Sustained Innovation and Creativity - Toyota Industries Corporation

Corporate GovernanceStrengthening ComplianceToyota Industries believes that compliance extends beyondadherence to laws and ordinances to also include respectinglocal cultures and customs in step with changes in the times.The Corporate Code of Conduct Committee plays a centralrole in strengthening our compliance systems and frameworkswhile stipulating conduct guidelines and thoroughly informingall employees of these guidelines via education activities.Additionally, Toyota Industries is reinforcing compliancesystems at domestic and overseas subsidiaries, while itsPurchasing Department closely monitors suppliers to ensuretheir compliance as well.With Toyota Industries’ president serving as chairman,the Corporate Code of Conduct Committee is tasked withcontrolling the Group’s corporate activities in areas relatedto compliance and crisis response. Consisting of mostdirectors, corporate auditors and managing offi cers, thecommittee convenes several times per year to confi rm thestatus of any crucial problems that may have arisen as well ascountermeasures and responses to be taken. The committeealso deliberates on initiatives to be taken in the next fi scalyear.Under the jurisdiction of the Corporate Code of ConductCommittee, we designated a number of departments aslegal compliance departments, which monitor laws andordinance for ensuring thorough Company-wide compliance.We also set up the Compliance Subcommittee and theData Security Subcommittee. Chaired by a director, thesesubcommittees consist of members selected from relevantdivisions and departments, and in principle, convenemonthly while undertaking activities in accordance with theirrespective plans.The Audit Offi ce and designated legal compliancedepartments cooperate in implementing compliance auditsof each department and domestic and overseas subsidiaries.We also implement Company-wide employee educationprograms according to the level of employees’ positions andfi elds of specialization, while the designated legal compliancedepartments handles education of persons in charge ofrelated departments. In addition, we undertake variousenlightenment activities to raise employee complianceawareness levels.The Toyoda Precepts*1. Be a contributor to the development and welfare of thecountry by working together, regardless of position, infaithfully fulfi lling your duties.2. Be ahead of the times through endless creativity,inquisitiveness and pursuit of improvement.3. Be practical and avoid frivolity.4. Be kind and generous; strive to create a warm, homelikeatmosphere.5. Be reverent, and show gratitude for things great and smallin thought and deed.* The Toyoda Precepts were assembled in 1935 to commemorate the six-yearpassing of company founder Sakichi Toyoda. Since then, the preceptshave served as the basis of the thinking and guiding principles of the entireToyota Group.Basic PhilosophyThe following is a statement of Toyota Industries’ basicphilosophy. This basic philosophy constitutes the expresslystated beliefs of the management and serves as a guide forcorporate behavior.Respect for the LawToyota Industries is determined to comply with the letter andspirit of the law, in Japan and overseas, and to be fair andtransparent in all its dealings.Respect for OthersToyota Industries is respectful of the people, culture andtraditions of each region and country in which it operates.It also works to promote economic growth and prosperity inthose regions and countries.Respect for the Natural EnvironmentToyota Industries believes that economic growth andconservation of the natural environment are compatible.It strives to offer products and services that are clean, safeand of high quality.Respect for CustomersToyota Industries conducts intensive product research andforward-looking development activities to create new valuefor its customers.Respect for EmployeesToyota Industries strives to nurture the inventiveness andother abilities of its employees. It seeks to create a climateof cooperation, so that both employees and the Companycan realize their full potential.Five ValuesWe also have Five Values that form an action guide for ouremployees to enforce our basic philosophy.Global PerspectiveLearning from the best in the world, we aim to become thebest in the world.Customer FirstWe forge partnerships with our customers and strive toexceed their expectations.Welcoming New ChallengesUnbound by convention, we embrace the challenge ofcreation.Encouraging Professional ExcellenceWe develop our strengths, and think and act responsibly.Encouraging Effective TeamworkWe recognize the human worth of each individual andcollaborate to achieve goals.50 Toyota Industries Corporation Annual Report 2006