TOYOTA Sustainability Report11 Se

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Top Message

Rewarded with a Smileby Exceeding Your Expectations

I would like to begin by offering thanks for the continued support and understanding of all ofour stakeholders. In addition, on behalf of everyone at Toyota I would like to express mywishes for the restful peace of all those we lost to the Great East Japan Earthquake, and tooffer our sincerest sympathies to all who have suffered through this great tragedy.

When I reflect on the past year, I am touched by the support offered by so many of ourcustomers and stakeholders as we dealt with the ongoing effects of the global financial crisis,as well as product quality and safety issues. I offer my sincerest gratitude.

Learning from these experiences, I continued to ask myself,“What kind of company do wewant Toyota to be? What kind of company should Toyota be?”I realized that Toyota shouldstrive to be a company that people choose, and that people are happy to have chosen. The

Global Vision we announced in March is strongly imbued with these ideas.The Great East Japan Earthquake struck two days after we announced our Global Vision.Our employees entered the stricken areas in the immediate aftermath of the earthquake andbegan providing support, working together with local residents to reconstruct and restorecommunities. Upon viewing the situation after the disaster, our support teams assessed thesituation, quickly worked out what was best for the communities and immediately set abouttheir tasks accordingly. This represents the very spirit of Toyota’s“power of the workplace”― an asset built up and handed down through 70 years of Toyota history. Priority was givento rescuing and preserving life, then to the restoration of the communities, with restartingproduction only considered after the situation stabilized.

I personally went to the scene of the disaster, not only to see for myself the scale of thedestruction, but also to listen to voices of the people there. From this experience, I strongly feel

that assistance for reconstruction and restoration from the disaster must be on-going, and Iinstigated the“Kokoro Hakobu Project”in which our belief that automobiles carry not onlygoods and supplies, but they can also carry human hearts is reflected. This project was plannedand carried out by Toyota and Toyota dealer employees with thoughtful consideration.

As part of the project, in this July we announced activities we will carry out toward restora-tion from the disaster through social contribution and . We will contribute to thescholarship foundation created by Iwate, Fukushima and Miyagi prefectures for children wholost their parents in the earthquake or tsunami, and we have set up in-house training systemsfor the graduates of industrial high schools in the Tohoku region. I fully expect that those whoreceive this training will support and continue the monozukuri tradition in Tohoku and playimportant roles for Japan’s future.

This Sustainability Report introduces various activities we conduct with the aim of realizinga sustainable society based on the eight axesof the‘Global Vision for Those We Serve’setup in line with the Global Vision.

“Rewarded with a smile by exceeding yourexpectations.”That is, we want to be a com-pany that consistently exceeds the expecta-tions of all our stakeholders, and is thereforerewarded with their smiles. That is what all ourefforts are aimed at, and your continuedsupport will be greatly appreciated.

August 2011

PresidentToyota Motor Corporation

Visit to the Miyagi prefecture office, July 19, 2011.From left, Iwate Governor Takuya Tasso, President Akio Toyoda,and Miyagi Governor Yoshihiro Murai.


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Toyota Global Vision Toyota Visionary Management

The‘Toyota Global Vision,’announced in March 2011, is articulation of what kind of company we want to

be ̶ what kind of company we ought to be. It clarifies our value, “we want Toyota to be a company thatcustomers choose and brings a smile to every customer who chooses it.”The‘Toyota Global Vision’is a distil-lation of our resolve at Toyota forward the future.

Articulating the‘Toyota Global Vision’to Render

Our Ideal for Toyota and the Path that We Will Take

toward Bringing about the Ideal

“Global Vision for Those We Serve”

ShareholdersEnsure sustainable growth by fostering the virtuous circle,Always better cars → Enriching lives of communities→ Stable base of business.

8

“We aim to exceed expectations and be rewarded with asmile. We will meet challenging goals by engaging thetalent and passion of people, who believe there is alwaysa better way”as we set out in the Global Vision. Thatmeans, we will sincerely listen to the voices of every stake-holder ̶ customers, employees, business partners, share-holders, and global society/local communities, and

respond to those expectations. The expression“GlobalVision for Those We Serve”is our way of organizing andexplaining the thoughts constituting the Global Vision inrelation to stakeholders. It is Toyota’s resolve to meetchallenging goals step by step to see the smiles andhappiness of everyone including customers and beyond.

"Toyota will lead the way to the future of

mobility, enriching lives around the world with

the safest and most responsible ways of moving

people.

Through our commitment to quality, constant

innovation and respect for the planet, we aim to

exceed expectations and be rewarded with a

smile.

We will meet challenging goals by engaging the

talent and passion of people, who believe there

is always a better way."

Rewarded with a smileby exceeding your expectations

Contribute to communitiesContribute to the future of mobility

Enriching lives ofcommunities

FruitDevelop vehicleswhich exceed customerexpectations

Always bettercars

Fruit

Constantly drive“always bettercars”and“enriching lives of

communities”by ensuring

sustainable profitability under

long-range perspective

Sustainablegrowth

Stable base of businessTrunk

The Toyota Precepts Guiding Principles at Toyota The Toyota Way

Toyota valuesRoots

Customers

Provide safe and reliable vehicles that inspireenthusiasm at affordable prices.

1

Listen sincerely to customer voices andcontinue to reinvent ourselves through sufficientinformation disclosure and dialogue.

2

Business Partners

Contribute for economic development of localcommunities with open stance to new suppliersand dealers and through sustainable growthbased on mutually beneficial business relation-ships with dealers/distributors and suppliers.

4

Employees

Create working environments for variousemployees to work proudly and with loyaltyand confidence in fulfilling their potential,which realize their self-growth.

3

Global Society/Local Communities

Reduce environmental burdens through lifecycleby developing various eco-friendly vehicles andtechnologies and making them prevail.

5

As a good corporate citizen, respect the culture andcustoms of every nation and contribute to socialdevelopment.

7

Be aware of responsibilities of developing andproducing vehicles and contribute for realizationof new mobility society free from traffic accidentsand congestion.

6



Toyota is committed to world-class safety to protect the lives of customers who choose Toyota cars and tolet them feel good about driving. We want to deliver cars that will be stimulating and even inspiring and thatwill thereby earn smiles from our customers.Toyota will continue renewal and improvement and develop technologies ahead of the times to providevehicles that satisfy evolving needs in every region around the world at affordable prices.

“Global Vision for Those We Serve” ［Key Points］

Approaches to Stakeholders

(Safety/Product Lineup/Moving People)

Relations with Customers

Provide safe and reliable vehicles that

inspire enthusiasm

at affordable prices

Safety:

Provide world-class safetyto protect the lives of customers.

Product lineup:

Provide cars that satisfy customer needsat affordable prices.

Moving people:

Provide products and servicesthat are stimulating and even inspiring andthat thereby earn smiles from our customers.

04 Sustainability Report 2011

Provide world-class safety

to protect lives from accidents

Safer Vehicles

Provide cars that meet customer needs

at affordable prices to be

rewarded with the smiles of customers

A Wide Rangeof Product Lineup

Provide products that satisfy customers

to be rewarded with their smiles

Moving People

Passive Safety

Reduce damage by accidents

Active Safety

Support to prevent theoccurrence of accidents



The new Ractis Welcab edition model offers friendly and conve-nient features including a shallow slope design which makes iteasy for passengers to get in andout, a spacious interior, and aseat layout allowing for a wheel-chair user and a helper to beseated side by side. This isJapan’s first wheelchair-adaptedvehicle with factory-installedfeatures for the disabled to gainvehicle-type certification in Japan.

Relations with Customers (Safety/Product Lineup/Moving People)Approaches to Stakeholders

Sustainability Report 2011 05

Wheelchair-adaptedRactis

LEXUS LFA

Integrated Initiativesto Improve Traffic Safety

THUMS Virtual Human Model Version.4 Developed

Toyota has added a small female and a large male to Version 4 of its THUMS＊ virtual humanmodel, which makes possible analyses detailed to a degree which is not possible to achieve

with conventional crash-test dummies. By creating precise models of various internal organsincluding their positions and how they interconnect, Toyota was able to develop a virtualhuman model containing approximately 14 times more information than the previous version.This increased detail allows finer understanding of how damage is applied to internal organsduring a collision with different body sizes taken into account.

Safety

Enriching Welcab (Welfare Vehicle) Lineup

that Helps Comfortable Mobility

With a philosophy,“provide freedom of moving in comfort to allpeople,”Toyota has worked towards the development andpopularization of the assisted-mobility vehicle, Welcab. In orderto respond to the diversifying needs we have filled out ourlineup, and in FY2010 we expanded to a total of 28 models with52 types, including a nursing care version used by caregivers totransport disabled persons, and a self-operated version.

New Ractis Welcab Edition Filled

with Friendliness and Convenience

Toyota is providing vehicles that meet local conditions andneeds in as many regions as possible at affordable prices. Also,a wide range of models, including Prius and other HV’s, gasoline

cars, commercial vehicles and welfare vehicles, are madeavailable in the market to answer customer needs.

Product Lineup

Vehicle Lineupin FY2010 52types in 28models

WelcabStations

LEXUS LFA, Proud World-Class

Full-Fledged Super Sports Car

In pursuit of a world-class full-fledged super sportscar, the development project of LEXUS LFA wasinitiated in 2000. Each model is elaborately hand-crafted by a team of highly skilled professionals in aworkshop specially created within the ToyotaMotomachi Plant. The team members are passionate

about creating a world-leading model: a vehicle thatwill be loved by the owner throughout its lifetime,and even they are proud of making the world-leadingmodel by all efforts in the process and continue towork.

Only 500 vehicles will be built until 2012. The firstvehicle rolled off the line December 2010.

While an automobile is basically a means for movingpeople and things, it can also inspire enthusiasm inpeople. Toyota thinks such inspiration and the move-

ment of people are important elements of car manu-facturing, and therefore aims at making cars thatliterally move people in both ways.

To realize“safe and responsible ways of moving people”in the Global Vision, Toyota puts a highpriority on safety and promotes product development with the ultimate goal of, one day“com-pletely eliminating traffic casualties.”Toyota promotes initiatives to improve traffic safety, viewingpeople, vehicles and the traffic environment as an integrated whole while pursuing“ dependablesafety”in product development based on investigations and analyses of various accidents actuallyoccurring in society. Also, we advance technology development with the Integrated SafetyManagement Concept set in 2006 as a basic technological concept ultimately striving toward zerocasualties.

Moving People

＊ THUMSTotal HUman Model for Safety

A joint study with Toyota centralR&D Labs., Inc.

188outlets in 108 dealers

People

Traffic environmentVehicles




Relations with Customers(Quality/Increasing Transparency)


Listen sincerely to customer voices

and continue to reinvent ourselves

through sufficient information

disclosure and dialogue

［Key Points］

Quality:

Provide customers with high-quality, reliable products.

Information disclosure/dialogue:

Sincerely listen to the voices of stakeholders including customers,disclose information in a timely and appropriate manner andrespond promptly and honestly.

The smiles that we earn from our customers are our greatest reward. Is there a gap between the“great cars”Toyota thinks of and the expectations of our customers? Are they satisfied with our current services? To beable to respond to the constantly-changing expectations of customers and society, we listen to customers’voices with sincerity and continually work on improvement. We never forget that the support of various stake-holders has made Toyota what it is today; we value the relationships of trust we have built; and we worktoward continuing to provide accurate and appropriate communication and respond transparently andpromptly to be a company that is continually trusted.

Development

Measurably enhance customerperspective toward making outstanding

vehicles in which they have confidence

After-Sales Service

Promote a more customer centricapproach from the viewpoints of

dealers and markets

Procurement

Promote built-in qualityin an integrated approach with

suppliers from the customers’viewpoint

Production

Strengthen a system thatmeets or exceeds the expectation

of customers



Relations with Customers (Quality/Increasing Transparency)Approaches to Stakeholders


Concerted Commitment to Continuous Improvement of Safety and Quality from the Standpoint of the Customer

In response to the series of quality issues, Toyota formedthe Special Committee for Global Quality chaired byPresident Toyoda in March 2010 to“review all the workingprocesses from the customer’s perspective, through thenew interface, and reinforce the quality control system.”With activity pillars such as reinforced customer voice andquality information gathering, human resource develop-ment focusing on quality, and promotion of regionalindependence, Toyota is demonstrating its concertedcommitment to a fundamental review of our operational

attitudes and establishing a customer interface acrossToyota’s entities worldwide.

Toyota has re-emphasized that the expectation onToyota from customers around the world is quality. And inorder for each employee to put into practice within their

own work the mindset of "customer first, quality first,"during the Month of Quality, November 2010, Toyotagathered 250 representatives from 230 divisions withinJapan and held a Quality Forum. Opinions were exchangedon the theme of "knowing feelings and expectations ofcustomers, and thinking about what each one of us shoulddo." In order to furtherenhance the quality that isToyota's mainstay, all theparticipants fully shared

Toyota’s resolve to makeall-out efforts to continueto raise quality withoutforgetting that we alwayshave the opportunity toimprove.

Quality

Quality is achieved through the integration of Devel-opment, Design, Procurement, Production andAfter-sales Service. Each is indispensable in thedelivery of satisfactory quality to customers. Wecontinue to aim to put the concepts of“CustomerFirst” and “Quality First” into practice and torespond to the expectations of customers andsociety. That is why every member across ouroperations maintains a high consciousness, andtakes ownership and responsibility of striving forcontinuous improvement and the enhancement ofcustomer confidence and trust by cooperatingclosely with one another.

For a business to be accepted broadly in society, it is necessary to maintain transparency. Accordingly, Toyota is makingcontinuous efforts to increase its corporate transparency, positively setting up contacts and opportunities for informationsharing, as well as listening to a broad range of requests from, and entering into consultations with customers.

Transparency Increase

Every Day with Customers: Toyota Customer

Assistance Center and Lexus Information DeskThe Toyota Customer Assistance Center, as well as theLexus Information Desk dedicated to the Lexus brandmodels, offer toll-free phone services 365 days a year andaccept brochure requests 24 hours a day in Japan. In sucha framework for improving customer convenience, thecenter and the desk respond to opinions and complaints toprovide quick and adequate services empathetically. Theseembrace the “Customer First”principle as the primaryinternal organization directly facing consumers. At thesame time, we work to relate these efforts to overall excel-lence in creating products and services.

Direct Communication with Broad-Based Stakeholders

In January 2011, the 10th Toyota Stakeholder Dialoguewas held under the theme of“Toyota's CSR goal toward2020.”Stakeholders from NGO/NPO, industrial expertsand other relevant experts attended the dialogue toengage in direct discussions on the ideal of Toyota in 2020taken consideration of various social issues. Toyotareceives its stakeholders' expectations and opinions andshares them with the internal related divisions/persons forfuture Toyota initiatives.“CSR Boost-up Initiative”was held in March 2011 to setup an opportunity for our staff members to directly commu-nicate with external intellectuals to support their under-

standing of global CSR issues and to raise their awarenessof them. More than 20 people participated from theinternal related divisions and the Toyota Group companiesunder the theme of“ISO26000 and human rights.”

w a eac one o s s o

Quality Forum(World-cafe style)

Structure of Continuous Quality Improvement Activitiesin Customer First Program

Enhance teamwork, workrelated skills and work ethic

ProductionAfter-

sales

service

ProcurementDevelopment

Ji Kotei-Kanketsu*

Maintain andcontrol the

standardized work(manufacturing)

Requirementsfor processes andparts to producegood products

(productionengineering)

Procurementof excellentparts andmaterials

Refinement of drawingrequirements

EDER(Early

Detection,Early

Resolution)

Fix it rightthe first time

No. of Calls at the Center and the Desk in FY2010

BrochuresrequestsNo. of

calls

3% 8% 43,000

Opinionsand

requests

Others(delivery

date,etc.)

22,000

Salespersonsupport

49%

Navigationsystem,audiosystem

336,000

Consultation

40%

Vehicle(specs,

eqiuipment,etc.)

401,000http://www.toyota-global.com/sustainability/stakeholders/toyota_stakeholder_dialogues/

For details, please refer to the following webpage.

*Ji Kotei-Kanketsu: Built-in quality with ownership



S t a b l e E

m p l o y m e n t a n d L a b o r - M a n a g e ment Relations h i p ( M u t u a

l T r u s

t a n d

M u t u a l R

e s p o n

s i b i l i

t y )

Sharing Values

Stability in the lives of employees, and opportuni-ties for self-realization and growth as well ascorporate development are interdependent. Theyare all founded on mutual trust and respectbetween labor and management, long-termemployment stability and open communication.Based on this, the Toyota Way 2001 is comprisedof the five key terms as shown at right: Challenge,, , Respect and Teamwork

under the two main pillars of “ContinuousImprovement”and ”Respect for People.”This hasbeen expanded to Toyota employees worldwide.Furthermore, “300,000 Person CommunicationActivities” that raised workplace capabilitiesthrough communication improvements has beenpromoted and expanded.


We form a long-term vision, meetingchallenges with courage creativity torealize our dreams.

We practice genchi genbutsu, go to thesource to find the facts to make correct

decisions, build consensus and achieve goalsat our best speed.

We improve our bus㏌ess operatio㎱cont㏌uously, always driv㏌g for ㏌novationand evolution.

We stimulate personal and professionalgrowth, share the opportunities ofdevelopment and maximize individual andteam performance.

Teamwork

We respect others, make every effect tounderstand each other, take responsibilityand do our best to build mutual trust.

Respect

Challenge

Kaizen

Genchi GenbustuContinuous

Improvement

Respectfor People

Mutual trust and respect betweenlabor and management,

and long-term employment stability

Communication

Relations with Employees


Create working environments for

various employees to work proudly

and with loyalty and confidence in

fulfilling their potential, which realize

their self-growth

［Key Points］Human resource development:

Foster the Toyota spirit of conscientious manufacturing.

Diversity and Inclusion：Create working environments for various employees to work in aharmonious and dynamic manner regardless of gender, race, ornationality.

Safety and Health：

Create a safe and healthy working environment.

Confidence:Maintain stable employment and provide fair working conditions.

Pride and loyalty:

Create working environments worthy of vigor and enthusiasm foremployees to work proudly and with loyalty.

Toyota plans greaterenhancement and reinforcement

of educational programs basedon the Toyota Way, and strives

on creation of a workplaceworthy of vigor and enthusiasm.

Diversity andInclusion

Ensuring employee safety and

health is one of Toyota’s mostimportant bases for our businessactivities. Each workplace serves

as the individual driving force

behind a company-wide effort.

Safety and Health

Toyota is working to develop

vigorous workplace bygreater enhancement and

reinforcement of educational

programs based on theToyota Way with OJT

as an essential.

Human ResourceDevelopment

Toyota strives to foster employees’pride and loyalty to the company,

workplace and colleagues byencouraging a culture of teamwork

through communication andmutual competition.

Pride and Loyalty

Work withVigor and

Enthusiasm

The Toyota Way(Continuous Improvement, Respect for People)

HumanResource

Development

Diversityand

Inclusion

Safetyand

Health

Prideand

Loyalty


From the beginning, Toyota has had“Continuous Improvement”and“Respect for People”as its pillars, and as its moralfoundation the Toyota Way summarized in the five keywords,“Challenge,”“Kaizen,”“Genchi Genbutsu,”“Respect”and

“Teamwork.”For employees, Toyota steadily promotes various measures including human resource development and health-care so that the employees could work with confidence, vigor and enthusiasm. Also, under a labor-management relationshipbased on mutual trust and mutual responsibility, Toyota respects for employees’diversities such as culture, nationality, race,language, religion, gender, age or view/perspective.



Relations with EmployeesApproaches to Stakeholders

In FY2010,“building a culture that enables all employees/teammembers to think for themselves and practice safety and health”has been set as the top priority of Toyota’s global policy. AndToyota has promoted the three pillars’approach: improving healthand safety mindset; promoting the Occupational Safety and HealthManagement System (OSHMS) continuously and thoroughly; andbuilding a safe and healthy environment.

As a result of the efforts put forward by each workplace, totalaccidents decreased by roughly 13% over the previous year.

Basic rule observance and interdependent bottom-up initiativesinvolving the whole company will be implemented in FY2011 so all

employees at every workplace realize the risks present and takeindependent preventive action.

Industrial Accident Frequency(frequency rate of lost workday cases)

’06 ’070

0.5

1

1.5

2

’08 ’09 （FY）’10

All industries

Manufacturingindustries

AutomotiveManufacturingindustries

Toyota

Source: All industries/Manufacturing industries/Automobile manufacturing industry (Ministry of Health, Labour and Welfare,2010 survey on industrial accidents)

Outline of Each Education ProgramToyota Institute

The Toyota Institute (TI), with its mission of“human resource development that puts the Toyota Way intopractice,”is expanding work methods (know-how for problem solving, mentoring, etc.) into the businessunits in each country around the world to carry out the Toyota Way, which should be shared among allToyota personnel throughout the world.

Total Quality Management（TQM）Toyota promotes practicing TQM with the philosophies of“Customer First,”“Continuous Kaizen”and

“Total Participation.”We engage in promot ing resolution, providing every employee working in Toyota’sglobal organization with measures to improve product and service quality, motivate people and revitalizethe corporate structure.

Pro-WIN ProgramTowards the early development of diverse and highly skilled human resources, the“Pro-WIN”trainingprogram was begun in 2007, targeting 4,500 engineers in the production and manufacturing fields, andToyota has been promoting planned and continuous human resource development.

R&D Learning CenterThe Center was established in 2006 with the objective of laying the groundwork for developing appealingproducts, and maintaining and improving high Toyota quality (customer first).


Overview of Education

Toyota implements various education programs according to jobdescription and level so that every employee can gain requiredexpertise and skills, pursuit Good Thinking, Good Products andpromote Kaizen activities.

To create products and services that exceed customers’expec-tations, practical skills are acquired along with knowledge andtheories through classroom lectures. These are then confirmedthrough practice. Toyota always addresses employee educationunder the“Genchi-genbutsu*”philosophy.

* Go to the source to find the facts to make correct decisions, build consensusand achieve goals at our best speed.

Human Resource Development

Diversity and InclusionCommunication Activitiesbeyond Workplaces

［Examples］ Major activities include “Shokusei-kai” and “HUREAI Activity.” TheShokusei-kai is comprised of seven groups that are organized by jobdescription and qualification to provide an opportunity for employees toextend interpersonal relationships beyond the workplace, share variousviews and develop leadership through activities such as workshops andlectures.

The HUREAI Activity is an activity targeting all employees within thecompany. Various events are held on a company-wide basis, group-basis,and workplace-basis. Similar to the Shokusei-kai, it provides an opportu-

nity to extend interpersonal relationships anddevelop leadership.

The all company Ekiden Race eventhosted by the HUREAI Activity in Decemberevery year has a nearly 60-year history. It isheld successfully with participation of morethan 20,000 people including overseasaffiliates and Japanese group companies.

Pride and Loyalty

Family Workplace Visit Deepens Tiesbetween Workplace and FamiliesSince FY2003 various work sites have held workplace visits forfamilies to facilitate communication between the workplace andfamilies. In FY2010, our Shimoyama Plant tours with the catch phrase

“Everyone smiles, love Shimoyama,”were held at 11 workplaces atotal of 16 times (July ̶ Septem-ber) with 225 families, 588people. We received positivefeedback saying “It deepenedthe ties with my family, and it wasa pleasure for me to meet thefamilies of my colleagues.”

My recent assignment to lead the developmentof the new Toyota Global Vision gave me theopportunity to get directly involved in the globalToyota. It revealed that there was a common perspective“we willmeet our challenging goals by engaging the talent and passion ofpeople who believe there is always a better way”along thecommunication with team members in various regions of theworld. I believe our Toyota culture is our competitive advantage;shared values bring us together and help to build a strong teamthat is inclusive of all.

As a Leader of Developingthe Toyota Global Vision

Chika Kako, Lexus Group

Real C. Tanguay, Senior Managing Officer

Springing from a desire in school days to workoverseas to gain various experiences, I appliedto work for TMME on secondment. I learned

about many things including differences inbackground, and so on. As I went through a lot of experiences, Iwas conscious of not setting a bad precedent and tried to achievea satisfactory level of performance. I hope to contribute to such atask that requires the integration of global values in the future.

A Female Employee Shinesafter Various Experiences

,

The 64th Ekiden Race

a, were e a wor paces a

Shimoyama Plant Family Visit Tour

Promotion of 3-Pronged

Approach to Health and Safety

Safety and HealthSafe work

Reliable work

Skilled work

Safe work is

“the gate”to all work.

Let us pass

through this gate.

Basic Philosophyfor Safety and Health

Gate to Safety



Relations with

Business Partners


“Global Vision for Those We Serve”Contribute for economic development of local

communities with open stance to new suppliers

and dealers and through sustainable growth

based on mutually beneficial business relation-

ships with dealers/distributors and suppliers

［Key Points］Openness:

Be open to any and all candidates for business partners,regardless of nationality or size, and evaluate them basedon their overall strengths.

Contribution to local communities:

Contribute for economic development of localcommunities through mutually beneficial relationships withbusiness partners.

Toyota has taken an integrated approach to“making better cars”and providing“better services”with manybusiness partners including suppliers and dealers. Business activities are ever more globalized, but wecontinue to share the Toyota principles and vision and“work with business partners in research and creationto 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 work-ing there as well as regional economic growth.


T r u

s t M

u t u a l g r o w t h b a s e d o n mutual trus t B o n d S t a b l e l

o n g - t

e r m g r o

w t h

Suppliers

Basic PoliciesSupplier CSR Guidelines

CSR Promotion Activities

Dealers

Toyota Dealer CSR GuidelinesCSR Declaration

CSR Workshop



Relations with Business PartnersApproaches to Stakeholders


Relations with Dealers in JapanWithin Japan, Toyota has concluded contracts directlywith approximately 290 dealers who operate 5,600 salesoutlets including used car outlets. A fundamental principlefor Toyota is“Customer First, Dealer Second, ManufacturerThird.” Based on the “Customer First” policy, Toyotabelieves that dealer success, which ultimately means thegrowth of Toyota, is achieved by enhancing support ofdealer initiatives to improve customer satisfaction throughthe implementation of PDCA (Plan, Do, Check, and Act)from the perspective of meeting customer and dealerexpectations.

Relations with Dealers Overseas

Toyota’s approximately 170 distributors and 8,000 dealerslocated overseas serve as its key partners in highlightingthe appeal of Toyota vehicles to customers. In order to fullyconvey to customers the value of its products, Toyotaengages in a variety of activities with its partners.

Collaboration with Suppliers

Since its establishment, Toyota has sought to work closelywith its suppliers in its manufacturing activities. In goodtimes and bad, Toyota and its suppliers face the sameissues together and Toyota has built strong and closerelationships with them based on the need for mutualsupport and a harmonious society. As its business hasexpanded on a global scale, Toyota places even greatervalue on these close relationships, including relationshipswith new partners, as essential to its efforts to achievehigher customer satisfaction on every level.

Collaboration with Sales Networks

Development and Deployment ofthe Toyota Supplier CSR Guidelines

Toyota believes in the importance ofcollaboration with suppliers in CSR activi-ties and, towards that end, issued theToyota Supplier CSR Guidelines in February2009.

Examples of Initiatives for Earthquake Disaster Reconstruction

(The Great East Japan Earthquake)

The Netz Toyota Nangoku in Kochi Prefecture was established as a Toyota Vista

dealer in 1980, and has held the No.1 position regarding customer satisfactionamong all Toyota dealers since 1999. It has a unique program which emphasizesrecruitment and new employee education based on its fundamental thought,“makeall employees winners in their lives.”The last event of its new employee training is afive-day“barrier-free Ohenro pilgrimage.”Each employee pairs with a person who isvisually impaired or similarly disadvantaged and guides him or her to 88 sacred sitesin the Shikoku region. New employees are often bewildered at first but soon come torealize the meaning of the word“barrier free”and understand the meaning of facingevery customer or colleague as a human through these real experiences. Today manycustomers visit the Netz Toyota Nangoku where employees taking such trainingwelcome them.

Netz Toyota Nangoku (Kochi Prefecture): Last Event of New EmployeeTraining Program Is‘Barrier-free Ohenro pilgrimage’

ColumnColumnolumn

Over 600 suppliers including secondary ones were stricken by the Great East Japan Earthquake, which inflictedimmense damage across a broad area. As initiatives for reconstruction, we checked the supply possibility of allparts and components and allocated support groups to transport aid supplies, reconstruct facilities, procurematerials such as power generators and support production management.

Full Efforts on Early Reconstruction of Supply Chain

Toyota requested dealers nationwide for support of the areasstricken by the quake for the first time. Bottled water whichTOYOPET dealerships had individually stored for emergencies

was collected and loaded in vacant spaces of trucks used todeliver parts and components. Aid supplies such as water,blankets and daily commodities provided by other Toyotadealers were collected at the Toyota Head Office anddelivered to dealers stricken by the quake in Miyagi and Iwateprefectures and so forth via our secure transport routes.

Delivering Procured Water and Daily Commodities to Affected

Areas by Utilizing Parts/Component Delivery Service System

Where supplies for quake victims are loaded andshipped (Toyota Loops)

New employees take a tripwith the visually impaired.

e

New employees take a trip



The Fourth Toyota Environmental Action Plan

Environmental ManagementManagement

Strengthen consolidatedenvironmental managementFurther promoteenvironmental management

to business partnersEnhance environmentaleducation

Promote new businesses thatcontribute to environmentalimprovementSteadily reduce environmental

impact over the entire lifecycleof the product through full-scaleimplementation andestablishment of Eco-VehicleAssessment System (Eco-VAS)

Cooperation with Society

Contribute to the developmentof a recycling-based societyImprove disclosures ofenvironmental information

and two-way communicationsActively contribute to andpropose environmentalpolicies based onsustainable development

AutomobileRecycling

Productionand

Logistics

Developmentand

Design

Reduce emissions toimprove air quality inurban areas in allcountries and regions

Implementinitiatives toreduce VOCemissions

Reduce CO2 emissions in theproduction andlogistics activitiesof each country

and region

Energy/Global

warming

Recycling ofresources

Substancesof concern

Atmosphericquality

Further reduce CO2

emissions inToyota’s globaloperations

Promote the develop-ment of technologies toachieve the best fuel effici-ency performance in eachcountry and region

Promote the developmentof clean-energy vehicles, en-courage their effective intro-duction and ensure widermarket acceptance

Promote initiatives toimprove traffic flows usinga variety of networkingtechnologies

Develop technologies torespond to the diversificationof energy and fuel sources

Promote the effectiveuse of resources tofurther contribute tothe realization of arecycling-basedsociety

Reduce waterconsumption

Reduce the discharge

of substances subject tothe Pollutant Releaseand Transfer Register(PRTR) law

Promote managementand further reductions inthe use of substances ofconcern (SOC)Eliminate use of four SOCslead, mercury, cadmiumand hexavalent chromiumglobally

Steadily implement recycling systems inJapan and EuropeSteadily implement initiatives toincrease vehicle recovery rates in Japanand Europe to reach 95% by 2015Recovery rates:Japan: equivalent to 92% in FY2010Europe: 85% in 2006

Further promote and expand theuse of designs based on the designsfor recycling (DfR) concept

Approaches to stakeholders

（Environment）


“Global Vision for Those We Serve”Reduce environmental burdens

through lifecycle by developing

various eco-friendly vehicles and

technologies and making them prevail

［Key Points］Eco-friendly vehicles:

Bolster our line of Eco-friendly models.

CO2 reduction:

Conserve energy and reduce output of CO2 in manufacturing,distribution, and sales.

Conservation of material resources:

Ensure recycling-based utilization of resources.

Harmony with nature:Boost in harmony with nature.

“Respect for the planet”is a special emphasis at Toyota as a car manufacturer. We will continue striving tominimize environmental impact throughout the vehicle life cycle, from the manufacturing of new cars to thescrapping of end-of-life-vehicles. We will do that in developing and refining a state-of-the-art productionsystem that minimizes waste.Toyota strives to save energy, reduce CO2 emissions, use resources effectively through such as recycling, anddevelop things and people in harmony with nature.




Toyota Environmental Action Plan System

Toyota Environmental Action Plan (Five-year plan)

Annual policies, plans

Various environmentalmeasures and guidelines

ToyotaGlobal Vision

Environmental committees(products, production,

resource recycling)

Toyota Earth Charter (Environmental basic policies)

● Formulated in 1992, revised in 2000

Guiding principles at Toyota

● Formulated in 1992, revised in 1997

Universalguiding

principlesand

policies

Mid/longterm

movementand direction

2006‒2010 Fourth Plan2011‒2015 Fifth PlanDaily operations

Toyota’s Vehicle Recycling/Recovery Rateand ASR Recycling/Recovery Rate

’07’06 ’08 （FY）

（%）

50

70

100

’10

ASR recycling/recovery rate

Legally mandated 70% ratefor FY2015

Toyota’s vehiclerecycling/recoveryrate (in terms ofpercentage ofentire vehicle)

’09

76%

66%

81%

96%94%97% 97%

80%

97%

85%

The Toyota Earth Charter, the company’s action policy forthe global environment, was formulated in 1992, and theToyota Environmental Action Plan, which embody the Earth

Charter to facilitate the environmental initiatives wasannounced in 1993. Toyota started its activities based onthe five-year Fourth Plan in 2006, and achieved all goals.For the coming five years that begins in FY2011, Toyotapromotes its activities based on the Fifth Toyota Environ-mental Action Plan that shows the corporate vision and thedirection of Toyota.


Ensuring a Proper Response tothe Automobile Recycling Law in Japan

Management and Reduction of 4 Key SOCs

World’s First Use of Bio PET*Adoption of Ecological Plastic in Car Interiors

In January 2011, the world’s

first product using bio PET was

launched. Bio PET is a plastic

material formulated from a

sugarcane-derived bio-substance,

replacing conventional PET’s

mono-ethylene glycol (consti-

tuting 30% in weight), which was jointly developed with Toyota Tsusho

Corporation. Starting with the luggage compartment liner in the Lexus

CT200h, Toyota plans to increase both the number of vehicle modelsfeaturing the new material as well as the amount of vehicle-interior area

covered by it.

*PET (Polyethylene Telephtarate)

The ASR recycling/recovery rate at Toyota reached 76% inFY2007, surpassing the legally mandated rate of 70% forFY2015, and rose to 85% in FY2010.

Accumulated CO2 Reduction 19million tons

Status of Actions on 4 Major SOCs

Promoting Widespread Use of Low-emission Vehicles

Category Reduction level Percentage of total production

☆☆☆☆SU-LEV

New ☆☆☆U-LEV

75% lower thanstandard levels for 2005

50% lower thanstandard levels for 2005

95.1％（134）

4.5％（29）

( ) No. of models

Percentage of Total Production in FY2010 that Meets the Approval Systemfor Low-emission Vehicles Based on the 2005 Exhaust Emissions Standards

4 SOCs All Production in Japan Key Overseas Plants

Lead, Mercury, Cadmiumand Hexavalent Chrome

All eliminatedsince August 2006

Almost all eliminatedsince the end of 2007

Principles, Policies and the ToyotaEnvironmental Action Plan

Substances of Concern/Atmospheric Quality

Recycling of Resources

New Bio-PETplastic in theCT200hSugarcane

In an effort to expedite market launches of plug-in hybridvehicles (PHVs) and gain a broader understanding of theirmarket expansion, about 230 PHVs have been introducedto Japan and about 600 to the global market since Decem-ber 2009, with fleet customers in Japan, the U.S. andEurope as primary targets. In October 2010, its verificationtest started in Tianjin City, China.

Expanding PHV Verification Tests in Japanand Overseas with the Aim of MarketLaunch in 2012

Accumulated CO2 Reductionwith 3.1 million HVs (Estimated by Toyota)

http://www.toyota-global.com/sustainability/environmental_responsibility/basic_stance_on_the_environment/action_plan/fifth_plan.html

For details on the Fifth Toyota Environmental Action Plan,please refer to the following webpage:

Global Society/Local Communities (Environment)Approaches to Stakeholders

Average Fuel Efficiency for Toyota Vehiclesin Japan

A significant improvement in average fuel consumption hasachieved in Japan, as a result of an increase in sales of HVs,particularly the Prius.

Energy/Global Warming

Average Fuel Efficiency in JapanCompared to FY1997 Increase by 57.0％

0.90

1.301.20

1.501.60

1.40

1.10

1.00’98’97 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 （FY）’09 ’10

http://www.toyota-global.com/sustainability/report/sr/

For the global CO2, please refer to the following webpage, p.32.

’11（up to March）

（Thousand vehicles）

100

200

300

50

150

250

350

0’08 ’09 ’10’07’06’05’04’03’02’01’00’99’98’97

About 19 milliontons of ReducedCO2 Emissions

Cumulative Totalfrom 1997 toMarch 2011

CO2 Emissionsfrom ConventionalGasoline Vehiclesof Equivalent Size

and Power Output

CO2 Emissions from HVs

Cumulative HV Sales



Low-Carbon Society


(For the Future of Mobility)

Global Society / Local Communities


Be aware of responsibilities of

developing and producing vehicles

and contribute for realization of

new mobility society free from

traffic accidents and congestion

［Key Points］

Infrastructure for safer mobility:

Contribute for realization of safer mobility that predicts risks in advanceand prevents accidents.

Comfortable, low carbon mobility:

Contribute for realization of mobility that uses energy efficiently.

Lifestyle:

Enrich lives through new-concept mobility, nursing-care robots, etc.

In order to ensure the sound future development of mobility society that relies on automobiles as a means oftransportation, it is necessary to minimize their impact on the environment as well as significantly reduce trafficaccidents, traffic congestion and other negative aspects. Toyota takes a proactive stance to realize new sustain-able society of which quality is enhanced by providing safe mobility through interaction with the transport infra-structure, low-carbon and comfortable vehicles, and systems that link people, vehicles, robots and houses.Utilizing our strength like housing and information technologies, we are also engaged in various fields such asenergy management in communities, reduction of traffic congestion, and the realization of new communication.

Smart Center

Optimization of

in-house

energy use

Establishment

of low-carbon

transportation

systems

Sustainable Society of Which Quality is Enhanced

Optimization

of energy use in

commercial and

public facilities

● Parsonal Mobility● Partner Robots

New Lifestyle

●ＩＴＳ● Smart Mobility

Collaboration

with Infrastructure

● Smart House

〈●

HEMS 〉 ●Storage ●Generation ●Charge

Houses

〈 ● PHV ● EV 〉

Vehicles ● Shopping centers● Leisure and culture facilities, etc.

Battery charging stand

Town



Toyota Smart Center

Total supportfor low-carbon,energy-saving life

Gatheringdata

Optimumcalculation

forenergy use

Powerconsumption

/storageplanning

People (smart phone)

Power company

Home (smart house)Town (smart shop) Car (PHV, EV)

G-StationNotifies smart phones when charging ends

※HEMS…Home EnergyManagement System Storage battery

Stores electricitygenerated by solar panels

Chargingoutlet

Sunlight/Temperature/Wind

Solar panels

G-BOOKNetwork connecting cars,homes and people

※HEMS

Wi-Fi network

Leveling of power demand

Supporting Eco-driving

Supporting Eco lifeHome power consumption monitorAppliances remote control

Home power consumption P o w e r d e m a n d

0 6 12 18 23（hour）

Car charging

Shifting car-chargingto periods with

low power demand

Self-supplyingpower

Electricity ratesby periods

Car batteriesUsed as a householdpower source inemergencies

Checking battery levelSetting charging timeRemote air-conditioning

Controls homeelectricity supply/demand (generation,storage, consumption)

Global Society/Local Communities (For the Future of Mobility)Approaches to Stakeholders

Onboard safety equipment and systems are evolving at Toyota, where thelatest Intelligent Transport Systems (ITS) technology is being applied in thedevelopment of active safety systems that integrate vehicles and infrastruc-ture. The systems enable information that onboard sensors fail to get to betransferred from sensors installed on the roads to vehicles as well as to beshared between vehicles. Such additional information can support driversand lead to safe driving and accident prevention.

Vehicle-Infrastructure Cooperative System

‘ITS Spot Service’Aims at Reduction ofTraffic Jams and Accidents at ExpresswaysIntelligent Transport Systems (ITS) spot service, Dedicated ShortRange Communication (DSRC) is a traffic information service, as anaddition to conventional ETC services, operates primarily on express-

ways and uses bidirectional communication between vehicles andinfrastructure to provide traffic information services that support safedriving. Specifically, this system is intended to help the driver avoidtraffic accidents by notifying the driver when there is a stoppedvehicle or traffic congestion located beyond a poor-visibility curvebefore the driver reaches the curve, and also by notifying the driver offalling objects before the point. October 2009, DSRC units for ITSsport service were launched and the number of adopted models forthe service has been expanding gradually.

As part of efforts at that exceeds theexpectations of customers, Toyota contributes tocreating a prosperous, sustainable society that linkspeople, cars, robots and homes through the develop-ment of new mobility and robots that make people’slifestyles active and amenable and therefore morefulfilled.

New Lifestyle

Initiatives to Partner Robotsand Personal MobilityIn the midst of such major societal fluctuations as anaging society, a declining birth rate and changes inpopulation dynamics, the need for robotics develop-ment is rising. With the philosophy of contributing tothe community and people by enriching societythrough manufacturing, Toyota marries cutting-edgetechnology from various disciplines including theautomotive and IT industries in the development ofpartner robots with the goal of practical use in theearly 2010s.

In order to realize sustainable mobility throughout the future for many years to come, Toyota works on build-ing of a societal foundation through not only its core products, vehicles, but also its housing businesses, IT, etc.

Low-Carbon Society

The Smart Grid Envisioned by Toyota

Smart grid is a type of electrical grid which attempts to intelligently use electric power utilizing IT in mutual collaborationbetween“power producers”including generators of renewable energy such as solar power and wind power and“consum-ers”of electricity like houses, buildings, plants, etc. Toyota contributes to develop next-generation low-carbon communitiesby working on realization of the smart grid mainly from the users’viewpoint such as vehicles, houses, telematics, and soforth. Today, towards that end, Toyota is participating in a variety of pilot projects in countries around the world.




“Global Vision for Those We Serve” ［Key Points］

〈Global Common Theme〉

Under its Guiding Principles, Toyota seeks to be a goodcorporate citizen of the world and to contribute to economicand social development through corporate activities in thecommunities it conducts business in. The CSR Policy: Contri-bution Towards Sustainable Development, which interpretsthe Guiding Principles, explains how Toyota activelypromotes and engages in social contribution activities thathelp strengthen communities and contribute to the enrich-ment of society. Based on these concepts, Toyota’sapproach to social contribution activities, initiatives andgoals are expressed clearly in the principles and policies thatare shared with all Toyota companies throughout the world.


(Social Contribution)


Social contribution:

Nurture human resources and enhance the cultural life of our host communities.

Purpose

Stance

EmployeeParticipation

InformationDisclosure

GlobalPerspective

Principles and Policies of Social Contribution Activities

The Toyota Group will undertake social contribution activities to contribute to sustainable socialvitality.

Toyota will maximize the benefits of its social contribution activities by working with partners;by using our resources effectively; and by concentrating on initiatives that address real socialneeds, including fostering future human resources.

Toyota will adopt a global perspective on social contribution activities while adapting activitiesto needs and circumstances in each nation and region where it operates.

Toyota will support independent social contribution activities that its employees undertake asmembers of the community.

Toyota will disclose the achievements of its social contribution activities, aiming to promote thedevelopment and improvement of societies.

Environment Education

Traffic Safety Society and Cultures

※ Toyota spent about ¥13.9 billion for social contribution activities

in FY2010.http://www.toyota-global.com/sustainability/corporate_citizenship/

For details, please refer to the following webpage.


We actively work on activities

that benefit society including

programs on environmental

education, grant programs for

environmental activities, and

efforts at biodiversity

conservation and tree planting

toward sustainabledevelopment of the world and

society.

We positively advance

efforts to foster future

human resources by

working with various

partners and by making

the best use of available

resources.

We work to increase safety

awareness of everyone

using streets and roadways,

including drivers,

passengers and pedestrians.

We work toward creating a

harmonious, self-sustaining

society where a diverse range

of people respect one anotherand work together, by

assisting with local social

contribution projects,

supporting welfare services,

encouraging self-reliance and

other initiatives.

※Fourth theme“Society and Cultures”is added in Japan.

Environment

Education Traffic Safety

As a good corporate citizen,

respect the culture and customs

of every nation and contribute to

social development



Global Society/Local Communities (Social Contribution)Approaches to Stakeholders


Expanding Tools for Experiencing ReflectiveMaterials to Government Organizations Like the

Cabinet Office and the Effectiveness UnderstoodIn May 2010, Toyota produced tools called the“Kurapika Box,”which demonstrate how reflective materials can improveespecially the elderly pedestrian safety at nighttime. In addition topermanent installations in directly-managed driving schools, it isbeing used in combination with“making original reflector keyring”at events everywhere, and the number of boxes has been steadilyincreasing. Also, in addition to the Cabinet Office, the scope of itsuse has been expanded through such things as donating it tocommunities with Toyota plants, suchas in Aichi and Shizuoka prefectures.Further, boxes are being lent out toToyota dealers and related facilities,and in 2010 there were 14“KurapikaBoxes”in use, and roughly 30,000people through the year experiencedthe effects of reflective materials.

Traffic Safety

Society and Cultures

Environment Education

Looking into darkness of“Kurapika Box”andexperiencing reflectors

Fifteen Toyota Group affiliate companies have been conducting support activities forreconstruction in the disaster areas so that the victims of the Great East Japan Earth-quake and Tsunami can return to their normal lives as soon as possible. From June toJuly, with the Wednesday‒Sunday five-day period as one shift, volunteer employees

were dispatched in groups of about 15 a total of five times. The areas of activity werein Rikuzentakata and Ofunato cities in Iwate Prefecture where the damage was tremen-dous. Support activities were centered around removing debris, cleaning up garbage,clearing mud from under floors and from street gutters, and were adjusted to meet thelocal needs such as carrying out furniture. As employee interest is high and manywanted to participate, Toyota plans to continue this into the fall.

Toyota Group Disaster Area Recovery Support Volunteers

Toyota Family Literacy Program Marks 20thAnniversary Contributing to Growth of the U.S. SocietyNorth America: Toyota Motor North America, Inc.（TMA）

The Toyota Family Literacy Program (TFLP), jointly established by Toyota andthe National Center for Family Literacy (NCFL), marked its 20th anniversary inMarch 2011.

The partnership began in 1991 with an approach that was focused onimproving the education of preschool children. It continued to evolve andidentify emerging needs in populations such as Hispanic and immigrant familiesand impacted 1 million families across the country. Today, 256 locations across50 cities and 30 states have benefited from the $36 million investment.

On April 4, 2011, 1,500 people attended the 20th annual conference atNCFL headquarters in Louisville, Kentucky, introducing and honoring teachers

who made outstanding contributions and graduates who got a strong start inlife by participating in the program. Toyota Honorary Chairman Dr. ShoichiroToyoda attending the conference said,“TheNational Center for Family Literacy exempli-fies the American spirit of lending a helpinghand to people in need. We look forwardto working hand in hand with everyone atNCFL to improve the program further.”

Removing debris from beneaththe floors of a house damagedby the disaster

Toyota promotes various programsthat contribute to the betterment ofU.S. society as a good corporate citizen.

2nd Phase of the Forest HR DevelopmentProject‘Toyomori’Started

The“Toyomori Institute of Sustainable Living”is a human develop-ment project done in cooperation with Toyota, Toyota City, andthe Support Center for Sustainable Regional Design (NPO) forrecovering relation between people and rural villages.

In the institute, 30 individuals recruited from general publicparticipated in learning how the forest ties in the region throughclassroom study and practice. For the two years from 2009-2010,ten projects have been carried out.

Twenty six applicants wereaccepted from April 2011, and thesecond term has begun.

Learning the regionallifestyle at field work

.

sofitizen.

Learning the regional

. ,

Looking into darkness of

Toyota Community Concerts Held Nationwide

Since 1981, Toyota and its domestic auto dealers have partneredwith the Federation of Japan Amateur Orchestra Corp. (JAO)throughout Japan to jointly support the Toyota CommunityConcerts ‒ classical music concerts held with the aim of contribut-ing to the promotion of localculture through music. InFY2010, a total of 41 perfor-mances were held in 22 prefec-tures.

As FY2011 marks the 30thanniversary of Toyota Commu-nity Concerts, they will bringmusic and enjoyment to evenmore people than ever.

erts held with the aim of contributl

Toyota Community Concertsin Sapporo (October 2010)Der Ring des Nibelungen(The Ring of the Nibelungen)by Hokkaido SymphonyOrchestra

ColumnColumnolumn




Toyota’s basic management principle is to benefit society through its business activities, while realizing stable

growth founded on a long-term perspective. The three key components of Toyota’s financial strategy are“growth,”“efficiency”and“ stability.”From the viewpoint of growth, Toyota plans to implement forward-lookinginvestments to respond to structural shifts in demand and ensure long-term sustainable growth. Regardingefficiency, Toyota steps up its cost reduction efforts and, while streamlining, realizes the same level of results asusual in capital expenditures. In view of anticipated medium- to long-term growth in automotive markets world-wide, Toyota believes that maintaining adequate liquidity is essential in terms of stability, and we will continueto pursue further capital efficiency and improved cash flows.

Regional

Strategy

Product

Strategy

Business

Strategy


Relations with Shareholders

・Provide products and services matched to customer needs

and wants in each community and nation

Regional Strategy

・Product appeal・Models for minimizing environmental impact・Position Lexus as a truly global premium brand・Geographical Composition of Sales; 2015 Sales Plan

→ Industrialized nations: Emerging markets=50:50

Product Strategy

・Japan: Manufacture hybrid vehicles and other technologicallyadvanced, high-value-added products

・North America and Europe: Maximize productivity at existing plants・Emerging markets: Expand production capacity, analyzing

demand prospects in each region carefully to determine thegeographical positioning, the timing and the scale of investmentin expanded capacity

Supply Strategy

・Develop the“Smart Community Service”that integrally linksvehicles, homes and information networks (contribution to thebuilding of next generation cities)

New Business Strategy

●Achieve consolidated operating returnon sales of 5% (approx. 1 trillion yen)

●Restore Toyota (unconsolidated)to profitability

Achieve bothgoals as soon aspossible

Solid Profitability

Improve

competitiveness

in product

and cost

Quality Cost

HR Developー

ment

Sustainable Growth

Stable Base of Business

Ensure sustainable growth

by fostering the virtuous circle,

Always better cars → Enriching lives of

communities → Stable base of business

［Key Points］

Ensuring sustainable profitability:

Ensure sustainable profitability and striveto enhance corporate value.

Compliance:

Honor the language and spirit of the law.

“Always better cars”and“Enriching lives of communities”:

Foster the visionary-management cycle.

Enhancing Corporate Valuethrough Long-Term, Stable GrowthGrowth：Sustainable growth through continuous

forward-looking investments

Efficiency：Improving profitability and capital efficiency

Stability：Maintaining a solid financial base

Key Components of Financial Strategy

Benefiting Shareholders isOne of Our Top Management PrioritiesToyota strives to continue paying dividends while giving

due consideration to factors such as the business results

in each term, investment plans, and cash reserves.

Dividends and Share Acquisitions


http://slidepdf.com/reader/full/toyota-sustainability-report11-se 19/20Sustainability Report 2011 19

Sustainability Report 2011 (Digest Version)

■ We respect our employees and believe that the success of our business is led by each individual’screativity and good teamwork. We stimulate personal growth for our employees. (Guiding Principles 5)■ We support equal employment opportunities, diversity and inclusion for our employees and do notdiscriminate against them.(Guiding Principles 5)■ We strive to provide fair working conditions and to maintain a safe and healthy working environmentfor all our employees.(Guiding Principles 5)

■ We respect and honor the human rights of people involved in our business and, in particular, do notuse or tolerate any form of forced or child labor.(Guiding Principles 5)

■ Through communication and dialogue with our employees, we build and share the value “MutualTrust and Mutual Responsibility”and work together for the success of our employees and the company.

We recognize our employees' right to freely associate, or not to associate, complying with the laws ofthe countries in which we operate.(Guiding Principles 5)■ Management of each company takes leadership in fostering a corporate culture, and implementingpolicies, that promote ethical behavior.(Guiding Principles 1 and 5)

Employees

■ Based on our philosophy of “Customer First,”we develop and provide innovative, safe andoutstanding high quality products and services that meet a wide variety of customers’demands toenrich the lives of people around the world.(Guiding Principles 3 and 4)■ We will endeavor to protect the personal information of customers and everyone else we areengaged in business with, in accordance with the letter and spirit of each country's privacy laws.(Guiding Principles 1)

Customers

We, Toyota Motor Corporation and our subsidiaries, take initiative to contribute to harmonious andsustainable development of society and the earth through all business activities that we carry out ineach country and region, based on our Guiding Principles. We comply with local, national andinternational laws and regulations as well as the spirit thereof and we conduct our business operationswith honesty and integrity. In order to contribute to sustainable development, we believe that

management interacting with its stakeholders as described below is of considerable importance, andwe will endeavor to build and maintain sound relationships with our stakeholders through open and faircommunication. We expect our business partners to support this initiative and act in accordance with it.

Preamble

■ We respect our business partners such as suppliers and dealers and work with them throughlong-term relationships to realize mutual growth based on mutual trust. (Guiding Principles 7)■ Whenever we seek a new business partner, we are open to any and all candidates, regardless ofnationality or size, and evaluate them based on their overall strengths. (Guiding Principles 7)■ We maintain fair and f ree competition in accordance with the le tter and spirit of each country’s

competition laws. (Guiding Principles 1 and 7)

Business Partners

■ We strive to enhance corporate value while achieving a stable and long-term growth for the benefitof our shareholders. (Guiding Principles 6)

■ We provide our shareholders and investors with timely and fair disclosure on our operating resultsand financial condition. (Guiding Principles 1 and 6)

Shareholders

Environment

■ We aim for growth that is in harmony with the environment by seeking to minimize theenvironmental impact of our business operations, such as by working to reduce the effect of ourvehicles and operations on climate change and biodiversity. We strive to develop, establish andpromote technologies enabling the environment and economy to coexist harmoniously, and to buildclose and cooperative relationships with a wide spectrum of individuals and organizations involved inenvironmental preservation. (Guiding Principles 3)Community

■ We implement our philosophy of“respect for people”by honoring the culture, customs, history andlaws of each country. (Guiding Principles 2)

■ We constantly search for safer, cleaner and superior technology that satisfies the evolving needs ofsociety for sustainable mobility. (Guiding Principles 3 and 4)

■ We do not tolerate bribery of or by any business partner, government agency or public authority andmaintain honest and fair relationships with government agencies and public authorities. (GuidingPrinciples 1)Social contribution

■ Wherever we do business, We actively promote and engage, both individually and with partners, insocial contribution activities that help strengthen communities and contribute to the enrichment ofsociety.(Guiding Principles 2)


Editorial Policy

In the midst of reflection on falling into the red and a series of quality problems, Toyota came to realize the necessity of havinga dream or goal that all people who work for Toyota could have in common. And this led the articulation of the Toyota GlobalVision announced on March 9th, 2011. The Sustainability Report 2011 focused to show the thinking behind the Vision center-ing“Global Vision for Those We Serve”that explains what kind of company Toyota wants to be ̶ what kind of companyToyota should be to our stakeholders

By presenting the report in different delivery formats ̶ this Digest version and the Full versions (in PDF, HTML) ̶ Toyotastrives to make this report more convenient for readers to access and easier to understand.

Regarding the detailed version, in addition to an outline on Toyota’s efforts relating to the Great East Japan Earthquake,pages have also been introduced to show the third-party opinion, data section, and a chart arranged to show the relationshipbetween ISO26000 core subjects and this report as new endeavors.

The sustainability part on the Toyota’s Web site containing this report has been made more substantial and easier to viewfrom August. Toyota also plans to release a separate Environmental Report in addition to the Sustainability Report that coversenvironmental, social, and economic aspects. Please see the Environmental Report for more detailed information on ourenvironmental initiatives.

Cover design: The tree on the cover represents the Toyota Global Vision.

The tree metaphor is employed to show what kind of company Toyota wants to be; the Roots (Toyota values) enable Toyota to generate the Fruits

(Always better cars, Enriching lives of communities), and the Trunk (Stable base of business) is reinforced, and that the other Fruits will be generated

by fostering this virtuous cycle.

CSR POLICY: Contribution towards Sustainable Development

Toyota’s Main information Disclosure ToolIn addition to sustainability reports, Toyota uses the following tools to disclose information concerning its activities, data, andapproaches. Please make use of these information sources as well.

http://www.toyota-global.com/sustainability/report/er/

Environmental Report 2011http://www.toyota-global.com/company/profile/overview/in_the_world/

Toyota in the World 2011http://www.toyota-global.com/investors/ir_library/annual/

Annual Report 2011

Links to Online InformationAt the end of each item in this printed report is a URL address for more detailed information on the given topic.

http://www.toyota-global.com/sustainability/

Full Version (HTML)


Full Version (PDF)


Digest Version

Scope of ReportInclulded Toyota Motor Corporation’s own initiatives and examples of those of its overseasconsolidated affiliates, and so on.

Period CoveredThe period covered in the report’s data is from April 2010 to March 2011.For major ongoing initiatives, the most recent status update in 2011 has been included.



Universal design fonts are used to effectively convey information to more people. The fonts are composed of characters with ample space toensure high visibility and readability, and their simple shapes prevent mistakes in reading and have appealing design aesthetics. Morisawarepeatedly tested the fonts under difficult visual conditions and designed them for easy recognition by people of all ages, regardless ofeyesight or environment.

Published by Corporate Planning Div., Toyota Motor Corporation

WEB version URL http://www.toyota-global.com/sustainability/report/sr/Published: September 2011

Next scheduled report: Summer 2012

Toyota Loops is a special-purpose subsidiary of Toyota Motor Company, founded to provide employment for seriously disabled persons sothere will be more opportunities for the disabled to find employment. Toyota Loops handles in-house printing, intra-company mail receptionand delivery, and other such operations that were previously done inside the company. Toyota Loops handles the printing and binding of thisreport.

Company name: Toyota Loops CorporationHead Office: 15-1 Toyota-cho, Toyota-shi, Aichi Pref. 471-8571URL: http://www.toyota-loops.co.jp

Toyota is a supporter of Education for Sustainable Development (ESD).ESD activities are aimed at creating a sustainable society.

Toyota has participated in activities ofWBCSD (World Business Council for SustainableDevelopment) as a member.

[Editing, Plate Making] This report is compiled using the Computer to Plate (CTP) system, resulting in the total elimination of film, anintermediate material, during the plate making process.

[Paper] Printed on paper made with wood from forest thinning,“Morino Chonai-Kai”(Forest Neighborhood Association) ̶ Supporting soundforest management.

[Ink] The ink used contains less than 1% VOC (volatile organic compound) as petroleum-based solvents are replaced by vegetable oil-basedsolvents, principally soybean oil.

In 2011 plans call for separate reports to be issued in a total 15 countries and regions (including Japan) in which Toyota overseas affiliatesand other companies operate. The information disclosed globally by these reports will cover about 85% of Toyota vehicles sold worldwide.

Web Sites for Overseas Affiliates’Reports can also be accessed from Toyota’s global Web site: http://www.toyota-global.com/sustainability/report/overseas/

Web Sites for Overseas Affiliates’Reports

※Where no direct URL to an affil iate’s report is available, the URL to the CSR activities or environmental initiatives page of the corresponding affiliate’s Web site has been provided.

（As of July 2011）

Region/Country

Argentina

Australia

Brazil

China

Europe

India

Malaysia

New Zealand

The Philippines

North America

Canada

South Africa

Taiwan

Thailand

Vietnam

http://www.toyotasustentable.com.ar/

http://www.toyota.com.au/toyota/sustainability

http://www.toyota.com.br/images/sustentabilidade_toyota_2010_tcm305.pdf

http://toyota.com.cn/corporate/inchina/report.html

http://www.toyota.eu/sustainability

http://www.toyotabharat.com/inen/environment/index.aspx

http://www.umw.com.my/socialresp/GRI/Pages/default.aspx

http://content.toyota.co.nz/toyota/about_us/sustainability/2009-SDR_Toyota_New_Zealand.pdf

http://www.toyota.com.ph/ecosafety/index2.asp

http://www.toyota.com/about/environmentreport2010/

http://mediap04.toyota.ca/media/pdf/naer2010_e.pdf

http://www.toyota.co.za/PictureData/EnvironmentPages/sustainabilityReport/Final%202010%20sus%20report.pdf

http://www.kuozui.com.tw/english/index_e.htm

http://www.toyota.co.th/en/toyota_csr/sustainable_plant.html

http://www.toyotavn.com.vn/profiles/index/126

North America/Canada

Taiwan

Australia Europe

Thailand

IndiaArgentina

South AfricaThe PhilippinesNew Zealand

Brazil China Malaysia※Issued in the UMWHolding Report

Vietnam

URL

TOYOTA Sustainability Report11 Se

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