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Corporate Governance
Aiming to Steadily Increase Corporate Value Over the Long Term
Toyota's top management priority is to steadily increase corporate value over the long term. In order to achieve that, Toyota builds favorable relationships with all of its stakeholders, including shareholders, customers, business partners, local communities and employees. We are convinced that providing products that fully cater to customer needs is essential to achieve stable, long-term growth. Given this situation, Toyota is seeking to strengthen its corporate governance through various policies in order to further enhance its competitiveness as a global corporation.

Toyota's Basic Approach to Corporate Governance

Specifically, Toyota has introduced a unique management system focused on prompt decision making for developing our global strategy and speeding up operations. Furthermore, Toyota has a range of long-standing in-house committees and councils responsible for monitoring and discussing management and corporate activities from the viewpoints of various stakeholders to ensure heightened transparency and the fulfillment of social obligations. Toyota has a unique corporate culture that places emphasis on problem solving and preventative measures. Toyota's approach is to build in quality through manufacturing processes, enhancing the quality of everyday operations and consequently strengthening

corporate governance. Toyota's management team and employees conduct operations and make decisions founded on that common system of checks and balances and on high ethical standards.

Toyota's Management System - Systems for Ensuring Appropriate Management

In the current managerial system, introduced in 2003, the Chief Officers, who are directors, serve as the highest authorities of their specific operational functions across the entire company, while non-board Managing Officers implement the actual operations. The distinctive feature of this system is that based on Toyota's philosophy of emphasizing developments on the site, the Chief Officers serve as the link between management and onsite operations, instead of focusing exclusively on management. This system enables the management to make decisions directly with on-site operations, by reflecting on-site personnel opinions on management strategy and swiftly implementing management decisions into actual operations. To monitor the management, Toyota has adopted an auditor system that is based on the Japanese Corporation Act. In order to increase transparency of corporate activities, four of Toyota's seven corporate auditors are external auditors. As a system to ensure appropriate management, Toyota has convened meetings of its "International Advisory Board (IAB)" annually since 1996. The IAB consists of approximately 10 distinguished advisors from overseas with backgrounds in a wide range of fields, including politics, economics, the environment, and business. In 2011, we established Regional Advisory Committees in major regions, such as North America, Europe and Asia, and receive advice on diverse business issues from a global perspective. Under the basic policies established in May 2006, Toyota implements an internal control system while conducting necessary enhancements. Responding specifically to a series of quality issues that caused anxiety for Toyota customers, it established the "Toyota Special Committee for Global Quality" in March 2010, and the "Risk Management Committee" in June 2010.

Toyota's Corporate Governance

Working to ensure fair and transparent corporate governance by emphasizing frontline operations and multidirectional monitoring.

Basic Approach to Internal Controls

An internal control system has been developed under the following basic policies organized in May 2006. Basic Approach to Internal Controls Fundamental Approach

Draw out the good will, enthusiasm, and autonomous decision-making abilities of the people who perform work, based on the idea of "respect for people"

Establish structures within the work processes carried out by people and organizations that incorporate internal controls and establish checks and balances as well as management and oversig by directors Establish inter-departmental organizations to supplement internal controls
Basic Policy

1. Legal compliance by Directors

2. Retention and management of information relating to the execution of responsibilities by Directors 3. Regulations and other systems related to the management of risk of losses 4. Efficiency of execution of responsibilities by Directors 5. Legal compliance by employees 6. Appropriateness of the business operations of the group 7. Employees assisting the Corporate Auditors 8. Independence of employees described in the preceding item (7)

9. Report to Corporate Auditors 10. Ensure the efficient execution of audits by the Auditors
Corporate Governance Reports

The report contains a summary of the following items:

o o o o o o o o Capital structure, business attributes, and other basic information; Organization and structure Implementation of measures for shareholders and other stakeholders; Basic approach to the internal control system and its development; Other information.

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Share this CSR Initiatives Message from the President Toyota's CSR Concepts Stakeholders Toyota's CSR Organization and Structures Corporate Governance Compliance Evaluation from Society to Toyota's CSR Activities Communication with Stakeholders Environmental Responsibility Corporate Citizenship Report Library Special Content

Sustainability

Sustainability
CSR Initiatives Environmental Responsibility Corporate Citizenship Report Library Special Content

CSR Initiatives
Message from the President Toyota's CSR Concepts

CSR Policy

Overview of Toyota's CSR Activities

Toyota's CSR Organization and Structures Stakeholders

Safety/Product Lineup/Moving People Quality/Information Disclosure and Dialogue Relations with Employees Relations with Business Partners Environment New Mobility Societies Social Contribution Relations with Shareholders

Corporate Governance Compliance Evaluation from Society to Toyota's CSR Activities Communication with Stakeholders

Toyota Stakeholder Dialogue CSR Boost-up Initiative Back to Top leftrightexpose

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