FORD MOTOR COMPANY

I. Company Introduction

Ford Motor Company (commonly known as Ford) is an

American multinational automobile manufacturer headquartered in Dearborn, Michigan,
United States. It was founded by Henry Ford and incorporated on June 16, 1903. The
company sells automobiles and commercial vehicles under the Ford brand, and luxury
cars under its Lincoln luxury brand. Ford also owns Brazilian SUV manufacturer Troller, an
8% stake in Aston Martin of the United Kingdom and a 32% stake in China’s Jiangling Motors.
It also has joint-ventures in China (Changan Ford), Taiwan (Ford Lio Ho), Thailand
(AutoAlliance Thailand), Turkey (Ford Otosan), and Russia (Ford Sollers). The company is listed
on the New York Stock Exchange and is controlled by the Ford family; they have minority
ownership but the majority of the voting power. Ford is a global company with shared
ideals and a deep sense of family from our earliest days as a pioneer of modern
transportation, we have sought to make the world a better place – one that benefits lives,
communities, and the planet. We are here to provide the means for every person to move
and pursue their dreams, serving as a bridge between personal freedom and the future
of mobility. In that pursuit, our 186,000 employees around the world help to set the pace
of innovation every day.

Ford introduced methods for large-scale manufacturing of cars and large-scale

management of an industrial workforce using elaborately engineered manufacturing
sequences typified by moving assembly lines; by 1914, these methods were known
around the world as Fordism. Ford's former UK subsidiaries Jaguar and Land Rover,
acquired in 1989 and 2000 respectively, were sold to the Indian automaker Tata Motors in
March 2008. Ford owned the Swedish automaker Volvo from 1999 to 2010. In 2011, Ford
discontinued the Mercury brand, under which it had marketed entry-level luxury cars in
the United States, Canada, Mexico, and the Middle East since 1938.

Ford is the second-largest U.S.-based automaker (behind General Motors) and

the fifth-largest in the world (behind Toyota, Volkswagen, Hyundai and General Motors)
based on 2015 vehicle production. At the end of 2010, Ford was the fifth largest
automaker in Europe. The company went public in 1956 but the Ford family, through
special Class B shares, still retain 40 percent voting rights. During the financial crisis at the
beginning of the 21st century, it struggled financially to the point of collapse which was
in large part prevented by President George W. Bush announcing his emergency financial
rescue plan to help Ford Motors as well as Chrysler LLC and General Motors, making
immediately available $13.4 billion to the automaker. Ford Motors has since returned to
profitability. Ford was the eleventh-ranked overall American-based company in the
2018 Fortune 500 list, based on global revenues in 2017 of $156.7 billion. In 2008, Ford
produced 5.532 million automobiles and employed about 213,000 employees at around
90 plants and facilities worldwide.

In 2007, Ford fell from the second-ranked automaker to the third-ranked

automaker in US sales for the first time in 56 years, behind General Motors and Toyota.
Based on 2007 Global sales, Ford fell to the fourth-ranked spot behind Volkswagen. Ford
 is the seventh ranked overall American-based company in the 2007 Fortune 500 list,
based on global revenues in 2007 of $172.5 billion.1 In 2007, Ford produced 6.553 million
automobiles and employed about 245,000 employees at around 100 plants and facilities
worldwide.2 Also in 2007, Ford received more initial quality survey awards from J. D.
Power and Associates than any other automaker. Five of Ford's vehicles ranked at the top
of their categories and fourteen vehicles ranked in the top three.

CORPORATE SOCIAL RESPONSIBILITY

Far beyond simply giving that much-promoted term CSR or Corporate Social
Responsibility a face, an image, or a tagline, Ford Motor Company has embraced it in full
as a core program that embodies what it calls its INVESTMENTS FOR THE FUTURE.

II. Evaluation of Various Corporate Social Responsibility

Ford Motor Company’s corporate social responsibility (CSR) programs are designed to
respond to the demands and interests of the firm’s stakeholders. Ford impacts these
stakeholder groups through its business activities. At the same time, the stakeholders are
significant because they affect the company through their purchases and sociopolitical
pressure. As one of the biggest U.S.-based automobile manufacturers, Ford must address
the needs of its stakeholders to maintain its industry position. Thus, improving corporate
social responsibility efforts can help sustain Ford’s long-term development toward its aim
of becoming the global market leader. Ford Motor Company’s comprehensive corporate
social responsibility (CSR) programs address stakeholders’ interests and optimize the
firm’s relations with target customers around the world.
 Community: Go Further: Better World

Ford’s commitment to India is not just business centric. At the heart of the company’s
business plans are people and communities. With unwavering commitment to the
country and its people, Ford’s CSR initiatives reflect its ‘Go Further’ journey in India.

1. Prioritizing Health Safety of The Ford Family

• With the ongoing pandemic causing public restrictions & health concern,
Ford India shared a series of initiatives undertaken by the company to help
the customer as well as communities impacted by COVID-19. Starting with
announcing Work from Home (WFH) for the entire workforce followed by
manufacturing face shields for frontline workers, Ford showcased
empathy towards employees & communities during COVID-19 crisis. For
customers under lockdown, Ford announced a series of initiatives to
minimize the inconvenience, including Price Protection, Warranty
Extension, Service Benefits and many more such initiatives. Ford India also
rolled Dial-A-Ford - a manifestation of the Feels Like Family promise which
promises to deliver safe and hygiene standards of sales and service
experience to customers without compromising on convenience. Real-
time information about community & customer measures evoked
confidence at the times of crisis. Ford India also supported Tamil Nadu
Government’s COVID-19 relief effort by deploying 25 vehicles for health
workers.
2. Driving Human Progress in Our Communities
• Ford’s commitment to India is not just business centric. At the heart of the
company’s business plans are people and communities. With an
unwavering commitment to the country and its people, Ford’s CSR
 initiatives are also a reflection of the company’s ‘Go Further’ journey in
India.
• Ford’s involvement with communities started in 1998 and took a defining
shape with Operation Better World in 2012 when issues related to
Community Life, Education, Sustainability, and Driving Safety were
outlined as the core priorities. Our work in these core areas continues to
be rooted in Ford’s long-standing commitment to making a positive impact
on society and Henry Ford’s legacy of building strong communities
wherever Ford does business.
3. Focus on Education
• A critical component of Ford’s Happy Schools intervention is engagement
with key stakeholders, including the management of schools, the teachers,
and parents, to create a sustained support system for the child. With its
implementation in Chennai, Coimbatore, Sanand and Gurgaon/NCR, this
program is impacting the lives of children across 50 government schools.
• Over the years, Happy Schools has created sustainable changes in the
schools’ learning systems, improved basic infrastructure facilities and
provided educational & counselling support for special children, those with
learning difficulties and their parents. Ford’s Rural Empowerment Program
(ROPE) also extends support to schools in rural areas in Cuddalore and
Tenkasi districts.
• Focusing on Girl Education, Ford’s Light House Program looks to nurture
their talent with knowledge, skills and scholarships. The program supports
their families, and encourages schools, to provide a more nurturing
environment for girls. Parents and single mothers are also provided
livelihood support encouraging them to enhance their family income and
support their daughter’s education. The program is currently running in
Chennai and Tenkasi (TN).
 • In addition, the sustained contribution of both hardware and the software
under Ford-Rotary Digital Literacy program has helped 5 lakh people
secure digital literacy since its inception in 2007. Over 10,000 desktops and
laptops are
now being
used to deliver
basic
computer
knowledge
and advanced
training at
government schools, colleges, NGOs, and hospitals.
4. Community Life: Women Empowerment
• To help strengthen the communities in which we operate has always been
a core priority for Ford. Around the world, the company’s efforts to
improve community life include hunger relief, poverty alleviation, and
environmental initiatives like water conservation.
• Involved with a multiplicity of projects in India, Ford supports Women
Empowerment Program(s) in villages close to the Chennai plant. More
than 1300 women have been trained in this skill over the last four years,
of whom a significant number have started leveraging this as an additional
source of income.
• Ford’s Project Valam (empowerment) under the Livelihood Programs,
equips women in rural and semi-rural communities with skills for better
employment and empowerment. The program provides women at Kumzhli
village access to tailoring and computer education that is helping them get
better employment and income generation for themselves and their
families.
 • Continuing its efforts towards empowering women and their role in the
society,
Ford India
also
donated a
New Ford
Figo and
New Ford
Aspire to
help Neeva Foundation in their efforts to provide training and employment
to women as drivers.
5. Focus on Healthcare
• Ford has been supporting a primary health care centre – “Sanjeevi” in
Chennai for 19 years, which has provided medical care to more than
510,000 people in surrounding villages.
• The Primary Healthcare Center also organizes various awareness camps, to
reach out to the community and volunteers from Ford participate in these
camps. Seeing the
success and
impact it creates,
Ford has also
been closely
involved with
similar healthcare
infrastructure
projects in Sanand, Gujarat.
• Another key program supported by Ford over the years has been The
Maternal & Child Healthcare intervention in Kalvarayan Hills in Villupuram
 district, 300 Km from the Chennai facility. The program has enabled access
to quality healthcare for expectant mothers in the region while including
community awareness initiatives that address issues here like child
marriage and dropout rate amongst girls.
• Ford has been named as the largest Voluntary Blood Donor successively
for 19 consecutive years across its manufacturing and IT operations. Our
employees team up with NGOs like the Red Cross for conducting blood
donation camps and safety campaigns.
• Recognized with the prestigious Highest Voluntary Blood Donor in the
Industrial Segment for 20 consecutive years by Indian Red Cross Society of
Tamil Nadu State.
• The inaugural camp held in the year 2000 at the Chennai plant, had 123
units of blood donated by the employees. The turnout increased steadily
over years and so far, CVAEP has donated 14414 units of blood and
conducted 85 voluntary blood donation camps.
6. Driving Safety
• The Ford Driving Skills for Life (Ford DSFL) program is the centerpiece of
our efforts to improve driver safety. Launched in 2009 in India, the
program is in keeping with Ford’s objective of creating Safe Roads and a
Better World.
• The program focuses on safe driving while emphasizing on maximizing the
driving experience through economic and eco-friendly driving behavior
(including anticipation of road conditions, applying fuel-efficient driving
techniques, avoiding over-speeding, and having a well-maintained
vehicle). Our trainers have been a part of an intensive training conducted
by global experts, who have pioneered this program for Ford Motor
Company in many countries.
• Year after year, the DSFL program is working towards reducing the number
of traffic fatalities and injuries by reinforcing safe and economical driving
skills and has trained close to 25,000 people in India since its launch.
• In 2017, Ford
India launched a
unique and
insights-driven
campaign called
“Cartesy” to
encourage
drivers to be
courteous behind the wheels while highlighting behavioral issues that
impact safe driving in India.
• In line with the World Health Organization 5-pillar approach, Ford in 2018
conducted a road safety survey - covering 10 cities – to unravel the
behavior and attitude of average
• Indian road user. Following the framework of Compliance, Caution and
Compassion, the survey themed under #Cartesy, formed part of the
company’s ongoing efforts to highlight behavioral issues stopping Indian
roads to become safer & saner.
• The Ford Cartesy Survey 2020 is an attempt to understand behavior and
attitudes among India’s road users with the hope that it will contribute to
safer and saner roads in our country. Executed in the format of extensive
public opinion surveys, Cartesy 2020 incorporated inputs from 1561
people over 4 months in our biggest, busiest cities —Delhi, Mumbai,
Bangalore, Kolkata, Chennai, and Hyderabad — with each city being
divided into five zones. The respondents were passenger car drivers/
owners and valid license holders between 22 and 50 years of age and
 spanned from people who were single to those married with children. 78%
of the respondents were male. The survey and consequent cluster analysis
created psychographic profiles which revealed four unique personalities
commuting on roads in India – the Oblivious, the Assured, the Pretentious
and the Idealist.
7. Focus on Water/Sustainability
• Ford India lays particular importance on the environment as part of its CSR
goals. The organization believes in growing sustainably and working
towards bettering the ecological balance. These objectives are achieved by
several programs designed to tackle deforestation, erosion, and pollution
of water bodies.
• Ford is supporting the protection and restoration of Pallikarni marshland
that homes hundreds of migratory birds. The company aims to create a
birding deck there for the enthusiastic bird watchers and nature lovers.
• Ford has also led the scientific restoration of the Thirukachur lake, which
is located close to its Chennai facility. As part of the effort, the lake has
been de-silted, and the water-holding capacity has been enhanced to
benefit the local community. Last de-silted in 1976, the water from this
lake benefits communities across 4 villages. De-silting the lake has helped
improve the quality of groundwater while improving the biodiversity of
surrounding areas with the survival of both flora and fauna in this region.
• Ford also launched a cohesive community outreach initiative in Sanand,
Gujarat to improve access to safe drinking water for children from
neighbouring communities. Spanning across 3 phases, water filters were
installed in anganwadis and primary schools, across 50 villages. The
installation of the water filters was combined with strong community
awareness initiatives, to ensure ownership at the local level and also make
the initiative sustainable. The anganwadis-staff and parents of the children
 were also given information regarding issues related to child health, which
ranges from a balanced diet for children, immunization and vaccination
schedules, and the importance of health check-ups.
• The organization
regularly hosts
Green Club that
introduces an
array of
campaigns for
the employees
and local communities to spread environmental awareness.
8. Driving Volunteerism
• Ford’s volunteering program is an ongoing activity that extends
throughout the year, supported by the enthusiasm of the volunteers and
the company’s community leave policy.
• And the biggest volunteer effort comes each September during the annual
Global Month of Caring when close to 14000 volunteers across Ford in
India across Chennai, Coimbatore, Sanand and Delhi get involved in various
community outreach initiatives addressing education, health,
environment, women’s empowerment & humanitarian support.
• The rest of the
year, Ford
employees
continuously
works for the
benefits of the
marginalized
sections that may
 include orphans, malnourished and underprivileged communities. It is
done through collaboration with NGOs at several levels.
• Our employees are encouraged to volunteer for the old age homes,
orphanages and critical care centres and always come forward to mobilize
support during the time of natural calamity be it for the victims of the
Uttarakhand flood disaster or Kerala Floods.

Ford Motor Company’s Stakeholder Groups and CSR Initiatives

Ford’s stakeholders are comprehensively addressed through various corporate social

responsibility initiatives and programs. The following is Ford’s prioritization of its
stakeholders, with customers having the highest priority:
1. Customers (Ford’s top-priority stakeholders)
2. Employees
3. Investors
4. Communities (Ford’s least-priority stakeholders)

1. Customers
• Ford’s top-priority stakeholders are its customers. The interests of this
stakeholder group are high quality products and services, especially after-
sales services. Customers are significant stakeholders because they
directly determine the company’s revenues. Ford’s corporate social
responsibility efforts for this stakeholder group are as follows:
i. Product innovation for quality, fuel economy, and safety
ii. Ford Smart Mobility
iii. Ford Driving Skills for Life program
• Ford Motor Company continues to innovate its products for quality, fuel
economy, and safety to maximize satisfaction among customers as
 stakeholders. Majority of the firm’s 2015 vehicles received five-star ratings
from the United States New Car Assessment Program (NCAP). Also, the
Ford Smart Mobility program aims to increase mobility and provide
autonomous/driverless vehicles. In addition, the Ford Driving Skills for Life
free driver education program helps novice drivers develop skills for safe
and efficient driving. Thus, Ford’s corporate social responsibility programs
extend beyond just offering vehicles and improve the driving skills of
customers as the top stakeholders.
2. Employees
• Ford considers its employees as second-level priority stakeholders. This
stakeholder group is interested in career development, high wages, and
equal treatment and opportunities. Employees are significant
stakeholders because they influence the production and service capacity
of the business. For instance, even a small decline in this stakeholder
group leads to a proportionate decline in the company’s productivity and
performance. To address the interests of employees as stakeholders,
Ford has the following corporate social responsibility initiatives:
i. Sustainable Workforce
ii. Product Online Training
iii. Global Learning and Development
iv. Global leadership development programs
• Ford Motor Company has reformed its workplace safety policies through
time to protect this stakeholder group and ensure regulatory compliance.
The firm’s Sustainable Workforce initiative aims to optimize employees’
health, efficiency, and productivity. For instance, Ford’s new global safety
standards have reduced workplace injuries by 90% since 2000. The
company also offers online product training to keep this stakeholder
group always up-to-date and capable of doing their jobs. In addition, the
 firm’s corporate social responsibility efforts include the Global Learning
and Development program, which offers continuing education through
classroom-based and online courses, as well as mentoring and shadowing
to maximize performance and satisfaction in the stakeholder group.
Moreover, Ford has global leadership and development programs like (a)
the Global Leadership Summit for executives and general managers, (b)
the Global Executive Leadership Program for directors and senior
managers, (c) the Experienced Leader Program for middle managers, and
(d) the Salaried Supervisor Institute/Program (SSI) for new or experienced
leaders. These programs reflect Ford’s corporate social responsibility and
dedication to support the interests of employees as one of the company’s
most important stakeholder groups.
3. Investors
• Ford Motor Company’s investors are interested in maximum profits and
business stability. These stakeholders are significant because they affect
the firm’s capital. To address the interests of this stakeholder group, Ford
implemented the One Ford plan in 2008 under former CEO Alan Mulally’s
leadership to achieve consistency and synergy in its global organization.
The One Ford plan reduces costs and maximizes the company’s profits
worldwide. This effort is part of Ford’s corporate social responsibility
strategy to improve its performance, especially in the aftermath of the
recession of the late 2000s.
4. Communities
• Ford has a number of major corporate social responsibility programs for
communities as stakeholders. The interests of this stakeholder group
include support for community development, as well as environmental
conservation. Communities are significant stakeholders because they can
influence the perceptions of Ford’s customers. These interests are
 addressed through the following corporate social responsibility programs
at the company:
i. Supplier sustainability training
ii. Ford Motor Company Fund and Community Services
iii. Ford Volunteer Corps
iv. Ford Driving Skills for Life program
• Ford Motor Company provides sustainability training to its suppliers to
improve their sustainability performance, which is linked to environmental
impact. Also, the Ford Motor Company Fund and Community Services is
the company’s nonprofit organization for a wide variety of philanthropic
efforts for this stakeholder group. For example, the firm’s corporate social
responsibility efforts provide investments for community irrigation, as well
as education programs in rural areas. In relation, the Ford Volunteer Corps,
mainly composed of the company’s employees, supports community
development. Moreover, the Ford Driving Skills for Life program also
ensures that driving does not create issues with community safety. Thus,
the company’s corporate social responsibility activities for these
stakeholders are diverse.

Ford Philippines Recognized for Outstanding CSR at Society of Philippine

Motoring Journalists’ Driven to Serve Awards

Ford Philippines’ Driving Skills for Life (DSFL) and Operation Better World
programs received recognition at the Driven to Serve Awards of the Society of Philippine
Motoring Journalists held at the Marriott Hotel. Accepting the Platinum award for DSFL
from Rodrigo Franco, president and CEO of Metro Pacific Tollways Corporation and
member of the Awards’ judging committee from Ford Philippines are Lance Mosley,
managing director, and Josie Gonzalez, AVP for Government and Corporate Affairs.
 MANILA, Philippines, 2 March 2017 – Ford Philippines was the recipient of two
prestigious awards for its corporate social responsibility (CSR) programs at the first-ever
‘Driven to Serve’ Awards of the Society of Philippine Motoring Journalists (SPMJ) – one
each for its Driving Skills for Life driver safety program and its Operation Better World
initiatives. The Driven to Serve Awards were launched this year to recognize the best CSR
initiatives in the local automotive industry, with categories including environment,
community development, road safety and education, and training. Ford received the top
award in the Road Safety category, Platinum, for its Driving Skills for Life (DSFL) program.
Ford launched the global DSFL program locally in 2008, which was customized for the
Philippines market and helps to raise awareness on safe driving techniques, road safety,
techniques to improve fuel economy, and other road safety issues. Since its local launch,
more than 18,000 licensed drivers of private and public utility vehicles have participated
in DSFL sessions, all free-of-charge.

Ford received a Silver Award in the Community Development category for the
company’s Operation Better World initiative, a global Ford CSR platform that inspires
community service from employees and dealership staff to do their share in building a
better world. In the Philippines, Ford’s Operation Better World programs have seen Ford
employee and dealer volunteers help provide clean water access to homes, providing
medical and dental services, and assisting families build their houses.

Ford Motor Company: Sustainability

Ford’s approach to corporate social responsibility (CSR) was first communicated

in its inaugural corporate citizenship report, which uses Global Reporting Initiative (GRI)10
guidelines to disclose social and environmental performance in 1999. In the report, Ford
started to explore the issue of transparency, accountability, and sustainable
development. That is the first time Ford has managed to structure and consolidate its
sustainability data and reporting for all of its facilities worldwide. This report was praised
by many CSR analysts. For example, Andrew Brengle, as analyst with KLD Research &
Analytics, a socially responsible investment research firm, said “It is a beautiful report in
its presentation and Ford makes effective use of the GRI format.” However, the report
was actually weak in terms of environmental and social cost accounting. And Ford should
offer lots of information, although they could open themselves up to criticism for the
unfavorable data. Since then, Ford has recognized that corporate citizenship was
becoming more associated with the narrower focus of philanthropy and not the broader
business issue of sustainability. Ford now has adopted a more integrated approach to
CSR. Moreover, for is more convinced than ever its long-term success depends on how
the Company addresses issues such as climate change, energy security, working
conditions in its supply chain, safety, congestion, noise and innovative use of renewable
resources and materials. Ford’s business connects fundamentally with society and its
growing need for sustainable mobility, and it is, therefore, in Ford’s material interest to
anticipate and respond to that need. Since 1999, Ford has been working to integrate
environmental and social considerations into the company’s operations. The company
considers innovative sustainable thinking as the key to delivering great products, a strong
business, and a better world. CSR’s main areas are human right, climate change and
mobility that will be described in the following paragraphs.

1. Climate Change
• As a major multinational enterprise, Ford Motor Company understands the
impacts of its activities on the environment. For that purpose, the
company has a wide range of programs and policies designed to greatly
improve the environmental impacts of its products, plants and processes.
These programs and policies include developing advanced vehicle
technologies, adopting new clean air standards, reducing the
environmental impact of the company's plants, recycling and reusing
materials and conserving natural resources. Shareholders and the public
are increasingly interested in Ford's reaction to climate change. Therefore,
 the Company has published the first climate change report for the
automotive industry. Climate change is closely related to issues of energy
security, fuel prices and greenhouse gas (GHG) emissions. Therefore, Ford
is committed to reducing greenhouse gas (GHG) emissions and energy
usage in their operations, develop lower GHG-emissions products and
work with industry partners, oil companies and policy makers to establish
effective frameworks for reducing road transport GHG emissions.
• Ford is involved in numerous partnerships and alliances with universities,
coalitions, NGOs, and other companies to improve our understanding of
climate change. For example, Ford is: ○1 A member of the United States
Climate Action Partnership (USCAP), ○2 An alliance of major businesses
and leading climate and environmental groups that have come together to
develop an economy-wide, market-driven approach to reduce greenhouse
gas emissions, ○3 Working closely with BP to explore vehicle and low-
carbon fuel technologies, ○4 Working with the World Resources Institute
on the EMBARQ Istanbul project to reduce vehicle emissions and traffic
congestion in that city, ○5 A founding member of the Carbon Mitigation
Initiative at Princeton University to study the fundamental scientific,
environmental and technical issues related to carbon management, ○6 A
charter member of the Sustainable Transportation Energy. 12 Ford must
demonstrate environmental stewardship in several areas by voluntarily
committing to measure, independently verify and publicly report GHG
emissions on an annual basis utilizing TCR’s General Reporting Protocol.
Ford will leverage its emissions monitoring and reporting experience with
the Chicago Climate Exchange (CCX) to support its commitment to TCR.
Ford was the first automaker to voluntarily report facility emissions. And
also, the first to publish an auto industry report dedicated to addressing
 the business implications of climate change, carbon dioxide emissions and
energy security concerns.
2. Mobility
• As an automotive company mobility is a key interest for the Company. Ford
responds to the challenges of sustainable mobility with several initiatives.
These include developing and deploying advanced technologies,
promoting road safety in developing countries and exploring new models
of mobility through innovative partnerships. The development of
advanced technologies affects company operations and includes
environmentally friendly mobility in the form of hybrid vehicles, advanced
diesel, hydrogen-fueled internal-combustion, and hydrogen fuel cell
powered vehicles. Other mobility topics arise because of a change in
mobility patterns and behavior such as the promotion of road safety in
emerging economies or the creation of new mobility models presenting
Ford no longer as a manufacturer of vehicles but a provider of mobility
solutions.
3. Road Safety Project
• The purpose of the initiative is to transfer best practices, with the objective
of reducing accidents and building capacity in developing countries to
manage road safety. Projects include educational outreach to increase
rates of seat belt and helmet usage, and training aimed at improving
roadway design. Then first focus of the initiative is China.
4. Human Rights
• The concept of human rights and its economic, social, cultural, political,
and civil dimensions are part of Ford's license to operate. As an asset to
the company and society employees should be treated consistently with
fairness and respect. This attitude is reflected in Ford's Code of Basic
Working Conditions and efforts to make Human Rights a topic of
 importance at Ford plants and in the supply chain.13 In early 2008, Ford
joined the United Nations Global Compact, a framework for businesses
that are committed to aligning their operations and strategies with 10
universally accepted principles in the areas of human rights, labor, the
environment, and anticorruption.

III. Evaluation of 3 Theories of Corporate Social Responsibility:

1. Corporate Social Responsibility
• They define corporate social responsibility as being willing to help others,
being environmentally conscious and socially tolerant. With those guiding
principles in mind, they’ve designed a special program to promote
tolerance and equal opportunities, and actively support social and
environmental protection programs.
i. The Economic Responsibility – The Power to Create
• Under The Plan to turn around and grow Ford, they are
improving quality, reducing costs, restructuring
underperforming businesses, and modernizing and
simplifying the way we operate. This will help them
continue to exceed customer expectation and deliver
sustained, profitable growth.
ii. The Legal Responsibility – Speak Up
• At Ford, they do things the right way which includes
encouraging their employees, agency personnel, suppliers,
customers, and other stake holders, to speak up when there
is a concern about potential violations on their Code of
Conduct, company policy, the law and other compliance
and ethics matters.
 • While all concerns will be taken seriously and addressed,
Ford’s investigation process is best facilitated when they
receive as much information about the concern as possible.
They ask their consumers to provide contact information so
they can be reached for follow-ups and if consumers want
to report anonymously, they accept it. Ford strictly
prohibits retaliation for reporting a suspected violation in
good faith or for assisting with an investigation.
iii. The Ethical Responsibility
• Ford's commitment to ethics is evident in programs aimed
at monitoring human rights and safe working conditions,
sourcing conflict-free minerals, to programs such as the
Partnership for a Cleaner Environment, which is aimed at
encouraging sustainability through Ford's supply chain.
Also, considering that Ford Motor Company has been
recognized as one of the world's most ethical companies by
the Ethisphere Institute, a leading business ethics think
tank.
iv. The Philanthropic Responsibility
• Ford Fund. Since 1949, the Ford Motor Company Fund (Ford
Fund) has partnered with nonprofit organizations and Ford
dealers, providing opportunities and resources in programs
that support education, promote safe driving, enrich
community life and encourage employee volunteering.

2. The Triple Bottom Line

• Economic Sustainability
i. Ford's sustainability goals include becoming carbon neutral
globally by 2050, using 100 percent locally sourced renewable
 energy for all manufacturing plants globally by 2035, and
eliminating single-use plastics from its operations by 2030. A quick
overview of Ford's approach to sustainable development: - Ford
recently became the first automaker to join the Business Alliance
for Water and Climate in support of its mandate to improve water
quality; - Since 2000, Ford has reduced water use in its facilities by
61%.
ii. The World Environment Center (WEC) honored the Ford Motor
Company by awarding it the 36th annual Gold Medal for
International Corporate Achievement in Sustainable Development.
Due to the global pandemic, WEC held a virtual presentation on
December 15, 2020. Bob Holycross, Ford’s Chief Sustainability,
Environment and Safety Officer, joined the event to accept the
award.
iii. Ford uses 100 percent renewable energy for all manufacturing
plants globally by 2035, meaning the energy comes from sources
that naturally replenish – such as hydropower, geothermal or wind
and solar. They will continue to do our part to reduce CO2
emissions consistent with the Paris Climate Accord.
• Social Sustainability
i. Ford's commitment to ethics is evident in programs aimed
at monitoring human rights and safe working conditions, sourcing
conflict-free minerals, to programs such as the Partnership for a
Cleaner Environment, which is aimed at encouraging sustainability
through Ford's supply chain. For example, the firm's corporate
social responsibility efforts provide investments for community
irrigation, as well as education programs in rural areas. In relation,
 the Ford Volunteer Corps, mainly composed of the company's
employees, supports community development.
• Environmental Sustainability
i. Ford's sustainability goals include becoming carbon neutral
globally by 2050, using 100 percent locally sourced renewable
energy for all manufacturing plants globally by 2035, and
eliminating single-use plastics from its operations by 2030. Ford
maintained its place on CDP's 'A List' for climate change. In
December 2020, we were honored with the Gold Medal for
International Corporate Achievement in Sustainable Development
by the World Environment Center for our global carbon reduction
strategy.
ii. Ford Impacts and highly contributed environmentally since 2000,
Ford has reduced its global operational energy use by 30 percent (3
percent improvement from a year ago), CO2 emissions from our
facilities by 39 percent (11 percent improvement from a year ago)
and water use by 43 percent (21 percent improvement from a year
ago).

3. Stakeholder Theory
• Five Cardinal Stakeholders
i. Shareholders - Ford Motor Company offers the “Friends and
Neighbors” pricing discount to our qualifying shareholders. To be
eligible, you must show you are a current Ford Motor Company
shareholder who has held a minimum of one hundred (100) shares
of Ford Motor Company stock for at least the past 6 months. Also,
anyone who owns at least 100 shares of Ford for at least six months
qualifies for the Ford X-Plan, better known as the “Friends and
 Neighbors” plan. Under the program, shareholders can visit a Ford
showroom and purchase a new car for roughly 4 percent above the
price that employees pay.
ii. Workers - The company also uses its intranet to communicate with
its staff around the world. Jacques Nasser, Ford's boss, sends out
“Let's chat” notes once a week. ... The company also runs
chatrooms, in which employees can question various inhouse
experts and outside analysts live on the corporate intranet. In
addition, Henry Ford may have paid his workers a good wage, but
it wasn't out of charity — it was a good business decision that some
say helped the middle class take off. He says Ford proved that
higher wages led to more productivity, which in turn was good for
business. Generally, ensuring fairness in compensation helps the
company to reduce employee dissatisfaction. This motivates
employees to improve their performance and to continue working
for the company. Second, Ford motivates and retains its employees
by improving their financial security (Ford Motor Company).
iii. Customers - Ford Motor Company now has the highest customer
satisfaction with vehicle quality among all major automakers, a
new consumer research study shows. Two new self-service
Websites, www.customersaskford.com and
www.dealersaskford.com, allow visitors and dealers to easily find
the information they need. In addi- tion, the company is expanding
into Web 2.0 communication channels to establish a direct
dialogue with owners. Ford sells its products primarily through
independent dealerships, with which it maintains close
relationships, consulting with these customers and providing
various support services. Consumers are able to purchase Ford
 vehicles through these dealerships, receiving a personalised service
and bespoke Ford models.
iv. Suppliers - Ford, the second-largest automaker in the US, has a
number of suppliers, including many famous indirect suppliers.
Major suppliers of airbags include Autoliv, while Warn Industries
supplies axle assemblies and Flex-N-Gate Seeburn supplies door
hinges and arms. Through collaborations and its independent
efforts, Ford has trained or retrained over 3,500 global supplier
sites on these core principles, including recent training on
eliminating the use of fees for employment and modern slavery.
v. Community – Their mission has always been to strengthen
communities and help make people’s lives better. With
programming that empowers people, encouraging and
funding innovation, and promoting social mobility, we
support our communities so that they may prosper. And
Since 1949, the Ford Motor Company Fund (Ford Fund) has
partnered with nonprofit organizations and Ford dealers, providing
opportunities and resources in programs that support education,
promote safe driving, enrich community life and encourage
employee volunteering.

IV. Proposed Solution and Changes

• Ford plans to increase its production capacity of electric vehicles to 600,000 units
globally by 2023, according to CEO Jim Farley. The executive expects that would
make the company the second-largest U.S.-based producer of EVs, behind Tesla.
• Ford announces changes to automotive operations to further accelerate
transformation plan
 o Company taking series of actions to better serve customers, streamline
decision-making and increase accountability
o Strategic organizational moves focus on accelerating a winning portfolio,
commercial vehicles as a business and implementing customer facing
digital experiences across platforms
o Data and AI play pivotal role in servicing company’s brands and customers
particularly in Connected Vehicles and Enterprise Connectivity
organizations
o Kumar Galhotra named president, Americas & International Markets
Group; Lisa Drake appointed chief operating officer, North America,
continues as vice president, Global Purchasing
• Mulally is closely identified with Ford's recent success. Under his 'One Ford'
plan, Mulally pushed Ford to build global models that can be sold around the
world with a few tweaks. Ford has estimated the strategy helped make overall
product development two-thirds more efficient between 2006 and 2012.
• Ford Motor Company Outlines its Top 10 Green Initiatives
o Use of Sustainable Fabric – The 2008 Ford Escape is believed to be the
first U.S. automotive application of 100 percent recycled fabric seating
surfaces. The new fabric, supplied by Interface Fabrics, Inc., is produced
from 100 percent post-industrial waste. Post-industrial waste is something
originally intended for retail use that never makes it to the consumer. It
can include anything from plastic intended for pop bottles to undyed
polyester fibers that don’t make the cut for consumer use.This plastic and
polyester is processed, spun into yarn, dyed, and woven into seat fabric.
Recycling waste otherwise destined for landfills has obvious
environmental benefits. Interface Fabrics estimates that Ford’s use of
post-industrial recycled materials, rather than virgin fibers, will conserve
up to 600,000 gallons of water 1.8 million pounds of carbon dioxide (CO 2)
 equivalents and the equivalent of more than 7 million kilowatt hours of
electricity.
o Leader in Fuel-Efficient 6-speed transmissions – Ford, Lincoln and
Mercury offer 15 models that are available with fuel-saving 6-speed
transmissions. Ford plans to produce approximately 1.3 million 6-speed
transmissions annually by 2008. Two out of every three vehicles will be
offered with 6-speed transmissions by the end of next year. Fuel efficiency
is improved up to 7 percent in highway driving over typical 4-speed
transmissions while offering better performance and smoother, more
precise shifts.
o Ford Introduces First Clean Diesel in Heavy-Duty Pickup Segment – Ford
is leading the diesel revolution with the 2008 Super Duty, offering the
segment’s first clean diesel engine. The new 6.4-liter diesel utilizes Ford
Clean Diesel Technology and meets the most stringent emissions
standards in the world while increasing power and torque in an engine that
is smooth and quiet. The 6.4-liter Power Stroke clean-diesel makes an
impressive 350 horsepower at 3,000 rpm and 650 foot-pounds of torque
starting at 2,000 rpm while reducing particulate output by up to 97 percent
to a level on par with gasoline engines.
o Sustainable Landscaping Preserves Environment and Looks Good – In an
effort to conserve natural resources, improve habitat and lower costs, Ford
has installed nearly 200 acres of sustainable landscaping around its
corporate properties in Dearborn and Allen Park, Mich. The
comprehensive grounds maintenance plan incorporates fields of
wildflowers, natural prairies, and fallow fields. Several prairie fields are
designated “Grow Zones,” meaning they contribute to a sustainable
environment by preserving natural resources, providing wildlife habitat,
absorbing rainwater, reducing erosion, and saving maintenance costs
o First Two-Time Winner of EPA’s Energy Star Award – Ford’s actions to
increase energy efficiency and reduce greenhouse gas emissions from its
facilities have earned it the U.S. Environmental Protection Agency’s
coveted Energy Star 2007 Partner of the Year Award in Energy
Management. Ford is the first automaker to receive the award two years
in a row. In 2006, Ford improved energy efficiency in the U.S. by 5 percent,
resulting in savings of approximately $25 million. Since 2000,
Ford’s U.S. facilities have improved energy efficiency by 25 percent,
equivalent to the amount of energy consumed by 220,000 homes.
o Ford Escape and Focus Are More Than 80 Percent Recyclable –
Dismantlers and shredders process more than 94 percent of all salvaged
vehicles. They collect parts and materials for reuse, remanufacturing and
recycling. Usually, 75 percent of an automobile’s content is recycled –
including steel, iron, aluminum, copper and other non-ferrous metals. The
Ford Escape and Focus exceed the norm, being more than 80 percent
recyclable.
o Paint Fumes Become Fuel at Michigan Truck Plant – Ford’s innovative
Fumes-to-Fuel system burns paint fumes in a process that produces
electricity at the Michigan Truck Plant in Wayne, Mich., home of the Ford
Expedition and Lincoln Navigator. The patent-pending Ford system uses
a Stirling cycle engine to burn the fumes from solvent-based paint used to
paint cars and trucks. Not only does the process virtually destroy the
volatile organic compounds (VOCs) in the fumes, it also produces
electricity for the plant. The program burns one-third of the fumes in one
paint booth, yet 45 to 50 kilowatts of electricity are produced – enough to
meet the typical demand of an average suburban block of houses.
Currently, Ford’s North American assembly plants incinerate the VOCs in
solvent-based paint fumes, but the process requires a significant amount
of energy, substantial floor space and produces some carbon dioxide (CO
2). The only by-products of Ford’s Fumes-to-Fuel system are small amounts
of water vapor, CO2 and nitrogen oxides.
• Keeping Cool with Geothermal Cooling System – The Lima
(Ohio) Engine Plant, home of production for Ford’s award-
winning Duratec 35 engine, uses cold water from two
abandoned limestone quarries on the property to cool a
portion of the plant and its equipment. The geothermal
system saved Ford $300,000 in installation costs –
compared with the cost of installing a traditional cooling
tower – and saved more than $300,000 in annual operating
costs. Although actual cost savings are difficult to
determine at this point, the system is capable of providing
chilled water using 0.1 kilowatts per ton of cooling vs.
traditional chiller systems with cooling towers, which
consume around 0.7 kw/ton or more. In addition, several
hundred thousand gallons of domestic water have already
been saved due to the elimination of some existing cooling
towers.
• Police Go Green with the 2008 Crown Victoria
Interceptor – The 2008 Ford Crown Victoria Police
Interceptor will be the first and only police fleet vehicle
offered with flexible fuel capability, allowing it to operate
on E85 ethanol or gasoline. Ford is the largest producer and
seller of police vehicles, with more than 80 percent of the
market. As police and government agencies move toward
becoming more environmentally conscious and seek
alternative fuel vehicles for their fleets, Ford is in the
position to fill this need for its police customers. Ford’s
 current lineup of flexible fuel vehicles (FFVs) includes the
Ford F-150, Crown Victoria and Mercury Grand Marquis
models. Ford has placed more than two million flexible fuel
vehicles on the road and has pledged to make half of its
production capable of running on alternative fuels by 2012,
provided the necessary fuel and infrastructure are in place.
The company recently announced it has achieved 50-state
certification for all of the Ford and Mercury 2008 flexible
fuel passenger car models. In an effort to differentiate its
FFVs from standard gasoline vehicles, Ford will begin
equipping the E85-capable vehicles with yellow gas caps by
the end of this year.
• World’s Largest Green Roof – Ford’s Dearborn Truck Plant
has the World’s Largest Living Roof, according to Guinness
World Records. The 10.4-acre living roof is part of Ford’s
redevelopment of the Ford Rouge Center, which includes a
number of progressive environmental initiatives. The roof is
composed of a drought-resistant perennial groundcover
called sedum which is planted into a specially layered bed.
Virtually maintenance-free, it can absorb up to 4 million
gallons of rainwater annually and is part of a broader storm-
water management system installed at the Rouge. In
addition to absorbing rainwater and carbon dioxide, the
sedum roof produces oxygen and provides natural
overhead insulation for the final assembly building, thereby
reducing energy costs. It also is expected to last twice as
long as a traditionally constructed roof.
V. Recommendation
• Ford Motor Company faces many strategic challenges
during these volatile economic times. In the next month
and a half, two of its major competitors may be forced to
file for bankruptcy or liquidate assets. As of this writing,
Ford is the most financially sound American car
manufacturer and possesses enough cash on hand to
continue operations through fiscal year 2009, provided
there are no further dramatic deteriorations in the market.
Analysts believe that the company will not need to seek
government funding unless car sales for 2010 are below 12
million. While Ford, like all major car companies at this time,
faces serious challenges, we assert that opportunities exist
during any time of crisis. We believe that Ford can, with our
help, break even in fiscal year 2010 barring further
macroeconomic deterioration.
i. Ford should proceed with endeavors to
auction the Volvo brand. The assets from
this deal ought to give Ford expanded
adaptability during the approaching year as
well as add to existing key objectives.
ii. Such liquidations represent a lot of chance to
Ford, including however not restricted to the
likelihood that the public authority may
picked a victor, the potential for GM to rise
out of insolvency with a massive expense
benefit, and store network interruption
coming about because of liquidations of
 shared providers. While we trust that any
liquidation of Chrysler ought to be
considered an essential open door, we
remain profoundly worried about what the
fate of GM might mean for Ford. For the time
being, Ford should keep on profiting by its
rivals' shakiness and take portion of the
overall industry.
iii. 'One Ford' technique and accept that the
Ford Fiesta is ready for outcome in North
America, whenever promoted accurately
and executed appropriately. Proceeded with
separation through the production of
characterizing style and list of capabilities
selective to Ford vehicles is additionally a
positive advance over the long haul.