Relationship with the Employee - Toyota Industries

1 Toyota Industries CORPORATION Social & Environmental Report 200447A forward-looking approach to safetyand health management with the goalof continually improving the safetyand comfort of the workplaceSafety and health ManagementThe safety and health of employees is given utmostpriority and is viewed as having the power to affect thevery foundations of the company. Toyota Industriespromotes a fundamental philosophy of respect forhumanity, which serves as the basis for its efforts tocreate a workplace environment that enables all of its employees to work in a secure, positive, and healthy Safety and HealthToyota Industries has adopted a policy of striving to improveits safety and health management standards through thepromotion of an occupational safety and health managementsystem, and closer collaboration with its subsidiaries andaffiliates. The company s Safety and health Committee,composed of management-level employees, is responsiblefor implementing company-wide activities aimed atpreventing occupational and health activities are comprehensivelyimplemented on a daily basis within the company, focusingon the key aspects of the people, materials, andmanagement involved.

2 The company s occupationalaccident rate has remained consistently below the industryaverage in this area. Toyota Industries is also involved inongoing efforts to improve occupational safety and healthmanagement at its subsidiaries and ManagementSelf-Evaluation System for Division Level: Evaluation ItemsRegular CheckupsManagement SystemSafety ManagementHealth Management Occurrence of accident/disease Working environment Progress of policy implementation Regulations and standards Safety and health organization Safety and health Committee Emergency response system Self-evaluation system for section level Self-evaluation system for group level Company-wide meetingon safety for all employees Inherent safety by design Equipment registration Ten other categories Improvement of working environments involving substances of concern Improvement of general working environments Equipment registration Management of special medical checkups and work Chemical substance management Five other categoriesPriority Activities for FY 2003 Manufacturing DepartmentsDivisionsSectionsSectionsSect ionsGroupsGroupsGroupsPriority Activities for FY 2002 Self-evaluation system for division level

3 Occupational Safety and health Management System Occupational Safety and health Management SystemToyota Industries has taken a multilayered approach toidentifying the various aspects of safety and healthmanagement within the company s workplaces, sections, and divisions, with an emphasis on themanufacturing activities of the company. Regularassessments of the company s activities are carried out inorder to improve its existing occupational safety andhealth management FY 2003, the company conducted an assessment ofits safety and health management systems at the divisionlevel, based on its ongoing efforts at the workplace andsection level. Approximately 30 assessment categorieswere used to identify whether the company s safety andhealth management systems were performing the assessment results showed that, on average, goals were being met, they also revealed thatthere were several areas in need of improvement, such as the existing working environment at the time ofthe Industries is committed to further solidifying itsmultilayered occupational safety and health managementsystem and implementing further enhancements, with thegoal of fully establishing the safety and healthmanagement system for its office work by FY 2005.

4 On-the-Job Accidents(FY) manufacturersFrequency rate1,000,000total working hoursaccidents resulting in lost workdaysTransport-related equipment manufacturersToyota IndustriesRelationship with the Employee Efforts to Promote mental health of Employees48 Toyota Industries CORPORATION Social & Environmental Report 2004 Employee HealthEmployee health is a high priority at Toyota Industries , withgreat emphasis placed on better equipping its employeesand workplaces to cope with aging and stress and theassociated risks. Efforts to promote Employee health includeprograms aimed at preventing lifestyle-related illnesses andimproving the mental health of employees. Preventing Lifestyle-Related IllnessToyota Industries organizes and sponsors a broad range of programs aimed at preventing lifestyle-related illnessamong employees. Employees are encouraged toparticipate in goal-orientedfitness programs, outdoorhiking events, and seminarson lower back pain prevention and other healthissues.

5 These company-sponsored programs giveemployees the opportunity toimprove their health throughlifestyle FY 2003, ToyotaIndustries established anEmployee health PromotionCommittee in collaborationwith its health insurancesociety and the labor union. The company also establisheda major new campaign to promote Employee health . Promoting mental HealthToyota Industries approach to mental health issues isfocused on early detection and care . In accordance withstrategies promoted by Japan s Ministry of health , Laborand Welfare, the company uses a multi-pronged approachthat combines self- care with support from line supervisors,industrial health professionals, and professionals outsidethe detection and careDescription Created stress analysis tool, now available overcorporate intranet Established counseling desk for health issues Publishes health news bulletin Conducts health education for new employees andspecific age groups Conducts metal health education for line supervisors Conducts training for newly promoted managers and supervisors Provides counseling based on results of routinephysicals and special overtime checkupsParticipantsAgendaMichigan Automotive Compressor, Inc.

6 ; Toyota IndustrialEquipment Mfg., Inc.; TD Deutsche Klimakompressor GmbH; Toyota Industrial Equipment, ; Kirloskar Toyoda TextileMachinery, Ltd.; ACTIS Manufacturing, Ltd. LLC Toyota Industries ' environment, safety, and health activities On-site observations of domestic plants Case studies from Toyota Motor Corporation Environmental, Safety, and health Workshop Safety and health WorkshopsToyota Industries conducts workshops aimed atpreventing occupational accidents and improving thesafety and health management of its manufacturing-related subsidiaries and affiliates in Japan. The company sworkshops focused on the subject of regulatorycompliance in FY 2002 and on the establishment of safetyand health management systems in FY 2003. Theseworkshops were designed to ease the way for safety andhealth assessments to be carried out in FY 2004. Environmental, Safety, and health Workshop forOverseas Manufacturing-Related SubsidiariesDuring FY 2003, Toyota Industries held its first workshopfor personnel from the health , safety, and environmentaldepartments of its overseas manufacturing-relatedsubsidiaries.

7 The event was designed to provide theparticipants with a better understanding of the company ssafety, health , andenvironmental activities andto promote further dialoguebetween those workshops will bealternately hosted by thecompany s overseasmanufacturing-relatedsubsidiarie s, with the aim ofstrengthening group-wide involvement in environment,safety, and health -related issues. SpotlightHekinan Plant Commended for Educational Video on Safety and HealthDuring FY 2003, the Hekinan Plant received an award of excellence from the JapanIndustrial Safety and health Association as part of a nationwide competition. The plantwas commended for its safety and health -related educational video, which was created bythe plant s manufacturing department to help educate newly assigned employees. Thevideo was praised for its skilful presentation of past occupational accidents, occupationalrisks, and ethical issues in the Industrial Safety andHealth Association AwardCeremonyRelationship with the EmployeeWorkshop ParticipantsTOYOTA Industries CORPORATION Social & Environmental Report 200449 Establishing a healthy and livableworkplace based on an atmosphere ofmutual trust Creating a Better WorkplaceToyota Industries basic philosophy is to nurture theinventiveness and other abilities of its employees and to seek to create a climate of cooperation, so that boththe employees and the company can realize their full , Toyota Industries has chosen theprinciples of mutual trust and respect for diversity as itsguide for corporate and Employee conduct.

8 Basic Perspective Maintaining an Atmosphere of Mutual TrustToyota Industries seeks to maintain an atmosphere ofmutual trust with its employees by ensuring jobs and makinga sustained effort to improve labor conditions, while at thesame time establishing a healthy and livable workplaceenvironment. In return, the company expects that itsemployees will carry out their duties in a forthright manner inorder to maintain their employer s for DiversityA respect for individual diversity is essential to a healthy andlivable workplace. Toyota Industries and its employeespledge to respect the privacy of individuals and refrain fromdiscrimination based on race, religion, gender, nationality,disability, or any other factor not directly related to anindividual s work performance. Toyota Industries will nottolerate sexual harassment in the workplace, due to itsillegal nature and its destructive effect on individuals, theworkplace environment, and an Open Workplace EnvironmentToyota Industries encourages its employees to comeforward during workplace meetings and present anygrievances they might have, so that the company can morereadily respond.

9 Furthermore, the company sponsorsrecreational activities to promote better communication andunity for a more open workplace consultation services have been created toenable the company to better address Employee complaintsand concerns. These consultation services address issuesranging from corporate ethics and spiritual and healthmatters to sexual harassment and the Equal EmploymentOpportunity professional employeesable to realize their full potentialHR Development The company emphasizes the following goals in its HRactivities:1. To focus on each individual2. To place emphasis on abilities and achievements3. To create an open framework for its personnel system4. To create a system where employees can graspopportunities, take on challenges, and compete withina positive environment5. To promote active thinking by employees andorganizationsToyota Industries seeks to develop employees that areable to grasp the company s ideals and realize their fullpotential in a variety of Development Management CycleToyota Industries employs an HR development managementcycle to guide its activities.

10 The cycle is divided into threestages consisting of goal setting, regular assessment and guidance, and performance assessments throughemployee interviews. At the beginning of each cycle, the company establishesgoals and tasks for each individual. The goal-setting processis based on factors such as directives from the companypresident, policies and strategies at the division anddepartment level, and issues at the working group , the company conducts regular assessments andprovides guidance through daily communication betweenemployees and their superiors. In addition to focusing onperformance, employees discuss their work processes andthe progress of their work. At the end of every cycle, an Employee and his or hersuperior will sit down to review the work accomplishedduring the previous six months, using a challenge sheet tomeasure the level of goal achievement by the the interview, the Employee s work processes,performance, and individual weaknesses and strengths arereviewed.