Toyota 2007 Annual Report Download - page 53

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ANNUAL REPORT 2007 51
Accountability
Toyota considers the appropriate disclosure of corporate
and financial information as a critical responsibility in corpo-
rate governance, and the Company works to enhance its
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 compre-
hensive by only issuing consolidated financial statements in
accordance with U.S. GAAP from fiscal 2004. Further, in
fiscal 2006 the Company started to disclose an outlook for
consolidated business results of the next fiscal year. 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 com-
pliance, Toyota’s Corporate Ethics Committee, which is
comprised of members drawn from the executive vice presi-
dent 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 compli-
ance risks within each division, implementing countermea-
sures, and entrenching them. Toyota will implement the
tenets of ethical business practice by further promoting the
“Guiding Principles at Toyota” and the “Toyota Code of
Conduct” and by educating and training employees at all
levels and in all areas of operations.
For internal audit, the management and a specialized
independent organization are working on establishing a
solid system to evaluate the effectiveness of internal con-
trols over financial reporting in accordance with Article 404
of the U.S. Sarbanes-Oxley Act, applicable to Toyota from
the year ended March 31, 2007. In order to enhance the reli-
ability of the financial reporting of Toyota, the three audit-
ing functions, audit by Corporate Auditors, internal audit,
and accounting audit by Independent External Auditors, aid
in conducting an effective and efficient audit through meet-
ings held periodically and as necessary to share information
and come to understandings through discussion on audit
plans and results.
International Advisory
Board
Labor-Management Council
Joint Labor-Management
Round Table Conference
Corporate Philanthropy
Committee
Toyota Environment
Committee
Corporate Ethics
Committee
Stock Option Committee
Board of Directors
External Accounting
Auditor
Audit for consolidated
financial statements
and internal control
over financial reporting
Managing Officers
Disclosure
Committee
Internal Auditing
Department
(internal control systems)
Appointment
Toyota’s Corporate Governance
Emphasizing Frontline Operations + Multidirectional Monitoring
Board of Corporate
Auditors
Majority are
outside corporate
auditors
Shareholders
Senior Managing Directors
(As of June 22, 2007)