Company Presentation

Company Overview
Toyota Motor Corporation is a multinational automobile manufacturing company that is a
house to more than 300,000 employees across its different sites around the world which is
engaged in various business segments primarily- the automobiles business and finance business
segment among others headquartered in Toyota-cho, Toyota City, Aichi Prefecture, Japan. The
company was founded by Toyoda Kiichiro in August 28, 1933 as a division of the Toyoda
Automatic Loom Works, Ltd. that was founded by his father Toyoda Sakichi which later became
Toyota Industries Corporation-member of Toyota Motors Group. It is composed of about 1,000
subsidiaries and affiliated companies across the globe.

Key Drivers
The Toyota Production System is one of the catalysts that boosted the company’s success.
With the help of Eiji Toyoda, Taiichi Ohno founded the establishment of TPS – an integrated
socio-technical system that organizes manufacturing and logistics for automobile manufacturer,
including interaction with suppliers and customers. Toyota adopted the “Toyota Way 2001”, an
expression of values and conduct guidelines that all Toyota employees should embrace. Under
the two headings of Respect for People and Continuous Improvement, Toyota summarizes its
values and conduct guidelines with these five principles; Challenge, Improvement, Go and See,
Respect and Teamwork.
Despite the tightening of global automobile market competition with the advent of higher
levels of technologies, Toyota was able to go along with the newest trend with their strong
focus and continuous Research and Development initiatives through its 2015 established Toyota
Research Institute which studies robotics and artificial intelligence which paved way towards
their venture in hybrid vehicles – Welcab and Fuel Cell Vehicles as well as incorporating fuel
efficiency and collision avoidance support in its products. Toyota Motors Corporation was also
able to establish a strong reputable brand name across the global market making its products
from auto parts to its known commercial to industrial vehicles patronized everywhere for its
notable quality and globally competitive performance at mass-friendly prices.

Toyota is widely known for its leadership in corporate governance and innovation making it
possible for them to secure the spot as a top ESG brand in Japan. The auto company ranked
highly in the governance and integrity and in social categories was also second in the
environmental category. The automakers’ leading strength in ESG initiatives namely the eco-
cars, smart city and top management are the underlying justification why it was the top brand.
Recently, Toyota was listed in Forbes as the #11 World's Most Valuable Brands 2020 and Global
2000 2020.
Company Evaluation
Multinational Corporation plays a vital role in addressing our long environmental, political
and socio-economic global issues for their sustainable development goals may brought positive
and negative impact to all as a whole. In 2005, Toyota Motor Corporation in accordance with its
Guiding Principles, announced it “Contribution towards Sustainable Development” in which in
2008, became the CSR Policy "Contribution toward Sustainable Development” – this is one of
the company’s initiatives towards sustainable development taking into consideration the global
political, technological, socio-economic and environmental issues.

ESG as a Catalyst to Business Sustainability: Environment, Social and Corporate

As environmental, social, and corporate governance issues across the globe heightened
and more companies started to shift in ESG investment, Toyota launched it company’s
initiatives to contribute in addressing those abovementioned global issues as part of its
investment.

Environmental Sustainability
The Environment Sustainability Dimension which focuses on the environmental impacts
include sustainability issues such as GHG Emissions, Air Quality, Energy Management, Water &
Wastewater Management, Waste & Hazardous Materials Management and Ecological Impacts.
Toyota inaugurated the Toyota Earth Charter (established in 1992 and revised in 2000) as
a guiding policy for environmental initiatives which was based on the Guiding Principles at
Toyota. The said initiative aims to contribute to the sustainability of the society and the
environment through the company’s corporate activities. The company had announced the
Toyota Global Vision in 2011 which emphasized the importance of “Respect for the Planet”.
Based on the said approach, in 2015, the company formulated the Toyota Environmental
Challenge 2050 the company’s long-term vision for its environmental goals.
As its way on achieving its environmental goal, Toyota focused highly on promotion of
strengthened consolidated environmental management; waste reduction through auto parts
recycling and reprocessing to reduce the company’s usage of natural resources and put
company’s waste in good use; reduction of carbon dioxide as contribution to urban atmospheric
environment in each country or region where they conduct business through its innovative ways
in cutting fuel and energy use by innovating electronic and hybrid automobiles; and, by
furthering strengthened global employee education and environmental awareness activities.

Social Sustainability
The Social Sustainability Dimension which deals with how the company will give back to
the society and to its employees as human capital include issues about Human Rights &
Community Relations, Customer Privacy, Data Security, Access & Affordability, Product Quality
& Safety, Customer Welfare, Selling Practices & Product Labeling, Labor Practices, Employee
Health & Safety, and Employee Engagement, Diversity & Inclusion.
 As part of its investing pursuit in ESG, societal-related activities are one of the top priorities
of Toyota Motor Corporation. The company like any other multinational automobile corporation,
faced challenges on maintaining product’s integrity and functional qualities, thus the company
continuously do its best on innovation and improvement (kaizen) of its products to eliminate the
risks of possible product malfunctioning to secure clients’ safety. Furthermore, the company had
initiated social contribution activities such as advocating for the improvement of traffic safety
and respect for human rights to highlight that the company is not only after the wellness and
professional growth and development of its employees but also for the benefit of the society at
large.
The company, as response to road accidents, aside from providing its users safe-driving
education and awareness, Toyota invested on innovation of its automobile system which assists
its driver in automobiles themselves are structured to protect its occupants during collisions. In
accordance with it founding principles, Toyota values education and sports- thus aside from
providing scholarship programs, the company sponsored various organization programs like;
Special Olympics Nippon, National Center for Families Learning Programs, and other various
socio-cultural awareness campaigns.
Moreover, Toyota as an employment opportunity provider; treated its employees as an
assets that the company cannot prosper without, thus invested on its employees’ health and
safety as well as for their professional growth and progress through continuous trainings,
seminars and team building programs aside from the company’s effort on incentivizing them to
enhance their skills and equipped them with up-to-date knowledge geared towards their
personal and company’s success.

Governance Sustainability
The Governance Sustainability Dimension which highlights management of problems
inside the company or industry itself include relevant issues concerning Business Ethics,
Competitive Behavior, Management of Legal and Regulatory Environment, Critical Incident Risk
Management, and System Risk Management.
Sustainable growth and corporate value are essential business priorities that Toyota is
well aware of. Thus, establishing strong bonds with all stakeholders and consistently providing
products that meet customers’ standards are key to achieving the said priorities.
Practicing good corporate governance helps the company to regulate risk and reduce
the opportunity for corruption and other corporate scandals which may harm the company’s
reputation. Toyota continuously takes actions on improving its corporate governance to achieve
the company’s sustainable growth and the stable, long-term harmonious corporate value. The
company works hard to attain good governance through building positive relationships with all
stakeholders and consistently providing products that meet customer satisfaction.
Conclusions: Managerial Recommendations and Suggestions

In our today’s world where technology and innovation lead, managers play a very vital
role in decision-making. Every decision should arise from a deep analysis and comprehensive
planning procedures.

Corporate Social Responsibility is a crucial part in doing business today. Thus, managers
that work in CSR areas, must acquire skills and be equipped with certain competencies to be
able to cope up with the area’s demand. The said skills and competencies may include but is
not limited to the following; must be oriented towards being inclusive ; flexible and collaborative
and able to bridge cross cultural boundaries and work in harmony with others ; must possess
high critical thinking capabilities to address the complexities of technological, economic, social
and environmental issues that we’re facing and going to face in the future; and, innovative and
growth driven to be able to address the never-ending needs and wants of the market and also
to address the need for innovation of most environmental inclined products.
Where most companies were driven by sustainability and value creation schemes, in
order to succeed, future professionals should have creativity and innovativeness, resilience,
flexibility, advanced knowledge in information and technology, advanced leadership skill and a
proactive approach in decision making with a heart and passion to exert their energies toward
continuous quest for the attainment of sustainable growth and development without
compromising the society and the environment.

Toyota’s various environment initiatives have already gone too far. Aside from its long-term
environmental goals, the company may further uphold its cause for the environment by
investing in new renewable energy sources aside from wind and sunlight.

The company’s participation in resolving societal issues is of great help. To further uphold
the company’s pursuit of social welfare, the company may hold regular activities across the
globe which concerns educating entrepreneurial minds especially in slow developing countries.
Extending financial support to SMEs and the like. And sharing professional knowledge and skills
in the especially in academic and private sectors of the society. If possible, expanding their
business scope and give trainings and job opportunities for those who lack academic and
technical backgrounds.
Toyota is committed to provide the best services and products and it will only be possible if
it has the best possible set of people to start with –upholding the corporate values and
principles that are necessary to success. In order to further sustain it, the company may
consider strengthening their management schemes and upholding their corporate principles
even better.