Support diverse talent with motivating challenges and job satisfaction

Challenges

  • Demonstrating ability and fostering motivation (developing talent)
  • Securing diverse human resources (promoting diversity)
  • Creating healthy working environments (reforming working styles)

Relevant stakeholders

  • Direct: Employees, local communities, suppliers
  • Indirect: Shareholders and investors, creditors, NGOs, industry groups

Our policy

As part of creating a management foundation to support sustainable growth, our Medium-Term ’21 Plan includes the creation of programs where diverse staff can collaborate organically and feel higher job satisfaction and empowerment, and a training system focused on individuality, quality and competencies. In accordance with this, we are developing a foundation where diverse talent can grow and flourish regardless of factors such as nationality, gender, age, job history or career orientation. At the same time, we will strive to create the best mix of talent in recruitment and promotions through impartial evaluations based on ability, aptitude and performance, to get the right people in the right places faster. In recent years, we have also been systematically promoting women. Over five years from 2016 to 2020, we achieved our target of doubling the percentage of women supervisors, who become candidates for management positions, from 2.03% to 4.65%. We have now set the goal of raising the ratio of women promoted to section manager or higher compared to that of men from 70% as of 2020 to 80-120% over five years between 2021 and 2025. In human capital, we will invest resources over the medium-to-long term in structures that are essential to human resources development, diversity and healthy working environments (reforming working styles), such as systems that promote the planned development of business managers and professional personnel in each organizational function, office environments and human resource systems welcoming of diversity, and tools and working arrangements that contribute to improved employee performance and communication.

Global Human Rights & Labor Policy

The Toyo Tire Group established the Global Human Rights & Labor Policy in January 2019. This policy endorses the Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the 10 principles of the United Nations Global Compact. As our Group business globalizes and our stakeholders diversify, we strive to carry out our activities in a way that respects the human rights of everyone involved in our corporate activities, including people in our workplaces, at our suppliers, and within the communities where we operate. This will help us contribute to creating an inclusive society that supports everyone, including socially vulnerable people, by protecting them from exclusion, conflict, loneliness and isolation. Group employees also recognize that they may potentially cause, contribute to or be complicit in adverse impacts on human rights through their own activities, and work to prevent this.

〈 Human rights and labor due diligence process in the workplace 〉

  1. Identify and evaluate actual adverse impacts and potential risks in the workplace
  2. Take remedial action on adverse impacts and work to prevent potential risks from occurring
  3. Monitor initiatives
  4. Disclose information on initiatives to external stakeholders

See below for English and Chinese versions

Goals

To respect human rights in the workplace, eliminate all forms of discrimination, and promote diversity.

Responsible executive (as of April, 2023)

Corporate Officer and Vice President of Corporate Headquarters

Action promotion system (as of April 2023)

Policies for strengthening our human resources foundation and the direction of important measures are discussed and decided by the Organization and Personnel Committee, and executed under the supervision of the Corporate Headquarters. Human resources-related activity themes under the jurisdiction of the Sustainability Committee are also promoted in the same way, with the Organization and Personnel Committee being consulted as necessary.

Action promotion system

Grievance mechanism

  • Reporting hotline (whistle-blowing system): For executives, employees and suppliers
  • Customer Relations Department: For customers (consumers) and local communities
  • Online inquiry form: For customers (consumers), shareholders and investors, and NGOs
  • Labor-Management Council Meetings: For employees
  • Harassment reporting hotline: For employees

Demonstrating ability and fostering motivation (developing talent)

Education and training

We see employees as our most important form of capital to support continuous business growth, and recognize the importance of human capital development. In 2022, we introduced a new training system to respond to diversification in human resources. In specific terms, to the training for each level established under the new personnel system, we have added and reorganized training on role expectations, our company philosophy, and the essential basic knowledge for core employees on subjects like digital transformation (DX) and ESG, as well as updated our selective training. In training for general managers of each headquarters and division, we aim to encourage personal transformation to strengthen management ability, and improve leadership skills to solve issues in the medium to long term, while also using selective training for mid-career staff to develop future candidates for globally successful business management.
So that employees can feel motivated in working toward their future goals, we have created career path plans for each department that are followed throughout the entire company when carrying out personnel changes, and also periodically review employee career development and provide counseling with supervisors.

Developing talent with technical expertise

With an eye toward a future predicted to have dramatically different market conditions through a mobility revolution, we are focusing on the development of professionals who can transform difficulties and crises into opportunities for sustainable growth. To develop the talent that supports our Group’s essential technological innovations, our education and training emphasizes basic knowledge, external company relations and the passing down of technology.
We aim for talent development that, through company-wide level-specific education, equips employees with the logical thinking and facilitation skills that are key in research and development, and problem-solving skills and innovative ability based on customer needs-oriented thinking. Our technology departments also provide training to young employees to acquire technical expertise, and promote annual talent development to achieve the mission of each organization.
Since 2020, the technology departments’ educational curriculum has included a course on the SDGs. Through group work, participants recognize the role of technological development in resolving the various social issues relevant to our business. At our production departments, we are also focusing on issues such as improving the inspection skills of quality control personnel and developing the multi-tasking skills of operators.

Human resource development for sales staff

Our U.S. subsidiary offers selective training to foster future leaders. Once each month throughout the year they invite an external lecturer to conduct leadership training.
Tire sales sites require a way to smoothly and accurately communicate with customers even when they cannot meet in person, such as during the COVID-19 pandemic.
In the past, we had conducted product explanations and education primarily at in-person group trainings, but during the pandemic we built a digital education system to keep pace with the accelerated digitalization that took place at the time.
We have begun utilizing this system to both teach tire salespeople and as a communication tool to use with customers.

Human resource development of production staff

Our subsidiary in Thailand provides trainings for different employee levels and job types, such as leadership training for supervisors and quality management training for internal auditors, in addition to trainings for all employees on topics such as compliance and increasing job efficiency through teamwork.

Training held in FY2022 (Toyo Tire Corporation)

  • Basic courses for young employees by mid-level employees
  • Competency development courses for mid-level employees by external lecturers
  • Participation in external training courses

Training held in FY2022 (Toyo Tire Corporation)

By level
Name Eligibility Hours to complete No. of participants
New recruit training New recruits 96 31
Follow-up training First-year employees 18 35
Brush-up training Second-year employees 18 33
New assistant manager training New assistant managers 24 35
New manager training New managers 24 28
New general manager / representative training New general managers / representatives 24 16
Section Leader / assistant supervisor training New section leaders / assistant supervisors 8 17
New supervisor training New supervisors 8 10
Evaluator training Primary evaluators and above 4.5 71
Selective training
Name Eligibility Hours to complete No. of participants
Selective trainingⅠ Selected employees 20 5
Selective training Ⅱ Selected employees 48 5
Pre-assignment training Employees being assigned overseas 3.5 10
Language training Employees being assigned overseas 27 3
Diversity training
Name Eligibility Hours to complete No. of participants
Anti-harassment training Primary evaluators and above 1.5 430
LGBT training All employees 1.5

Employee opinion survey

We began conducting employee opinion surveys in 2021 to take a snapshot of our organizational culture, and now generally conduct them once every two years. We use the results (FY2021 response rate was approximately 94%) to identify challenges, for which each headquarters proactively and independently creates and executes an action plan based on a company-wide improvement policy. Developing specific policies based on each division’s strengths and weaknesses better enables us to improve upon or overcome challenge areas. The secretariat Human Resources Department regularly monitors the progress of measures and applies the PDCA cycle in efforts to steadily improve organizational culture, and reports to the Organization and Personnel Committee.

Activities: Securing diverse human resources (promoting diversity)

New personnel system

In 2021, we reviewed our personnel system and made significant revisions to the evaluation and compensation system and the development system for the first time in 11 years. To foster employee motivation toward achieving results and growth, we define the profile of what we seek and expected roles for each level, and ensure that evaluation and treatment are based on this. We have also created a job evaluation structure that responds flexibly to the diverse jobs and career preferences of employees in both specified and general employment, and also increased the compensation standards at management level. In order to verify whether these measures and systems are having the intended effect, we conduct regular surveys to confirm how they are being run. In April 2023, we also began revising part of our personnel system for positions other than regular career-track, including at production sites.

Employment situation

The Toyo Tire Group is committed to ensuring fair employment practices and treatment of employees, and to creating workplaces where a diverse team members can flourish regardless of nationality, gender, age or other characteristics.
In our human resources recruitment, we strive to secure a diverse range of talent across the world, including by recruiting both new graduates and mid-career candidates, rehiring retirees, and employing people with disabilities. Since 2018, we no longer set recruitment targets for women and non-Japanese candidates when hiring new graduates, and have adopted a policy of fair, unbiased evaluation and recruitment for all talent.
In order to acquire the best talent, beginning with our fiscal 2024 new graduate hiring, we have also started using direct recruitment to approach students who fit our desired profile in addition to receiving applications from interested candidates via job hunting websites for students.
We also actively recruit in the areas around each site to ensure that we continually grow together with the local communities where we do business.

Diversity and equal opportunities

To promote the empowerment of all employees, we have established different types of personnel systems and a talent development plan, and offer career counseling for each employee. We also offer training to improve awareness on a variety of topics, such as e-learning on diversity and inclusion, and lectures with external guest speakers as part of promoting women’s advancement.
One notable project promoting diversity is the human resources empowerment committee run by Toyo Tire Japan Co., Ltd. Established to promote the career advancement and empowerment of female employees in particular, it has since been organized as an initiative for all employees in recognition of the fact that the active participation and improved awareness of managers, supervisors and male employees is also key. The company has been proactive in reviewing job descriptions, responsibilities and authority with the career advancement of female employees in mind, and the number of women in management positions has increased as a result.
Additionally, Toyo Tire Logistics Co., Ltd. uses proactive communication in the workplace to continuously strive to provide environments that help foster a positive outlook for the future and greater motivation toward work in people with intellectual and developmental disabilities. We will continue creating opportunities to foster mutual understanding and empathy in each employee to create workplaces where all employees have equal opportunity regardless of ability or disability.
We are also fostering workplaces that encourage everyone to take on challenges regardless of gender, providing support for career development that takes into account diverse values and lifestyles, and revitalizing workplace communication in order to offer such support. As part of our efforts to create gender-balanced working environments, we have reviewed our company dress code at some locations, including our headquarters, to allow male employees to wear business casual. Furthermore, while the Group has a uniform compensation system for men and women with the same job qualifications at the same level, we will carry out analysis on the pay gap in the future.

[TOPIC] Panel discussion led by members of the LGBT community

We are continuously conducting training on diversity and inclusion themes. In September 2022, we invited members of the LGBT community from outside the company to lead an online panel discussion for employees at management level and above. The two speakers discussed their own personal experiences, necessary considerations in the workplace, and what kind of responses are expected from management. The session was recorded and later shared with all employees, creating the opportunity to deepen their understanding of LGBT issues. Moving forward, we will continue to use such educational opportunities to help create workplaces where the diversity of employees is respected.

New hires at Toyo Tire Corporation (full-time employees including mid-career hires)

Total 167
By age Under 30 58.1%
30-50 33.5%
Over 50 8.4%
By gender*1 Male 90.4%
Female 9.6%
• Employee turnover rate: 3.3% (FY2022)

Employee diversity at Toyo Tire Corporation (full-time employees)

Total 3,674 (-0.5% y/y)
By age Under 30 18.4%
30-50 60.6%
Over 50 21.0%
By gender*1 Male 93.1% (-0.2 pts y/y)
Female 6.9% (+0.2 pts y/y)
People with disabilities 82
Non-Japanese*2 14
Total management personnel 859
Management by gender*1 Male 94.3% (-0.1 pts y/y)
Female 5.7% (+0.1 pts y/y)
Non-Japanese*2management 0.7% (-0.4 pts y/y)

Diversity in management target
Women: Raising the ratio of women promoted to section manager or higher compared to that of men to 80% or more over five years between 2021 and 2025

  • *1 Data by gender: Refers to data on sex assigned at birth. It is difficult to obtain quantitative data on gender identity and we do not have it, but aim to create workplaces where all employees can take an equal active part.
  • *2 Data on non-Japanese employees: Refers to data on foreign nationals as defined in the Nationality Act of Japan.

We have achieved the targets set out in the action plan formulated based on Japan’s Act on Advancement of Measures to Support Raising Next-Generation Children, and have received “Kurumin certification” from the Minister of Health, Labour and Welfare in 2020 for satisfying certain requirements. We remain committed to supporting the balance between a career and raising children.

  • “Kurumin certification” 2020 logo

You can find details on our current action plan (for the period from January 1, 2022 to December 31, 2023) here:

Labor and management relations

Toyo Tire Corporation recognizes The Toyo Tire Labor Union*2 as the sole negotiating organization. Terms for consultation and negotiation with the union are clearly stipulated in the collective labor agreement. As of the end of October 2022, the union membership is formed of 3,345 general employees, excluding company executives and managers. (455 company executives and managers) 88.0% of general employees.
The Labor-Management Conference on Business Management Measures is held twice a year and the Central Conference is held annually to bring together labor and management representatives to share and discuss management issues and the Group's goals.

  • *3 The name was changed from "the Toyo Rubber Labor Union" on October 1, 2023.

Activities: Creating healthy working environments (reforming working styles)

Promoting work-life balance

To create environments where diverse talent can flourish, we are making changes to working styles that improve work-life balance. To prevent long working hours, since 2020 we have been aiming to create an organizational system where overtime is unnecessary by promoting stocktaking and optimization of duties throughout the company, and are also encouraging employees to make appropriate use of the available leave systems. These efforts have helped us reduce overtime hours throughout the company compared to 2019. To support employees with family responsibilities, we offer a system of leave of up to one year for employees with immediate or second-degree family members requiring care, and employees with children under the age of two, and have also been creating systems and working environments that make it easier for men to take childcare leave. We have also introduced a system where annual paid leave that has expired after two years can be reinstated and used for reasons such as injury or illness, childcare or nursing care, volunteering, or hospital visits or hospitalization for pregnancy or infertility treatments. Furthermore, we are reviewing our company dress code to be more mindful of diverse values and lifestyles, and are using the “new normal” in the wake of the COVID-19 pandemic as a chance for transformation to provide workplaces that increase output (office reform).

Improving systems to respond to harassment

In accordance with our anti-harassment regulations, a reporting hotline and advisor have been made available for each business site in order to understand and resolve any incidents of harassment as early as possible. The hotline contact details are posted on message boards and in break rooms at the company to make it easier for employees to access. Training is also provided for advisors to ensure that they can appropriately handle the matters reported and discussed. We also conduct anti-harassment training for managers.