Under the California Transparency in Supply Chains Act of 2010
California Transparency in Supply Chains Act of 2010
On January 1, 2012, the California Transparency in Supply Chains Act of 2010 (SB 657) will take effect in the State of California. The law requires retailers and manufacturers operating in the state to make public their efforts to address the issue of slavery and human trafficking. The intention of the legislation is to allow consumers to make better, more informed choices regarding the products they buy and the companies they choose to support. One of the two guiding principles in The Toyota Way is Respect for People. Please read on to learn more of what Toyota is doing to ensure good corporate responsibility in this area.
Toyota has developed and provided “Toyota Supplier CSR (Corporate Social Responsibility) Guidelines” to clarify our expectations for our supply base. These guidelines clearly define Toyota’s guiding principles and policy expectations for our supply base.
Training & Internal Accountability
Toyota worked with the Automotive Industry Action Group (AIAG) and its membership to create and deploy training for all supplier levels in the area of responsible working conditions. The training includes a focus on forced labor, encouraging all participants to confirm local laws and ensure compliance. Suppliers are then expected to cascade the training within their supply chain. These efforts will continue as participating automotive manufacturers work to educate suppliers at all levels of the supply chain. Toyota will continue to work with our suppliers to ensure education of all levels of our supply base.
Additionally, as part of Toyota Purchasing’s standard training requirements, members are trained on responsible working conditions including how to identify and respond to supply chain issues. Toyota Purchasing team members are assigned responsibility for specific suppliers with goals of insuring compliance with Toyota’s requirements, including compliance with Toyota’s CSR objectives. Such team member performance and management of supplier relationships is evaluated on a biannual basis.
Suppliers certify through acceptance of Toyota’s Terms and Conditions that, on their own behalf and on behalf of their agents, employees and subcontractors, they have not and do not use slave, prisoner or any other form of forced or involuntary labor in the manufacture or supply of items to Toyota.
Verification & Auditing
Toyota does not currently have a regular program for verification or auditing. Toyota is presently benchmarking the automotive industry and others to determine best practices and future direction in this area. Furthermore, Toyota’s Terms and Conditions provide for the right to conduct appropriate audits to verify, validate and monitor compliance with legal requirements and Toyota requirements.