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Participation in the United Nations Global Compact

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TOTO announced its participation in the "Global Compact," which is put forward by the United Nations, and registered as a participant company on November 8, 2011. In order to announce to the international community the company's intent to further strengthen its CSR (Corporate Social Responsibility) management, which TOTO has long been promoting, behave as a responsible corporate citizen on a global scale and constructively carry out its social responsibilities, TOTO will uphold the 10 principles on "Human Rights, Labor, Environment and Anti- Corruption" that are cited by the "Global Compact" and put them into practice through all its business activities.

On the occasion of this announcement of participation in the Global Compact

We of the TOTO Group will uphold the 10 principles of the Global Compact concerning "Human Rights, Labor, Environment and Anti- Corruption". We promise the people around the world to make the Global Compact and its 10 principles a part of TOTO's strategy, culture and daily work, and commit to the development goals targeted by the United Nations. In our business activities, we will make every effort to promote the 10 principles of the Global Compact.

At the base of TOTO's business activities lie the firm beliefs of our founder to "improve the national standard of living" and "provide a healthy and cultural life." These beliefs have been carried forward as our company motto and corporate philosophy. Moreover, in 2017, TOTO Group will fete its 100th anniversary. As we approach this anniversary and the future beyond it, we will continue to uphold these beliefs and strive to lead a "sustainable society in the truest sense" as a corporation permitted to exist on the earth.

For this reason, we will seek to satisfy all stakeholders consisting of customers, hosting communities, shareowners, business partners and employees by promoting future CSR activities, enhancing the objectivity and transparency of management, and defining management responsibilities. The TOTO Group hereby announces to the people around the world that we will constructively carry out our social responsibilities as a corporate citizen.

About CSR management at TOTO

The basic philosophy of the TOTO Group is to satisfy all stakeholders consisting of customers, hosting communities, shareowners, business partners and employees, and expand our corporate value on a permanent basis. In 2004, in order to enhance the objectivity and transparency of management and define business responsibilities, we established a CSR Committee headed by our President. In 2011, in order to be a "true global company" and target the strategic integration of CSR activities into our business activities, a CSR Activity Department was placed under the control of the Management Planning Division and renamed the "ESG Promotion Department."

Outline of the United Nations Global Compact

The "United Nations Global Compact" is a set of voluntary action principles conducted by corporations in order to address various issues such as climate change, environmental problems and widening social disparities that are growing on a global scale. They were proposed by Kofi Annan, Secretary General of the United Nations, in 1999 and established formally by the U.N. Headquarters in July, 2000. Participant companies observe the 10 principles concerning "Human Rights, Labor, Environment and Anti- Corruption", act as a "good member of society" and strive for sustainable growth.

10 principles of the United Nations "Global Compact"

THE GLOBAL COMPACT
Human rights

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights, and;

Principle 2: Make sure that they are not complicit in human rights abuses.


Labor

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

Principle 4: The elimination of all forms of forced and compulsory labor;

Principle 5: The effective abolition of child labor, and;

Principle 6: The elimination of discrimination in respect of employment and occupation.


Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges;

Principle 8: Undertake initiatives to promote greater environmental responsibility, and;

Principle 9: Encourage the development and diffusion of environmentally friendly technologies.


Anti-Corruption

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.