1. 1 Approach to Corporate Campaigns Pras Ganesh Toyota Motor Europe

2. HR Risk Management 2

3. 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

4. 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”

5. 1. Risk Prevention 5 Practiced during most challenging times 2007 1,260K 2009 905K 2008 1,140K 2010 808K 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 12 3 822K “Achieved”

6. 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

7. 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

8. 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

9. 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. 10 Questions & Answers

11. 11 Thank You