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Ford Motor Company, Human Rights, and Environmental Integrity

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  • 1. Ford Motor Company, Human Rights, and Environmental Integrity
    • Gerald F. Cavanagh, S. J., Charles T. Fisher III Chair of Business Ethics, University of Detroit Mercy
    • Mary Ann Hazen , Professor, Management, University of Detroit Mercy
    • Brad Simmons , Director, Office of the Executive Chairman, President & CEO, Ford Motor Company
    • Dave Berdish, Manager, Social Responsibility, Ford Motor Company
  • 2. Ford Motor Company, Human Rights, and Environmental Integrity
    • “ I believe the distinction between a good company and a great company is this: a good company delivers excellent product and services; a great one delivers excellent products and services and strives to make the world a better place.” Bill Ford
  • 3. Ford Motor Company, Human Rights, and Environmental Integrity
    • Human rights and working conditions
    • Greenhouse gas emissions
    • Material use and recycling
  • 4. Ford: Human rights and working conditions
    • Adopted human rights and working conditions code through consultation with NGO stakeholders.
    • Employed code first in Ford facilities, then through the supply chain.
    • Applied to 2000 suppliers making 130,000 different parts at 7500 sites in 60 countries.
  • 5. Ford: Greenhouse gas emissions
    • Danger: as ice sheets melt, sea levels rise and inundate low lying cities and turn arable land into desert.
    • 12% of greenhouse gas emissions is from cars and trucks
    • US, 5% of world population, generates 25% of greenhouse gas
    • Governments should encourage fuel efficiency
  • 6. Ford: Greenhouse gas emissions
    • Fuel
    • Fuel efficiency
    • Choices and behavior of driver
  • 7. Ford: Greenhouse gas emissions
    • Environmental advocates criticize Ford and other automobile manufacturers for SUVs.
    • Ford’s response is hybrid and flex fuel vehicles
    • By July, 2006, $1.6 billion bill to develop technology
    • Goal: Ford Focus with 70 mpg fuel efficiency
  • 8. Ford: Material use and recycling: Products
    • By 2015, EU will require 95% of vehicle to be recyclable
    • 75% is metal – processes in place to easily recycle
    • Ford is developing “Model U” concept car using biomaterials
  • 9. Ford: Material use and recycling: Processes
    • Waste reduced in plants
    • Landfill gases supply energy to plant
    • Paint and solvent waste converted to other uses
  • 10. Ford: Material use and recycling: Facilities
    • Rouge Center
      • Green roof
      • Visitors’ Center
    • Ford Field
  • 11. UN Principles for Responsible Investment
    • Incorporate environmental, social, and governance principles
    • 50 institutional investors pledge to follow these principles
    • Multinational corporations can influence such issues
  • 12. Peace Makers: Nation State vs. Multinational Corporation Sales & operations in 200 countries – in its interest to promote stability and peace. Yes, if in and not opposed to US interests Work for stability and peace Laws, courts of host nation, WTO Negotiations, treaties, and military force Means of protecting own global interests Responsible to governments, agencies, citizens of countries, states & localities where it operates Not responsible to any non-US party Multinational oversight Shareholders, suppliers, dealers, customers, employees & communities in 200 countries Voters of US; other nations through treaties Accountable to Shareholders, suppliers, dealers, customers, employees & communities in 200 countries Citizens of US and others Stakeholders Offer products & services that customers want & depend on Promote & defend interests of US and its citizens Responsibility Profits for Ford shareholders Common good of U.S. citizens Traditional Goal Ford Motor (MNC) U.S. (Nation State)

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