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 Human rights and working conditions Greenhouse gas emissions Material use and recycling 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. 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 Ford: Greenhouse gas emissions 1. Fuel 2. Fuel efficiency 3. Choices and behavior of driver 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 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 Ford: Material use and recycling: Processes Waste reduced in plants Landfill gases supply energy to plant Paint and solvent waste converted to other uses Ford: Material use and recycling: Facilities Rouge Center Green roof Visitors’ Center Ford Field 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 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.