Toyota 2005 Annual Report Download - page 20

Download and view the complete annual report

Please find page 20 of the 2005 Toyota annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 138

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138

[ACCOUNTABILITY ]
➤Toyota considers the appropriate disclosure of corporate and financial information
as a critical responsibility in corporate governance, and we work to enhance our
accountability to shareholders and other investors.
With respect to financial information, in addition to quarterly reporting of financial
statements, we made financial statements timelier, more transparent, and more
comprehensive by only issuing consolidated financial statements in accordance
with U.S. GAAP from fiscal 2004. In response to the enactment of the U.S.
Sarbanes-Oxley Act, Toyota has established the Disclosure Committee. The
committee works to ensure the appropriate, timely and fair disclosure of material
information.
[COMPLIANCE ]
➤To firmly establish corporate ethics and ensure strict compliance, Toyota’s
Corporate Ethics Committee, which is comprised of members drawn from the
executive vice president level and above and representative corporate auditors,
deliberates issues and measures relating to corporate ethics, compliance, and risk
management.
For employees, an outside attorney provides the Compliance Hotline. Also, we
are reexamining the compliance risks within each division, implementing counter-
measures, and entrenching them. Toyota will implement the tenets of ethical
business practice by further promoting the “Guiding Principles at Toyota” and the
“Code of Conduct for Toyota Employees” and by educating and training employees
at all levels and in all areas of operations.
Furthermore, Toyota has established a readiness project team that is taking steps
to enhance internal control systems in compliance with Section 404 of the U.S.
Sarbanes-Oxley Act, to which the Company will be subject, beginning in fiscal 2007.
A specialized independent organization has increased the number of personnel to
verify the effectiveness of internal controls over financial reporting. In order to
enhance the reliability of the financial reporting of the Company, the three auditing
functions, namely, independent accountants, corporate auditors, and internal auditors,
have meetings periodically and as necessary to share information through discussion
on audit plans and results that aids conducting an effective and efficient audit.
[CORPORATE SOCIAL RESPONSIBILITY ]
➤To maintain stable, long-term growth in international society, companies have to
earn the respect and trust of society and individuals. Rather than simply con-
tributing to economic development through operational activities, growing in
harmony with society is a must for good corporate citizens. Mindful of the forego-
ing, Toyota has a range of committees that are tasked with monitoring corporate
activities and management in relation to social responsibilities, including the
Corporate Philanthropy Committee and the Toyota Environment Committee.
18 >CORPORATE GOVERNANCE