Initiatives on Human Rights

The Idea Concerning the TOTO Group Human Rights Policy

The TOTO Group wants to be an entity that constantly assumes a leading role in the realization of a sustainable society by creating added value, which is useful for society, and employment, as well as by autonomous and responsible actions through fair and free competition. To realize that, all people working for the TOTO Group strive to play an active role with a strong sense of duty based on the concepts indicated in the corporate motto and philosophy, and to fulfill their social responsibilities.

Deploying its business activities that respect the human rights of all people in each country and region and contributing to the development of such activities are stipulated in the Charter of TOTO Group Corporate Behavior, which is the basic stance of behavior of all people working for the TOTO Group, and the Human Rights Policy stipulates the policy to fulfill responsibility to respect human rights as a company based on the Charter of TOTO Group Corporate Behavior.

Based on the United Nation’s Guiding Principles on Business and Human Rights, the TOTO Group supports and respects international norms of human rights, such as the International Bill of Human Rights, ILO Declaration on Fundamental Principles and Rights at Work, Children’s Rights and Business Principles, and similar declarations and standards.

Promotion system

The TOTO Group is establishing corporate governance system for executing and　supervising fair and equitable management.

The Sustainability Committee is held with the president as the chairperson to discuss and administer sustainability issues, including human rights. The board of directors then supervises the activities.

The Sustainability Committee comprises three fields: Environment, Social, and Governance. The subcommittees that make up each field establish promotion programs of their own and engage in activities that cross over to different departments and are expanded to related departments and Group companies in Japan and overseas for the implementation of the Company mottos and the TOTO Group Corporate Philosophy, as well as for the practice of the "Charter of the TOTO Group Corporate Behavior".

Human rights awareness activities

The TOTO Group has established the "TOTO Group Business Conduct Guidelines" so that employees can regularly check examples of behavior in line with the "TOTO Group Business Conduct Guidelines".

The TOTO Group Business Conduct Guidelines, which outline the conduct expected of TOTO Group employees and include the TOTO Group Corporate Philosophy, top commitment, and various guidelines for conduct, were drawn up in FY2013 (translated into 13 languages) and distributed to all Group Companies so as to ensure awareness among TOTO Group employees in every country and region.

The guidelines include a compliance guide on "Respect for Human Rights" and "Prohibition of Harassment" as one of the important compliance items in promoting corporate activities.

Furthermore, in Japan, the TOTO Group holds training sessions on human rights for all employees every year, which had approximately 18,000 attendants in FY 2024.

Human Rights Due Diligence Process

In accordance with the TOTO Group Human Rights Policy established in fiscal 2023, the Group promotes human rights due diligence to identify, prevent and mitigate the adverse impact of its business activities on human rights throughout its value chain.  The Group identifies human rights-related risks in its business activities and implements initiatives to prevent and mitigate their adverse effects, verifying their effectiveness. It also discloses information on these initiatives to respect human rights in the integrated report and on the TOTO website.

[Overview of the Initiatives]

Implementation of Human Rights Impact Assessment

In fiscal 2024, as part of the human rights due diligence process, we identified and assessed human rights-related risks that could adversely affect our value chain with the cooperation of specialist organizations.

[Human Rights Impact Assessment flow]
1. Overviewing human rights issues related to the TOTO Group
・Sort out country risks based on countries in which the Group companies operate, their business models, etc. and identify potential human rights issues at each site.
・Identify human rights issues based on the existing internal survey results and reports.

2. Extracting risks related to the human rights issues
・Extract risks by referring to internal documents, , the Japanese Government's "Guidelines on Respecting Human Rights in Responsible Supply Chains," and the Ministry of Justice Human Rights Bureau's publication, "Report on the 'Research on Business and Human Rights': How Companies Should Respond Today."
・Conducted a human rights risk assessment for TOTO and its Group companies.

3. Assessing human rights-related risks
・Sort the extracted human rights issues into each value chain.
・Comprehensively determine human rights-related risks in each value chain based on previous survey activities. Map the risks based on two axes: severity and likelihood of occurrence.

4. Identifying areas/issues where human rights issues are likely to arise
・For items with high human rights-related risks, consider the following factors: comparison with second opinions from specialist organizations, relevance to the important human rights-related issues specified in the Idea Concerning the TOTO Group Human Rights Policy, interview surveys with some departments and Group companies, and strength of connection to our business. Then, identify areas/issues where human rights issues are likely to arise, which therefore have a high priority for action.

[Areas/Issues Where Human Rights Issues Are Likely to Arise]

Prevention and Mitigation of the Adverse Impact on Human Rights / Effectiveness Assessment

･Suppliers
The TOTO Group requests that all its direct suppliers and upstream businesses comply with the Group’s Supplier Code of Conduct. To identify human rights-related risks in the supply chain and implement appropriate prevention and mitigation measures for these issues, the Group requires all suppliers of raw materials and parts used in our products to complete, every three years, a sustainability questionnaire. This questionnaire begins with questions concerning human rights (including issues such as child labor and forced labor) and also covers the environment, health and safety, and business ethics.

The results of this questionnaire are used to confirm compliance with the Supplier Code of Conduct and to request improvements as necessary.

In fiscal year 2024, focusing on Japan's Technical Intern Training Program as a priority theme, two companies identified as high-priority through a desktop assessment underwent an audit program conducted by a third-party organization. As a result, although no serious non-compliance issues, such as forced or child labor, were identified, areas for further improvement in occupational health and safety were noted. The suppliers have already submitted corrective action plans for these findings and are implementing improvements.

[Requesting cooperation from suppliers (FY2024)]

･Employees (All people working for the TOTO Group)
The TOTO Group annually implements an Employee Awareness Survey of its employees in order to comprehensively know about the penetration of its corporate philosophy and organizational culture related to compliance. This Survey has identified such potential human-rights risks as harassment, forced labor, and discrimination. In addition, the results of the Employee Awareness Survey are analyzed, and training for prevention is provided for managers and non-management employees.

In addition, employee awareness survey results are shared at corporate meetings and on the intranet, and we endeavor to improve employee awareness in each workplace by providing feedback to each TOTO department and all Group companies. Additionally, we are undertaking detailed assessments of the 'areas/issues with high potential for adverse human rights impacts' identified in our FY2024 human rights impact assessment, and are advancing efforts to prevent such impacts."

The following are examples of the initiatives implemented to date and areas in need of improvement and enhancement.

[Case studies of initiatives concerning areas/issues with high potential for adverse human rights impacts]

Additionally, in fiscal 2024, we held an executive human rights awareness training program, where we invited Hideaki Umetsu, a lawyer from the Mori Hamada & Matsumoto LPC, to deliver a lecture on human rights from the perspective of business and human rights to our directors and department heads.

･Business Partners / Customers

In fiscal year 2024, through consultations with Group companies in the same business sector as our business partners, we identified potential risks for our business partners and customers, thereby deepening our understanding of the human rights risk assessment process.

From fiscal 2025 onwards, we will communicate how the TOTO Group approaches human rights.

The TOTO Group has established multiple reporting and consultation channels for human rights and compliance issues.
We will conduct a thorough fact-finding investigation regarding reports received, and in the event a confirmed adverse human rights impact is identified, we are committed to providing remedy immediately.
Anonymous reports are accepted, and the confidentiality of the reporter's name and other identifying information is strictly ensured.

Compliance and Grievance Channel, including Human Rights

■ Grievance/Consultation for All People Working for the TOTO Group

The TOTO Group has established both internal and external consultation channels for employees regarding human rights issues and compliance matters, and these are deployed across all TOTO Group companies in Japan and overseas.

＞Compliance（Establishment of Hotlines）

■ Grievance/Consultation for External Stakeholders

The TOTO Group joined the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER) as a full member in fiscal 2025. Through JaCER, we accept human rights-related complaints and consultations from all stakeholders, including our direct suppliers and business partners/customers, as well as secondary and subsequent suppliers with whom we do not have a direct business relationship, and local communities.

【JaCER Grievance Form (External site)】
・Japanese：苦情を申し立てる｜JaCER ビジネスと人権対話救済機構
・English：Report a Grievance｜JaCER
・Chinese：申诉投诉｜JaCER 企业与人权对话救济机构
*An additional 32 languages are accessible from the English form