Relations with Business Partners

Stable Base pf Business Contribute for economic development of local communities with open stance to new suppliers and dealers and through sustainable growth based on mutually beneficial business relationships with dealers/distributors and suppliers

Openness / Contribution to local communities

Toyota has taken an integrated approach to "making better cars" and providing "better services" with many business partners including suppliers and dealers. Business activities are ever more globalized, but we continue to share the Toyota principles and vision and "work with business partners in research and creation to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new partnerships." We build mutual trust with business partners in each region and contribute to the happiness of people working there as well as regional economic growth.

Openness / Contribution to local communities

Basic Concept of Business Partners

In order to contribute to society through automobile manufacturing and monozukuri and put into practice the principle of "Customer First," it is necessary to implement various activities in a spirit of cooperation and share principles with our business partners. In addition to steadily pursuing open and fair business activities and
conventional ones including CSR activities, Toyota is committed to working to achieve better quality in terms of safety and confidence to secure higher customer satisfaction, in further united cooperation with its business partners including suppliers and dealers.

Collaboration with Suppliers

Since its establishment, Toyota has sought to work closely with its suppliers in its manufacturing activities. In good times and bad, Toyota and its suppliers have faced the same issues together and Toyota has built strong and close relationships with them based on the need for mutual support and a harmonious society. The strong foundation based on solid relationships with suppliers helped quickly restore normality to production systems after the Great East Japan Earthquake. With the recent globalization of business activities we will cherish these ties-including those with our new partners-and together we will promote our Customer First policy.

Toyota's Basic Purchasing Policies

The role that ought to be played by a purchasing function is to ensure stable, long-term purchasing of the best products in the world at the lowest prices and in the most speedy and timely manner. In order to achieve this, Toyota believes that the most important task in purchasing is the creation of relationships in which suppliers in various countries and regions and Toyota do business on an equal footing based on mutual respect, thus building firm bonds of trust and promoting mutual growth and development. Toyota's global purchasing activities based on close cooperation revolve around the following three policies making up the Basic Purchasing Policies.

  1. Fair competition based on an open-door policy
  2. Mutual benefit based on mutual trust
  3. Contribution to local economic vitality through localization: good corporate citizenship

Implementation of Policies

Implementation of the Toyota Supplier CSR Guidelines

To clarify the expectations of its suppliers, the Toyota issued the Toyota Supplier CSR Guidelines. Toyota suppliers are asked to implement their own independent CSR activities based on the Toyota Supplier CSR Guidelines, and in turn expand their individual CSR policies and guidelines to their own suppliers. As demands from society are changing every year, Toyota has revised the guidelines for the first time in three years, in order to bring its CSR policies quickly in line with the latest societal trends.

Toyota's policies and approaches towards Conflict Minerals

Toyota obtains materials with full deliberation and care to avoid the procurement or usage of materials which are unlawful or which are obtained through unethical or otherwise unacceptable means. And Toyota takes appropriate steps to discontinue procurement of these materials if usage is detected.

In the Toyota Supplier CSR Guidelines, Toyota has clearly indicated its principles to suppliers clarifying its stance to ask them to strive for responsible material procurement, as Toyota does, and to develop and deploy the guidelines in their respective supply chains.

Toyota recognizes that the issue of conflict minerals is one of the significant social issues among supply chains taking into consideration the fact that the exploitation and trade of these minerals fund armed groups as well as other problems incl. human rights infringements, environmental destruction, and illegal exploitation in conflict zones. And Toyota strives for procurement and usage that are free from such conflict minerals.

In 2011 Toyota set up an internal team, the Conflict Minerals Task Force, to study and consider appropriate responses to conflict minerals in cooperation with concerned bodies in Japan and overseas.

In US, through a local affiliate, Toyota has also participated in a working group on conflict minerals of AIAG to address the issue. Furthermore, in order to contribute to solve conflict minerals issues, Toyota has participated in the Public-Private Alliance for Responsible Minerals Trade (PPA) and supported several activities including efforts to identify conflict-free mines.

In addition, based on results of a survey that was conducted in 2012 in cooperation with some suppliers, Toyota implements a global survey with the participation of its subsidiaries starting from 2013.

Toyota will continue to strive for responsible material procurement in cooperation with its suppliers.

*1
Conflict minerals originated in the Democratic Republic of Congo or surrounding countries: Columbite-tantalite (coltan), cassiterite, gold, wolframite, or their derivatives, which are limited to tantalum, tin, and tungsten, unless the Secretary of State determines that additional derivatives are financing conflict in the Democratic Republic of the Congo or an adjoining country. (From Section 1502 of the Dodd-frank Wall Street Reform and Consumer Protection Act.)
*2
AIAG(Automotive Industry Action Group):An organization which lays down the code of conduct in the U.S. automobile industry. (http://www.aiag.org/)
*3
PPA (the Public-Private Alliance for Responsible Minerals Trade): An alliance providing a platform for coordination among government, industry, private companies, NGOs, etc. to ensure responsible trade by the efforts including identifying conflict-free mines. (http://www.resolv.org/site-ppa/)
Related contents

Global Suppliers Convention

The annual Toyota Global Suppliers Convention is held to convey Toyota's policies and approaches towards its suppliers. The 2012 event held in February drew 756 executives from 96 overseas suppliers and 355 Japanese companies. Toyota reconfirmed a commitment for cooperation with all its suppliers.

Suppliers win Toyota Global Contribution Award
Suppliers win Toyota
Global Contribution Award

Supporting Social Contribution Activities of Suppliers

CSR Study Meetings held Focusing on Risk Management

Toyota holds CSR Study Meetings to support the CSR activities of suppliers. In FY2011, study meetings targeting around 340 companies were held based on the themes of risk management, labor workplace management, competition laws (antitrust and subcontract laws) and confidential information management.

Promoting the Spread of CSR among Suppliers through AIAG Activities

Toyota also participates in the CSR educational activities of AIAG*for the supply chain in an effort to spread awareness of CSR activities among suppliers in and outside the U.S.

*
AIAG (Automotive Industry Action Group): An organization which lays down the code of conduct in the U.S. automobile industry.

Suppliers' CSR Activities

Toyota suppliers also voluntarily engage in various activities to promote CSR.
Toyota's supplier associations, Kyohokai and Eihokai jointly held lectures on CSR in August 2011. Eiichiro Adachi of the Japan Research Institute, Limited was invited to give a lecture in an effort to enhance awareness of CSR among member companies.
Furthermore, the Kyohokai and Eihokai took part in the Make a CHANGE Day event as part of their CSR activities. Volunteer activities to collect items such as unused cell phones, and wasted and unused postcards were held to aid areas struck by the Great East Japan Earthquake. These activities won high appraisal as CSR activities and as well as the Encouragement Award in the 3rd Make a CHANGE Day award ceremony held in October 2011.

The shield awarded as an Encouragement Award at the Make a CHANGE Day award ceremony
The shield awarded as an Encouragement Award at the Make a CHANGE Day award ceremony

Collaboration with Sales Networks

The sales network is the front line where Toyota's "Customer First" principle will be directly observed. Toyota and its dealers always work as one to enhance customer satisfaction based on a strong relationship of trust, close two-way communication, the superiority of Toyota products and services, and shared value.

Relations with Dealers in Japan

Within Japan, Toyota has concluded contracts directly with approximately 280 dealers who operate 5,400 sales outlets including used car outlets. A fundamental principle of Toyota is "Customer First, Dealer Second, Manufacturer Third." Based on its policy of "Customer First," Toyota believes that dealer success, which ultimately leads to the growth of Toyota, is achieved by boosting support for dealer initiatives to improve customer satisfaction through the implementation of PDCA (Plan, Do, Check, and Act), as well as by being committed to meeting customer and dealer expectations.

Dealers' CSR Activities

Based on the Toyota National Dealers' Advisory Council (TNDAC) CSR Guidelines issued in 2005, every dealer engages in the three pillars of CSR activities: compliance, environmental responsiveness, and social contribution activities. Toyota is ensuring the continuation of the PDCA cycle by sharing knowhow to support the CSR activities of dealers. Toyota cooperates in revising and upgrading the self-auditing tool called the CSR Checklist system every year. The main area of improvement in 2011 was sending of a "feedback sheet" allowing comparison of each dealer's own results with the average results of dealers throughout the country, making it possible to compare results year-on-year. We have received a lot of feedback from dealers saying that it has become easier to use.

Feedback on evaluation results (example)
Feedback on evaluation results (example)

Column

TNDAC Holds CSR Lecture

TNDAC holds the CSR Lecture every year with the aim of enhancing awareness of CSR activities among member companies. In FY2011, it was held in November in Nagoya for the purpose of educating participants on risk management in reference to the Great East Japan Earthquake from the perspectives of business continuity and connections with local communities. The event attracted 323 representatives from dealers around the country. Mr. Tadahiro Aochi, Ph. D., Manager, Chief Consultant of Tokio Marine & Nichido Risk Consulting Co., Ltd. was invited to give a lecture on the theme of "Lessons learned from the Great East Japan Earthquake and business continuity management." Many positive comments were received from participants such as, "We want to reconsider the business continuity plan (BCP) of our own company."

At the CSR Lecture
At the CSR Lecture

Holding of the Prius Cup, the First National Competition

The Prius Cup has been held by each branch of TMSA since 2007 with the aim of strengthening ties with dealers and vitalizing Toyota, and all eight branches have had the opportunity to host this event. The first national competition was held in December 2011 at Fuji International Speedway, and was attended by the top 29 companies from branch competitions and over 700 people.
This huge car field day is an event that allows people to compete in driving and service contests and provides opportunities for participants to ride in a racing car. It brings together staff from Toyota and dealers nationwide to experience "Waku Doki," the fun and excitement of automobiles.
We plan to continue holding Prius Cup events in the future to increase the number of car fans everywhere.

The Aichi Toyota Team won the Driving Competition at the First National Competition.
The Aichi Toyota Team won the Driving Competition at the First National Competition.

[ VOICE ] Comments by Participants in the Winning "Aichi Toyota Team"
  • There was a variety of events and I had a lot of fun.
  • I experienced the fun of driving.
  • It was a fun and lively competition. Thank you very much.
  • Please continue to hold these events.

A Variety of Experiences through Cars for Children Who Will Lead the 21st Century

To contribute to local communities, in collaboration with dealers who play an active part in community-rooted activities, Toyota began the First Experience Program involving lectures at local elementary schools in 2008.
Around 40,000 children from over 700 schools have participated as of March 2012. Furthermore, as part of the "Kokoro Hakobu Project," Toyota employees and dealers jointly held open classes in Iwate, Miyagi, and Fukushima Prefectures between July and September 2011, with the desire to cheer up children in the disaster stricken areas through cars, attracting over 500 people to the events held at the three venues.

Main Activities in the First Experience Program

[ VOICE ] Comments by Children Who Participated
  • It was good being able to learn about cars, factories, and the environment by playing games.
  • We learned about cars in an easy-to-understand way and had fun.
  • I liked cars before, but I like them even more now.

At the showcase class held in Fukushima
At the showcase class held in Fukushima

Relations with Dealers Overseas

Toyota's approximately 170 distributors and 8,000 dealers located overseas serve as its key partners in highlighting the appeal of Toyota vehicles to customers. They also engage in a variety of activities to advertise the value of products and cars to customers.

Workshop on Safety and Maintenance for Women in Fiji

The Women & Wheels Program was held in the Fijian cities of Nadi and Suva on September 14 and 21, 2011. The organizer of the event was Toyota Tsusho (South Sea) Ltd. (Asco Motors) in Fiji.
The 95 female drivers who were invited to the event received safety and maintenance tips, as well as hands-on experience changing flat tires, conducting under-vehicle inspections and jump starting a flat battery. Following the success of the event, Toyota Tsusho (South Sea) Ltd. (Asco Motors) plans to form the Women & Wheels Club, which will publish a quarterly newsletter with information updates and driving ideas to keep program participants safe on the road.

Members of the Women & Wheels Club
Members of the Women & Wheels Club

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