Toyota 2006 Annual Report Download - page 49

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47
To monitor the management, Toyota has adopted an auditor system that is
based on the Japanese Corporation Act. In order to increase transparency of corporate
activities, four of Toyota’s seven corporate auditors are outside corporate auditors.
Corporate auditors support the Company’s corporate governance efforts by undertaking
audits in accordance with the audit policies and plans determined by the Board of
Corporate Auditors. (As of June 23, 2006)
Systems for Ensuring Appropriate Management
As a system to ensure appropriate management, Toyota has convened meetings of its
International Advisory Board (IAB) annually since 1996. The IAB consists of approximately
10 distinguished advisors from overseas with backgrounds in a wide range of fields,
including politics, economics, the environment, and business. Through the IAB, we
receive advice on a diversity of business issues from a global perspective. In addition,
Toyota has a wide variety of conferences and committees for deliberations and the moni-
toring of management and corporate activities that reflect the views of a range of stake-
holders, including the Labor-Management Council, the Joint Labor-Management Round
Table Conference, the Corporate Philanthropy Committee, the Stock Option Committee,
and the Toyota Environment Committee.
International Advisory
Board
Labor-Management Council
Joint Labor-Management
Round Table Conference
Corporate Philanthropy
Committee
Toyota Environment
Committee
Corporate Ethics
Committee
Stock Option Committee
Board of Directors
Financial statement audits
based on U.S. & Japan
auditing standards
Managing Officers
Disclosure
Committee
NY / London stock listings
The U.S. Sarbanes-
Oxley Act
(internal control systems)
readiness project team
Monitoring
Monitoring
Appointment
Toyota’s Corporate Governance
Emphasizing Frontline Operations + Multidirectional Monitoring
Board of Corporate
Auditors
Majority are
outside corporate
auditors
Shareholders
Senior Managing Directors
(As of June 23, 2006)