Toyota shuns CSR scheme

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The difficulty of raising international standards in an intensely competitive industry sector has been highlighted by the efforts of a group of vehicle manufacturers to improve workplace standards in their supply chains.

The project, which is co-ordinated by the Automotive Industry Action Group, a US trade body, has so far won support from DaimlerChrysler, Exel, Ford, General Motors, Honda of America, Johnson Controls and Yazaki. But Toyota has declined to sign up, despite having two large subsidiaries - Toyota Motor Manufacturing and Toyota Tsusho America - as Aiag members.

The US-based Interfaith Center on Corporate Responsibility (ICCR), an organization of socially responsible investors, said it was 'disappointed' that Toyota, one of the biggest manufacturers, had not yet signed up, and said 'a wide table needs to be set to include all auto companies from the US, Europe and Japan'.

ICCR spokesman Seamus Finn said pooling resources would improve results across the sector, but warned that more companies needed to show their support. 'That means one company is not put at a competitive disadvantage for taking leadership and it saves time and resources by combining efforts to audit factories and train suppliers in implementing workplace standards,' he said.

Toyota told EP: 'We agree with the general principles identified by the Aiag and have been collaborating with them for some time, especially on training materials to share with our suppliers'. However, the company has no plans to formally join the initiative.

The founding members say they want to share expertise so that all can assist suppliers in observing both their own codes of conduct and international workplace standards. They will focus on child labour, freedom of association, harassment, discrimination, health and safety, wages, benefits and working hours.

J. Scot Sharland, Aiag's executive director, said members would take a 'common approach' to shared problems, 'exploring ways to offer a series of country-specific training sessions in key sourcing markets '.

The US State Department has given $185,000 (£94,000) to Business for Social Responsibility to provide administrative support for the collaborative project.