Corporate Governance

Maintaining and Enhancing Efficient Management as well as the Fairness and Transparency of Corporate Activities

Toyota Industries believes that enhancing the long-term stability of corporate value and maintaining society's trust in the company are the most important management issues. To achieve this we have made the building of a more prosperous society through our business activities as a basic premise and consider it vital to build good relationships with all of our stakeholders ranging from shareholders and customers to our business partners, local communities, and employees.
With this in mind, we are working to maintain and enhance management efficiency and the fairness and transparency of company activities by strengthening corporate governance. We are building a corporate governance system that can respond quickly and flexibly to changes in the business environment, as well as working to strengthen management supervision and to provide timely disclosure of accurate information.

Aiming for Accurate, Speedy, and Efficient Management

Toyota Industries holds a Board of Director's meeting every month to make decisions on important management matters and monitor business operations. A Management Committee has also been established which consists of directors above the level of Executive Vice President and directors nominated by the president. This committee discusses important matters such as the corporate vision, management policies, medium-term business strategies, and major investments. At Management Council meetings directors and managing officers confirm the status of operations and plan for ways to better share information. In addition, the company has adopted a “division system” and holds Business Operation Committee Meetings at which the President can receive reports about operational policies and the status of results from the General Managers (Directors) of each division, as well as give out new instructions. In these ways the company is striving to ensure proper and efficient management, and also facilitate scrupulous judgment.

Streamlining the Board of Directors and creating the New Position of Managing Officer

In 2006 Toyota Industries introduced a new executive management system which included a streamlined Board of Directors and the new Managing Officer position. This was done to help speed up the company's responses to the challenges posed by our accelerating globalization and expanding scale of business operations.

Strengthening Monitoring Functions

Toyota Industries has adopted a Corporate Auditor / Board of Corporate Auditors system as a mechanism to help ensure proper management. The Board of Corporate Auditors meets every month to discuss and make decisions on important matters like auditing policy and reporting. The Board consists of five corporate auditors, three of whom are independent auditors from outside the company. In addition, underneath the Board of Corporate Auditors is the “Corporate Auditor's Office”, which is staffed by additional personnel who work to strengthen the auditing of duties carried out by the company directors.

Corporate Governance Structure

*Click to enlarge.

Return to Top