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TOTO Group Business Overview

The TOTO Group consists of TOTO Ltd., 52 subsidies, and 5 affiliates. The major business fields are as follows:
・Domestic housing equipment business: Main products include restrooms, baths, kitchens, vanity units, etc.
・Overseas housing equipment business: Main products include rest rooms, baths, vanity units, etc.
・New business domains:Main products include ceramic, tiles and the Hydrotect product.

For company information and business details, please see the links below:

Sales distribution ratio: Consolidated sales: 573.8 billion yen (FY 2017 ending March 31)

The TOTO Group is a manufacturer with more than 20,000 employees and operations in 18 countries around the world.
For group details, please see the links below:

【TOTO Group Supply Chain】

The TOTO Group procures raw materials and goods from suppliers around the world.
The ratio of overseas suppliers in the total procurement amount is around 20%.

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 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.
Furthermore, as stipulated in the "TOTO Group Procurement Policy", the TOTO Group fulfills its corporate responsibility in all aspects of management, environment, and society and carries out balanced activities with the aim of achieving the sustainable development of businesses, society, and the earth. Through fair, equitable purchasing from suppliers, the TOTO Group continues to offer valuable products and services to customers.
Also, transactions with suppliers should be fair and honest based on a system where the quality, cost, and delivery dates are considered, but where the state of corporate social responsibility is monitored with regard to labor, sanitation, environmental precautions, and human rights, such as forced labor. With Japanese suppliers, we confirm these policies through briefings before the start of transactions and make compliance with our standards and policies a condition of business. We will apply a similar system to overseas suppliers in the future..

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, and regular employees are all trained separately, and in FY2015 approximately 16,000 persons attended these training sessions.
We promote appropriate education and training inside the group in order to ensure compliance with the TOTO Group Business Behavior Guidelines for the entire TOTO Group. The guidelines emphasize respect for human rights and are translated into 13 languages to ensure compliance by all people working within the TOTO Group.

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.

[Supply Chain Efforts]

For the supply chain, we continually figure out and evaluate the efforts for CSR made by our suppliers through policy briefings followed by periodic monitoring through questionnaires and on-site audits.

Figuring out /Evaluating the CSR activities

The TOTO Group carries out surveys using questionnaires for important suppliers. In the questionnaires, supplier standards are set, and achieving these standards is considered a condition of doing business with TOTO. When any supplier fails to achieve the standards, Toto asks them to develop an improvement plan, and action will be taken according to the plan after being approved by TOTO.

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

© TOTO LTD.

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