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All Roads Lead to

2018D&IANNUAL REPORTGOING PLACES, TOGETHER

Our strength is in our people — and, our journey toward One Toyota is a testament to that strength.

Together, Toyota Motor North America (TMNA) and Toyota Financial Services (TFS) are challenging the status quo and converging on a path where all roads lead to One Toyota. We are driving connections and collaborating across boundaries — going places, together. United, we are positioning our business to start our impossible — our vision of mobility for all — by challenging what’s possible.

By embracing and advancing our long-standing and unwavering commitment to Diversity and Inclusion (D&I), we are enriching our work environments, team member experiences, the marketplace and our society. We are creating momentum and driving innovation toward achieving our greater purpose: To contribute to a better world.

We believe in mobility for all — and know the best path to get there is with respect and inclusion for all.

TOYOTA’S COMMITMENT TO D&I

Accelerating Our Commitment

Striving to be leaders in D&I, we are embedding our strategies more deeply across the business, reaffirming and accelerating our commitment to our team members, customers, dealers, suppliers and communities by doing the following:

• Investing and creating greater opportunities for the diversity of our customers, business partners and community organizations, believing their success is the key to ours

• Cultivating a culture that reflects, empowers and respects the diversity of and provides opportunity for our team members, believing a more diverse and inclusive workplace drives innovation and relevancy

• Believing in equality, respect for and inclusive treatment of all people — with increased awareness of conscious and unconscious discrimination — to make the workplace, marketplace, society and the world a better place

Together, we carry on our journey into 2018. Through the avenues of innovation, inclusiveness, diversity of thought, investments in our future and our communities and more, we can be assured the path of success continues to be where all roads lead to One Toyota.

As we continue to evolve, diverse talent allows us to see the world differently and helps us become agile and adaptable to a changing marketplace.”

MIK E GROFF

President and CEO, Toyota Financial Services

Cultivating diversity in all its forms is not just the right thing to do — it’s critical to the success of our business.”

J IM LENT Z

CEO, Toyota Motor North America

One Toyota Diversity and Inclusion

ContentsTABLE OF

Where the Road Began — Daring to Dream . . . . . . . . . . . . . . . . . . . 2

How Our Pillars Guide D&I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Accelerating D&I — Being Purposefully Unique: Our D&I Structure . . . . . . 4

Reflecting Our Commitment to Those We Serve . . . . . . . . . . . . . . . . . . . 5

Advocating and Advancing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Learning and Improving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Diversity and Inclusion Grassroots Style . . . . . . . . . . . . . . . . . . . . . . . . 8

An Imperative for the Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Unlocking Her Impossible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Accelerating D&I — From Dreaming to Doing . . . . . . . . . . . . . . . . . . 12

Evolving Partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Forging a Successful Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Accelerating D&I — Our Commitment . . . . . . . . . . . . . . . . . . . . . . 16

Strengthening Supplier Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Fostering Future Leaders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Dealing In Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

A Toyota Customer First . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Creating Equal Opportunity for All . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

The Passion to Develop People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Driving Towards the Future — Dream Big . . . . . . . . . . . . . . . . . . . . 22

Closing the STEM Gap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Driving the Future — The Meaning of Mobility . . . . . . . . . . . . . . . . . 23

Bettering Lives Through Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Together, We Make a Difference . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Embedding Diversity and Inclusion across the business, and partnering with internal and external stakeholders to understand challenges, helps foster a more open company culture where people and innovation can thrive.”

CHRIS RE Y NOLDS

Executive Vice President, Corporate Resources and Chief Diversity Officer, Toyota Motor North America

Annual Report 2018 1

It’s no coincidence the spirit of Toyota’s founder, Sakichi Toyoda, is very much alive in every aspect of our business today.

A visionary who dared to dream of contributing to a better world, Sakichi relentlessly pursued his desire to provide better experiences through problem-solving, innovative thinking, Continuous Improvement and Respect for People — foundational principles of The Toyota Way.

Grounded in these principles, our Team Toyota Competencies — DELIGHT, SOLVE, INNOVATE, LEAD, GROW and VALUE — and their associated behaviors, empower us to follow Sakichi’s example.

There Is Nothing That Can’t Be Done

We foster an inclusive environment where everyone is inspired to do their best. When all of us — leaders, team members and business partners — VALUE one another and respect and embrace new ideas and different perspectives, our dream of equity and mobility for all is within reach. We’re going places — together.

Sakichi believed “there is nothing that can’t be done” — his “can do” spirit calls on us to challenge what’s possible and to make a difference in our world.

WHERE THE ROAD BEGAN — DARING TO DREAM

LE AD

Conduct yourself and guide others with humility, gratitude

and integrity

VALUE

Foster an inclusive environment where

everyone is inspired to do their best work

DELIGHT

Put your customers first and strive to better

their experience

SOLVE

Apply an analytical approach to anticipate,

identify and resolve problems

INNOVATE

Continuously improve, challenge the status

quo and push for breakthrough solutions

GROW

Deliberately and continuously improve yourself and others

Think outside the box. Share that crazy idea. You are safe here — you are welcome here to push for the impossible — to make us better, to make it matter — to make a difference.”

A K IO TOYODA

President and Member of the Board of Directors, Toyota Motor Corporation

TE AM TOYOTA COMPE TENCIES

One Toyota Diversity and Inclusion2

Early Days

Throughout the evolution of Diversity and Inclusion (D&I), one thing has remained constant: D&I, at its core, is a direct reflection of our principles, cultural priorities and values. In their inceptions, both Toyota Motor North America (TMNA) and Toyota Financial Services (TFS) D&I strategies were brought to life through grassroots efforts led by individuals dedicated to making connections.

As D&I grew, it caught the attention of key leaders. Team members were growing connections across boundaries and doing so while upholding the pillars of The Toyota Way: Continuous Improvement and Respect for People. These innovative team members established a strong foundation and aligned D&I as a fundamental part of the business.

Driving Momentum

“One of the most critical pieces to the evolution of D&I,” recalls Adrienne Trimble, General Manager of Diversity and Inclusion at TMNA, “was getting key senior leaders as advocates for business partnering groups (BPGs) — without those early champions, we may not have the engagement levels we have today.”

Terri Von Lehmden, General Manager of Talent

Acquisition and Talent Development at TMNA,

says, “Together, we intentionally created

avenues for two-way communication and were

purposeful in our actions. Once D&I was front

and center, we created focus groups to ensure

The Toyota Way was being reflected across all

D&I initiatives.”

Stephen Lewis, General Manager of Diversity

and Inclusion at TFS, adds that today “our

leaders and key senior executives actively

encourage team members to join BPGs, as

well as participate in BPG meetings and events,

driving engagement and culture.”

Partnerships in Perspective

With senior-level leaders committed to

D&I and team members actively engaged,

Toyota knew the next step would be to view

the D&I lens through external perspectives.

So, advisors who reflect Toyota’s diversity lens

were gathered to help develop and improve

Toyota’s D&I strategy. This includes the

Diversity Advisory Board, external stakeholders

and partners who offer insights and expertise

to ensure Toyota meets the expectations

and priorities of our team members and

communities.

A lot has changed — people are connecting more — talking about inclusion, talking about pride. Creating conversations about diversity awareness — it’s happening because of open communication.”

K A REN BOND

Assistant Manager, Finance and Accounting, Toyota Motor Manufacturing Canada

Guide D&IHOW OUR PILLARS


North American Diversity and Inclusion Alliance (NADIA)

Comprised of business action teams created from stakeholder groups — team members, customers, suppliers and dealers — this group helps develop, drive and align D&I strategy and business action plans to benefit both our business and communities.

Executive Diversity and Inclusion Council

A council of our most senior leaders, their goal is to deepen the connection between our business and D&I strategies in close collaboration with the DAB and D&I team. Committed to D&I, they help drive inclusion across the company and guide, support and advocate for NADIA’s work.

Toyota Financial Services (TFS) Management Committee

The executive D&I council at TFS, consisting of vice presidents and above, is led by the TFS president. They drive Toyota’s consumer and dealer finance and insurance business in the United States, demonstrating a commitment to guide, endorse and support D&I strategic efforts.

Business Partnering Groups (BPGs)

Company-wide employee resource groups that include networks for team members to share or learn more about different engagement and diversity groups. BPGs have a critical role in helping execute our D&I strategy and offer a voice and perspective for all team members.

Regional Diversity Council

Consisting of Diversity Champions who are located at North American Manufacturing Centers (NAMC) and Research and Development (R&D) facilities, they are accountable for providing D&I leadership and strategic support. Partnering with leaders at their sites, they serve as visible role models who create positive impact by helping apply D&I subject matter expertise to ongoing business priorities.

STEPHEN LE WIS

General Manager, Diversity and Inclusion, Toyota Financial Services

Educating our team members about unconscious discrimination, the power of inclusion and why D&I is a key priority for the company is critical to the long-term success of our business.”

Alexis Herman, ChairFormer United States Secretary of Labor and

Current Chief Executive Officer of New Ventures, LLC

Howard W. BuffettExecutive Director of the Howard G. Buffett Foundation

Phyllis CampbellFormer President and Chief Executive Officer

of The Seattle Foundation

Gilbert CasellasFormer Chief Diversity Officer for Dell Inc. and Former

President of the Hispanic National Bar Association

Jyoti ChopraGlobal Head of Diversity and Inclusion for BNY Mellon

James LowrySenior Advisor and Global Diversity Director

for the Boston Consulting Group

Diversity Advisory Board (DAB)

Renowned global diversity leaders who provide perspective and help

guide our D&I strategy.

ACCELERATING D&I — BEING PURPOSEFULLY UNIQUE: OUR D&I STRUCTURE

A DRIENNE TRIMBLE

General Manager, Diversity and Inclusion, Toyota Motor North America

Our D&I strategy is not a stand-alone initiative — it covers all aspects of the business — it’s driven by committed leaders who are guided by The Toyota Way, as well as internal and external perspectives.”

Our D&I structure is embedded in our DNA. We are designed to embrace and leverage our differences as key drivers to our business. And, true to The Toyota Way, we have established processes to provide insight, guidance and diversity of thought from both internal and external stakeholders.

Stephen Lewis (TFS) and

Adrienne Trimble (TMNA)


CUSTOMERS

Reflect the diverse markets we serve

Through November 2017, new vehicle sales registrations for ages 18–24

increased 6.7 percent and 1.3 percent for ages 25–34, demonstrating improved

resonance with millennials

DE ALERS

Increase opportunities for women and diverse dealers

11 percent of Toyota and Lexus dealerships are minority- or

women-owned

TE AM MEMBERS

Strengthen diverse, inclusive culture and leadership

In 2017, more than 25 percent of total Toyota team members were

people of color

SUPPLIERS

Grow alliances that reflect our diversity lens

Initiatives like Toyota’s Opportunity Exchange has created 40,000 jobs across the nation and helped build relationships among suppliers and

Minority and Women Business Enterprises

COMMUNIT IES

Increase diversity impact

In 2017, Toyota invested 54 percent of all philanthropic endeavors to diverse community non-profit organizations

REFLECTING OUR COMMITMENT TO THOSE WE SERVE


Leaders drive culture at Toyota. It’s part of who we are and how we ensure the success

of our team members. We value difference and encourage diversity of thought. And, our leaders are committed to creating a space where innovative perspectives are welcomed

— and challenging the status quo is expected.

Creating a Leader

In his own words, Herman Lee was “born into this company” and for more than 20 years, he and his career have grown and been nurtured by great Toyota leaders and mentors.

Hired in 1992 as a co-op in Facilities at Toyota Motor Manufacturing Kentucky (TMMK), Herman quickly drew the attention and support of Wil James, a veteran of Toyota and

AdvancingADVOCATING AND

J UL I A WA DA

Group Vice President, Strategy, Human Resources, Diversity and Inclusion and Business Technology Solutions, Toyota Financial Services

When we bring the unique parts of Toyota together and encourage everyone to leverage their diverse experiences, ideas and perspectives, we create a world-class organization where anything is possible.”


LEARNING AND IMPROVING

When D’Anne Duclos, Vice President of Toyota Logistics Services (TLS), a subsidiary of Toyota that manages Toyota and Lexus vehicle logistics operations, planning and administration, was first introduced to Diversity and Inclusion education in the early 2000s, she says it forced her to “hold a mirror up to myself in terms of my perceptions. It helped me understand the value of a work environment where everyone can bring their best self.”

Inspired by that experience, D’Anne has leveraged D&I-focused education as a tool for organizational development.

“D&I education was a natural fit at TLS because we already had a number of D&I champions, and those champions requested educational support and a focus on D&I for all team members.”

TLS invites facilitators to conduct an annual two-day course, including conflict resolution techniques, bias awareness and other people skills.

In addition, several process changes have been implemented at TLS due to its focus on D&I. For example, it now develops more diverse candidate pools and leverages a diverse team member panel for hiring interviews, as opposed to conducting interviews with a single hiring manager.

“These tools help each of us to be more effective in our daily interactions and challenge the status quo, which increases our performance.”

eventual TMMK president. As Herman navigated new waters, Wil’s encouraging words helped Herman gain confidence in his own work style and approach.

“My outgoing personality didn’t quite match what people expected of an engineer. And, I remember Wil saying, ‘Be yourself and stay true to who are you are.’ Even said so long ago, hearing a leader affirm that my difference was my strength still empowers me today.”

Wil continued to be an integral part of Herman’s career growth, encouraging him to go into manufacturing and apply for a position in quality engineering. As a full-time team member in the TMMK Quality Engineering Department, Herman supported the launch of three different major models, supported mass production and was assigned several different responsibilities and various projects for more than 11 years.

Influencing Perspective

“While Wil taught me how to believe in myself, Kim Engel was another leader who was monumental in influencing how I think

about my work.”

During Herman’s nine years in the Supplier Engineering Department, he recalls Kim, a general manager, as a strong advocate for process development.

“Her focus on process as part of daily work challenged me to think differently. I think in those terms because of her and now teach my own team to problem-solve through process. With her leadership and coaching and Wil’s encouragement, Toyota helped shape me into a better leader.”

DID YOU K NOW?

In the recent 18th Annual Global CEO Survey,

85 percent of CEOs from companies with formal

diversity and inclusiveness strategies said it’s

improved their bottom line.A IMEE GR A M A N

Manager, Regional Team Member Services, Toyota Motor North America

The more we learn about one another, the better we work with one another — the stronger we all become.”


Building Leaders with SuccessShare

Toyota Financial Services (TFS) launched SuccessShare in 2016, a developmental initiative designed to prepare and better position Toyota’s next generation of competent, capable and qualified women to move within the ranks of leadership. It also helps build capabilities for senior leaders to sponsor and advance participants’ leadership potential. Each high-performing participant is paired with a senior leader who champions the participant’s progress. The SuccessShare program reinforces TFS’ firm belief that providing ample development and leadership opportunities for all is the right thing to do for the business and its people.

Toyota’s commitment to Diversity and Inclusion has taken on a grassroots flavor at Toyota Financial

Services (TFS)’s Customer Service Center — Central (CSCC) in Cedar Rapids, Iowa.

In 2013, inspired by CSCC’s “safe to speak up” environment and the diverse HQ culture, team members Ed Davis, Kate Casaletto, and Daniel Newbold, who has since transferred to TFS’ St. Louis Dealer Sales and Service Office (DSSO), approached Margie Oleson, CSCC’s National Operations Manager, about starting Spectrum

— an LGBTQ business partnering group (BPG).

With no BPGs at any of the three TFS customer service centers at that time, the trio knew the ask, if approved, would have to be a grassroots effort.

Margie championed the effort, and working with other TFS leaders, formed the CSCC’s Diversity and Inclusion Committee. One of the committee’s first tasks was to obtain the voice of the CSCC team member. To do this,

Grassroots StyleDIVERSITY AND INCLUSION

DID YOU K NOW?

Created to help build inclusion and foster

professional development, Toyota’s Business

Partnering Groups are employee-driven networks

based on shared characteristics and/or life

experiences. There are currently 71 BPG chapters

divided into 12 affinity groups. They help support

business objectives and are a reflection of the

broad range of talent and perspectives that help

generate Toyota’s innovative ideas.

Tracy Bennett, Kate Casaletto, and Ed Davis


AN IMPERATIVE FOR THE BUSINESS

“It’s with a lot of pride that I can say we are #1 in the Hispanic, African-American and Asian-American markets. But, none of that happened accidentally.”

And, Bob Carter would know. For nearly 40 years, he has had a front row seat to the evolution of D&I at Toyota. As the Executive Vice President of Sales, he can tell you first-hand the impact D&I has on our business — and our customers.

“Diversity and Inclusion has been part of our brand and culture for many years. Our approach to the market has always been very inclusive. One of the reasons we continue our position in this incredibly competitive industry is because we have kept evolving ourselves and positioning our brand and products to adjust to a very diverse marketplace.”

For the last 20-plus years, Toyota has reached multicultural markets within the United States by employing different advertising agencies that target specific customer segments — and done so successfully. As these segments acculturated, Toyota adapted to ensure every segment continued to be heard and reflected in the brand.

“We moved from targeting diverse market segments to targeting an entire market that is diverse.”

Today, while the agencies still focus on their specific customer segment, they work together across all markets

— crafting general audience ads and market-specific ads with a common thread — the connection and inclusivity that the Toyota brand represents.

“It’s my belief D&I is a social, moral and business imperative — particularly for the automotive or consumer business. The way we have evolved with the markets we serve — I’m proud about that.”

they conducted a cultural assessment that included team member focus groups and surveys.

In partnership with the D&I team, they began working to provide more information to team members about BPGs and the positive impact these groups have on the D&I strategy of workforce, workplace and marketplace connection.

“Our ideal state is to have all team members feel Always Respected, Valued and Heard,” says Tracy Bennett, a CSCC D&I Committee member.

Breaking Down Barriers to Communication

CSCC immediately focused on strengthening peer-to-peer and leader-

to-team member relationships to promote

more open and honest conversations,

easing team members’ concerns of

inadvertently offending others.

“The more we know about each other,

the better our relationships will be, and

the stronger our business will be,”

adds Kate.

With a focus on reaching a broader group

and the D&I foundation firmly in place,

CSCC announced its first BPG, Toyota

Veterans Association, in November 2017,

and is on track to launch Spectrum

mid-2018.

And, it was all made possible by the

courage of a small group of team

members and the grassroots groundswell

of support they built.

LE ADING WITH DIVERSIT Y

Toyota is committed to fostering a culture that reflects, empowers and respects diversity. According to DiversityInc’s 2017 Benchmarking Report, Toyota shows

year-over-year growth in diverse leaders.

2017

6.57

5.18

15.92

25.85

2014 2015 2016

Blacks 6.14 6.46 6.50

Latinos 4.44 4.75 5.04

Asians 13.86 13.77 14.22

Women 23.78 24.03 24.37

Source: DiversityInc Benchmarking Report — September 15, 2017


While most teenagers were enjoying summertime days by the swimming pool

and trips to the mall, Laura Perez, her mother and siblings were working 12–14-hour days picking asparagus and zucchini in the scorching heat.

Driven By a Challenge

With her husband no longer in the picture, six mouths to feed and school supplies to purchase for the fall, Laura’s mother had no other choice but to enlist her teenage children in the back-breaking work of the migrant fields.

And, like most young teenagers, Laura relished in every opportunity to express her disdain for the situation.

“I was so angry,” Laura recalled. “And, I was misdirecting all my anger toward my mother. The moment is so vivid in my memory now — as I griped and complained, covered in dirt — telling my mother what a terrible person she was, she looked up from the ground, exhausted, and as a tiny bead of sweat slid off her brow and down her nose, my mother uttered the words that ignited a fire in me to do well in high school.”

“We’ll stop coming to the fields when you all go to college.”

DID YOU K NOW?

Only 5–20 percent of all STEM (science, technology, engineering and mathematics) jobs around the world are held by U.S. workers. Of that 5–20 percent, only 6.5 percent are Hispanic. Toyota is working to narrow that gap through sponsored events that offer opportunities to diverse and underrepresented communities.

ImpossibleUNLOCKING HER

10 One Toyota Diversity and Inclusion

K NOW THE L INGO!

LatinxA gender-neutral alternative to

Latino/a referring to Latin American descendants but excluding Spain.

HispanicPeople of Spanish-speaking descent,

encompassing Latin America and Spain but excluding Brazil, as their national

language is Portuguese.

SpanishA person from Spain and the name

of a language. But, speaking Spanish doesn’t mean you’re from Spain.

Fueling Her Future

With 91 percent of students at her high school below the poverty line and a high school dropout rate higher than the state average, her mother’s words seemed like an impossible challenge. Dared to dream, Laura dedicated herself to her studies. The first in her family to graduate high school, Laura exceeded the challenge and graduated in the top 10 percent of her class.

And, just as her mother promised, once she was accepted to the University of Texas Pan American, she never returned to the migrant fields again. Then, her Toyota journey began.

Raising Awareness

Through a Toyota-sponsored recruiting event, Hispanic Engineering Science and Technology (HESTEC), she was hired as a co-op for Toyota

Motor Manufacturing San Antonio (TMMTX), and immediately got involved with D&I through business partnering groups (BPGs), specifically TODOS, Toyota Organization for the Development of Latinos.

“Participating in multiple BPGs and Toyota-sponsored events, like Latina’s Day, has been truly impactful. I feel my voice can make a difference.” And, it has.

Laura has represented Toyota at numerous speaking engagements, raising awareness and helping change perceptions about migrant workers. As co-chair of TODOS, now at the new Toyota Motor North America headquarters in Plano, Texas, Laura believes she “has a platform to fully express myself, and although ethnicity is certainly one part of diversity and the BPGs, true to The Toyota Way, it’s more about being inclusive. You have the ability to be yourself.”

Being an inclusive leader, or team captain, means that you treat all people with dignity, respect and love. Inclusion isn’t an initiative or a focus — it’s simply treating people as ‘more important’ than yourself — it’s about being inclusive, not doing inclusive things.”

JACK HOLL IS

Group Vice President and General Manager, Toyota Division, Toyota Motor North America


Pursuing Dreams

Dreaming and doing is not only encouraged at Toyota — it’s expected. And, Tina Watson exceeds that expectation.

Determined to explore every avenue toward becoming a better global citizen, Tina applied for and earned the Jesse L. Jackson Sr. Fellow Scholarship offered by Rainbow PUSH Excel and sponsored by Toyota.

Together with Toyota, Tina transformed dreaming into doing. As a College Recruiter Analyst for Toyota’s College Programs, she now mentors scholars who are currently pursuing their very own dreams.

ACCELERATING D&I — FROM DREAMING TO DOING

T IN A WAT S ON

College Recruiter Analyst, Toyota Motor North America

Earning this scholarship opened the door to making my dreams become a reality, and now, I get to help and encourage students who are chasing their own dreams. It’s an incredible feeling.”


Toyota recognizes the need to build strong partnerships with community organizations

across the nation that believe in the power of Diversity and Inclusion (D&I). Together with our partners, Toyota is advancing D&I by providing opportunities in education and business career development. We are committed to helping empower our communities where we serve and providing tools and resources to help diversify our workforce.

Sponsoring science, technology, engineering and math (STEM) students, as well as business students through a partnership with the Rainbow PUSH Coalition, is making dreams come true for both students and Toyota.

Strengthening Relationships

In 2001, Toyota USA announced a partnership with Reverend Jesse L. Jackson Sr.’s Rainbow PUSH Coalition as part of a considerable 10-year program investment aimed at elevating diversity initiatives at Toyota.

Through this partnership, Toyota would economically support minorities through a variety of Toyota-sponsored programs, including

an increase in the training and hiring of minorities at Toyota. However, even through these significant efforts to create a positive impact, Toyota knew there was still room for improvement.

The opportunity to make a difference was at our fingertips. We just needed a better approach.

So, in 2013, a team of Toyota Motor North America (TMNA) D&I team members did genchi genbutsu

— a Toyota term meaning “go and see” — and started the initial conversations with Reverend Jackson to learn how together, we could evolve our partnership to create a refreshed, targeted and more effective approach to giving back and then begin implementing this improved plan.

A more synergistic approach was adopted that focused on targeted criteria for the program (see sidebar). This resulted in a stronger relationship with Rainbow PUSH and a greater return on our investment by setting both the students and Toyota up for success. By establishing a better foundation, we improved acceptance and retention, making it easier to create positive impact by developing exceptional, individuals — preparing them for a career at Toyota and diversifying our workforce.

WHAT DOES THE JES SE L . JACKSON SR. FELLOW SCHOL ARSHIP PROVIDE?

• Two (2) co-op programs across the organization

• Mentorship with a Toyota leader at a Toyota North America facility

• Financial assistance in the form of a $25,000 scholarship per year for three years

WHO CAN APPLY?

• Sophomore students currently enrolled in a four-year accredited school

• Students whose study focuses in a business, science, technology, engineering and/or math field

HOW MANY SCHOL ARSHIPS ARE AWARDED?

• Four (4) to business field students

• Six (6) to science, technology, engineering, math (STEM) students

DID YOU K NOW?

The Rainbow PUSH Coalition is a multi-racial, multi-issue, progressive, international membership organization that works to make the American dream a reality for all citizens. It advocates for peace and justice around the world and is dedicated to improving lives by serving as a voice for the voiceless.

PartnershipsEVOLVING


Inspired by his parents, particularly his mother — an entrepreneurial spirit from El Salvador who

started her own business after migrating to East Los Angeles — Ervin Zelaya knew early on that to achieve the impossible, he needed to challenge what’s possible first — and continuously improve every step of the way.

Long before “kaizen” was ever a part of Ervin’s vocabulary, taking the initiative toward continuous improvement was a fundamental expectation established at home. As his mother steadily grew her in-home day care into a thriving business to fulfill her dreams and his father worked two jobs to help get the business off the ground, they encouraged

a young Ervin to start thinking about how he would

forge his own successful future.

Taking a Chance

As a college student and previous member of his

local Boys and Girls Club in East Los Angeles, Ervin

could often be found scouring the bulletin board,

looking for that opportunity to launch into his

future. And, in 2009, his decision to apply for Toyota

Financial Services (TFS)’s pilot partnership program

with the East Los Angeles Boys and Girls Club —

Making Life Easier — changed the trajectory of his

life forever.

DID YOU K NOW?

The U.S. Bureau of Labor

Statistics predicts that

by 2030, millennials will

make up 75 percent of

the workforce.

FORGING A

Successful Future


Remembering his first day as an intern at TFS, Ervin said, “I was fully expecting to run coffee! But, on my first day, my manager invited me to sit in with the team during a meeting. I was treated as a team member — treated with respect.”

During that initial meeting, Ervin watched and listened as each team member around the room offered up a different perspective for the group to consider.

“Everyone had a voice at the table,” he recalled.

And, in that moment, Ervin knew that his voice mattered, too — he had something to offer and

simply needed to take advantage of his time at TFS.

“I knew I needed to get my hands in every project, so they wouldn’t be able to let me go at the end of my internship!”

Connecting Across Boundaries

Throughout his internship, Ervin built relationships in different areas of TFS and began connecting across boundaries at TMNA. He dedicated himself to challenging the status quo and stretching his talents, continuously improving his analytical, problem-solving and communication skills to help further his personal growth and contributions as a team member.

Now a full-time TFS team member in the Marketing department, Ervin sits at the table, offering an opportunity for others to voice their own unique perspectives. Mentoring others as his manager mentored him, Ervin continues to forge his future and help others navigate the road ahead.

Preparing For Success

A part of TFS’ “Road to Success” program, the Making Life Easier (MLE) internship program offers a paid internship with TFS for students who have received financial need scholarships and/or are affiliated with various non-profit partners. Aimed to empower college students, provide work experience and prepare students for a successful entry into the workforce upon graduation, the MLE program is offered in various locations each summer in different departments across TFS. Each selected intern receives a dedicated mentor to help them develop and improve their problem-solving skills and business acumen through project management tasks and exposure to business learning opportunities.

Empowering team members to bring their diverse perspectives to the table is an integral part of who we are — it fosters respect, inspires collaboration and cultivates innovation.”

CHERY L HUGHE S

Group Vice President and Chief Human Resources Officer, Toyota Motor North America

ERVIN’S T. I .P. FOR PARTICIPANTS OF THE MAK ING L IFE E ASIER PROGR AM

TAK E

Take initiative to forge your own path

INTEREST

Interest in your field is important — find your passion

PREPARE

Prepare for your future by improving your skills


When Christie Wong says, “If it wasn’t for Toyota, I wouldn’t be here today,” she means it in more ways than one.

The summer before her freshman year in college, Christie walked away from a serious car accident with only a sore neck, convinced that had she been driving her car instead of her dad’s Camry, she wouldn’t have survived.

Fast forward decades later, and Christie, born in Hong Kong to a father of Chinese descent and an American mother, is the CEO and majority owner of MacArthur Corp., a $10 million international supplier of custom labels and die-cuts based in Grand Blanc, Michigan.

Leaning In

In 2014, Christie was selected to participate in the Driving Impact program — a two-year mentoring module run by Toyota and Adient, designed for Toyota’s corporate suppliers to strengthen their supplier diversity programs and mentor diverse companies.

ACCELERATING D&I — OUR COMMITMENT

Supplier DiversitySTRENGTHENING

SUPPLIER DIVERSIT Y RECOGNIT IONS

• 2017 National Minority Supplier Development Council’s (NMSDC) Co-Corporation of the Year

• ‘Top 8’ recipient, acknowledging corporations that have won the NMSDC Corporation of the Year award multiple times

• 2005–2017 Billion Dollar Roundtable Inductee for investing at least $1 billion with minority- and woman-owned suppliers


FOSTERING FUTURE LEADERS

The Wyandotte County Boys and Girls Club of Greater Kansas City is like a second home for Brittany Robinson, Credit Analyst and Community Ambassador in the TFS Kansas City Dealer Sales and Service Office (DSSO).

As part of TFS’ national “Great Futures” partnership with the Boys and Girls Clubs of America, Brittany volunteers every Thursday organizing community events and service projects, plus teaches financial education and arranges summer college tours. She spearheads the holiday and back-to-school events that ensure the kids — approximately 80 percent of whom come from foster care backgrounds — receive holiday gifts, school supplies and backpacks. And, she is the force behind Career Launch, a program designed to motivate teenagers to start planning for life after high school.

Brittany became a club member in middle school upon the suggestion of her best friend. At age 13, she became a junior staffer, and through her involvement with the club’s Keystone Leadership program, at 14, she attended conferences in Southern California and Atlanta, networking with 2,500 other Boys and Girls Club leaders from across the country.

During her six years working at the club, a leader from the TFS Kansas City DSSO visited and informed her about internship opportunities at TFS. Brittany earned an internship as a contract analyst in 2012 and was eventually hired full-time as a credit analyst.

She lights up at the thought that she is a role model for the kids, especially the older teens who remember her as a club employee and even a club member.

“The Boys and Girls Club changes lives and provides opportunities for kids who may otherwise not get them. I’m grateful that Toyota sees a bright future in all of these kids.”

DID YOU K NOW?

In 2017, 1,400 attendees celebrated 28 years of building

relationships between Toyota’s Tier 1 suppliers and diverse

companies at Toyota’s Business Opportunity Exchange.

Christie developed strong peer-

to-peer relationships with other

diverse companies and received

tips on how to better position her

company for opportunities. She

received pointers from the corporate

supplier participants on branding

and messaging, how to communicate

MacArthur’s value proposition to

potential customers and how to

gather market intelligence on a

shoestring budget.

Partners at Work

Toyota also demonstrated its

partnership with MacArthur by

providing support from its test lab to

complete unique testing required for

its labels. “It’s rare that a customer

would partner with suppliers like that,” Christie says.

For the 2016–2017 Driving Impact program — in which nine Tier I and 13 diverse suppliers participated — Christie assisted in developing the curriculum and in both of those years attended Toyota’s Fall Supplier Conference. Since 2012, she has attended Opportunity Exchange, an event that brings Toyota’s Tier 1 suppliers together with prospective diverse companies to create business opportunities.

“Toyota wants to develop relationships with diverse businesses,” she says.

“We need access to reach that next supplier level, and Toyota is willing to provide it.”

Diversity and Inclusion leads to more innovation, more opportunities for all, better access to talent and better business performance, and as I have often stated, is an absolute imperative for any business.”

A LE X IS HERM A N

Toyota Diversity Advisory Board Chair and Former United States Secretary of Labor


Having emigrated from Cuba and raised in New Orleans public housing, Carlos Liriano

doesn’t fit the typical profile of an auto dealership owner. But through hard work, “saving every nickel I could get my hands on,” and Toyota’s commitment to a diverse dealer community, today Carlos owns the Lost Pines Toyota dealership in Bastrop, Texas.

Beginning in the early 2000s, as a dealership general manager with an eye toward becoming an owner, Carlos became involved with Toyota Lexus Minority Owner Dealers Association (TLMODA). This organization advocates for and promotes minority dealers and partners with Toyota and Lexus to understand and meet their needs, as well as the needs of minority consumers, businesses and government and industry stakeholders.

Toyota has nearly 1,500 Toyota and Lexus dealers combined

Women and diverse dealers make up 11 percent of all Toyota and Lexus dealers

Of the 1,500, there are 55 diverse Toyota dealers and

11 diverse Lexus dealers

DID YOU K NOW?

Toyota continues to be the #1 sales volume leader with African-Americans,

Asian-Americans and Hispanics.

1,500

55+11

11%

SuccessDEALING IN

Through TLMODA, Carlos was exposed to Toyota executives and dealers and gained a better sense of what Toyota was looking for in a dealer candidate — and how it could help him achieve his dream.

Providing Support

In Carlos, Toyota saw someone with the experience, passion and work ethic to become a successful dealer.

The Gulf States Toyota Dealer Investment Group, which provides capital, operational and management support to qualified candidates for women- and minority-owned dealerships, partnered with Carlos by purchasing the Lost Pines Toyota real estate, building the facility and providing him with customer training.

“Without Toyota’s support, there is no way I would have been able to open a dealership. It makes a huge difference when you have a manufacturer who wants to partner with you and see you succeed.”


Raised near Lansing, Michigan, with most relatives working

in local automotive plants, David Walter says he has “a lot of automotive blood in the family.” He always expected to be part of the industry — he just didn’t know how influential his role would be.

David was first exposed to Toyota in logistics class at Central Michigan University where he double-majored in Logistics Management and Marketing. Many of the case studies focused on Toyota, specifically the Toyota Production System.

A TOYOTA

Customer First

DID YOU K NOW?

The U.S. Bureau of Labor Statistics reported that in 2016, the

unemployment rate for people with a disability was 10.5 percent — more than twice than those with no disability at 4.6 percent.

“I started to buy into The Toyota Way, and you could say this is when I became a Toyota customer. From there on, I made it a career goal to one day do logistics at Toyota.”

As an inbound logistics planner for Toyota Motor Manufacturing Indiana (TMMI), and having been diagnosed with Becker muscular dystrophy, David says he is “knowledgeable and empowered to share my ideas and experience using accessible features like the turn out seat with other departments here at Toyota. This information sharing and collaborative approach aids in improving future model designs, which improves our customers’ personal independence and their quality of life.”

Bringing Back the Joy of Driving

Toyota is currently the only auto manufacturer in North America installing an Auto-Access Seat on

the assembly line. Incorporating feedback from after-market conversion companies, Toyota is able to make modifications for the Sienna more convenient and cost effective for customers.

Kevin Quesenberry, a 17-year mobility modification industry veteran and David’s wheelchair accessible vehicle and equipment dealer at United Access says,

“Toyota’s quality is just above all else. And, that may be my opinion, but it’s an educated opinion. Toyota is truly after an inclusive experience for all drivers.”

David adds, “I’m proud to say I work for a company that makes this a priority and not just an afterthought. It’s exciting to be part of a team that is expanding previous boundaries and helping shift the way we think as a society regarding disability accommodation. We’re bringing back the joy of driving to millions of Americans.”

Our goal is to cultivate a culture of inclusion, acceptance and resiliency across Toyota and in our communities — a culture that engages team members, making them proud to be a part of Team Toyota.”

A L SMITH

Group Vice President and Chief Social Innovation Officer, Toyota Motor North America


Inclusive employment is Ted Brown’s passion. His son has spina bifida, a condition that has impacted his learning and cognitive abilities, and

Ted’s dream is for his son to work for Toyota.

A champion of inclusivity, Ted was first inspired by Diversity and Inclusion’s benchmark program at Toyota Motor Manufacturing Kentucky (TMMK).

There, TMMK partners with local community programs to bring individuals with cognitive disabilities to work on the floor in a protected enclave, providing a learning environment to help develop work and communication skills — positively impacting their quality of life.

Making It Happen

Ted knew immediately he wanted to implement working enclaves at his location, Toyota Motor Manufacturing Indiana (TMMI). So, with the support of his leaders, Ted partnered with ARC of Gibson County, an organization that helps persons with disabilities realize their goals of learning, living and working in the community. TMMI and ARC welcomed a small group of individuals with cognitive disabilities to join two enclaves on the production floor to assemble door switches, jack packages and several clamp assemblies for the Sequoia, Sienna and Highlander.

After assembling four million parts with zero defects, people started to take notice, and Ted wondered if they could do more. Ted wanted every individual to have the opportunity for growth and development as a team member.

Creating Equal Opportunity FOR ALL

Equity means creating a level playing field so that everyone can reach their full potential.”

SUE BRUIN

Consultant/Site Leader, Diversity and Inclusion Regional Engagement, Social Innovation, Toyota Motor North America


THE PASSION TO DEVELOP PEOPLE

For Toyota Motor Manufacturing Baja California (TMMBC), their D&I journey is off to an amazing start.

Having launched D&I training programs in 2017, they are embracing and empowering team members to live and breathe the Toyota pillars.

“We are creating and promoting a positive diverse and inclusionary environment to maximize our team members’ performance and engagement. And, our team members are learning to accept and respect our differences,” says Ericka Mendez, HR Manager.

Team members and D&I HR Specialists, Jennyfer Urrea and Elmer Diaz, lead the training with their peers.

Elmer states, “I’m very proud and happy to deliver this training because I also learn more at each session.”

To help drive culture and engagement, TMMBC attended the Global Diversity Council Women in Leadership Symposium (WILS) in Mexico City to better understand how to improve training at TMMBC.

Reflecting on the conference, Ericka recalls, “I understood that we create our own limits, and now I have a clear vision and plan to develop the next generation of leaders at TMMBC.”

Ericka has also been selected as the first Toyota female leader to speak at the next WILS as a panelist, offering Toyota brand exposure and reinforcing the importance of leadership and D&I.

Inspired by the quest to an ever-better Toyota, Jennyfer says, “My role is to keep promoting these values, inform about D&I subjects, improve the good and respectful working environment and assure everyone understands the value in the diversity of our teams and celebrate it.”

DID YOU K NOW?

With two new promotions in 2017, five of Toyota’s 14 North American manufacturing plants are now run by women or people of color.

Tailoring Environments

With the approval of TMMI

leadership, in 2016, Ted launched

a transition program, working with

ARC to help develop strong team

members who could be placed

directly into employment, earning

livable wages and being proud

members of a team.

The program involves two enclaves.

The first is a safe introductory

workplace to allow those sensitive

to sights, sounds and smells to

get acclimated to a production

floor environment. Here they learn

the skills needed to assemble

parts. The second enclave is a

transitional training center where

quality of standards and timing are

implemented, and participants must

work a certain number of months

and reach certain standards to then

begin the hiring process.

Thus far, 12 individuals have been

placed in jobs on or around the

TMMI campus. One member, John, is autistic and first entered the program rarely speaking with anyone.

Recently, when Ted traveled to Evansville, Indiana, to share TMMI’s community partnership with other companies, he asked John to come along and share his experience.

Much to Ted’s amazement and delight, John showed up with a handwritten speech and spoke in front of the group of 30, telling them all about his “super ability, autism” and how Toyota helped him “learn how to pick parts and build parts.” It was a rewarding and inspiring moment for Ted and an affirmation that the program was making an impact.

Ted believes, “Diversity helps drive and sustain our business, but we also need to ask how we can make our programs highly inclusive — because you cannot have diversity without inclusion.”


Toyota’s ability to broadly impact communities across North America is enabled through organizations created to empower, educate and ignite the dream in all of us, especially our diverse youth.

Through partnerships that promote Diversity and Inclusion, we are encouraging and inspiring the next generation of leaders. Their limitless potential and the imagination to dream about starting their impossible is exactly what will fuel those dreams into fruition. And, Toyota is committed to providing the tools and resources as their launching pad. From grade school through college programs and career development, Toyota is there to support and help everyone realize their dreams.

DRIVING TOWARD THE FUTURE — DREAM BIG

• American Association of Retired Persons (AARP)

• Asian Pacific American Institute for Congressional Studies (APAICS)

• Asian Pacific Community Fund (APCF)

• Boys and Girls Clubs of America

• Congressional Asian Pacific American Caucus (CAPAC)

• Congressional Black Caucus Foundation

• Congressional Hispanic Caucus Institute (CHCI)

• Gay and Lesbian Alliance Against Defamation (GLAAD)

• Girl Scouts of America

• Hiring Our Heroes

• Hispanic Federation

• Hispanic Scholarship Fund

• Hispanicize

• Human Rights Campaign (HRC)

• Junior Achievement

• Lambda Legal

• Latinos in Tech, Innovation and Social Media (LATISM)

• Leadership Education for Asian Pacifics (LEAP)

• League of United Latin American Citizens (LULAC)

• Mexican American Legal Defense Education Fund (MALDEF)

• National Association for the Advancement of Colored People (NAACP)

• National Association of Black Journalists

• National Association of Hispanic Journalists

• National Association of Latino Elected and Appointed Officials (NALEO)

• National Association of Minority Automobile Dealers (NAMAD)

• National Business League (NBL)

• National Council of La Raza (NCLR)

• National LGBT Chamber of Commerce (NGLCC)

• National Minority Supplier Development Council (NMSDC)

• National Organization on Disability

• National Urban League

• National Veterans Business Development Council (NVBDC)

• North Texas Gay Lesbian Bisexual Transgender Chamber of Commerce

• Out and Equal

• Point Foundation

• Rainbow PUSH

• Thurgood Marshall College Fund Foundation

• Tom Joyner Foundation

• The Trevor Project

• United States Business Leadership Network (USBLN)

• United States Hispanic Chamber of Commerce (USHCC)

• Victory Institute

• Women’s Business Enterprise National Council

Toyota has long partnered with organizations that promote D&I, including:


CLOSING THE STEM GAP

Statistics show that women are significantly underrepresented in science, technology, engineering and math (STEM), and Samantha Mardis is working to change that.

A Diversity and Compliance Specialist in Business Planning at Toyota Motor Manufacturing Kentucky (TMMK), Samantha started TMMK’s engineering internship program exclusively for high school girls in 2017 to help close the gap by introducing young female students to the world of STEM.

“I really enjoy getting girls excited about manufacturing and cultivating an inclusive culture.”

Four girls from local high schools spent six weeks rotating through TMMK’s various departments, interacting with women engineers.

The girls were invited back to the plant in February 2018 to serve as role models for “Introduce a Girl to Engineering Day,” an all-day event that attracted dozens of female students from six local high schools.

Samantha, whose father is a retired Toyota engineer who worked at the Erlanger, Kentucky, facility, says girls’ perceptions of manufacturing quickly change as soon as they are exposed to it. And, by introducing the interns to the unexpected, she hopes to encourage these bright students to pursue a STEM-focused career with Toyota.

At Toyota, we are leading the way with mobility solutions that create ever-better experiences for all and fueling our long-term future success.

Through Toyota Connected, Toyota Research Institute, plus our autonomous engineering divisions across North America and the world, we are launching innovative techniques and advanced technology that will contribute to society in unprecedented ways.

“Across the globe, our autonomous divisions are problem-solving similar issues but working in very different ways, offering diverse solutions. We may be segmented across the business, but we all communicate and are focused on providing mobility solutions that create better experiences for our customers,” says Glenn Hall, Senior Project Manager at Toyota’s York, Michigan Research and Development facility.

From state-of-the-art and sustainable mobility solutions to autonomous vehicles designed to provide mobility options for both personal and business needs, we are setting the pace, working toward an ever-better world.

DRIVING THE FUTURE — THE MEANING OF MOBILITY

ROBERTA DAV IS

Manager, Human Resources, Toyota Motor Manufacturing Mississippi

There will always be challenges. Find your way through it and break down barriers with a competitive spirit.”

We know that a diverse and inclusive environment encourages new ideas and innovation.”

Z ACK H ICK S

Chief Digital Officer, Toyota Motor North America and Chief Executive Officer and President, Toyota Connected North America


Douglas Moore and Christopher Lee are two Toyota team members whose work has nothing to do with automobiles. Instead, they spend

their days dreaming up solutions to help people navigate their world and live the life they want to live, regardless of age, physical ability or mobility restrictions.

One such mobility-challenged individual is decorated U.S. war veteran Romulo (Romy) Camargo. While on a humanitarian mission in Afghanistan, he survived a gunshot wound to the back of his neck but sustained paralyzing injuries from the neck down.

Thanks to Douglas, Christopher and others at Toyota, Romy benefited from participating in a trial of the Human Support Robot (HSR), a first for Toyota in North America. The in-home trial focused on a “partner robot” being developed to help provide support with daily activities. This trial was part of Toyota’s innovative research targeted at finding new ways to expand mobility for those with limitations through more complex, advanced science and technology.

Opening Doors

As part of the trial, the robot was tasked with basic actions like opening doors or bringing Romy food but also included more complex skills like helping get Romy inside his home in the case of him being accidentally

Innovation

BETTERING LIVES THROUGH

DID YOU K NOW?

78 percent of respondents in 2017’s Global Human

Capital Trends research believe Diversity and Inclusion

is a competitive advantage.

locked outside. For Romy, it seemed like the trial was successful. He said in part, “This research is going to change the world.”

The Toyota team embraced genchi genbutsu — Toyota’s philosophy of “go and see” — to understand Romy’s unique circumstances and how they could be improved through robotics. “We want to enable a person to be seen as a person, with the same freedom and independence others enjoy,” explains Douglas.

Adds Christopher, “It’s satisfying to know that Toyota is willing to commit resources and utilize its expertise and knowledge to help people beyond our traditional automotive customers.”


Our One Toyota journey is a road with many paths. And, we are going places, together. Whether it is through team member engagement with our business partnering groups, Toyota-sponsored community events, empowering educational programs or investments in our youth and future leaders and more, we are committed to unleashing the power of Diversity and Inclusion.

We embrace, value and respect our differences and recognize the positive impact diversity makes to our business. Through every thought, every idea and every contribution, we create limitless innovation, driving us closer to achieving our vision of mobility for all.

We encourage and cultivate diversity of thought, knowing that the best ideas live within a broad range of talents and resources. We are called to imagine a future of movement and are empowered to make it happen. We believe with every team member at the table — every voice being heard — we are unstoppable. Together, we make a difference.

Though the paths are many, all roads lead to One Toyota.

‘Start Your Impossible’ is not just a slogan. It’s an expression for us, as a company, to defy the odds, to do what others tell us we cannot, to make possible tomorrow what may seem impossible today — and it all begins with each of you.”

AK IO TOYODAPresident and Member of the Board of Directors, Toyota Motor Corporation

Together,WE MAKE A DIFFERENCE


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