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Policy and Management System

Human Rights Policy

The "Charter of TOTO Group Corporate Behavior" , which serves as the basic stance of the activities of all those working in the group, cites the "respect international norms including those related to human rights," and declares that the Group shall contribute to the socio-economic development of relevant countries and regions by expanding its business activities in a way that respects local culture and customs. Besides the TOTO Group, it also states that the TOTO's supply chain including its trading partners shall aim to thoroughly respect international norms in a similar manner.

The TOTO Group participates in "United Nations Global Compact," which supports and puts into practice universal principles governing human rights and labor ("Universal Declaration of Human Rights," "International Labor Organization (ILO) Core Conventions," etc.), and takes reference from United Nations Guiding Principles on Business and Human Rights and a variety of international norms.
In addition, in order to execute the provisions of the "TOTO Group Corporate Charter," besides requesting the Group's supply chain partners to strictly comply with human rights such as labor and discrimination, etc. in their transactions, the Group also conducts checks on their compliance status through CSR surveys.

System for the purpose of upholding human rights

In Japan, the TOTO Group has established a Committee for Promoting Training on Human Rights Issues in order to train and educate employees with the goal of pleasant, discrimination-free workplaces, families and society.
Business executives, managers and supervisors, regular employees and new employees are all trained separately, and in FY2015 approximately 16,000 persons attended these training sessions.

Initiatives to Identify Important Human Rights Issues of TOTO

Practice of human rights due diligence

In fiscal 2013, an organization and verification of the status of the TOTO Group's initiatives towards human rights issues was carried out and a dialogue between the CSR Department and external experts was conducted in March 2014. Besides obtaining an evaluation of the current initiatives through the dialogue, TOTO also received advice from the extensive perspective of the external experts regarding the following initiatives. (* Dialogue with experts)

Critical Human Rights Issues

Participation in Human Rights Due Diligence Workshops

Participation in Human Rights Due Diligence Workshops
In FY2015, TOTO participated in a stakeholder engagement program organized by NPO Caux Round Table Japan (Human Rights Due Diligence Workshop).
Since 2012, this workshop identifies "Important Human Rights Issues for Each Industry" based on the participation of multiple stakeholders such as companies, NGO/NPO, and experts with the aim of putting the United Nations "Guiding Principles on Business and Human Rights" into practice in companies.
Through its participation in a total of four workshops, TOTO has deepened its understanding of the relationship between its business activities and human rights and also the context in which human rights violations occur. This understanding is reflected in TOTO's initiatives on human rights due diligence e.g. in the identification of important human rights issues etc.

Response to relief measures

TOTO Group in Japan: Internal/External Hotlines

TOTO has a system of internal and external hotlines for receiving reports of actual or potential workplace compliance problems and resolving them. These hotlines are available when problems cannot be reported or resolved through the chain of authority.
Reports can be filed via email, telephone or sealed letters, etc., and the name and other details of the reporting party are kept strictly confidential. The system can be used by TOTO Group employees in Japan as well as trading partners of the group's companies.

TOTO Group in Japan: Internal/External Hotlines

Overseas - China: External Hotlines

Outside Japan, the whistleblowing system was enlarged in October 2015 and made accessible to the employees of all group companies in China.
Information can be reported by e-mail, or filling out a Web form, and the name of the informer and other information is kept confidential.

Endorsements

Caux Round Table (CRT) Japan recognized that TOTO LTD. understands the framework of Sustainable Navigation, and that it has taken actions in accordance with the action policies for the three areas of supply chains, the individual group, and consumers. These policies were formulated based on the dialog held with experts in fiscal year 2013 and on the results of the regional risk assessment (Step D). It also acknowledged that it had taken part in the Nippon CSR Consortium's stakeholder engagement program (human rights due diligence workshop) and held discussions with competitors and non-governmental organizations in accordance with Human Rights Issues by Sector v. 3, and that it participated in the 2015 Business and Human Rights Conference in Tokyo to deepen its understanding about the relationship between business and human rights in the Japanese context.
Your company made steady efforts in the past and finished checking the current status of human rights in your corporate group. In the future, we hope to see you take flexible and quick action, giving special attention to the supply chain and other priority areas. Taking into account the risk of potentially having a negative impact on human rights in the overseas supply chain, it is hoped that risk assessments will be conducted and that a mechanism for handling complaints, including those related to the supply chain, will be considered.


Hiroshi Ishida
Executive Director at Caux Round Table – Japan