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All Toyota's 300,000 Employees Acting As The Responsible Party, Raising Their Own Individual Quality of Work and Regaining The Trust of The Customers

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S usta i n a b i l i ty R e p ort 2010|Social Aspects

Relations with Employees

All Toyota’ s 300,000 Employees Acting as the Responsible Party,


Raising Their Own Individual Quality of Work and Regaining the
Trust of the Customers
From the beginning, Toyota has had“Continuous Improvement”and“Respect for People”as its pillars, and as its moral foundation
the Toyota Way summarized in the five keywords,“Challenge,” “Kaizen,”“Genchi Genbutsu,” “Respect”and“Teamwork.”Now,
with quality issues related to safety and confidence as an opportunity, each and every Toyota employee will take a moment to
reexamine the Toyota Way, and to reinforce human resource development plans such as global communication quality, putting
themselves in the customer’ s shoes to restore their trust. In addition and as always Toyota will continue to steadily promote efforts
related to employee safety and health, such as physical fitness and ongoing diversity.

Sharing the Toyota Way Strengthening Teamwork by Expanding‘300,000


Stability in the lives of employees, and opportunities for self-realization Person Communication Activities’with the Aim of
and growth as well as corporate development are interdependent and Speeding up Transmission of Global Information
all find their foundations in mutual trust and respect between labor and
The domestic “80,000 Person Workplace Communication
management, long-term employment stability and communication.
Activities”that raised workplace capabilities through commu-
Based on this, the Toyota Way 2001 is supported by the two main
nication improvements was promoted and expanded from
pillars of“Continuous Improvement”and“Respect for People”and can
2009 as the“300,000 Person Communication Activities”by
be summed up in the five key terms ̶ challenge, kaizen, genchi
Global Toyota. While each business unit works to revitalize
genbutsu, respect and teamwork.“Continuous Improvement”implies
communication, Toyota will promote information sharing with
that all employees must not let themselves become complacent about
such things as Japanese and English notation on the company
the status quo, but put forth their best ideas and efforts to seek greater
intranet, and English translation and delivery of top manage-
added-value. In accordance with the second principle,“Respect for
ment messages and company newsletters. Toyota aims for the
People,”Toyota respects all stakeholders and believes that the success
further reinforcement of domestic and global teamwork and a
of its business is created by individual efforts and growth. These two
stronger sense of unity.
values have been expanded to Toyota employees worldwide.

Challenge
Active, Two-way Communication among Toyota’
s 300,000
We form a long-term vision, meeting Mutual trust and respect between Employees Worldwide
challenges with courage and creativity to
labor and management,
Overseas
realize our dreams.
and long-term employment stability
Japanese Non-Japanese
Kaizen

TMC Employees Employees Affiliates
We improve our bus㏌ess operatio㎱
cont㏌uously, always driv㏌g for ㏌novation
and evolution.

Continuous Direct Communication


Genchi Genbutsu ・Communication of key
We practice genchi genbutsu... go to the
source to find the facts to make correct
Improvement information from TMC
decisions, build consensus and achieve •Identifying and understanding
goals at our best speed.
the local situation
Respect •Further inclusion of overseas
for People Respect affiliates in decision making
We respect others, make every effort to
understand each other, take responsibility
and do our best to build mutual trust.
Foster a sense of
Continuation of global unity within Strengthen
Teamwork 80,000-Person Workplace Toyota and communication within
Communication We stimulate personal and professional
Communication Activities overseas affiliates
growth, share the opportunities of
development and maximize individual and
develop teamwork
team performance.
* TMC(Toyota Motor Corporation)

Column

‘Our Attitude’Published and Distributed to Always Return Us to Toyota’


s‘Origins’
In order to contribute to society through building cars, Toyota has from its inception had a Toyota Way of working and
way of taking part in society that has been cultivated and handed down.
Today, as Toyota itself undergoes major transformation, and in
order to give even greater importance to the Toyota Way of putting
the customer first and genchi genbutsu that are the Toyota’ s origins,
we have compiled the exemplary virtues and actions in work as“Our
Attitude”consisting of a total of 10 items.* This was distributed to all
employees in April 2010, and each employee is striving to keep
these in mind and put them into practice on a daily basis. Illustration from the Customer First page (excerpt)

(           )
Breakdown repairs on a Model G1 truck in 1936. The cause
* Customer First, Challenge, Kaizen, Genchi Genbutsu, Shitsujitsu Goken (We spend money
of the breakdown was determined with genchi genbutsu and
responsibly and with careful consideration. We perform all jobs with sincerity),
Teamwork, Ownership and Responsibility, Humility and Gratitude, Integrity, We Love Toyota.
led to changes in design and improvements in quality.

S u st ai n abi li t y Re po rt 2010|S ocia l As p ect s     59


Sus t ai n a b i l i ty R e p o r t 2010| Social Aspects

Relations with Employees

Human Resource Development development through OJT in the workplace, leveling up


mid-level engineers is indispensable. To do that, Toyota will
The basis for human resource development is putting the
carry out training that goes back to the principles. As one
Toyota Way into practice. Toyota is working to develop
example, it established a Design Review (DR) workshop that
human resources by seizing times of adversity as opportuni-
has the top engineers from each division as instructors. Target-
ties to learn, planning greater enhancement and reinforce-
ing assistant managers with two or three years of experience,
ment of educational programs based on the five Toyota Way
it is set up with eight fields, such as body, chassis, evaluation
keywords, and on-the-job training (OJT) essential to the
and electronic technologies. Our goal is to make it so the
progress and succession of building excellent products.
knowledge and skills the students learn enable them to tackle
Also, Toyota is placing greater importance on quality
workplace problems on
within each education program, with consideration for
their own. Also, Toyota will
quality issues related to safety.
be strengthening opera-
tion of performance indica-
tors to measure the results
of training.
The Educational System of the Toyota Institute
*TTDC
The Toyota Institute (TI), with its mission of“human resource Toyota Technical Development
development that puts the Toyota Way into practice,” is Corp.
A partner company in Toyota’
s
expanding work methods (know-how for problem solving,
development and design fields
mentoring, etc.) into the business units in each country Electronic technology field at the DR
around the world to carry out the Toyota Way, which should workshop
be shared among all Toyota personnel throughout the world.
Systematization of Mid-Level Engineer Technical Training

Toyota Institute’
s Training Structures A Better Car
TMC
Qualifications Overseas Affiliates TMC
Development Itself
Management
development

Expatriate training program;


New manager

for career-path employees

Upper Field OJT


Toyota Way Problem solving
development

management
Subordinate

Practical Tutored Training


training

(※1)
introductory training
training

DR Workshop
Middle Specialized Technical Training in a Field
management
(※2)

Mid-Level Engineer Technical Training


by job grade

New employees,
young employees,
Training

mid-career
employees
R&D Learning Center New Engineer Training

※1 Upper management: manager class 


Basic Knowledge of Automotive Engineering Basic Knowledge of Engineering
※2 Middle management: assistant manager class

Expanding Education Programs at the R&D A Return to Fundamentals in Human Resource Develop-
Learning Center into Mid-Level Engineering ment Planning for Production/Manufacturing Fields
Improvements in engineers’inherent qualifications is always vital Towards the early development of diverse and highly skilled
in ensuring automobile quality and performance. The R&D Learn- human resources, the“Pro-WIN”training program was begun in
ing Center was established in 2006 with the objective of, ① 2007, targeting 4,500 engineers in the production and manufac-
laying the groundwork for developing appealing products, and ② turing fields, and Toyota has been promoting planned and
maintaining and improving high Toyota quality (customer first). continuous human resource development. In FY2009, activities
The training system for new engineers was reviewed, and were begun for a return to the fundamentals of “enabling
training was carried out over about two months time, targeting individual thinking and action with genchi genbutsu.” From
development engineers from Toyota, TTDC* and overseas FY2010, Toyota will work toward enhancing and strengthening
business units. In 2009, approximately 1,000 people received education program policies.
training in 42 courses.
Also in FY2009, as new engineers training preparations
Pro−WIN
were essentially complete, Toyota began systematizing Winning global competition (with) professionals,
engineer training targeting mid-level engineers (from their third each individual achieving professional status
year in the company to newly appointed assistant managers).
Examining the sufficiencies and deficiencies of current
mid-level training, we have begun working on enhancing and Human resource development“enabling individual
strengthening training in FY2010 centered on quality related thinking and action with genchi genbutsu”
matters. In order to increase the quality of human resource

60    S us t ai n a b i l i ty R e p o r t 2010|Social Aspects


S u st ai n abi li t y Re po rt 2010|S oci a l As p ect s

Relations with Employees

Promoting TQM Globally to Improve the Quality Respect for Diversity


of Products and Services For global companies engaged in business around the world, it is
Total Quality Management (TQM) is an activity in which every important to promote a diverse range of human resources
employee participates in order to: ① Ensure customer-first work activities while raising the skills of each individual employee. By
practices, ② Learn the principles of quality control and ③ Refine fostering human resources that include a diverse range of
corporate strength through actions. TQM Promotion Division is individuals and making this a part of its strategy, Toyota is estab-
currently engaged in promoting resolution, providing every lishing a corporate culture with abundant vitality.
employee working in Toyota’ s global organization with ideas for The focus of respect for diversity varies in different countries
self-directed action to improve product and service quality, and regions; nevertheless, Toyota strives to be a company with a
motivate people and revitalize the corporate structure and apply- working environment that promotes self-realization while respect-
ing the philosophies of“Customer First,” “Continuous Kaizen”and ing diversity of values and ideas among its employees.
“Total Participation.”
Specific activities include a MAST*1 Training Course for newly
promoted managers, a JKK*2 Training Course and an SQC Seminar Promoting Measures to Create a Workplace
that offers goal-setting and problem-solving techniques for both Worthy of Vigor and Enthusiasm
administrative and engineering staff. Particularly, QC circles are To create a more diverse and vibrant workplace by solving corporate
being proactively expanded in 44 overseas affiliates, and over issues faced by female employees, Toyota promotes measures
100,000 employees, or about 15,000 QC circles are engaged in applying to three pillars ̶“Helping employees balance work with
improvement of immediate problems. childcare,”“supporting employees’career development”and“reform-
At the same time, the TQM Promotion Division is engaging in ing workplace environments and attitudes.”In FY2008, Toyota revised
communications initiatives and other activities designed to help its system of flexible working hours for employees with children, and it
raise the quality of products and services. During the Month of held a Gender Diversity Management Forum for workplace supervisors.
Quality, November 2009, the 44th TQM Convention was In FY2009, a women’ s technical career exchange forum that targeted
attended by some 4,600 people from group companies and about 1,000 women who work in manufacturing was held at each
dealers. At the convention, President Akio Toyoda spoke about Toyota plant. The forums introduced role models and helped establish
his commitment to“Customer First,”and attendees’comments networks among women that went beyond the workplace, thus
were such as“I learned how to go back to basics.”In May 2010, fostered awareness of the ability to build satisfying careers.
at a seminar for the Toyota Group’ s newly appointed board of Toyota also established a new system of flexible working hours for
directors, the themes were Quality and Human Resources and nursing care and held lectures and experience-oriented nursing care
there was an active exchange of opinions. In July 2010, the 6th Ji seminars to help to understand the viewpoints of both the caregivers
Kotei-Kanketsu Exhibition and the 24th SQC Kaizen Presentations and those being cared for. In addition, it added more nursing care
were held for the benefit of all services and introduced a financing system to help employees balance
employees, and both events work with caregiving. Toyota’ s newly established and revised systems
reminded participants of the help balance work with caregiv-
importance of TQM. ing, as required by the revised Full-time Toyota Employees
(on an unconsolidated basis) ※As of Mar. 31, 2010
Act on the Welfare of Workers
Who Take Care of Children or Male Female Total
※1 MAST: Management-quality Number of

Advancement System by Other Family Members In- full-time


employees
62,928 7,033 69,961
Toyota-group  cluding Child Care and Family Average age 38.5 30.0 37.6
※2 JKK: Ji Kotei-Kanketsu Care Leave that went into effect service
Average
Built-in quality with ownership years 17.4 9.7 16.6
in June 2010.
TQM Convention
“Kaizen Case Study Presentation” Trends in No. of Employees Taking Childcare and Nursing Care Leave
(Number of employees) Male
Workshop Structure - TQM Promotion Division 400
5 Female
350 5 12
Training Courses 354
Target 300 320
Objective 4 304
Personnel Shop Floor Workers Administrative Staff 250
2 8 253
200 5
Improve Management Executives TQM Training Course for Toyota Group Officers 208 200
150
Quality: 156
GMs, 100
* Seminar for administrative

Ji Kotei-Kanketsu
Define ideal manager and New Senior Caretaker
Deputy Newly Appointed
50
and shop floor work-
places to be added

set attendee assignments; Training Seminar MAST Division GM Seminar SQC


practice management tasks GMs 0
that activate both Training Manager
personnel and the New Caretaker
Soikufu Training
Course Seminar (for newly Course

03 ’
04 ’05 ’
06 ’
07 ’
08 ’
09 (FY)
SCs・GMs Training Seminar
organization. promoted)

Improve Quality of Soikufu


Supervisor (Engineering)
Trends in No. of Employees Using Flexible Working Hours System
Individual and Team
Ji Kotei-Kanketsu

Training Seminar
Training course

Work Practices: SQC Seminar by (Number of employees)


Shop Floor (Shop Floor) Male
Define ideal work process,
Skill Level and Sector 600
and QC Circle Female
understand basics and 9
methods of problem solving Administ- Training Seminar (Administrative) 500
with a team, then practice rative by Hierarchy and Data Utilization 500
improving the quality of 400 14
products and services as employees Role Seminar
Soikufu Soikufu
well as the attendee’
s skills New Employee Gyomushoku
300 369
and motivation. Training Seminar Training Seminar

200 6 8
Other: Expatriates 3 172
Assist expatriates to improve Coordinator Training Seminar MAST Training Course 100 1 3 170
their management quality. (Coordinators) 127
72 93
0

03 ’
04 ’
05 ’
06 ’
07 ’
08 ’
09 (FY)

S u st ai n abi li t y Re po rt 2010|S ocia l As p ect s     61


S us t ai n a b i l i ty R e p o r t 2010|Social Aspects

Relations with Employees

Pregnancy, Childbirth and Care Related Benefits for Employees


Pregnancy
Determined Child Birth Age 1 Age 2 Age 3 4th Grade
Completed
Column

(   )
Maternity Leave Plan
for Standing
Employees
6-week
Maternity
Leave
Tokyo Toyopet Offers a Better
8-week Post-
(14-week maternity leave
for multiple pregnancies)
natal Leave
Environment for Female Employees
Nursing Time (30 min. x 2/day) Tokyo Toyopet Motor Sales Co., Ltd. conducted a program to
Parental Leave
address the employment of women, as part of a broader effort
to improve diversity within the organization. Since 2005, seven
Exemption of Nonscheduled Work
objectives were advocated as essential to an employee-
Limitation of Overtime Work (up to 24 h/month and 150h/year)
friendly working environment and necessary to offer customers
Exemption from Late-night Work excellent service. The program included efforts to revisit the
Shorter Working Hours (at flextime workplaces) company’ s maternity and childcare programs and policies and
Flextime System with no core time to review regulations about shortening employee work hours
Child nursing leave (5 days for employees with a child up to 4th grade
accordingly. In pursuit of these goals, the HR department’ s
and up to 10 days for multiple children) Positive Action Group conducted opinion exchange meetings
Partial Work at Home (allowed after 3:00 p.m.) with female employees and, based on their feedback request-
ing shorter work hours, revised the relevant benefits to offer
more extensive coverage for employees with a child in the
※ A regular employee is entitled to take two years of nursing care leave (or four years of moratorium including an accumulation of
periods subject to Working Hour Reduction, Core Time Exemption and Partial Work at Home).

fourth grade or younger. In the future, further action will be


Key Initiatives Taken Over the Past 5 Years taken to improve the work environment, including striking a
better balance between work and home life.
Year Support for Balancing Work with Childcare Support for Career Building

2005 ● Introduction of Professional Career


Re-employment Program

● Establishment of on-site childcare facility (Toyota Childcare Bubu Park)


2006
●“Maternity leave”Extended (applicable to female employees who work standing up)
●“Keep working while raising children”handbook distributed Increasing Employment Opportunities for Disabled People
● BR Career and Life Design Department established
● T-wave Sodatete Net intranet established
Established to increase employment opportunities for people with
2007
disabilities ̶ within Toyota and among society in general ̶ Toyota
● System to promote less vertical
decision-making structures Loops Corporation started operation in FY2009 and has applied for
● New HR system for assistant staff established
authorization as a special-purpose subsidiary. The company name
2008 ● Career Support Book for supervisors distributed
● Gender Diversity Management Forum for supervisors hosted
“Loops”represents Toyota’ s desire to bring more people“inside the
loop,” linking disabled people more closely with society and with
● Flexible working hour system partially revised
workplace communities. The corporate symbol includes the Japanese
2009 ● Networking Event for Female Shop
Floor Worker hosted syllable“Wa,”which can refer to three Japanese characters signifying
“comfort,” “the circle of joy”and“amusing talk.”These three principles
encapsulate the company’ s goal to create an organization that employ-
Column ees, family members and local communities can all be proud of. Toyota
Loops responds to Toyota’ s internal printing and bookbinding needs
Networking Event for 1,000 Female Shop and handles mail, including postal collection, delivery and sorting. The
headquarters building was constructed after intensive research into
Floor Workers at Manufacturing Sites exemplary existing facilities and thorough preparatory work to achieve
A networking session for female shop floor workers presented positive a universal design that includes“All 5”barrier-free architecture with
role models, including a female team leader who exhibited excellence themes of “accessibility,”“hospitality” and “information.” Further,
at work based on knowledge and experience she obtained on the job, inheriting Toyota’ s DNA, Toyota Loops have worked on activities to
as well as a woman who struck a good balance between work and make proposals of creative ingenuity for more human-friendly
childrearing by eliciting cooperation from her family and co-workers. workplaces and a smoother workflow. The company began to host site
Group discussions followed in which participants exchanged factual tours and had approximately 400 visitors during the six-month period
information and shared their past experiences, future expectations and following the building’ s completion. To help support and encourage
present challenges, raising their awareness of important issues. local initiatives, Toyota Loops formed the “Heartful Net Chubu” in
Participants responded with positive comments such as“It was
January 2010, joining with businesses and institutions in the Chubu
beneficial to hear someone else discuss the same concerns and
area to help promote the employment of disabled individuals. Some 20
experiences I had, since I have few female colleagues at my workplace,”
“It was a good opportunity to review organizations attended the first meeting in April.
my future goals and examine communi- In FY2009, the company hired
cation in the workplace”and“I have 28 severely disabled and mentally
found good future advisors I normally disabled people, and Toyota hired
would not have had access to.”The 18 people during the annual
challenges reported by female employ- recruitment period, and 10 people
ees during the session will be reflected for its year-round recruitment. As of
in new corporate policies that will the end of June 2010, the employ-
present them with additional opportu-
Lively group discussions ment ratio was 2.07% when the
nities to prove their skills.
special purpose subsidiary is
A handcart modified for ease of use by
included (1.98% for Toyota only) .
wheelchair-utilizing employees

62    Sus t ai n a b i l i ty R e p o r t 2010|Social Aspects


S u st ai n abi li t y Re po rt 2010|S oci a l As p ect s

Relations with Employees

Barrier-Free Concept Excels on Every Score Safety and Health


Accessibility Ensuring employee safety and health is one of Toyota’ s most
Key Features:
important business activities and is a universal value that is
●Covered parking in an adjacent area
●Elevators with bi-directional doorways unaffected by the times. Continuing on from FY2009,“build-
●Second-floor access for traffic flow ing a culture that enables all employees/team members to
5 think for themselves and practice safety and health”is the top
4 priority of Toyota’ s global policy in FY2010 as well, with each
Hospitality 3 Information workplace serving as the individual driving force behind a
2
Key Features: 1 company-wide effort. Upon assuming the position of General
●Well-lit court proves 11 Key Features: Safety and Health Supervisor in 1957, Honorary Advisor Eiji
2 2
a relaxing and 3 3 ●Large, clearly visible signage
refreshing space 5
4 4
5 ●Enhanced contrast in interior
Toyoda explained his basic stance on safety and health:“Safe
●Communication room color scheme Work is‘the door’to all work. Let us pass through this door.”
with scenic view encourages
employee interaction
●Guidance with lighting and This sentiment is preserved today as part of Toyota’ s Basic
audible and tactile signs
●Symmetrical multi-purpose toilet Philosophy for Safety and Health, which expresses the fervent
belief that no employee/team member should be put at risk
Toyota Loops did the printing and bookbinding work for this report. of suffering a work-related accident. With this basic philoso-
phy regarding safety always in mind, Toyota is striving to
create a dynamic working environment that is conducive to
the mental and physical well-being of employees.
Toyota is also taking measures to promote good employee
health, including lifestyle improvement programs and wellness
Job Placement Program for Over-sixties activities.
Following the 1991 introduction of the Internal Re-employment
Program for Retired Professionals, an Optional Re-employment
Application System was launched in 2001 that outplaces
applicants to external affiliates and other sites, providing a
Basic Philosophy for Safety and Health
framework for helping over-sixties to continue working, at either Safe work
an external or internal workplace. Programs were modified to Reliable work
their present state according to the revised Law on Stabilization Skilled work
of Employment of Older Persons that came into effect in Safe work is“the door”to all work.
FY2006, to expand re-employment opportunities. A review was Let us pass through this door.
started at the same time to refine policies on shortening work
hours, in response to growing diversity in job preferences and so
on.

Promotion of 3-pronged Approach to


Column Health and Safety
FY2009 represented the second year of Toyota’ s approach to
Career Design Forum (CDF) Commences cultivating a safety-oriented culture. The three pillars of this
approach are: improving the system for an“independent”or
Beginning in 2009, managers around the age of 50 “interdependent” type safety culture where the workplace
have been given the opportunity to explore career takes initiative for safety and health and promotes relevant
options (including occupational directions and life activities; promoting the Occupational Safety and Health
choices) and design a fulfilling plan for the future. Management System (OSHMS) continuously and thoroughly;
Participants in the CDF will get expert advice and take and creating a structure for global implementation. As a result
part in small-group discussions to help clarify their of the efforts put forward by each workplace, total accidents
career goals. decreased by roughly 16% over the previous year, the number
of lost workday cases decreased by 35% and the number of
STOP6-type accidents decreased by 14%.
With the aim of improving Toyota’ s approach to safety and
Employment of Fixed-term Contract Employees health and strengthening a safety- and health-oriented culture,
basic rule observance and interdependent bottom-up
Toyota, where non-fulltime employees (including short-term employees, initiatives involving the whole company will be implemented in
seconded employees of other companies, temporary employees and FY2010 so all employees at every workplace realize the risks
fixed-term contract employees) work, is doing all it can as a private present and take independent preventive action. This pursuit
business, particularly in the case of fixed-term contract, to ensure stable of establishing an interdependent safety culture at all
employment. Recruitment must be balanced with contract renewals and workplaces within the Toyota Group is meant to foster a goal
the fulfillment of other obligations. As part of a program Toyota has of“achieving and maintaining zero industrial accidents in the
developed to revitalize and energize its workforce, a limited-contract future”at each workplace, thereby strengthening the three-
employee who has worked for Toyota for at least six months and has a pillar approach to health and safety.
recommendation from the workplace will be eligible to take an examina-
tion for regular employment as a full-time employee. Examinations are
offered during the second and third years of contract employment.
See pages 66 and 67 for further information on approaches
to fixed-term contract employment.

S u st ai n abi li t y Re po rt 2010|S oci a l As p ect s     63


Sus t ai n a b i l i ty R e p o r t 2010|Social Aspects

Relations with Employees

Conceptualization of Safety and Health Culture Created


by All Toyota Employees Bolstering Mental Health Care
Achieving“zero accidents” Toyota holds active listening courses on a regular basis for
and“zero lost workdays”
for all employees managers and supervisors to raise their awareness of mental
in the future health issues and offer expertise on how mental health care
can help prevent problems in the workplace. In addition, a
seminar on stress-relief methods was held for newly
OSHMS
promoted Team Leaders and mid-level professionals. Other
Building a Health Health and programs are under way to help provide early detection and
safe and and safety safety health checks for mental health issues, including follow-up
healthy assessment mindset
environment
monitoring for individuals who have had a transfer or promo-
tion or other career-changing event, and extra assistance for
Safety-first workplace environment employees returning to the workplace from a leave. Informa-
tion on mental health is accessible anytime from every work-
Basic Philosophy for Safety and Health and the Toyota Way
place via the Toyota intranet. FY2009 saw enhanced mental
health care programs throughout the company, as doctors
and nurses made visits to every workplace to respond to
Industrial Accident Frequency (frequency rate of lost workday cases)
on-site requests, hold self-care seminars and perform other
2
All industries mental health care functions.
Manufacturing In FY2010, these preventive mental health care visits will
1.5
industries be expanded, and voluntary on-site programs will be
Automobile
1 manufacturing conducted to help raise awareness of the risks of untreated
industry mental health issues.
0.5 Toyota
0

06 ’
07 ’
08 ’
09 (FY)

Source: All industries/Manufacturing industries/Automobile manufacturing industry


(Ministry of Health, Labour and Welfare, 2009 survey on industrial accidents) Mental Health Treatment Flow Chart

Primary Prevention Secondary Prevention Tertiary Prevention


Building Good Health Preventive Activities Early Detection and Action Treatment and Rehabilitation
In FY2009, Toyota conducted BIP2 activities*1 and efforts to Active listening courses for
Self-Care Seminar
improve metabolic syndrome (a condition when a person has managers and supervisors
abdominal obesity and abnormal status in two or more of the
Care through Industrial Insurance External Care
following areas: blood sugar, blood pressure and blood lipids)
with a priority on workplace activities that promote good health Internal Health Consulting
External
Medical Facility
practices. As a continuation of initiatives undertaken following Self-care Line Care by
by Supervisors
FY2008, measures included health enhancement activities employees
Industrial Internal
Medical
External
Medical
Insurance
conducted at individual worksites by setting individual targets Health Staff Specialist Specialist
Checkup
using “healthy PDCA” (Plan, Do, Check, and Act), a health Interviews ● Doctors

campaign in June and October 2009, and dietary education Telephone, mail etc. ● Nurses

activities by improving the company cafeteria menus, BMI2 (body ● Health Administration
mass index), and smoking cessation clinics. Furthermore in
FY2009, those at risk of metabolic syndrome were individually Workplace External Health
Consulting Rehabilitation Support
provided with individual guidance. As a result of these activities Support
and the development of better environments, improvements
were seen both in employee BMI and smoking rates, though the
numerical goals were not achieved.
In FY2010, Toyota will strengthen improvement of workplace-
focused health initiatives and workplace support aimed at all
Reinforcing the Health Management of
employees, which center on physical exercise in the workplace. Overseas Personnel
There are differences in the healthcare institutions available to
*1 BIP2 activity Behavior Change Innovation Program, a lifestyle improvement overseas personnel depending on where they are working, and
campaign with targets set for BMI and smoking rate health support may differ from that available to employees in
*2 BMI(Body Mass Index)A measure of body fat determined by dividing body Japan. Since FY2007, affiliates have created physical examination
mass (kg) by height (m) squared. A BMI of 22.0 is normal, and Toyota has
planning sheets, followed up on achievement of plan and person-
set a goal of 24.2 or less.
nel who did not undergo physical exams, and successfully raised
Trend in Percentage of BMI and Smoking Rate examination rates. Toyota also periodically assessed local health-
(%) care conditions overseas and used the Internet to provide
50
41.6 Smoking rate overseas employees with medical information.
39.2 37.6 35.9
40 BMI
From FY2008, the results of all employee physical examina-
30
28.5 27.7 26.9 24.7 tions are assessed and medical advice is provided based on
follow-up sheets from industrial physicians.
20
In FY2010, Toyota will provide all employees with health
10
examinations and endeavor to understand healthcare systems in
0

06 ’
07 ’
08 ’
09 (FY) different regions by holding regular meetings.

64    S us t ai n a b i l i ty R e p o r t 2010|Social Aspects


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Relations with Employees

Examples of Overseas Initiatives

Promoting Ethics through Two-way Communication  


Thailand: Toyota Motor Thailand Co., Ltd. (TMT)

TMT has always insisted on the highest ethics in its business activities, and in 1998 the company introduced the first“Organiza-
tional Ethics Standards,”establishing basic rules of conduct. The corporate ethics standards are the basic rules that corporations
must observe as a part of society. Since then, the company has repeatedly revised the standards to meet economic and social
changes, and started using a second edition called the“Toyota Code of Conduct.”In 2007, TMT introduced the Ethics Promo-
tion Office under the direct control of the president, in order to ensure ethical conduct in business operations. This is an impor-
tant organization, assigned to prevent any behavior that violates the Toyota Code of Conduct. The office reports to the Corpo-
rate Ethics Committee, made up of general managers.
Building a more thorough awareness of the importance of ethical behavior in the workplace requires not only the code of
conduct, but also two-way communication between the company and employees. This deepens mutual understanding, unites
all employees and ensures strong corporate governance. Eventually it will bring success to the company.
In September 2009, TMT distributed a questionnaire about ethics in the workplace to see what employees thought about
the issue, and 9,917 employees responded. The survey revealed some internal problems: for instance 36% of respondents did
not understand the Toyota Code of Conduct and most of them were operating employees. This finding led us to focus on
promoting ethics to the target group to improve their morale. In 2008-2009, TMT enhanced communication among departments
through programs creating a range of opportunities for two-way communication such as
the“Sawasdee (means‘Hello’in Thai) TMT”campaign which consists of three activities:
1) Sawasdee TMT Newsletter, the monthly company newsletter, contains company
status reports, activity news, interviews about different management experiences and
other useful company information; 2) Sawasdee from the Top, a twice yearly two-way
communication between the Vice President (Sub-division head) and management
subordinates about company status, subdivision direction and Hoshin and setting the
company direction; and 3) Sawasdee My Team, a quarterly two-way communication
between General Managers (Department Heads) and their subordinates about the
status situation, department direction and setting the company direction.
TMT will continually emphasise the importance ethics, and being part of Thai “Sawasdee My Team”activities deepen
two-way communication.
society, in other words, being a good corporate citizen.

Toyota Training School Cultivates Apprentices and Trainees 


South Africa: Toyota South Africa Motors (Pty) Ltd (TSAM)

South Africa has experienced rapid growth thanks to abundant resources and rising incomes among middle-class black
citizens after the demise of apartheid in 1994. However, it faces a range of difficult social issues such as a 24.3% jobless rate,
a large income gap between whites and blacks, who account for 80% of the population, and an AIDS rate of 18% among
people aged 18-49. The government has invested 5% to 6% of GDP to boost educational standards, but real progress will
demand even more. In 2004, South Africa launched the Black Economic Empowerment (BEE) program to increase the
economic potential of black people. As part of it, the government asks foreign companies to assist with technology develop-
ment and support education for black people.
Currently, about 6,100 employees work at TSAM, which is the largest employer in South Africa. TSAM established an
industrial training school at its plant site in 1979. TSAM’ s Technical Training School is already used as part of the BEE
program. The school provides a seven-month basic course and a four-year course to prepare students for the national exam.
There are 140 trainees currently in the Learnership Program and 170 in the four-year Apprenticeship Program. In the Learner-
ship Program, trainees learn not only safety, mechanical assembly, basic electrical and electronic systems, welding, manual
skills, and computer use including the Toyota Production System (TPS), but also about HIV and AIDS. Students in the four-year
apprenticeship course are selected from graduates of the learnership program, and then study electrical and mechanical
machinery maintenance to acquire their national artisan certificates.
Even after they complete the training course, the graduates who joined TSAM
take an employee training program to thoroughly learn Toyota 4S ― seiri (sort),
seiton (straighten), seiso (sweep), seiketsu (sanitary) at the dojos. Each area has Plant
Maintenance dojos that focus on plant-specific skills training required for that area.
Other companies have recruited some of the skilled employees, but TSAM President
& CEO Johan van Zyl says,“The BEE program perfectly reflects the challenges facing
this nation. We cultivate people and create the future. People play a key role in
TSAM’ s business. Now and in the future, TSAM continues to value smooth, sustain-
able relations with customers, suppliers, communities and employees.”

Trainees learn basic mechanical assembly.

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Relations with Employees

Column

2008-2009: Employment Initiatives in the Wake of Global Economic and Production Changes
Making maximum efforts to provide stable employment
in line with corporate principles and policies.
In 2008, the global financial crisis led to severe economic conditions in regions around the world. The financial crisis initiated by a surge in oil
prices and exacerbated by the subsequent subprime loan crisis dealt a serious blow to the world economy and brought about a global
recession. These economic conditions led to a rapid contraction of the automotive industry. As a result, Toyota was also forced to review its
production plans in an effort to maintain stable operations while making every effort to protect the job security of its employees under these
trying circumstances. Toyota addressed all possible adjustments to its operations, including adjusting tact times, limiting overtime work and
reviewing shift schedules and workplace conditions. All of the measures taken were in line with Toyota’ s employment philosophy as set forth
in the Basic Toyota Principles. Future actions will continue to reflect these principles.

About the Basic Toyota Principles and


Other Corporate Policies Basic Employment Principles

Guiding Principles at Toyota Excerpts from the Guiding Principles at Toyota


These principles offer an ideal for what Toyota must become. To 1.Honor the language and spirit of the law of every
ensure that we are abiding by these principles across our opera- nation and undertake open and fair corporate
tions, and contributing to the sustainable development of society activities to be a good corporate citizen of the
and the planet, they should be shared with and understood by all world
of our consolidated subsidiaries. 5.Foster a corporate culture that enhances individual
creativity and teamwork value, while honoring
Toyota CSR Policy
mutual trust and respect between labor and
An interpretation of the Guiding Principles at Toyota that takes into management
consideration of Toyota's relations with stakeholders, subsequent
See page 12 for details of the Guilding Principles at Toyota.
environmental changes and heightened societal interest in CSR.
TMC has shared the statement with its consolidated subsidiaries Excerpt from the Toyota Code of Conduct
and is taking other relevant.
Chapter I. Through our communication and dialogue
The Toyota Way with the company, we (people working for Toyota)
A comprehensive overview of the values and business methods that strive to build and share fundamental value of
all employees should embrace in order to carry out the Guiding “Mutual Trust and Mutual Responsibility.” Toyota
Principles at Toyota throughout the company's global activities. (Toyota Motor Corporation and its subsidiaries)
endeavors to improve its business achievements so
Toyota Code of Conduct that Toyota can continue to provide employment
A summary of the basic guidelines that each of us must keep in and fair and stable working conditions for each of
mind as a discipline. It provides detailed explanations and us. Simultaneously, Toyota promotes a work
examples of the actions and issues that we must be aware of environment in which each of us can work in a
when carrying out actual business activities (including in our jobs harmonious and dynamic manner.
and daily business operations) and living in our global society.

Positioning of CSR Policy Excerpts from the Toyota CSR Policy


Guiding Principles at Toyota
<Employees>
CSR Policy:“Contribution towards Sustainable Development” We support equal employment opportunities,
diversity and inclusion for our employees and do
not discriminate against them.
Toyota Code of Conduct

Toyota Global Vision 2020


(Guiding Principles 5)
Toyota Way 2001

Mid- and Long-term Management Plans <Employees>


We strive to provide fair working conditions and to
maintain a safe and healthy working environment
Corporate Policies, Annual Policies,
Regional Policies, Group/Division Policies for all our employees.
(Guiding Principles 5)
Day-to-day Work

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Relations with Employees

Initiatives for Directly Employed Temporary Overseas Employment Initiatives


Employees in Japan Toyota has made necessary production adjustments
The automotive industry is particularly affected by seasonal overseas, placing a priority on protecting job security.
demand fluctuations and economic trends. That is why the Initiatives included extended plant shutdowns, transfer-
hiring of a certain number of temporary employees has ring personnel between plants, freezing new hires and
been a common practice across the industry for many limiting overtime work. The company has made contin-
years. While it is essential to handle personnel placement ued efforts to save jobs during the slowdown, using the
and contract renewals appropriately for contract employ- downtime to focus on kaizen activities and human
ees, Toyota has gone to the greatest lengths possible to resource development, transferring personnel between
ensure stable employment and improve the employability plants, freezing new hires and limiting overtime work.
of these workers. At the same time, some manufacturing plants in North
At the completion of a contract, workers receive consid- America, Europe, South Africa and other parts of the
erate treatment, including grants for return travel expenses, world introduced work sharing programs, compressing
bonuses and rewards for fulfillment of services. As workers each individual’ s working hours and sharing the“saved”
prepare to leave the company dormitory, their personal hours among multiple workers.
circumstances are taken into account. If the company In addition, voluntary retirement programs were
recognizes a compelling reason, such as a waiting period introduced to offer employees a more diverse range of
for certification to receive unemployment benefits, workers options. These actions were taken in accordance with
may be allowed to postpone departure by a month, pursu- Toyota’ s pledge to make every effort to protect job
ant to a rule that went into effect December 2008. (No rent security, while reflecting the mutual trust between work-
is charged for the extension period.) In an effort to improve ers and the employer and our commitment to abide by
workers’motivation and vitality, temporary employees who the labor laws and practices of each country, and our
have worked more than six consecutive months have respect for the common labor practices and labor agree-
opportunities to become permanent employees. Since the ments of each country and each individual affiliate.
end of March 2009, temporary employees have been
offered skill-building courses in which they can earn
national vocational qualifications.

Time Management Measures Lead to Work Sharing,


Business Improvement and Social Contributions
In February 2009, work-sharing programs were initiated for approximately 12,000 workers at 6 plants including Kentucky,
Indiana, Texas and elsewhere in the United States.
Then Vice President Jim Wiseman said, “Our team members are our most valued resource. We made every effort to
protect employment security through a philosophy of shared sacrifice. By retaining our team members' expertise and building
their skills during that time, we not only improved plant operations, but helped position the company to come back stronger.”
In the U.S., non-production days were used for team member training, including skills development and process
improvements. As a result, hundreds of improvements were made in the areas of safety, efficiency and quality.
The kaizen measures were designed to further improve the internal processes of each plant and refine product quality
and safety to ensure smooth start-ups on new production lines. To improve quality of life in local communities, employees
also took part in social contribution activities including beautification and tree planting.

Classroom lecture on internal plant Human resource development training Planting trees
process improvement

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