TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED
PLOT No.1, BIDADI INDUSTRIAL AREA,
P.O.BIDADI – 562 109, RAMANAGAR DISTRICT
CODE OF
ETHICS FOR
THE TEAM MEMBERS
Version
Dt. Of Approval
1.0
1.1
30.07.99 21.06.01
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
1.2
31.03.07
1.3
1.07.2008
1
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
2
INDEX
Article
Subject
Page
Foreword
4
1
Introduction
5
2
Object/Purpose of the Code of Ethics
5
3
Company’s Vision
6
4
Company’s Mission
6
5
Guiding Principles at Toyota Kirloskar
7
6
Composition of Code of Ethics
7, 8
7
Basic Code
Domestic & International Laws
8
8
Local Customs, Social Rules, Traditions
8, 9
To maintain Integrity
9
Specific Code
Team Work & Good Working Environment
9
9
Contribute to Company
10
Safety & Health
10
Comply with working Regulations
11
Human Resource Development
12
Protecting Environment
12
Customer Satisfaction / Marketing Activity
13
Develop Technology & Engineering
13, 14
Protect Company’s Assets / Tangible & Intangible
14
In relation with Suppliers, Dealers, Financial
Institutions, Service Providers etc
15,16,17
In relation with Government
17
In relation with the Shareholders & Stakeholders
18
8
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
3
FOREWORD
Through constant communication and dialogue with the
Company, the Team Members working for Toyota Kirloskar
[TKM] strive to build and share fundamental value of “Mutual
Trust and Mutual Responsibility”.
TKM endeavours to
improve its business achievements so that TKM can continue
to
provide
conditions.
employment
and
Simultaneously,
fair
TKM
and
stable
promotes
working
a
work
environment in which each of us can work in harmonious and
dynamic manner.
In return, each of the Team Members at
TKM adhere to and implement the ‘Code of Ethics’ and
endeavour to fulfill his duties with utmost integrity, which
will go a long way to build the Company as a good Corporate
Citizen and enhance the business prospects of TKM and
ultimately the prospects for Team Members.
TKM aims to become the most valued, respected and trusted
Company by its Customers and Society.
It is therefore
essential that each of one of us act, as remarked by the
President, TMC, in a “steadfast, sure-footed and thorough”
way and in accordance with common sense and good
judgment.
I therefore expect that each one at TKM to
carefully read this Code of Ethics and implement the spirit
within.
Managing Director
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
4
1
INTRODUCTION
The Team Members, as they act and work, will form the
activities of the Organization.
The Character, Conduct and
Attitudes of the Team Members will form the core of the
business of the Organization and affects all aspects of the
affairs of the Organization and Team Members
themselves.
It is, therefore, very essential that certain Business Ethics and
Values, which fit in with the Organization’s Vision and Mission,
guide the Team Members.
2
OBJECT / PURPOSE OF CODE OF ETHICS AT TKM
a.
Code of Ethics, basically comprising of Business Ethics
and Values, aim at building a good Organization and Work
Culture so as to be a good Corporate Citizen while achieving
Company’s Vision and Mission.
b.
Guiding
principles
in
running
the
affairs
of
the
Organization in Decision-Making, Management and Work
Culture.
c.
Provide
a
perspective
for
Selection,
Induction,
Development and Promotion of all Team Members.
d.
Assist the Team Members in handling dilemmas and
contradictions in their work environment.
e.
Prevent
occurrence
of
any
incident
that
might
undermine public trust in our company.
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
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3
COMPANY’S VISION
1) Delight our customers through innovative products, by
utilising advanced technologies and services.
2) Ensure growth to become a major player in the Indian auto
industry
and contribute to the Indian economy by
involving all stake holders.
3) Become the most admired and respected company in India
by following the Toyota Way.
4) Be a core company in global Toyota operations.
4
COMPANY’S MISSION
1) Practice ethics and transparency in all our business
operations.
2) Touch the heart of our customers by providing products
and services of superior quality at a competitive price.
3) Cultivate a lean and flexible business model throughout the
value chain by continuous improvement.
4) Lead the Toyota global operations for the emerging mass
market.
5) Create a challenging workplace which promotes sense of
pride, ownership, mutual trust and teamwork.
6) Create an eco-friendly company in harmony with nature
and society.
THROUGH THESE ACTIVITIES ESTABLISH
SUPERIOR BRAND IMAGE IN INDIA.
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
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5
GUIDING PRINCIPLES AT TKM
i
To comply with domestic and international laws
ii
To respect local customs, social rules, traditions
iii
To maintain integrity
iv
To develop and practice Team Work
v
To be fair and transparent in all transactions
vi
To avoid conflict of interest
vii
To avoid indulgence in unfair trade practices and
unlawful activities.
viii
To adhere to Safety and Health Policies & promote
actively the Traffic Safety awareness.
ix
To protect and safeguard properties and environments
and provide high quality products and services.
6
COMPOSITION OF CODE OF ETHICS
a.
The Code of Ethics for Team Members are generally of
Two categories.
The first, the Basic Code [Article 7] covering
all Team Members, irrespective of the Divisions / Departments
in which they work and the Second, the code of ethics
covering their Specific Areas [Article 8].
Both the Codes are
like two sides of the same coin and will collectively guide the
activities of the Team Members at all times.
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
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b.
TMs at all level at TKM are expected to carefully read
and understand the Code of Ethics and implement the spirit
within.
TKM also formulated a Whistle Blower Policy, as an
extension of this Code of Ethics. Any TM found to be violating
any of the provisions/guidelines of this policy would be liable
to disciplinary proceedings as per the policy of the company
prevailing from time to time.
c.
The Code of Ethics are designed to govern the Team
Members
while
discharging
functions
on
behalf
of
the
Organization. Yet it is desirable that all the Team Members
will adhere to the Code of Ethics even in their activities falling
outside the Organization.
7
BASIC CODE
7.1 To comply with domestic and international laws
Team Members shall respect and obey the laws of the land
and laws of the country they transact.
Violation of law shall
be strictly prohibited even if such violation is conducted for
the sake of the Company or Customer.
not be an excuse.
Ignorance of law will
Where in doubt, the Team Members
should be transparent with the law enforcers and shall obtain
legal guidance.
[Guiding Principle 5(i)]
7.2
Be aware of local customs, social rules, tradition
Team Members shall function in harmony with the local
people.
Team Members should respect the local customs,
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
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social rules and traditions of the society in which they function
and shall act sensibly and with circumspection.
All team members shall deal with the local people with due
respect and cordially as the co-operation of local people
(people who are in the village surrounding TKM) is an
essential and key factor in ensuring success of the Project.
[Guiding Principle 5(ii)]
7.3
To maintain integrity
All Team Members shall maintain integrity in all their acts and
deeds.
They shall also not act in a manner affecting the
image of the Company.
[Guiding Principle 5(iii)]
8
SPECIFIC CODE
8.1
Team Work & Good Working Environment
a.
All Team Members shall develop and practice Team
Work and good and effective communication.
b.
All the co-ordinated efforts at every level are essential
to have an excellent Team Work. Team Work within different
members, different teams, different groups, departments etc
is essential to produce a Quality product at required time.
c
All Team Members shall maintain and promote cordial,
healthy
and
constructive
interactions
with
other
team
members with a view to accomplish the organizational goals.
[Guiding Principle 5(iv) & 5(ix)]
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
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8.2
Contribute to Company
All Team Members:
a.
Shall develop and practice Professionalism in each job
area.
b.
Shall, to the best of their abilities and capabilities,
endeavour to faithfully and diligently fulfill their duties
and accomplish their goals, promptly and on schedule.
c.
Shall contribute to: Cost Reduction Activity and to
Improve Profitability.
d.
Shall exercise good judgement in all their acts and
deeds in the overall interests of the Company and,
without being influenced by external or extraneous
considerations.
[Guiding Principle 5(iii),(v),(vii) & (ix)]
8.3
Safety & Health
Team Members are the most important assets of the
Company.
Not only will the Company do all that is
reasonably practicable to safeguard their well being but team
members also have a responsibility for safety and health of
themselves and others.
All the activities by the team
members will be done as per standardized procedure and
must be planned keeping in mind safety to person, safety to
equipment and safety to product.
Maintaining health of all
the Team Members is equally important as safety.
Team Members shall therefore ensure safety and shall, at all
times, adhere to the 5S or Workplace Organization, Safety
and Health Policy of the Company.
[Guiding Principle 5(viii)]
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
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8.4
Comply with Working Regulations
All Team Members:
a.
Shall strictly adhere to and comply with all the
applicable Labour Laws and Regulations, Rules, Standing
Orders and Directions of the Company.
b.
Shall maintain fairness among themselves irrespective
of caste, creed, colour, religion, sex or social status and shall
not act in any discriminatory manner against any person in
the team including in recruitment, appraisal, transfer, training
etc.
c.
Shall have respect for all religion and caste. They shall
not use the religion or caste in derogatory terms. The
religious practices of each team member is completely a
private affair. However every employee shall ensure such
religious practices do not affect the work. They shall also not
indulge in promoting any religion nor establish any form of
worship (including installation of any religious Idols) at the
Company Premises including sending e-mails and displaying
photos of religious character/nature.
d.
Shall not indulge in any type of activities which shall be
construed as Sexual Harassment.
[Guiding Principle 5(i),(ii),(iii),(v)& (vii)]
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
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8.5
Human Resources Development
a.
Promote team spirit amongst the Team Members and
adopt policies and practices conforming to the rules and
regulations of the statutory authorities.
b.
Promote healthy policies to maximize human resources
asset value at minimum cost.
c.
Fulfill the accountability to explain Human Resources
Management Schemes / Policies / Rules / Judgment so that
Team Members can understand the Company’s point of view.
d.
Listen to the Team Members concern / opinion so that
company can understand the Team Members stand point or
point of view.
e.
Maintain / Improve Team Members quality of life from
mid to long term point of view.
[Guiding Principle 5(iii) & (iv)]
8.6
Protecting Environment
Team Members shall be aware of , and practice and comply
with at all times the Environmental Policy of the Company.
Also Team Members activities must be planned in such a way
that total environment inside and outside the work place
should
be
protected
as
per
company’s
Environment
Management System.
[Guiding Principle 5(ix)]
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
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8.7
Customer Satisfaction / Marketing Activity
Team Members:
a.
Based on a “Customer First” philosophy, Team Members
shall always grasp the need of Customers and take action to
satisfy Customers’ requirement.
b.
Will always give fair, timely and accurate response to
Customers and Dealers.
c.
Shall be fair in all their dealings with the customers and
dealers.
d.
Shall not indulge in any unfair trade practices and shall
maintain a high level of integrity and reputation in conforming
to trade practices within the ambit of law of the land.
e.
Shall not indulge in any sort of cartels with the
competitors or price negotiations with the competitors while
participating in any bids / tenders.
f.
Shall not publish or cause to publish materials or
advertisements with false or exaggerated claims.
[Guiding Principle 5(v),(vi) & (vii)]
8.8
Develop Technology & Engineering
We want our Company to be a Leader in our product range
and hence all the Team Members from manufacturing area
must know, understand and use the Top Class Technology
and Engineering knowledge.
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
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Team
Members
shall
create
and
develop
advanced
technologies and provide outstanding products and services
that fulfill the needs of customers.
Team Members shall conform to all standards of Quality and
shall dedicate to provide clean and safe products and enhance
the quality of life everywhere.
[Guiding Principle 5(ix)]
8.9
Protect Company’s Assets / Tangible & Intangible
a.
Team Members shall maintain strict confidentiality on all
matters of the Company like Technical, Cost, Finance,
Vendors Development etc.
b.
Confidentiality of business and knowledge acquired
through business shall be strictly kept in an appropriate
manner even in company and even after team members
terminate employment relations with the company.
c.
Team Members shall take care and protect the assets of
the Company in general and shall be specifically responsible
for those assets of the company entrusted in their custody.
[Guiding Principle 5(iii), (v), (vi) & (ix)]
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
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8.10 In relation with Suppliers,
Institutions, Service Providers etc.
1
Dealers,
Financial
To practice fair transaction
All Team Members:
a.
Shall comply with all contractual obligations of the
Company in all transactions with outsiders, Customer, Dealer,
Supplier, Service Provider etc.
b.
Shall
adopt
an
Open-Door
Policy
and
be
fair,
transparent and have sincere attitude towards transactions
with Suppliers, Contractors and Service Providers as equal
partners of business and make effort to establish mutual trust
for a long term business relations.
c.
Shall make sourcing and pricing decisions on a fair
competition basis taking into consideration all aspects of the
matter concerning Quality, Cost and Delivery.
Team
Members shall keep in mind that a mutual benefit and a long
term business relation with the company and its suppliers can
be enjoyed only as a result of the decisions which are right
and really competitive.
d.
Shall get to mutually agree with Suppliers on a logical
basis when making a discussion and entering into an
agreement with them.
e.
Shall make every effort to effect purchases at the most
possible competitive price, without compromise on the quality
and the specifications desired by the User Divisions /
Departments.
[Guiding Principle 5(iii),(v),(vi),(vii) & (ix)]
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
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2.
To avoid conflict of interest
All Team Members shall take care to ensure that conflict of
interest, if any arising out of factors like having a business
interest in another organization, hiring the services of friends
and relatives, doing business with friends and relatives,
insider trading etc, will not affect the interests of the
Company in any way and where such interests are involved,
they
shall
make
proper
disclosure
promptly
to
the
Management.
[Guiding Principle 5(viii)]
3.
To ensure conformance of Law / Regulations
Team Members:
a.
Shall effect purchases of goods / services only after due
conformance to internal regulations as well as all applicable
statutory laws like those relating to Entry Tax, Sales Tax,
Customs, Excise, RBI Regulations.
b.
Shall not do business with those who do not conform to
the applicable statutory laws like those relating to Child
Labour,
Environment,
Tax,
Customs
etc.
if
such
non-
conformances come to the notice / knowledge of the
Company.
4
Prohibit Personal Favour
Team Members:
a.
Shall not ask Suppliers / Dealers for any personal favour
/ gift.
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
16
b.
Shall not gain any personal profit, either by virtue of
information available to him or by any authority vested in him
by the Company.
Will refrain from taking any advantage of
the policies of the Company in terms of accepting any gifts etc
from the supplier, dealer or customer for giving / granting any
official favour.
However, in line with good business practice,
it is permissible for a team member to occasionally accept
Dinner / Lunch invitation or a corporate momento but shall
report the same to his Superiors.
[Guiding Principle 5(iii),(v) & (vii)]
8.11 In relation with Government
1
Team
Members
shall
deal
with
the
Government
Authorities and Public Servants with due respect, shall extend
co-operation to, and maintain cordial relations with, the
Government
Authorities,
Central
/
State
/
Municipal
Corporations / Local Panchayats etc.
2
Team Members are required to transact with the
Government officials in fair and transparent manner.
3
Team Members are strictly prohibited from offering any
undue monetary or benefit convertible in money on behalf of
the company to any Government Authorities.
However,
providing company vehicle or occasional entertainment or
occasional Corporate gift befitting the occasion, is permitted
but shall report the same to his Superiors.
[Guiding Principle 5(i),(v) & (vii)]
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
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8.12 In relation with the Shareholders & Stakeholders
1
To fulfill its accountability fully.
2
To make timely and proper disclosure
3
To make efforts to maximize shareholders’ interest.
4
To build positive relationships with stakeholders through
open and fair communication.
5
To actively promote Traffic Safety awareness.
6
To maintain high moral standards and
participate in the creation of a safe society.
actively
[Guiding Principle 5(i),(iii),(v),(vi),(vii),(viii) & (ix)]
Version
Dt. Of Approval
1.0
1.1
30.07.99 21.06.01
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
1.2
1.3
31.03.07 01.07.2008
18
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
19
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED/CODE OF ETHICS
Legal Department, TKM
20