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TOYO TIRES WORLDWIDE

S: Upholding human rights

Challenge

  • Upholding human rights

Relevant stakeholders

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

Our policy

In the Toyo Tire Group, the majority of employees work outside of Japan, and more than half of our consolidated net sales are generated overseas. Our business is expanding globally, and we have growing opportunities to communicate with diverse stakeholders both in and outside of the company, making it ever more important to act in a way that respects the human rights of everyone involved in our corporate activities.
The Global Human Rights & Labor Policy introduced in January 2019 sets out our clear commitment that, as our business globalizes and our stakeholders diversify, the Toyo Tire Group strives to carry out its business in a way that respects the human rights of everyone involved in our corporate activities, including those in our workplaces, at our suppliers, and within the communities where we operate, contributing to creating an inclusive society. We also engage with our suppliers to ensure that they understand our policy and encourage them to work with us to fulfill our common corporate responsibility to uphold human rights.

Responsible executive (as of April 2024)

Corporate Officer and Vice President of Corporate Headquarters

Organizational responsibilities (as of April 2024)

Corporate Headquarters leads promotion of activities and reports progress to the Sustainability Committee.
The Sustainability Committee, chaired by the President, meets four times a year to report, discuss and approve activities related to human rights.
Corporate Headquarters takes the lead in promoting activities and discussing the promotion of human rights based on the Global Human Rights & Labor Policy. We have also set up a system to prevent human rights violations on a daily basis. We will continue to call on our suppliers and other business partners to support this policy.

Activity promotion system

Activities

Human rights due diligence

In accordance with our Global Human Rights & Labor Policy, we conduct human rights due diligence to recognize and take action against adverse impacts on human rights (human rights risks) in Group business activities and the supply chain.
In 2023, we identified and assessed which human rights risks are relevant throughout all of our Group business activities and the supply chain, then went further to identify which risks are the most important for us to take action on. In order to ensure objectivity, this process was conducted with the help of external experts in business and human rights.
Our continued and further efforts will prioritize preventing and mitigating these important risks.

Identifying important risks

  1. Identifying human rights risks

    We identified relevant human rights risks in our business activities and the supply chain by surveying each of our division headquarters to understand the business characteristics that are linked to risks, and comparing these with risks considered inherent to our industry based on reports and recommendations of prominent international institutions and organizations, as well as actual cases of risk that have manifested within the industry.

    Identifying human rights risks
  2. Assessing the significance of human rights risks

    The identified relevant human rights risks were scored by severity (the level of harm should an incident occur) and likelihood (the ease of manifestation within the Group). The significance of each risk was then assessed, with more weight given to severity in accordance with the UN Guiding Principles on Business and Human Rights. The most significant (level 6-9 in the following matrix) were then established as the Group’s important human rights risks.

    Variables Scoring method
    Severity Focuses on the scale of harm, possibility to provide remedy, and the scope of impact
    Likelihood Focuses on potential factors (highlighted by international institutions as a important industry risk; problem that occurred at another company in the same industry; factor inherent to our business) and actual factors (real cases at our company)
    Assessing the significance of human rights risks
  3. Identifying important human rights risks

    The relevant human rights risks were then assessed according to the type of rights holders (those who have the human rights that are at risk of being adversely impacted), which led to identification of the following important risks: occupational health and safety, forced or child labor, indirect complicity in conflict, consumer safety infringement, adverse impact on local communities, discriminatory treatment or power harassment in workplaces, and long working hours.

    (1) Right holders: Group employees, job applicants

    Right holders: Group employees, job applicants

    (2) Right holders: Manufacturing contractors, distributors, raw material suppliers

    （２）Right holders: Manufacturing contractors, distributors, raw material suppliers

    (3) Right holders: Sales partners, consumers, indigenous and other local communities

    （３）Right holders: Sales partners, consumers, indigenous and other local communities

Addressing important risks

To prevent and mitigate these important risks, we will both continue and strengthen our existing measures while constructing and enhancing management schemes.
For human rights-related measures in the supply chain, see “Promote supply chain sustainability.”

Rights holders Important risks Prevention & mitigation measures
(1) Group employees, job applicants Lack of health & safety at workplaces\ Strengthen occupational health & safety management
Forced/compulsory or child labor Discover any current forced/compulsory or child labor, build systems to eliminate
Power harassment or discrimination Enhance training on preventing harassment and discrimination
Discrimination against candidates in hiring interviews Review materials for employees in charge of interviews
Long working hours, excessively strenuous work Strengthen efforts to secure necessary personnel and improve productivity
(2) Manufacturing contractors, distributors Lack of workplace health & safety at manufacturing sites Accelerate efficient logistics initiatives (distributors)
Strengthen manufacturing contractor/distributor management scheme
Forced/compulsory or child labor, Long working hours, excessively strenuous work at manufacturing sites
Raw material suppliers Forced/compulsory or child labor at raw material production sites Enhance sustainable procurement
Strengthen raw material supplier management scheme
(3) Sales partners, consumers, indigenous and other local communities Indirect complicity in wars of aggression through sourcing of conflict minerals and other materials Enhance surveying of smelters about parts potentially using conflict minerals
Indirect complicity in conflict through sales practices Strengthen sales partner management scheme
Adverse impact on local communities through production or disposal of our products Further improve wastewater management, noise control
Infringement on consumer health and safety through defective products Accelerate initiatives based on quality management system operation
  • Preventing forced labor and child labor

    The Group does not allow labor practices that violate laws in any country or region. We comply with Japan’s Labor Standards Act and do not employ children under the working age, nor physically or mentally restrain workers, nor engage in unwilling forced labor. Before hiring, we check that the person is of working age and provide a notice of employment conditions, prior to concluding an employment contract based on mutual agreement.

  • Preventing low-wage labor

    Toyo Tire Corporation pays appropriate wages that exceed the minimum and living wages based on Japan’s Minimum Wage Act, in order to improve the lives and health of our workers.

  • Preventing long working hours

    While formulating and announcing an annual Policy on Employee-Employer Agreement under Article 36 of the Labor Standards Act, we conduct labor thorough-management negotiations and manage working hours properly in order to reduce overtime work. We are also promoting stocktaking and streamlining of operations throughout. the company, aiming for an organizational structure with no overtime.

Raising awareness of respect for human rights

We work continuously to raise awareness of the company’s responsibility to respect human rights through e-learning sessions on our Corporate Code of Conduct as well as level-specific and other training. We also participate in human rights awareness activities at every region where our business sites are located, and strive to respect the human rights of everyone related to our business operations, including those at our suppliers and within the communities where we operate.
On Human Rights Day, the President of Toyo Tire Corporation sends a message to all Group employees, stressing the importance of having a foundation of deeply diverse talent to generate value through our business, and of demonstrating sincerity with all stakeholders.

Compliance with laws and regulations of each country

We publish information on our measures to ensure that neither slavery nor human trafficking is taking place within the Group or in our supply chains, in accordance with the UK, Australia, and Canada’s Modern Slavery Acts.

Grievance mechanism

Internal reporting system

Since 2006, the Toyo Tire Group has operated an internal reporting system for all compliance issues, including human rights for employees and suppliers. We accept anonymous reports to consider the privacy of those seeking advice and protect whistleblowers. When consulted or a report is received, we conduct an internal investigation as needed and take corrective action to address any actual issues. In addition, we continuously hold training sessions based on specific cases to detect potential issues at an early stage and prevent occurrence.

  • 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 hotline: For employees

Cases of human rights violations

There were no cases of human rights violations in fiscal 2023.

Sustainability