All company officers at Toyoda Gosei serve on the Internal Controls Committee, which reports on and discusses the status of compliance with business ethics, laws, and regulations. The items reported on and discussed in the Committee are shared with the compliance advocates selected from each department in the Company-wide Compliance Implementation Council so that the necessary standards will be incorporated into the activities of each workplace. The Committee works for thorough compliance with a unified approach between management and the workplace.

■Training and Educational Activities

Toyoda Gosei conducts various training and education activities with the aim of raising compliance awareness in every employee. We provide level-specific training for newly appointed executives, newly appointed managers, employees newly joining the company, and other personnel, as well as workshops tailored to specific risks such as those related to the antitrust law. We have also developed educational materials that use recent compliance violations as case studies to raise awareness and are working to ensure rigorous compliance among our employees.

List of Workshops/Education at Toyoda Gosei

■Compliance Awareness Surveys and Self-Inspections

To ascertain the degree to which compliance awareness has been incorporated into the Company and whether there are any signs of problems, we conduct an annual compliance implementation questionnaire survey of all employees. The results of the survey are reported to the Internal Controls Committee, and measures are implemented throughout the company, and each workplace also conducts improvement activities engages in improvement activities that are based on feedback reports from employee surveys.

In the FY2024 survey, awareness of the Toyoda Gosei Guidelines for Business Ethics was 95%, and the implementation of activities to promote compliance and make the Guidelines known to people was 96% (see figures above).

Group companies in Japan and overseas conduct annual self-inspections of the status of their compliance implementation systems, status of compliance with antitrust and competition laws, other important laws and regulations, and on the absence of corrupt practices including bribery, as well as risks in key functions including internal controls, human resources, accounting, procurement, and quality. Based on these results, our functional departments guide each company in rule-setting and training, continuously reinforcing compliance across the Toyoda Gosei Group by implementing the PDCA cycle.

■Initiatives for the Prevention of Antitrust and Competition Law Violations

Initiatives for the Prevention of Antitrust and Competition Law Violations The Group Charter for Business Ethics states that the Toyoda Gosei Group will conduct business activities with a spirit of “fair and free competition” (compliance with antitrust and competition laws). We have formulated the Codes of Conduct for Antitrust Law Compliance as guidelines and are working to ensure thorough compliance by employees through training and educational activities. Antitrust law compliance manuals based on the laws of each country are prepared for the regions where Group companies are located, and initiatives are made to prevent anticompetitive acts globally.

■Initiatives to Ensure thorough Export Controls

Toyoda Gosei has established an import/export controls system to ensure that goods, technical materials, software, and other items subject to import/export restrictions, as well as items that violate laws and regulations (such as counterfeit products), are not taken out of the country or brought into the country without proper authorization.

In addition to ensuring compliance with laws and regulations through the Security Export Control System and company regulations, the Company ensures that domestic and overseas Group companies conduct installation and check for defects through self-inspection, and provide appropriate support in cooperation with the head office and overseas control companies.