After a briefing by the company the Committee discussed the following agenda: (1) "The CS Campaign 2005"; (2) The 2005FY CSR Promotion Office program; (3) Progress in implementation of the improvement measures detailed in the report submitted to the Ministry of Land, Infrastructure and Transport; (4) The Conduct Code Booklet (to be carried by MMC employees). The views expressed and recommendations made by the Committee are summarized below.

1. CS Campaign 2005

• The Committee recognizes that implementation of measures under the CS (Customer Satisfaction) Campaign 2005 is more difficult at affiliated sales companies than at production facilities. The Committee observes that there are substantial differences between individual showrooms in how the CS Campaign 2005 is being rolled out. The Committee recommends that the company use the best showrooms as models for others to copy.
• The Committee inquired into what indices sales companies are employing to measure satisfaction levels among showroom visitors. The Committee recommends that the company implement PDCA (Plan - Do - Check - Action) principles using showroom visit rates, ratio of orders taken at showrooms or other readily apparent indices.
• While recognizing that adhering to basics is important, the Committee suggests that the company needs to roll out more aggressive campaigns in order to boost the number of showroom visitors. Pointing out that other automakers are already conducting such campaigns, the Committee stresses the importance of the company encouraging and enabling pace-setting sales companies to move further ahead.
• The Committee feels that the company's stated target of raising SSI (Sales Satisfaction Index) and CSI (Customer Satisfaction Index) levels by a single point is too low and recommends that the company raise its targets.
• The Committee points out that the ultimate objective of CS Campaign 2005 is to increase new car sales. The Committee suggests that the company bear in mind the fact that CS Campaign 2005 provides a means for achieving that objective and is not the objective itself. The Committee also notes that the awarding of prizes that reflect differences in performance among individual sales staff is one means of achieving this objective and recommends that the company take another look at wide-ranging measures designed to increase motivation among sales personnel.

2. 2005FY CSR Promotion Office program

• The Committee calls upon all company officers to recognize, in the company's drive to revitalize itself, the vital importance of uniting in their efforts to put the Business Ethics Promotion program into practice.

3. Progress in implementation of improvement measures

• While recognizing the large number of improvement measures detailed in the report submitted by the company to the Ministry of Land, Infrastructure and Transport in response to the Ministry's Written Warning, and the effort required to implement them all, the Committee urges the company not to waver in its resolve to bring those measures into effect.

4. Conduct Code Booklet

• The Committee suggests that if the Conduct Code Booklet is intended to be a tool to be carried by employees and referred to when uncertain as to what action to follow, it should be more concise in content and clearer in presentation. The Committee suggests that the booklet would be easier to understand if it were laid out under such headings as "Check this point" and "Contact this person/section".
• The Committee also believes employees would make greater use of the booklet were it more compact in size and therefore urges the company to re-examine the whole project bearing in mind the purpose for which the booklet is to be produced. - The Committee notes that the company indicated that it would re-examine the Booklet.

The 17th meeting of the Business Ethics Committee has been scheduled for July.

Noboru Matsuda
Business Ethics Committee Chairman