Transcript Ford Motor Company, Human Rights, and

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
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
Ford Motor Company, Human Rights, and
Environmental Integrity
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Human rights and
working conditions
Greenhouse gas
emissions
Material use and
recycling
Ford: Human rights and working
conditions
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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.
Ford: Greenhouse gas emissions
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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
Ford: Greenhouse gas emissions
1. Fuel
2. Fuel efficiency
3. Choices and behavior of driver
Ford: Greenhouse gas emissions
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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
Ford: Material use and recycling: Products
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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
Ford: Material use and recycling: Processes
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Waste reduced in plants
Landfill gases supply energy to plant
Paint and solvent waste converted to other uses
Ford: Material use and recycling: Facilities
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Rouge Center
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Green roof
Visitors’ Center
Ford Field
UN Principles for Responsible Investment
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Incorporate environmental, social, and
governance principles
50 institutional investors pledge to follow
these principles
Multinational corporations can influence such
issues
Peace Makers:
Nation State vs. Multinational Corporation
U.S. (Nation State)
Ford Motor (MNC)
Traditional Goal
Common good of U.S. citizens
Profits for Ford shareholders
Responsibility
Promote & defend interests of
US and its citizens
Offer products & services that
customers want & depend on
Stakeholders
Citizens of US and others
Shareholders, suppliers, dealers,
customers, employees &
communities in 200 countries
Accountable to
Voters of US; other nations
through treaties
Shareholders, suppliers, dealers,
customers, employees &
communities in 200 countries
Multinational oversight
Not responsible to any non-US
party
Responsible to governments,
agencies, citizens of countries,
states & localities where it
operates
Means of protecting own
global interests
Negotiations, treaties, and
military force
Laws, courts of host nation,
WTO
Work for stability and
peace
Yes, if in and not opposed to US
interests
Sales & operations in 200
countries – in its interest to
promote stability and peace.