Toyota Tsusho endeavors to ensure that executives and employees perform their duties following laws, regulations, the company's Articles of Incorporation, and corporate ethics as the basic policy for compliance.

In July 2016, Toyota Tsusho enacted its Global Code of Conduct & Ethics (COCE), which defines the company's behavioral guidelines, after it was approved by the Board of Directors in April of that year. The COCE was formulated by a team of Toyota Tsusho Group employees from Japan and overseas. The company issues the COCE Booklet with the president message in various languages (currently, 23 languages) and has made it available on the company intranet. Knowledge of the booklet has been thoroughly disseminated through the COCE global network, all exectives and employees of all domestic and overseas group companies are required to pledge of compliance with the COCE.

We require all officers and employees to report any concerns about possible COCE violations through the proper channels, and we guarantee that no retaliatory actions or measures will be taken against the whistleblower pursuant to internal regulations. The proper channel includes supervisors and the Administrative Unit, as well as our global whistleblower system, which accepts anonymous reporting in more than 150 languages.

On-site inspections by the planning department of each sales division and internal audits by the Audit Department also carefully look for COCE violations.

We also fully utilize the latest digital tools, such as IT and AI, to analyze a massive amount of data on expenses, sale and purchase accounting and financial statements, etc., and monitor for signs of improper conduct so we can prevent and discover them early. These analysis results are also utilized in the aforementioned on-site inspection activities and internal audits.

If there is a concern about a possible COCE violation, the Compliance & Crisis Management Department, together with related departments such as the Legal Department and the Global Human Resources Department, thoroughly investigate the case and take appropriate action based on the Incident Response Manual, under the supervision of the Board of Directors. To maintain our compliance-related initiatives at the highest level, we will continue to regularly evaluate and validate the current basic policies, the COCE, and the effectiveness of various compliance measures and improve them as needed.

The number of COCE violations in the Toyota Tsusho Group in Japan and overseas in the fiscal year ended March 31, 2022, is shown here below. Note that there were no violations seriously affecting our group’s operation.

-Total number of violations: 48.

The Toyota Tsusho Group mandates that any concerns regarding COCE violations be immediately reported to a superior or the relevant department of the Administrative Unit. However, a whistleblowing system has been established for cases such as when there are impediments in reporting to a superior or department-related Administrative Unit for some reason.
The whistleblowing system was expanded and extended from its previous form, in which reporting was only possible through internal reporting lines and external lawyers, by adding a dedicated external reporting line. This reporting line, created in November 2017, offers multilingual support (currently, in more than 150 languages), and makes it easier for employees to report or consult on matters related to COCE violations, including all forms of corrupt acts and human rights violations, by providing a global service with greater anonymity and confidentiality. Notices or reports on all whistleblowing information and the status of responses are sent to Audit & Supervisory Board members, and a whistleblowing system that allows whistleblowers to notify directly to Audit & Supervisory Board members has been established to ensure independence from management.
We will continue to promote the development and operation of a more reliable and effective whistleblowing system, and strive to further strengthen compliance management and enhance corporate value.

will: It expresses the will and determination to improve Toyota Tsusho.
The reason we use lower-case letters is to make this matter more familiar to you by leaving the space for "I", "We", and "You" in the name.
do.: It expresses the realization of the will and determination to improve the company.

The name "SPEAK UP" represents our desire to create a lively and exciting work environment by providing an environment in which it is easy to report concerns and by ensuring that employees feel safe and comfortable in speaking up.

In the fiscal year ended March 31, 2023, we received 81 reports through SPEAK UP and will do. 81 reports were subjected to hearings and internal investigations, etc. As a result, we confirmed 30 cases as breach of COCE.
The breakdown of the 30 cases is as follows.

50%: Discrimination and harassement (including sexual, moral, gender...)
13%: Working hours, pay
10%: Legal compliance issues
10%: Ethical issues (confidential information management, conflict of interest, insider trading, etc.)
7%: Health and Safety issues

For these issues, corrective actions and measures to prevent recurrence (e.g., improvement of systems, modification of rules, and thorough dissemination of information) were implemented.
In two of these cases, disciplinary actions were taken in accordance with company rules.

We have set up a contact point on our website so that the general public and stakeholders of Toyota Tsusho can make inquiries, and the appropriate department responds according to the content of the inquiry.

Toyota Tsusho offers various types of training and seminars, including mandatory e-learning and compliance events held in conjunction with the Business Ethics Month of October to ensure compliance with laws and regulations and the internalization of specific codes of ethical conduct in the day-to-day work of its executives and employees. In addition, we obtain pledges from all executives and employees and review compliance status.

In the fiscal year ended March 31, 2023, we held training for various levels of the organization, including new employees, newly appointed managers, line managers, and executives, as well as for specific groups such as newly appointed executives at domestic Toyota Tsusho Group companies and employees about to be stationed overseas. The company also conducts training, e-learning, and information sessions for executives and employees on topics such as insider trading, bribery prevention, cartels, supply chain CSR, and the COCE to ensure that all personnel are fully aware of the prohibition of corruption in all forms. In addition, the company reviews, revises, and issues the Laws & Ordinances Handbook for Executives for executives and a compliance manual for employees every two years so that the entire company workforce is familiar with important laws to ensure strict compliance with laws, regulations, and corporate ethics.

The basic policy of Toyota Tsusho and the Toyota Tsusho Group is to comply with the tax laws and regulations of individual countries, under the responsibility of the CFO and following the COCE, and to appropriately satisfy global tax obligations.

We attach great importance to conducting all our business activities properly and rationally. We will expand our business and build a global structure in line with our business objectives, and we will not intentionally avoid taxes using tax havens. We strive to comply with the laws, regulations, and tax conventions of individual countries, as well as with international taxation rules, appropriately reporting income and paying taxes. We build fair relationships with tax authorities in the regions in which we do business by appropriately disclosing information and engaging in constructive dialogue.

Under our basic policy, we strive to eliminate double taxation and appropriately utilize tax incentives to achieve appropriate tax costs.

The Representative Director CFO, issues and directs basic policies regarding tax costs and supervises the proper allocation of tax expenses and the fulfillment of tax obligations under the following structure.
- Officer in charge: Hideyuki Iwamoto (Representative Director CFO)
- Department: Accounting Department

The General Manager of the Accounting Department and the Accounting Department work together with the Business Accounting Department and the relevant accounting departments of domestic and overseas subsidiaries to manage tax obligations on a global basis. In addition to reporting tax-related risks and events from domestic and overseas subsidiaries to the Accounting Department, tax risks are reviewed when examining individual projects. Furthermore, when the General Manager of the Accounting Department recognizes significant tax-related events and risks, appropriate reports are made to the Representative Director CFO.

The CFO reports on important tax-related matters at meetings of the Board of Directors or Executive Officers, as necessary, in an effort to improve the tax governance system.