Basic
policy

Toyota regards the
sustainable growth and the stable long-term growth of corporate value as
essential management priorities. The key to address these priorities is to
build positive relationship with all stakeholders, including shareholders and
customers as well as business partners, local communities and employees, and
supplies products that will satisfy customers.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Corporate Governance Code

Toyota implements
each business principle. There are five main principles of Toyota:

–         
Be
faithful to your duties, contributing to the company and overall goodwill

–         
Be
creative, stay ahead of the times

–         
Be
practical

–         
Build a homelike atmosphere at work that is
warm and friendly, and

–         
Respect spiritual matters, and remember to be
grateful at all times.

Based on these “Five
Main Principles of Toyota”, Toyota Motors established “Guiding Principles” to
promote business in cooperation with people in different countries and regions
throughout the world, notwithstanding differences in cultures and values.

Corporate Governance Frontline Operations

In a shareholder’s
meeting, they appoint Board of Directors (including outside directors, their
main function is decision-making and management oversight), and Audit and
Supervisory Board (more than half of the member are outside Audit and
Supervisory Board members). Audit and Supervisory Board audit to BODs, while
BODs supervise Operating Officer whose function is to execute operations into
Head Office and Business Units/Companies and Operating Officer appeal or report
to BODs.

Statement of Compliance with the Code of
Corporate Governance

This statement
complies with the Code of Corporate Governance contained in regulation 35 of
the listing regulations of Karachi Stock Exchange Limited, Lahore Stock
Exchange Limited and Islamabad Stock Exchange Limited, for establishing a
framework of good governance whereby, a listed company is managed in compliance
with the best practices of corporate governance. The company have applied these
principles as following:

–         
The
directors have confirmed that none of them is serving as a director in more
than seven listed companies.

–         
The
directors are registered as taxpayers and none of them has defaulted in payment
of loan.

–         
The
company has prepared a code of conduct.

–         
The Board
has adopted a Vision/Mission statement, overall corporate strategy and
significant policies of the company prepared by the management.

–         
The meetings
of the Board were presided over by the Chairman and held at least once in every
quarter.