations of
our stakeholders, we also refer to international
norms, such as the United Nations Guiding Principles
on Business and Human Rights and the Universal
Declaration of Human Rights, to tackle issues related
to human rights.
Supply Chain Due Diligence
A single automobile comprises approximately 30,000
parts, necessitating extremely broad and deep supply
chains. As such, we recognize preventing adverse
impacts on human rights in our supply chains as a
priority. Accordingly, we hold workshops for suppliers
that are particularly large and would be difficult
replace in which we share issues to be wary of
and examples of solutions.
Toyota adheres to the principle of mutual trust and
mutual responsibility between labor and management
and aims to collaborate with suppliers to contribute
to sustainable societal development as well as the
earth’s sustainability. Toyota also strives to comply
with the laws of the countries and regions it operates
in while protecting human rights and contributing to
both local communities and the international community.
Human Rights, the Essential Foundation of
Labor Relations
Toyota respects the basic human rights of all individu-
als, including employees and those in the supply
chain. Toyota practices the philosophy of “respect for
people,” which is based on the shared belief that
every Toyota employee possesses an unlimited
capacity for the betterment of themselves, the
Company, and society. The cumulative efforts of our
employees are what drive corporate growth, thereby
enabling improvement in working conditions and
environments and building employee trust, which, in
turn, enables further growth and improvement.
We strive to ensure safe, healthy, and inclusive
work environments that are free of discrimination and
harassment and in which each employee’s dignity
and diverse values are respected. Each employee’s
contribution to the creation of such workplaces is
essential to achieving the productivity improvements
necessary for corporate growth. Discriminatory,
unhealthy, or unsafe work environments are not only
violations of human rights, they negatively impact
employee performance. Recognizing the irreplace-
able value of the time our employees choose to share
with Toyota, we aim to create positive working condi-
tions and environments that will allow them to excel.
Moreover, the contributions and cooperation of all
our stakeholders are essential to providing products
and services that satisfy our customers. Our car
United Nations Guiding Principles
Reporting Framework
Toyota has formulated an internal policy related to
human rights and, in implementing it, refers to the UN
Guiding Principles on Business and Human Rights
and other international norms. To fulfill our responsi-
bility to respect human rights, we have identified cer-
tain risks vis-à-vis our operations adversely impacting
human rights as priority issues based on such factors
as the scale and character of our businesses, the
possibility of mitigation, and stakeholder expectations.
Currently, we have identified three areas—freedom of
association, precarious work, and supply chain due
diligence—in which certain of our operations are at
risk of adversely impacting human rights and are
working to address them as a matter of top priority.
In addition, Toyota has developed the Toyota
Supplier CSR Guidelines based on the UN Guiding
Principles on Business and Human Rights and the
Universal Declaration of Human Rights.
Precarious Work
The term “non-permanent workers” includes tempo-
rary workers, contract employees, and dispatch
employees. Non-permanent status is marked by a
number of forms of uncertainty and instability, such
as uncertain employment periods, low wages, and
poor employee benefits. Our businesses require per-
sonnel equipped with both a deep understanding of
Toyota’s values and advanced skills. Because culti-
vating such personnel requires a great deal of time,
Toyota strives to provide stable employment even
when the external environment is challenging. At the
same time, Toyota is engaged in the automobile
industry, in which demand is greatly influenced by
new product releases and seasonal factors.
Accordingly, to respond to such fluctuations, the
Company directly and indirectly hires a certain
number of temporary personnel.
Conflict Minerals Issues
Toyota has adopted the Policies and Approaches
to Conflict Minerals Issues, which it applies as
a set of guidelines when tackling conflict mineral-
related issues.
Please see the content linked to below for informa-
tion about activities in 2018.
Respect for Human Rights
WEB
(Sustainability Data Book 2019, p. 23)
Collaboration with Suppliers
WEB
(Sustainability Data Book 2019, p. 26)
Toyota’s Approaches to Conflict Minerals Issues
Sustainability Data Book 2019, p. 25)
WEB
(
Three Priority Areas
As such, each of our affiliates bases its hiring of
non-permanent workers on the prevailing customs
and labor laws of its respective region, and Toyota
strives to avoid inappropriate working conditions and
Freedom of Association
In accordance with Toyota’s “respect for people”
management philosophy, we aim to respect and fully
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TOYOTA Annual Report 2019
