Toyota Stakeholder Dialogue

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FY2011 The 11th Toyota Stakeholder Dialogue
"KPI" to Realize the "Global Vision for Those We Serve"

The 11th Toyota Stakeholder Dialogue was held on November 24, 2011. Six people, stakeholders from NGO/NPO, industrial experts, and other relevant experts, attended the dialogue to engage in direct discussions on "KPI"- indices to gauge Toyota's progress toward the realization of the "Global Vision for Those We Serve."

Participants (Japanese alphabetical order)

Eiichiro Adachi, Counselor, The Japan Research Institute Limited [Facilitator]
Seikei Itoh, Communications Director, Unilever Japan Holdings K.K.
Kiyomi Shimizu, Deputy Director-General, The Association of Consumer Affairs Professionals (ACAP)
Mieko Takenobu, Professor, Wako University
Akiko Mera, Executive Officer, Oxfam Japan
Yoichi Mori, Certified Public Accountant

[Keynote Address] Unilever Sustainable Living Plan
Mr. Ito from Unilever Japan Holdings made an address on the "Unilever Sustainable Living Plan" announced as the company's sustainability strategy in October 2010. The plan focuses on three areas, "improving health and well-being - health, hygiene, and nutrition," "reducing environmental impact," and "enhancing livelihoods." The plan sets quantified, time-bound targets for each area and clarifies the company's sustainability strategy, which has drawn attention.
During the questions and answers period after the keynote address, Mr. Ito introduced circumstances in which the plan was formulated, the internal distribution of the plan, relations between its global target and targets set by respective regional business units, future activities, etc. including difficulties he had as a member of the task force and the fact that the plan stimulated employees' self-consciousness. All these stories were instructive for the audience. He also presented the participants his company's advanced efforts for BOP business linked to Unilever's core business.

KPI to Realize the "Global Vision for Those We Serve"

First, Toyota explained the following;
-The "Toyota Global Vision" was announced in March 2011 to articulate what kind of company Toyota wants to be on reflection over a series of quality problems.
-And the "Global Vision for Those We Serve" is a written statement of what kind of company Toyota wants to be for each stakeholder.
-In an effort to realize it, Toyota wants to drive forward a PDCA cycle by setting KPI strategic focus to gauge its progress and incorporating it in Toyota's internal policy - Hoshin - management and disclose the progress for stakeholders' understanding.
After Toyota's explanation, participants expressed their opinions on whether the KPI to announce is easy to understand for stakeholders, whether it meets societal expectations for Toyota, and the like.

Key Opinions from Participants

  • Expectations for and Demands on Toyota
    "We want Toyota to be a company considering its employees as well as securing employment in Japan."
    "It is necessary for Toyota to consider taking measures against climate change. And we also want Toyota to strive for disaster prevention and reduction in cooperation with local communities."
  • KPI Strategic Focus
    "It is acceptable that some KPIs are not disclosed from the viewpoint of competition. And it is each company that thinks and decides which KPI is to be disclosed. But Toyota should be ready to clearly explain rules on disclosure in order to let there be no misunderstanding that Toyota discloses just what it wants to disclose."
    "Even when some numerical indicators are not disclosed, it is important to explain to stakeholders that the indicators are internally gauged and Toyota is striving to address these issues as Toyota's challenges."
    "It can be difficult for external people to understand why Toyota chooses them as its KPI without explanation of challenges and strategies as the background.
  • Disclosure
    "If some numerical targets and time boundaries can be presented, they would increase reliability. And even if some targets are not be achieved, explaining the reason could be part of communication, we think."
    "Need for disclosure varies according to country and region. It would be effective to work out numerical values by region or segment as well as global ones."

Summary by the Facilitator

There were valuable comments from various standpoints on KPI strategic focus to be set and disclosure methods. I would like Toyota to discuss internally with consideration of these comments. Also, I would like Toyota to thoroughly disseminate information concerning its thinking and activities to the public.

Closing,    Riki Inuzuka, Managing Officer, TMC

Thank you for giving various comments today, and we could realize the difference in recognition of KPI between stakeholders and us - on the side of Toyota, which gave us a new viewpoint.
Toyota has already disclosed the CSR Achievement Data in the Sustainability Report 2011, and we will discuss setting and disclosing KPI strategic focus including fully explaining our activities based on which strategy for dealing with which challenge.

Sustainability Report 2011 "Global Vision for Those We Serve"

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