Toyota 2009 Annual Report Download - page 32

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 contributing to economic development through operational
activities, growing in harmony with society is a must for good corporate
citizens. Mindful of the foregoing, Toyota has a range of committees that
are tasked with monitoring corporate activities and management in
relation to social responsibilities, including the CSR Committee and the
Toyota Environment Committee.
Toyota’s Basic Approach to Internal Control System
Based on the “Guiding Principles at Toyota” and the “Toyota Code of
Conduct,” we, together with our subsidiaries, have created and
maintained a sound corporate climate. In our actual operations, we
integrate the principles of problems identification (“Mondai Hakken”) and
continuous improvements (“Kaizen”) into our business operation
processes and make continuous efforts to train our employees who put
these principles into practice.
With the above understanding, internal control has been developed
under the following basic policies.
(1) System to ensure that the Directors execute their responsibilities in
compliance with relevant laws and regulations and the Articles of
Incorporation
1) Toyota will ensure that Directors act in compliance with relevant
laws and regulations and the Articles of Incorporation, based on
the Code of Ethics and other explanatory documents that include
necessary legal information, presented on occasions such as
trainings for new Directors.
2) Toyota will make decisions regarding business operations after
comprehensive discussions at the Board meetings and other
meetings of various cross-sectional decision-making bodies.
Matters to be decided are properly submitted and discussed at
the meetings of those decision-making bodies in accordance
with the relevant rules.
3) Toyota will appropriately discuss significant matters and
measures relating to issues such as corporate ethics, compliance,
and risk management at the CSR Committee and other meetings.
Toyota will also discuss and decide at the meetings of various
cross-sectional decision-making bodies policies and systems to
monitor and respond to risks relating to organizational function.
(2) System to retain and manage information relating to performance
of duties by Directors
Information relating to exercising duties by Directors shall be
appropriately retained and managed by each division in charge
pursuant to the relevant internal rules and laws and regulations.
(3) Rules and systems related to the management of risk of loss
1) Toyota will properly manage the capital fund through its
budgeting system and other forms of control, conduct business
operations, and manage the budget, based on the authorities
and responsibilities in accordance with the “Ringi” system
(effective consensus-building and approval system). Significant
matters will be properly submitted and discussed at the Board
meetings and other meetings of various bodies in accordance
with the standards stipulated in the relevant rules.
2) Toyota will ensure accurate financial reporting by issuing
documentation on the financial flow and the control system etc.,
and by properly and promptly disclosing information through the
Disclosure Committee.
3) Toyota will manage various risks relating to safety, quality, the
environment and compliance by establishing rules or preparing
and delivering manuals, as necessary, in each relevant division.
4) As a precaution against events such as natural disasters, Toyota
will prepare manuals, conduct emergency drills, arrange risk
diversification and insurance as needed.
(4) System to ensure that Directors exercise their duties efficiently
1) Toyota will manage consistent policies by specifying the policies
at each level of the organization based on the medium- to
long-term management policies and the Company’s policies for
each fiscal term.
2) The Chief Officer, as a liaising officer between the management
and operational functions, will direct and supervise Managing
Officers based on the management policies and delegate the
executive authority over each division to the Managing Officers
so that flexible and timely decision making can be achieved.
3) Toyota from time to time will make opportunities to listen to the
opinions of various stakeholders, including external experts, and
reflect those opinions in Toyota’s management and corporate
activities.
(5) System to ensure that employees conduct business in compliance
with relevant laws and regulations and the Articles of Incorporation
1) Toyota will clarify the responsibilities of each organization unit
and maintain a basis to ensure continuous improvements in the
system.
2) Toyota will continuously review the legal compliance and risk
management framework to ensure effectiveness. For this
purpose, each organization unit shall confirm the effectiveness by
conducting self-checks among others, and report the result to
the CSR Committee.
3) Toyota will promptly obtain information regarding legal
compliance and corporate ethics and respond to problems and
questions related to compliance through its corporate ethics
inquiry office and other channels.
Management & Corporate Information
TOYOTA MOTOR CORPORATION
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