Respect of Human Rights

Human Rights Policy

Toyota Boshoku Group Human Rights Policy was formulated with the approval of the Board of Directors in November 2021.
In accordance with the Universal Declaration of Human Rights and other international norms, and with the United Nations Guiding Principles on Business and Human Rights serving as an implementation framework, we will promote activities to respect human rights.
We expect that this policy not only applies to officers and company members, but also expect that all stakeholders, including suppliers involved to the Toyota Boshoku group's products and services, to understand and uphold this policy.
We will emphasize the following matters as priority themes in human rights compliance.
●Diversity ● Discrimination and Harassment ● Forced Labor and Child Labor ● Occupational Health and Safety

Using this as a guideline, we will promote efforts to respect human rights and report on the progress and results.

Toyota Boshoku Group Human Rights Policy

Basic stance

Respect for humanity

The Toyota Boshoku group strives to ensure that the individuality and humanity of our members is respected in accordance with our corporate philosophy to be shared by each member and the TB Way, which express our values and behavioral principles. We prohibit discrimination, defamation, sexual harassment, power harassment, maternity harassment, and any other form of harassment or other such improper conduct based on race, gender, sexual orientation, age, nationality, religion, disability, sickness or injury. At the same time, we strictly respect the laws and social regulations of every country and region we operate in, regarding working hours, paid holidays, wages, and other basic conditions, as well as forbid the use of child or forced labor.

Promotion structure

The Human Rights Working Group is conducting activities, with the CSO (Chief Strategy Officer) in charge of Corporate Planning Segment as the leader. The Corporate Planning Division serves as the secretariat, and members are elected from the HR, purchasing, general administration, legal, and safety-related divisions.
The Human Rights Working Group organizes the approach to human rights, identifies human rights risks, and discusses initiatives, etc. Reports on the Group’s activity plans, progress, and results are made to the CSV Promotion Meeting, and reported to the Board of Directors, which discusses and makes confirmations, chaired by the Chairman.
In addition, based on the Toyota Boshoku Group Human Rights Policy, we have established a system, together with our suppliers, to promote initiatives for respecting human rights throughout the supply chain, in collaboration with group companies both in and outside Japan.

Figure:Promotion structure

Discussions on human rights

Date held Meeting body Discussion content
April 25, 2023 CSV Promotion Meeting
  • Results of human rights assessment of Toyota Boshoku
  • Results of self-assessment (SAQ*) by domestic suppliers based on the Toyota Boshoku Group Supplier Sustainability Guidelines
  • Activity plans related to human rights in FY2024 (initiation of human rights due diligence for group companies in Japan and in Europe)
October 28, 2023 CSV Promotion Meeting
  • Implementation status of material risk mitigation measures and monitoring results for Toyota Boshoku
  • Progress of human rights assessments at group companies in Japan and Europe
  • SAQ progress at domestic suppliers
December 21, 2023
December 28, 2023
Corporate Planning Meeting
Board of Directors
  • Results of human rights assessments at group companies in Japan and Europe
  • SAQ results at domestic suppliers
  • Activity plans related to human rights in FY2025 (initiation of human rights due diligence in Asia)
April 25, 2024 NEW CSV Promotion Meeting
  • Implementation status of mitigation measures based on results of human rights assessments at group companies in Japan and Europe
  • Review of activities in FY2024 and response measures
  • Activity plans related to human rights in FY2025 (initiation of human rights due diligence in Asia)

Human rights due diligence

The Toyota Boshoku Group aims to deepen each and every company members including executive officer’s understanding of human rights, and to build on the Toyota Boshoku Group Human Rights Policy to contribute to the realization of a free and fair society that respects human rights. As well as this, our approach to implementation of due diligence is clearly outlined in the Toyota Boshoku Group Human Rights Policy.
We are committed to respecting the human rights of all stakeholders (all company members, suppliers, business partners, people in local communities, customers, etc.) related to the products and services of the Toyota Boshoku group through ongoing education and training on human rights, as well as dialogue and consultation with each stakeholder.
The Toyota Boshoku Group is continuing to carry out these initiatives aimed at building a sustainable value chain, in order to fulfill our duties as an organization with responsibility for guaranteeing human rights, as laid out by the UN Guiding Principles on Business and Human Rights.

Process of human rights due diligence

Figure:Process of human rights due diligence

Human rights due diligence implementation status

The Toyota Boshoku group has been conducting human rights due diligence based on the Toyota Boshoku Group Human Rights Policy since 2022 in an effort to reduce human rights risks. Each year, we expand the areas where due diligence is conducted and the number of companies subject to due diligence, aiming to foster a culture of respect for human rights and non-infringement of human rights throughout the group.

Figure:Human rights due diligence implementation status
  • In light of international norms and guidelines on human rights, we have identified the following human rights issues that are relevant to the Toyota Boshoku group and its value chain.
Human rights issues
Respect for human rights (compliance with international norms)
Non-complicity in human rights violations, compliance, social security and fair competition
Prohibition of discrimination and equality before the law
Access to legal remedies
Stringent procurement practices (supplier management)
Harassment
Women's rights
Child labor (respect for the right to education)
Forced labor
Occupational safety and health
Working hours (right to take rest and days off)
Appropriate working environment (including access to water)
Wages (right to enjoy an adequate standard of living)
Freedom of association and the right to collective bargaining
Freedom of thought, conscience and religion
(Intellectual) property rights
Rights of indigenous peoples and local residents
Consumer interests (consumer safety and right to know)
Consumer privacy management

Human rights due diligence track record and progress to date

Fiscal year The Toyota Boshoku group's initiatives
2022
  • Launch of the Human Rights Working Group, which conducts discussions on our desired status through the selection of important topics in relation to respect for human rights at the Toyota Boshoku group and initiatives (the Corporate Planning Division serves as the secretariat, and members are selected from divisions related to human resources, purchasing, general affairs, legal affairs, and safety)
  • Formulation of the Toyota Boshoku Group Human Rights Policy
  • Engagement (union members*)
2023
  • Identification of human rights issues related to the Toyota Boshoku group and its value chain
  • Initiation of human rights due diligence at Toyota Boshoku and the implementation of human rights assessments
  • Consideration of measures to address the results of the human rights assessment at Toyota Boshoku and clarification of mitigation measures
  • Formulation of the Toyota Boshoku Group Supplier Sustainability Guidelines
  • Implementation of SAQ for domestic suppliers and certain domestic group companies
  • Engagement (union members)
2024 NEW
  • Initiation of human rights due diligence at domestic group companies and the implementation of human rights assessments
  • Initiation of human rights due diligence at the European Regional Management & Collaboration Hub and the implementation of human rights assessments
  • Company-specific consideration of (draft) measures to address the results of human rights assessments at domestic group companies and the European Regional Management & Collaboration Hub, and holding of feedback meetings
  • Formulation of the Toyota Boshoku group Europe Region Supplier Sustainability Guidelines
  • Implementation of second SAQ for domestic suppliers
  • Initiation of SAQ for Europe region suppliers
  • Engagement (union members)

  • Covering all company members except managers

Human Rights Assessment Post-Implementation Process

Based on the results of a human rights assessment (identification and evaluation of negative impacts), we will set out a plan to prevent and mitigate risks, and establish a PDCA (Plan, Do, Check, Action) cycle to build a fixed system that works to reduce human rights risks. We will also further expand the scope of our human rights due diligence, and continue to promote initiatives aimed at addressing or mitigating any negative impacts relating to human rights across the entire value chain.

Figure:Human Rights Assessment Post-Implementation Process

Preventive and mitigation measures

The assessment showed that the identified human rights risks (material risks) had long been recognized as issues for Toyota Boshoku and measures had been implemented.
We will both recognize these risks as human rights risks (material risks) and promote new measures to prevent and mitigate them, while strengthening our existing initiatives.

Material risks Specific initiatives
Harassment Aiming to create an open workplace culture, we engage in the following five initiatives to strengthen harassment prevention.
  • ⑴Internal training: Harassment prevention training for all company members (including officers and managers), lectures by experts on creating an open workplace, and training to acquire a sense of gratitude and considerate communication
  • ⑵Communication of the CEO and Officer’s message
  • ⑶Recognition of the views of company members: People skills have been added to the job evaluation criteria based on a system in which persons in various positions, including supervisors, coworkers, and subordinates, give evaluations from multiple perspectives (360-degree evaluation)
  • ⑷Building relationships where people can “ask and tell”: Financial assistance for events, etc. to promote collaboration and communication between divisions, and to increase motivation. Holding company-wide events
  • ⑸Creating a workplace where greetings and expressions of gratitude come naturally: Labor and management are working together on Greeting activity, Thanks activity, and Calling names using “san” activity to build mutually respectful relationships
Working hours To ensure proper time management, we are implementing initiatives in the following three areas:
  • ⑴Improving the quality of daily working hour management: Appoint a labor management promoter at each workplace and strengthen systems for proper working hour management in each division in cooperation with HR
  • ⑵Initiatives to eliminate inappropriate time management: If there are discrepancies between objective records of start/end times and self-reports, conduct investigations of all cases, and implement workplace patrols conducted by labor and management
  • ⑶Review of entry/exit control methods and the attendance system

Monitoring

We take measures to reduce and prevent specially designated human rights risks (significant risks), including those related to harassment and working hours. In order to confirm the effectiveness of these measures, and whether or not they are being properly adhered to, we monitor the results of company members surveys and stress checks, as well as the number of cases taken to the Anything Goes Counseling Window. Through this monitoring we are able to get a periodic overview of the current state of affairs.

Future initiatives

We will implement preventive and mitigation measures for the identified human rights risks (material risks) and also expand the scope of human rights due diligence.
Going forward, we plan to implement human rights due diligence at group companies in and outside Japan in a phased manner, after considering which companies will be included, the priorities, and the assessment methods, in light of the situation in the regions for deployment.

Figure:Future initiatives

Initiatives for important themes in the Toyota Boshoku Group Human Rights Policy

Diversity

In order to respect diversity and improve the ease of working for company members, in 2022 we established the Employee Network Resources Group (ENRG), a company member networking group to hear direct feedback from company members and pass this on to management to resolve issues. It is split into five groups, "Women," "Young People," "Overseas Members," "Seniors," and "Persons with Disabilities," and promotes activities based on respect for everyone's individuality and culture, recognizing each other's diversity.

Diversity and Inclusion

Discrimination and harassment

We foster an open workplace culture and promote the creation of a workplace where harassment is unlikely to occur. In addition to educational activities such as anti-harassment training and lectures, we also incorporate measures to revitalize communication, as we believe the occurrence of harassment is correlated with a lack of communication between supervisors and subordinates.
For more information, please see our specific prevention and mitigation initiatives.
Striving to harness the potential of our diverse human resources, we publish a Human Capital Report that describes our efforts to create a culture in which people around the world say, "I like Toyota Boshoku." For each of the seven HR strategy themes aimed at realizing our business strategy, the report includes the target, specific initiatives, and KPIs tied to the initiatives. Specifically, we have established KPIs, etc. related to raising awareness and improving practices associated with compliance and human rights.

Adherence to compliance and ethics: Human Capital Report 2023

Forced labor and child labor

In order to prevent forced labor, the Toyota Boshoku group is committed to proper time management for company members, in compliance with the labor standards laws of each country in which we operate. In addition, we do not engage in the practice of taking custody of identification documents (such as passports) that would facilitate forced labor.
Furthermore, to prevent the occurrence of child labor, we verify the age of newly hired members from official documents, make donations to organizations working to reduce child labor, and actively engage in volunteer activities at orphanages.

Occupational safety and health

To establish a corporate culture that places priority on safety and health at work, we strive to identify potential risks in the workplace on a daily basis, and labor and management cooperate in developing and implementing health and safety activities. Specifically, meetings are regularly held with the participation of those responsible for operations to report on accidents and near-misses, compile accident prevention measures for each work scenario, analyze trends in occupational accidents and near-misses, and implement corresponding countermeasures. Moreover, we are conducting health and safety activities globally in line with the Occupational Safety and Health Management System (OSHMS).

Safety

Initiatives to raise company members’ awareness

Internal training and education

We promote training and education to raise company members’ awareness of human rights and to create a corporate culture of respect for human rights.
We hold lectures and training sessions on human rights for officers, division general managers and above, as well as presidents of subsidiaries, including those at sites outside Japan, to enable them to understand human rights initiatives as “their own business” and to be able to lead initiatives on their own. In line with this, we ensure that all staff (including officers and managers) take part in training concerning harassment, which can become a material risk. In addition, we provide training on human rights to promoted and new company members based on our Corporate Philosophy, the TB Way and the Toyota Boshoku Group Guiding Principles for company members.

Content and target participants for internal training and education

Fiscal year Implementation type Content Target participants
2023 Training Training incorporating classroom lectures on business and human rights, and group discussions using case studies Officers and Kanbushoku (including those seconded outside Japan): 73% participation rate (not including viewing of archived streams)
Training concerning the Toyota Boshoku group's initiatives on respect for human rights and the revised content of the Toyota Boshoku Group Sustainability Guidelines Supplier Cooperative Association management
Background of commitment to respect for human rights among corporations, and training on familiar human rights issues New company members: 100% participation rate
Education Educational activities regarding the Toyota Boshoku Group Human Rights Policy using a pop-up screen at PC startup All company members
2024 Training Training incorporating classroom lectures on business and human rights and the creation of a declaration of conduct to respect human rights Line managers: 60% participation rate (not including viewing of archived streams)
As part of measures to disseminate the Toyota Boshoku Group Human Rights Policy, implementation of basic training on respect for human rights and a comprehension test via e-learning Union members: 87% participation rate
Background of commitment to respect for human rights among corporations, and training on familiar human rights issues New company members: 100% participation rate
As part of measures to disseminate the Toyota Boshoku Group Human Rights Policy, the Toyota Boshoku group's initiatives to ensure respect for human rights and basic training on respect for human rights Domestic group companies
Rolling-out of human rights training content to Toyota Boshoku group companies in Japan to foster a culture of respect for human rights Domestic group companies
Education Launch of the first issue of Human Rights News to make human rights an issue closer to home All company members
Educational activities regarding the Toyota Boshoku Group Human Rights Policy using a pop-up screen at PC startup All company members

Consultation and reporting desk

We have set up the Anything Goes Counselling Window as an internal consultation and reporting desk for dealing with issues such as harassment, which is also available to group companies in Japan, and a consultation and reporting desk at a law office. This creates an environment in which it is easy to for whistleblowers to consult on issues. We have also established contact points in regions outside Japan, and therefore have a global system in place. Also, upon receiving a report, after first investigating and confirming the facts, we respond to the whistleblower with the results of the investigation, and take appropriate action, including corrective measures as necessary.

Compliance

Initiatives for respect of human rights in the supply chain

We have established the Toyota Boshoku Group Supplier Sustainability Guidelines in May 2022, based around the Toyota Boshoku Group Human Rights Policy, in order to prevent violations of human rights from occurring, and to build a sustainable supply chain. In addition, we hold briefings to deepen understanding and disseminate the content. We expect all of our stakeholders, including suppliers related to our group's products and services, to understand and support these guidelines.

Protecting Human Rights and Maintaining Fair Working Conditions

In our basic trade agreements and Supplier Sustainability Guidelines, we request all our suppliers to respect human rights.
Initiatives related to the following items, which are based on the Toyota Boshoku Group Human Rights Policy, are being spread and adopted not only within the company itself, but also throughout the entire supply chain:
(1)Non-discrimination, respect for diversity and inclusion
(2)Prohibition of harassment
(3)Prohibition of child labor
(4)Prohibition of illegal migrant labor, forced labor
(5)Wages
(6)Appropriate management of working hours
(7)Freedom of association
(8)Creating a safe and healthy working environment
Additionally, we request an annual self-check sheet from our suppliers, which enables confirmation of various important matters, such as the state of various initiatives, the extent to which human rights guidelines are being adhered to, and how guidelines are being adopted and implemented.

Toyota Boshoku group Supplier Sustainability Guidelines

About the SAQ

The Toyota Boshoku group recognizes the importance of identifying environmental, social, and governance risks throughout the supply chain and working with suppliers to correct and mitigate any risks that exist.
As a first step, since 2022, we have asked our suppliers in Japan to conduct self-assessments to ascertain their compliance with the Toyota Boshoku Group Supplier Sustainability Guidelines.

Status of SAQ implementation

Using the SAQ, each year we identify and extract risks, including the status of protection of human rights and working conditions at our suppliers. No high-risk suppliers were identified in the fiscal 2024 survey. In future surveys, where a supplier is found to entail risk, we will conduct individual dialogue with the specific company and provide support for the prevention and improvement of human rights risks.
By understanding human rights risk in the supply chain, we aim to minimize human rights risk throughout the value chain.

Figure:Status of SAQ implementation