Toyota's Basic Philosophy Regarding Employees

Stable Base of Business Supported by a Relationship Based on Mutual Trust and Respect

In order to accomplish a stable base of business, Toyota aims to realize management that shows respect for people and build stable labor-management relations based on mutual trust and mutual respect, as well as to have all employees exercise their abilities to think, be creative, and utilize their strengths to the maximum extent possible. Toyota experienced labor disputes and personnel cuts during the management crisis of the 1950s. These difficult experiences led Toyota to create a company that would never again have to dismiss employees. After holding exhaustive discussions on the best course of action between labor and management, both parties came to a mutual understanding where employees would proactively cooperate to improve productivity, while the company would work to maintain and improve working conditions. Further, by sharing information and enhancing employee awareness in times of crises, Toyota also created a relationship of mutual trust and mutual respect based on which all employees execute their duties and responsibilities for the prosperity of the company.

The Four Principles Upon which the Relationship of Mutual Trust and Mutual Respect Is Based

First of all, Toyota believes that stability of employment, safety, and health are matters of the highest priority for employees to work with confidence, and to this end has developed a range of measures. In addition, Toyota has worked to promote continual improvements by enhancing two-way communication with employees, encouraging a sense of unity throughout the entire company and sharing information during times of crises. By respecting diverse values and thinking, Toyota has created opportunities for employees to demonstrate their creativity and has fostered teamwork. Efforts are also being made to develop human resources and create ample systems. Toyota believes that carrying out personnel and labor management that is based on these four principles makes it possible to maximize the entire company's performance and create a stable base of business.

Sharing the Origin of the Toyota Way with All Employees

This ideology has been systematically organized as the Personnel and Labor Toyota Way, which is based on the Toyota Way and is shared by all of Toyota's global affiliates. Management and various other measures based on the ideology are being implemented around the world. Toyota is committed to enhancing customer satisfaction and contributing to society by strengthening the bonds between labor and management based on mutual trust and respect and by realizing management that shows respect for people.

Work with Vigor and Enthusiasm

Basic Employment Principles

Excerpts from the Guiding Principles at Toyota

1. Honor the language and spirit of the law of every nation and undertake open and fair corporate activities to be a good corporate citizen of the world

5. Foster a corporate culture that enhances individual creativity and teamwork value, while honoring mutual trust and respect between labor and management

Excerpt from the Toyota Code of Conduct

Chapter 1. Through our communication and dialogue with the company, we (people working for TOYOTA) strive to build and share fundamental value of "Mutual Trust and Mutual Responsibility." TOYOTA (TOYOTA MOTOR CORPORATION and its subsidiaries) endeavors to improve its business achievements so that TOYOTA can continue to provide employment and fair and stable working conditions for each of us. Simultaneously, TOYOTA promotes a work environment in which each of us can work in a harmonious and dynamic manner.

Excerpts from the Toyota CSR Policy

<Employees>We support equal employment opportunities, diversity and inclusion for our employees and do not discriminate against them. (Guiding Principles 5)

<Employees>We strive to provide fair working conditions and to maintain a safe and healthy working environment for all our employees. (Guiding Principles 5)

Labor-management Relations based on Mutual Trust and Respect

The Joint Declaration of Labor and Management was concluded in 1962 based on lessons learned from bit ter experiences during the 1950 labor dispute. The approach of "mutual trust and respect between labor and management" became the basis of labor-management relations, and in 2012, the 50th year since the signing of the declaration, Toyota once again vowed to further reinforce ties between labor and management.

In the 50th year since the Joint Declaration of Labor and Management
Related contents

Toyota's Basic Philosophy Regarding Safety and Health

Ensuring employee safety and health is one of Toyota's most important business activities and has a universal and timeless value. Upon assuming the position of General Safety and Health Supervisor in 1957, Honorary Advisor Eiji Toyoda explained his basic stance on safety and health: "Safe work is 'the gate' to all work. Let us pass through this gate." With this basic philosophy always in mind, Toyota is striving to create a dynamic working environment that is conducive to the mental and physical well-being of its employees.

The Gate to Safety

Promotion of 3-pronged Approach to Safety and Health

In FY2012, "building a culture that promotes interactive development of safety and health" was set as the foundation of Toyota's global policy. As a result of basic rule observance and interdependent bottom-up initiatives involving the whole company that were implemented so that employees at every workplace realize the risks present and take independent preventive action with the aim of making safety and health a "custom and culture" at Toyota, the total number of accidents were reduced to half that in 2008.

Global Safety Measures

  • Safety functions were established in management companies in each region (North America, Europe, China, Asia and Oceania, etc.), a network linking the Head Office and management companies with subsidiaries was built, and safety measures are taken globally.
  • Accident information is shared and follow-ups performed.
  • Occupational safety and health management systems (OSHMS) are utilized.
  • Plant safety systems and rules are adopted and implemented.

Building up Good Health

  • In FY2012, Toyota took measures to improve employees' "health mindsets" and encourage employees to manage their own health. Toyota also engaged in health-screening-focused initiatives to reduce potential health risks. Measures to improve "health mindsets" included support for physical exercise at work sites, and granting awards to work sites that take proactive measures to support good health. Risk reduction activities focused on health BIP2 programs (BMI reduction and anti-smoking measures) with lectures and mini-seminars at the workplace on dieting and giving up smoking. Toyota also provided special health guidance for employees at risk of metabolic syndrome and took measures to improve lifestyle habits. As a result of these measures, smoking rates are steadily declining, and Toyota plans to continue these programs in the future.

  • A quit-smoking lecture
    A quit-smoking lecture

Companywide Safety Genchi Genbutsu(On-site Hands-on Experience) Program

  • Toyota has been conducting a Companywide Safety Genchi Genbutsu Program since 2009. The President and Vice Presidents participate in the program, which has produced significant results in improving the culture of safety and reducing accidents.

  • Companywide Safety Genchi Genbutsu Program
    Companywide Safety Genchi Genbutsu Program

Bolstering Mental Health Care

In FY2012, Toyota conducted Self-Care Training for new assistant managers and young employees to teach them techniques of identifying issues and dealing with stress with the aim of preventing mental health problems. Training on techniques for identifying issues and dealing with stress by young employees was added to entry-level technical training. For supervisors and managers, methods of improving communication skills with a focus on listening was added to Line Care Training with the aim of fostering caring for employees at the worksite and collaborating with other involved persons. In addition, emphasis was placed on "assertion" training for individuals who took the listening course four years earlier. Guidelines were adopted for industrial health personnel who perform health consultations, and efforts to standardize and systematize the details of consultations began in 2012.

Health Management of Overseas Personnel

  • In FY2012, we continued to provide health check-ups for overseas personnel and provided industrial physician advice by making use of health follow-up sheets. While industrial physicians routinely made rounds checking on medical conditions at local sites, medical information was also provided using the Internet for locally stationed staff and follow-up e-mails regarding self-health management were sent out. Tele-conferences were also routinely held with local points of contact and information exchanged.

  • Making rounds at an overseas healthcare facility
    Making rounds at an overseas healthcare facility

Toyota's Basic Philosophy Regarding Development of Human Resources

Toyota is working to develop human resources by implementing an educational program based on OJT (on-the-job-training), which is crucial for the development and generational transfer of excellent monozukuri(manufacturing), with the five Toyota Way keywords as a fundamental basis.

Practice of the Toyota Way

So that the Toyota Way, which explains Toyota values and ways of thinking, can be understood and practiced by employees globally, we have organized and arranged job types and techniques into what we call "Global Contents." These Global Contents are communicated to Toyota employees through courses and OJT both in Japan and overseas.

  • List of Global Contents

    List of Global Contents

  • Global Contents

    Global Contents

Human Resource Development in the Workplace (OJT)

The foundation of human resource development at Toyota is on-the-job-training (OJT) but we also provide off-the-job-training opportunities for development through guidance by supervisors or superiors. For example, in a globally-shared training program, employees, following group training, spend approximately six months attempting problem-solving during actual work duties.

ICT Program for Self-reliance of Affiliates and Contribution to Local Communities

In order to promote self-reliance in overseas affiliates, the ICT (Intra Company Transferee) program temporarily transfers employees of overseas affiliates to Toyota Motor Corporation for human resource development through on-the-job training. Transferees learn skills and know-how throughout their training periods which range from six months to three years. As of May 1 2013, a total of 451 transferees from 52 affiliates in 36 countries were working in Japan under the program.

  • Monika Dabrowska
  • Monika Dabrowska ICT, Human Resources Div. Dispatched from: TMIP (Poland) Dispatch period: Mar. 2013 - Feb. 2015

Study-abroad Program for Job-offer Recipients Fosters Development of Global Human Resources

The study-abroad program for job-offer recipients is designed to foster human resources with the skills and perspectives to work anywhere in the world by enabling job-offer recipients the opportunity to study overseas before they begin work. Beginning in late April, participants spend five months at the prestigious University of Pennsylvania in the United States studying business English. They are immersed in an environment with a different culture and can use their communication skills while taking advance courses and preparing to begin work in October. In FY2012, twelve new job-offer recipients were selected to participate in the program.

  • Naoki Ikuhara
  • Naoki Ikuhara Value Analysis Development Div Dispatch period: Apr.- Sep. 2012

New Study Dispatch Program Created for Young Employees

A new Study Dispatch Program was created to accelerate the development and enhance the skills of young employees. The first participants will be dispatched in January 2014. Employees in their fourth year or later with the company will be dispatched to an overseas subsidiary, overseas graduate program (including MBA programs), or a domestic affiliate to study for one to two years, acquire practical skills, gain understanding of different cultures, and improve their language skills in the workplace. Toyota already dispatches approximately 100 trainees to overseas subsidiaries each year, and with the creation of this new program, the number is expected to increase considerably.

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