1 Approach to Corporate Campaigns Pras Ganesh Toyota Motor Europe

HR Risk Management 2

1. Risk Prevention 3 1. Strong internal standards and philosophy – applicable to all employees (CSR Policy/ TW/ TW in HRM) 1. Strong internal standards and philosophy – applicable to all employees (CSR Policy/ TW/ TW in HRM) HR Guiding Model/ Standard Models on HR Systems Toyota Way training to all Employees – continuously reinforced Toyota Way in HRM trained to all Executives, Global HR Functionaries and Expatriate HR Systems designed to maintain internal standards HR Functional Priorities – emphasizing standards and preparations Achieved

1. Risk Prevention 4 2. Employee Relations is the key to our growth and success - Focus Internally (Employee Relations not Industrial Relations) 2. Employee Relations is the key to our growth and success - Focus Internally (Employee Relations not Industrial Relations) Company Attain corporate prosperity Employee Stability & improvement of livelihood, self realization Ensure stability of employment and maintain / improve working conditions Render maximum cooperation to attain corporate prosperity Share common values Mutual Trust & Respect Labor Relations ; = The Total Sum of Individual Human Relations at all Workplaces “Achieved”

1. Risk Prevention 5 Practiced during most challenging times ,260K K ,140K K Sept ’08: Bankruptcy of Lehman Brothers (economic crisis) 11/03/’11: Earthquake/ Tsunami in Japan ’ 09-’10: Recall campaign On top of that: Strong yen: affecting profits K “Achieved”

2. Risk Awareness 6 1. Strong Labour Risk Management Process with Checks Monthly Labour Risk Management Process with all affiliates and Global HQ Involvement of relevant stakeholders – purchasing, external affairs Usage of tools such as -Risk Calendar -Human Resources Indicators - Motivation Survey - Compact HR System Assessment - “Genchi Gembutsu” – Periodic visits to see and confirm Almost Achieved

2. Risk Awareness 7 2. CSR Compliance Check Sheet to Global affiliates and Key Suppliers 2. CSR Compliance Check Sheet to Global affiliates and Key Suppliers Toyota AffiliatesSupplier Ask corrective action plan Distributed & collected “Question sheet” Compulsory audit Follow-up procedure in place Work in Progress

2. Risk Awareness 8 3. Antenna for Labour Issues (e.g., GIRN) TMC Key Suppliers TME affiliates NGO Union NGO Union NGO Union NGO Union NGO Union NGO Union Work in Progress

3. Risk Event Management 9 1. Readiness for Dealing with actual Campaigns Readiness Activities (example) - Global Risk Management Committee to lead (raised awareness of possible risks) - Human Rights Working Group to handle operational issues with relevant stakeholders within the company - Key network development to support during campaign - Common “white paper” to answer possible campaign issues globally - Positive propaganda of strengths - Onsite support from GHQ/ RHQ is required Work in Progress

10 Questions & Answers

11 Thank You