Toyota 2008 Annual Report Download - page 57

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•Annual Report 2008 • TOYOTA
Directors at the executive vice president level and above as
well as representatives of Corporate Auditors, to deliberate
important issues and measures relating to corporate ethics,
compliance and risk management.
Toyota has also created a number of facilities for
employees to make inquiries concerning compliance matters,
including the Compliance Hotline, which enables them to
consult with an outside attorney, and takes measures to
ensure that Toyota is aware of significant information
concerning legal compliance as quickly as possible.
Toyota will implement the tenets of ethical business
practice by further promoting the “Guiding Principles
at Toyota” and the “Toyota Code of Conduct” and by
educating and training employees at all levels and in all
areas of operations.
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.
For internal audit, the management and a specialized
independent organization evaluate the effectiveness of
internal controls over financial reporting in accordance with
Article 404 of the U.S. Sarbanes–Oxley Act, applicable to
Toyota from the year ended March 31, 2007 to establish
a solid system. In order to enhance the reliability of the
financial reporting of Toyota, the three auditing functions,
audit by Corporate Auditors, internal audit, and accounting
audit by Independent External Auditors, aid in conducting
an effective and efficient audit through meetings held
periodically and as necessary to share information and
come to understandings through discussion on audit plans
and results.
» Corporate Social Responsibility
To maintain stable, long-term growth in international
society, companies have to earn the respect and trust of
society and individuals. Rather than simply contributing
to economic development through operational activities,
growing in harmony with society is a must for good
corporate citizens. Mindful of the foregoing, Toyota has
a range of committees that are tasked with monitoring
corporate activities and management in relation to social
responsibilities, including the CSR Committee and the
Toyota Environment Committee.
» Toyota’s Basic Approach to Internal Control
Based on the “Guiding Principles at Toyota” and the
“Toyota Code of Conduct,” we, together with our
* Review issues relating to
corporate ethics, legal compliance,
risk management, nurturing society
and environmental management
Shareholders
Board of Directors
Managing Officers
Disclosure
Committee
Internal Auditing
Department
(internal control systems)
Board of Corporate
Auditors
Majority are
outside corporate
auditors
External Accounting
Auditor
Audit for consolidated
financial statements
and internal control
over financial reporting
International Advisory
Board
Labor-Management Council
Joint Labor-Management
Round Table Conference
Toyota Environment
Committee
CSR Committee*
Stock Option Committee
Appointment
Senior Managing Directors
Toyota’s Corporate Governance
Emphasizing Frontline Operations + Multidirectional Monitoring
(As of June 24, 2008)
Performance Messages from the Management &
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