Toyota redefined Toyota Philosophy

In May 12, 2020―Toyota Motor Corporation (TMC) announced its financial results for the fiscal year ended March 31, 2020 in a press conference. At the same time, its president, Akio Toyoda, explained new corporate Philosophy.

What is Toyota Philosophy?

Based on its homepage, Toyota Philosophy is described as follows.

Mission

Producing Happiness for All

  • We make the happiness of others our first priority.
  • We make better products more affordable.
  • We value every second and every cent.
  • We give all our effort and offer all our ingenuity.
  • We look forward, not backward.
  • We believe the impossible is possible.

A lot of people rethink our life and work

Due to the pandemic in the beginning of 2020, our life was changed a lot. In many countries, severe restrictions were imposed to avoid the spread of the virus. Many people felt the fear and there was no critical solution at the same time. In addition to this, negative feelings were accelerated and they led to kind of discrimination sometimes. Probably, many people think of those questions: what is important for our life? Why do I work for this company? Can a company protect our life? Can a country save our life?

Therefore, Toyota’s announcement is not surprising because the date of the announcement was the midst of the pandemic. Also, as the president mentioned, Toyota exists not only for its employees but also for Japan. In this sense, it was a good time for the company to deliver the clear and heartwarming message “Producing happiness for all”.

However, even without the pandemic, many people had already found that sustainability for the earth as well as our life is indispensable. In fact, Business Roundtable, which is a nonprofit association and whose members are chief executive officers of major United States companies, redefined the Purpose of a Corporation in 2019.

What is Statement on the Purpose of a Corporation?

Based on its homepage, Business Roundtable redefined the Purpose of a Corporation in the following way.

Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a life of meaning and dignity. We believe the free-market system is the best means of generating good jobs, a strong and sustainable economy, innovation, a healthy environment and economic opportunity for all.

Businesses play a vital role in the economy by creating jobs, fostering innovation and providing essential goods and services. Businesses make and sell consumer products; manufacture equipment and vehicles; support the national defense; grow and produce food; provide health care; generate and deliver energy; and offer financial, communications and other services that underpin economic growth.

While each of our individual companies serves its own corporate purpose, we share a fundamental commitment to all of our stakeholders. We commit to:

  • Delivering value to our customers. We will further the tradition of American companies leading the way in meeting or exceeding customer expectations.
  • Investing in our employees. This starts with compensating them fairly and providing important benefits. It also includes supporting them through training and education that help develop new skills for a rapidly changing world. We foster diversity and inclusion, dignity and respect.
  • Dealing fairly and ethically with our suppliers. We are dedicated to serving as good partners to the other companies, large and small, that help us meet our missions.
  • Supporting the communities in which we work. We respect the people in our communities and protect the environment by embracing sustainable practices across our businesses.
  • Generating long-term value for shareholders, who provide the capital that allows companies to invest, grow and innovate. We are committed to transparency and effective engagement with shareholders.

Each of our stakeholders is essential. We commit to deliver value to all of them, for the future success of our companies, our communities and our country.