FORD MOTOR COMPANY FINANCIAL PROFILE…


1896 Ford Quadricycle photographed at The Henr...

Image via Wikipedia

Ford
Motor Company: Financial Profile

            If looking at the Governance Profile of the Ford Motor
Company, it is obvious why this corporation is the leading force in the
automotive industry. Ford Motor Company’s President and Chief Executive
Officer, Alan R. Mulally, has an excellent list of qualifications. Mulally is
on the Board of Directors, and was elected Chief Executive Officer of Ford in
September of 2006. In addition, Mr. Mulally’s experience consists of:
Executive Vice President of the Boeing Company and Chief Executive Officer of
Boeing Commercial Airplanes. He was also a member of the Boeing Executive Council”
(Corporate Ford, 2011). Mr. Mulally’s impeccable experience does not stop
there, as a member of many advisory councils and the U.S. National Academy
of Engineering; he has the education to keep Ford Motor Company the leading
force in the industry (Corporate Ford, 2011).

In addition to Alan Mulally’s expertise, the Chief
Financial Officer and Executive Vice President Lewis W. K. Booth packs a truck
load of knowledge and experience to Ford. Mr. Lewis was elected in November of
2008; Booth has also been Director of Land Volvo Brand, Director of Ford of
Europe and Non-Executive Director of Volvo Cars Division, Ford Motor Company.
It is reported that his ability is worth $1.2 million in compensation per
year (Bloomberg, 2011). Ford Motor Company is proud to have these men and their
experience on staff.

Ford Motor Company’s financial reports show that the
corporation has employed the most experienced minds available, and they are
taking care of business. Ford Motor Company’s 2010 Financial Report shows a
strong comeback. In 2008, when other major competitors were receiving
government bailouts, Ford stood on their own, independent and proud. And
although the company was reporting huge losses, they opted out of taking money
from American Tax Payers. Ford Motor Company earned global respect for their
determination to carry out the tradition, ‘help the fellow-man’, and not take
from them (Ford Reports 2010, 2011).

In 2008, Ford Motor Company reported a net income loss of
$14.7 billion, with a $2.7 billion loss in the earlier year. With the world
economy in crisis, and a plethora of new regulations to follow, along with
below average auto sales, Ford Motor Company’s future looked bleak. But, 2009
birthed new promise into Ford with a reported net income of $2.7 billion; 2010
followed with a reported $6.6 billion net income profit. “The progress that we
made improving our core Automotive business has allowed us to strengthen
significantly the balance sheet in 2010, and this will remain a key area of
focus for us in 2011,” stated Lewis Booth (Ford Reports 2010, 2011). Ford is
focused on improving production and profit, while keeping the environmental
impact to a minimum (Ford Reports 2010, 2011).

Ford Motor Company is back on top and investing in their
future; Ford announced that it will not only invest $600 million in Louisville
Assembly, creating 1,800 jobs, but, they will also be investing $630 million in
Kocaeli, Turkey, for Transit production (Ford Reports 2010, 2011). Ford Motor
also unveiled a new fuel-efficient engine in the 2011 F-150, and redesigned the
Explorer and new Fiesta, “which earned IIHS Top Safety Picks in the U.S.” (Ford
Reports 2010, 2011). Ford Motor Company is performing better than it has in
previous years, and the economy is working with them. As a matter of fact,
because of the corporation’s recent great performance, Ford Motor Company will
be giving qualified employees almost $5,000 each (Ford Reports 2010,
2011).

Unfortunately,
there will always be certain risks in business; Ford is not exempt from these
risks. But, Ford Motor Company has implemented ‘risk management’ processes to
combat such issues. Ford Motor Company sees these risks as being, compliance,
reporting, and strategic risks. “The Audit Committee assists the Board of Directors
in overseeing compliance and reporting risk. The Board, the Sustainability
Committee, the Compensation Committee and the Finance Committee all play a role
in overseeing strategic management” (Proxy, 2010). Such risks include, but are
not limited to, disclosure controls, accounting compliance, sales, technology
development, sustainability, capital allocation, retention and compensation,
and geopolitical development. Taking a combined responsibility, and being
proactive in limiting these risks are what keeps Ford Motor Company thriving in
an economic crisis (Proxy, 2010).

The proof of such risks being minimal is in the financial
profile and longevity of the corporation; Ford Motor has survived through wars,
the Recession, and government bailouts. In fact, when compared to other
competitors in the Automotive industry, Ford Motor is the best investment
choice. In 2010, Ford Motor Company reported an annual net income of $6.6
billion; the first quarter showed a net income of $2.1 billion, and continued to
grow. Additionally, the second quarter showed a $690 million improvement from
the previous year, reporting a net income of $1.7 billion; as well as a fourth
quarter income of $190 million (Ford Reports 2010, 2011). Ford has no doubt
earned their spot on the Fortune 500, and leading in the Automotive industry.

In conclusion, Ford is the leading force in the
Automotive industry because of the expert staff, quality products and services.
This company is the perfect investment opportunity; paying close attention to
the risks and regulations and protecting their investors’ interests. Furthermore,
the Ford Motor Company has stood on their own merit and money through
historical economical crises, keeping investor money safe. Investing in this
company is a wise choice, and is highly recommended. Finally, Ford Motor has
taken high quality performance and entwined it with experience and ability,
while concentrating on ethics and Corporate Social Responsibility; making them
the number one investment opportunity (Proxy, 2010).

References

Annual Report. (2010).
2010 Annual Report. Ford Motor Company.

http://www.virtualinepubs.com/publication/?i=34121

Bloomberg. (2011). Ford
Motor Co (F: New York). Bloomberg businessweek.

http://investing.businessweek.com/research/stocks/people/person.asp?personId=2125

474&ticker=F:US

Corporate Ford. (2011,
March 7). Board of Directors. Ford Motor Company.

http://corporate.ford.com/about-ford/governance/board-of-directors/board-of-directors-

801p

Ford Reports 2010.
(2011, February 14). Ford reports 2010 full net income of $6.6 billion;

Fourth quarter net income of $190
million. Ford Motor Company.

http://corporate.ford.com/news-center/news/press-releases/press-releases-details/pr-ford-

rep…

Proxy. (2010). 2010
Proxy. Ford Motor Company. http://corporate.ford.com_proxy.pdf

Advertisements

World Appropriations


The mid- to late-1990s seal of the United Stat...

Image via Wikipedia

America’s Role in the World: Appropriations

America has had a long history of lending a hand to the needy; not just in this country, but, across the world. We are known across international borders for our willingness to come to the rescue of any nation in peril. Whether it is food, development, arms, military assistance, water, or education, the American Government has money to give. In the lowest points of economic history, America still hands out appropriations to other countries for an array of economical and security reasons. The USAID (US Agency for International Development) was formed to offer deprived, third world countries entitlements and funding; as well as, to help other countries in times of natural and unnatural disasters (USAID, 2011).

However, not all Americans agree with giving handouts to other countries; especially when America is in economic peril. “By 1960, the support from the American public and Congress for the existing foreign assistance programs had dwindled” (USAID, 2011). In 1961, President Kennedy suggested;

“Although our aid programs have helped to avoid economic chaos and collapse, and assisted many nations to maintain their independence and freedom nevertheless, it is a fact that many of the nations we are helping are not much nearer sustained economic growth than they were when our aid operation began. Money spent to meet crisis situations or short-term political goals while helping to maintain national integrity and independence has rarely moved the recipient nation toward greater economic stability” (USAID, 2011).

For many years the American people (and a few politicians), have disapproved of the Government’s handling of international entitlements; some even believe that America should not give any aid to other countries. After all, it is widely believed that irresponsible dispersion of entitlements to Americans is what has put this country in financial distress, and caused widespread laziness. Additionally, people tend to appreciate things more when having to work hard to obtain them. On the other hand, some people are justifiably unable to work for one reason or another. In order to stop all appropriations, these unfortunates would be left to the hands of ‘natural selection’.

That being said, there is more to the USAID than just appropriations of food, water, and education development to other countries. Included in President Barack Obama’s 2010 budget request for$58.9 billion for the USAID was money for the “Israeli Arab Scholarship Program”, “Foreign Military Financing”, “International Military Education and Training”, and “U.S. Emergency Refugee and Migration Assistance Fund”. What was not included in this request was the $1,438,800 for operating costs needed to hand out these entitlements (2010 Budget Request, 2011). The American people’s blood boils when they see these staggering figures; especially when they are making sacrifices, forgoing education, and in the extreme cases, going without food or medicine.

For the most part, Americans are good-hearted and giving; but, when their plight is great, the focus turns to providing for their own, expecting the government to do the same. In addition, if the public would actually research what is included in the budget, and what progress is being made across the board, the opinions might change. Granted, there are changes that must be made to the extent of America’s involvement in world affairs, but, we must have a CSR (Country Social Responsibility) program to keep our status, integrity, and power around the world. Additionally, being a super power has certain expectations and responsibilities; if these are not met, the consequences could be devastating.

In times of natural disasters, no matter the country, America must help as much as we can without going down with the ship; meaning, as long as it does not completely ruin the American economy to aid, then it is our duty. In what matter it is done, is what is in question. Never has there been a need, which America did not respond in one form or another. As a matter of fact, America is always the first to respond to international issues of any kind, it has come to be expected; although, it would be a wonderful thing if the same response that is given to other countries, were given to the United States of America and her people.

Military Involvement:

The first military action of the United States was the Revolutionary War; that War cost American tax payers $101 million (Daggett, 2008). No American would ever suggest that war was not necessary to the independence of the people; therefore, the cost is validated. Additionally, the Civil War cost Americans a Union/Confederate total of $4,183 million (Daggett, 2008). Where were Libya and the other countries we help in their time of civil discernment? Did anyone lend a hand or financial aid to America to help redevelop? No. Does this mean we cut off, or refuse aid to others on this premise? No. America’s security depends on a certain amount of participation in ugly international political and social issues; to what extent is the debate.

After 9/11, Americans were war bound; they wanted justice for the 3,000 + lives that were lost in the atrocity against the United States. Unlike the Vietnam War, Americans were signing up for the fight against terrorism in staggering numbers. In a change of events, after finding that President Bush lied, mislead, and manipulated the information given about weapons of mass destruction in Iraq, the protests against the war began. Now, several years later, the public opinion is less supportive than before about involving the American military in any International conflict. The American people no longer trust the government to make mindful decisions about their security; some even believe we should keep our nose in our own business instead of pushing our views on other countries.

Additionally, Americans wonder if we are training and arming future enemies; in Libya we fight on the side of the ‘unknown’. In truth, we have no idea if these friends of combat will eventually become enemies of war. History has shown that those we help arm and train, may very well kill us with weapons we provide. In addition to these concerns, the cost of war, human and monetary, concern the public; the values and purposes for the losses are blurred.

The cost of war is not confined to the battlefield. “Don’t Ask, Don’t Tell” cost Americans an amazing “$363.8 million-$173.3 million, or 91 percent more than originally reported…” (Korb, 2009). Other military costs include, pay, benefits, tanks, firearms, ammunition, travel, Vet costs, recruitment, training (American and International), immigration, and an array of other necessary costs. Most of these costs and actions are required, and necessary; but, some are uncalled for and self-serving. Most Americans (including me) wonder if 9 times out of ten, we are fighting for natural resources like oil and gas, instead of democracy and the plight of the deprived people.

In times of disasters, the American Military should, if possible, send military aid if needed. Regardless of whether or not when Hurricane Katrina hit, no other country rushed to our aid with military assistance, we must uphold to a higher standard. That is why America is the greatest nation on earth; we have a great CSR (Country Social Responsibility) program. Although, like any smart entity, we must not over extend our assets. America must be very careful not to intrude where we are not wanted or needed, but, at the same time, we must not let the evils of the world dictate a people who wants freedom. In addition, we cannot let certain groups or entities spread hate and extremism.

In conclusion, America must continue to carefully, responsibly help developing countries with appropriations and aid; but, we must not do so at our own peril. America must take care of its own people, then, the American people will be happy to extend charity where it is needed. In times of natural disasters, America must extend military and entitlements, not only to help our international neighbors, but, to hold are integrity, respect, and status in the world. Finally, the idea of charity is, “if you have two coats, give one of them to someone in need, you will be none the colder; if you only have one coat, offer to share”. Yet, we must remember that one cannot help another if they cannot help themselves.

References

2010 Budget Request. (2011, April 17). Foreign appropriations. Department of State.

United States of America. http://www.state.gov/documents/organization/122513.pdf

Daggett, Stephen. (2008, July 24). The cost of war. Navy Department Library.

http://www.history.navymil/library/online/cost_of

Korb, Lawrence J. (2009, March 2). The cost of Don’t ask, Don’t tell. Center for American

Progress. http://www.americanprogress.org/issues/2009/03/d

USAID. (2011, April 17). USAID History. USAID: From the American People.

http://www.usaid.gov/about_usaid/usaidhist.html

THE RISE AND FALL OF AIG: AIG IS BACK


American International Group

Image via Wikipedia

The Rise and fall of AIG: AIG Is Back
When we hear the name AIG, we automatically think of bailouts, government, and failure; but, there is much more to AIG and its history. In 1919, an entrepreneur named Cornelius Vander Starr formed a small insurance agency in China. Starr did not stop there, “[In] 1926 Star [opened] a New York office under the name American International Underwriters” (American International Group, 2011). And from that point forward, Cornelius Starr worked on building a worldwide portfolio, and securing his place in American and world corporate history.
Sadly, Starr passed away in 1968, only one year after a major reorganization, forming what is now AIG. Shortly before Starr’s death, Maurice R. Greenberg took the place of president and CEO. AIG continued to grow and expand at an amazing rate, building a remarkable portfolio. In fact, AIG did not show a loss in profit until 1984, but, rectified this loss in 1985. In 1985, AIG posted a net income of $420 million, and by 1997 passed the $1 billion mark. AIG was making its mark across International Borders, and profits were showing remarkable gains (American International Group, 2011).
Unfortunately, AIG’s luck soon ran short; in the late 1980s AIG was slapped with the “largest arbitration award in world history” (American International Group, 2011). “Enron Corporation was awarded a $162 million claim from insurers for Peruvian properties that had been expropriated, and AIG was forced to pay nearly two-thirds of the judgment” (American International Group, 2011). But, Greenberg did not let this setback affect the momentum of the corporation. He continued to buy other businesses, and intertwine with others; this strategy worked, and soon AIG was back on top.
In 1992, Jeffrey Greenberg, the son of Maurice Greenberg, received negative press for what was conceived to be an ethical mishap. When hurricane Andrew ravaged the coast of Florida, Jeffrey sent a memo to staff suggesting that AIG take advantage of the situation and raise prices. Greenberg even added with enthusiasm, “Please get it moving today”; this in turn got activists like Ralph Nader, who accused Greenberg of starting a “cycle of price gouging”, to cause negative press for AIG. Greenberg’s father, Maurice, stood by his son, stating,”… that the contents of the memo were taken out of context and were part of a larger discussion of long-needed rate increases for commercial insurance” (American International Group, 2011). Again, AGI picked up the corporate pieces, and continued the fight for superior placement in the insurance industry.
By the mid 1990s, AIG was raking in net profits of over $114.35 billion. But, AIG’s problems were not over, they were just beginning. On September 11, 2001, America’s foundation was rocked by the sound of the Twin Towers falling to the ground beneath it; AIG heard another unsettling sound, the sound of $50 billion being paid out in insurance claims. Although this did not break the corporation, it took a large part of their capital; it would take time to recover. AIG is the leading insurance carrier because; they have a unique way of overcoming economical challenges (American International Group, 2011).
After years of leadership in the industry, and overcoming adversities, years 2007 and 2008 took its toll on AIG. Between the American and world economy issues, AIG’s plight was detrimental. On September 16, 2008, “the FRBNY extended to AIG a two-year emergency secured loan of up to $85 billion…Additionally, the U.S. Treasury would be entitled to 79.9 percent equity ownership of AIG through preferred stock” (September 2008: Initial, 2011). In all of AIG history, the corporation has been independent of government involvement; now the American Government owns over three-quarter of the corporation. But, AIG corporate management is determined to buy that stock back, regaining its independence once again (September 2008: Initial, 2008).
Not long after the government bailout, AIG was the leading corporation in the negative press category. Word leaked out that AIG was giving out large bonuses to executive staff members; this outraged the American tax payers and the government. AIG’s leader, Edward M. Liddy, stated in response to the anger, “The company promised before the government started bailing out the firm in September that employees would be awarded more than $400 million in retention pay this year and next” (Cho, D. Dennis, B., 2009). The American Government and tax payers believe that the corporation executives should not get the bonuses in light of their financial situation. If it were not for the bailout, none would have a job much less a bonus.
In the end, AIG top executives, including Liddy, “agreed to forgo their bonuses” for the year, and others took a cut as well (Cho, D. Dennis, B., 2009). But, the bitter taste was left in the mouths of Americans; although some bonuses were not given, an amazing $9.6 million was given to some staff members, with more to come in the future. In 2008, AIG reported a net loss for the fourth quarter at almost $62 billion, and a net loss of $5.3 billion in 2007; restructuring alone cost the corporation $6.7 billion. There were concerns throughout AIG governance that “AIG’s internal control over financial reporting [was lacking]” (AIG Reports Forth, 2009). This is a financial concept and strategy that is sure to fail, and will possibly bring the company to an abrupt end.
Retention pay is another concept that is in question, and this may be another downfall for AIG. It is important first to understand what retention pay is; the ability to keep and hold employees so they do not go elsewhere for better money. This may seem like a great strategy to keep staff members, especially in a big corporation like AIG, but, in times of financial plight, staff must be loyal, not greedy. There are other ways of insuring that company secrets stay within the fold; for instance, having confidentiality contracts with provisions made for departing employees is one way. Since the bailout fallout, AIG has changed their retention plan to pay bonuses based on profits, which puts the company in danger of losing some staff members (Cho, D. Dennis, B., 2009).
Based on the AIG recapitalization plan and the current repayment of almost $21 billion to the FRBNY in January 2011, this company seems to be gaining its renewed sense of independence. In addition, December 2010s quarter net income profits were reported as being $11.2 billion and AIG reported the twelve month earnings as $7.8 billion; this means that AIG is on the come-back and will likely succeed in their fight for economic independence. When joined, AIG’s total equity in December 2010 was $113.2 billion, compared to $98.1 the previous December. This is encouraging news for AIG executives and their consumers (AIG Reports Fourth, 2011).
There are a couple of ways that AIG can preserve the corporation and gain back their independence. First, selling off some assets and debt has proven in the past to be helpful in retaining AIG’s leading stand in the industry. It is important that this corporation pay the American tax payers back as quickly as possible. To keep its credibility, AIG must show the people that they are worthy of investment. Another way to gain back independence is to stop the employee retention payments all together. It would be more beneficial to the company, and less expensive to draw up confidentiality contracts instead. Because, someday the current money given will not be enough to keep some, and more money will be expected; some employees may even threaten to reveal trade secrets if not paid to stay. But the most beneficial way to get on track is by continuing to offer a fair service for a fair price; this keeps consumers loyal, and workers proud to be an employee (AIG Reports Fourth, 2011).
In conclusion, while AIG has had financial issues the company remains a leading competitor in the insurance industry. This major corporation started as one man’s dream and determination, and continues to thrive, even in the face of adversity. And although AIG is now government sponsored, the belief that this company will earn back its independence and respect is wide-spread. Finally, AIG has already made a real effort in repaying debts and retaining corporate independence; which in turn, will make them larger than ever before (AIG Reports Fourth, 2011).

References
AIG Reports Fourth. (2009, March 2). AIG reports fourth quarter and full year 2008 loss. AIG.
http://www.aigcorporate.com
AIG Reports Fourth. (2011, February 24). AIG reports fourth quarter net income of $11.2
billion. AIG. http://www.aigcorporate.com
American International Group. (2011, March 4). American international group, inc.
Funding universe. http://www.fundinguniverse.com/company-histories/American-
International-Group-Inc-Co…
Cho, D., Dennis, B. (2009, March 15). Bailout king AIG still to pay millions in bonuses.
Washington Post The. http://www.washingtonpost.com/wp-dyn/content/article/2009/
03/14/AR2009031401394_pdf…
September 2008: Initial. (2008, September). September 2008: Initial investment from the U.S.
Government. AIG. http://www.aigcorporate.com/aboutaig/sept_2008.html

FORD MOTOR COMPANY



Ford Motor Company
The Ford Motor Company is in the automotive industry because of one man’s vision, Henry Ford. Born in 1863, Henry Ford had a vision of making automobiles an affordable commodity. He believed that autos could be manufactured cheaper so they would be affordable to general society, not just the wealthy. Ford’s first motorized invention was the ‘Quadricycle’, helping to launch Henry Ford Motor Company in 1899. Ford’s vision birthed new life into the automotive industry by allowing the majority of Americans affordability and quality. This is the very reason that Ford Motor Company has sustained over years of American economical hardship, and today remains in the top ten Fortune 500. Ford Motor Company is the vision of American pride that is here to stay (Ford, 2011).
Ford Motor’s mission statement could not be clearer, “One Ford, One Team, One Plan, One Goal”, meaning;
“One Team”
“People working together as lean, global enterprise for automotive leadership, as measured by;
“Customer, Employee, Dealer, Investor, Supplier, Union/Council, and Community Satisfaction”
“One Plan”
“Aggressively restructure to operate profitably at the current demand and changing model mix”
“Accelerate development of new products our customers want and value”
“Finance our plan and improve our balance sheet”
“Work together effectively as one team”
“One Goal”
“An exciting viable Ford delivering profitable growth for all” (Ford Motor Company, 2011).
This company is just as thorough with its mission statement as it is with automobile and community quality. Ford has kept the good heart and sensible vision of Henry Ford alive with their continued support of society and world issues, as well as continuing to produce affordable automobiles. No entity could add anything to this statement to make it more substantial and gripping to the consumer. This is another example of why Ford Motor Company is one of the leading auto makers in the world, and a great American pride (Ford Motor, 2011).
This company is interesting for an array of reasons; one being their commitment to community support. Ford Motor Company gives to education, food banks, and most importantly American agriculture and farms. It is amazing how this company puts as much effort into giving money as making money. Ford Motor believes, as most, that an education is most important to the survival of America and its future in the world. Ford Motor also played a role in space aviation and NASA; since 1963 this automobile company has intertwined itself with the American Space Program. Although, these are great reasons to be interested in the Ford Motor Company, the most interesting thing about Ford is Henry Ford himself (Ford Motor, 2011).
The perfect picture of American pride and dreams, Henry Ford started on a farm with a dream. Married with one child, this ambitious American decided he wanted more for his family. He found that he could and would help his neighbor and community in the process of obtaining that dream. And that he did; as well as making sure that tradition and heart was inbred into the company that carried his name sake. It is hard to comprehend a vision of this young inventor as a boy fixing town folks watches. Henry Ford’s motto “Help the other fellow” still shines in this major corporation today. Always finding a way to help their ‘fellow’ man, Ford Motor’s future is immeasurable (Ford Motor, 2011).
In conclusion, to think that this company, one man’s dream, has made it through the Depression, recession, market crashes, and bailouts, is not just interesting it is amazing. Ford Motor is the ultimate American dream come true, that also helps others dreams come true. This dream come true is why immigrants migrate to America; and why so many others die trying. Ford has definitely earned its place on the Fortune 500. The Ford Motor Company’s mission is clear; they will do what it takes to keep consumers, community, education, and hope alive in America (Ford Motor, 2011).

References
CNNMoney.com. (2011, February 17). Fortune 500 list. CNNMoney.com.
http://money.cnn.com/magazines/fortune500/2010/
Ford Motor Company. (2011, February 17). Ford is back in school. Ford Motor Company.
http://corporate.ford.com/news-center/news/featured-stories/feature-stories-detail/fmcfcs
Ford Motor Company. (2011, February 17). Ford recognized for its contributions to American
farming. Ford Motor Company. http://corporate.ford.com/news-center/news/featured-
stories/featured-stories-details/fmcfcs
Ford Motor Company. (2011, February 17). Ford Rolls out mobile food pantries to aid hunger
relief efforts. Ford Motor Company. http://corporate.ford.com/news-center/featured-
stories/featured-stories-detail/fmcfcs.
Ford Motor Company. (2011, February 17). Innovator, Industrialist, outdoorsman: Henry Ford
started it all. Ford Motor Company. http://corporate.ford.com/about-ford/heritage/people/
henryford/650-henry-ford?view=print
Ford Motor Company. (2011, February 17). Our role in putting a man on the moon. Ford
Motor Company. http://corporate.ford.com/about-ford/heritage/milestones/nasamission
control/683-nasa-mis…
Ford Motor Company. (2011, February 17). One Ford mission and vision. Ford Motor Company.
http://corporate.ford.com/dynamic/metatags/article-detail/one-ford?view=print.

FORD MOTOR COMPANY’S CORPORATE SOCIAL RESPONSIIBILITY


Ford Motor Company global locations

Image via Wikipedia

Ford Motor Company’s CSR Stance

Ford Motor Company is one of the leading forces in Corporate Social Responsibility in the automotive industry; “In 2007, [Ford] added Corporate Social Responsibility to [their] title to reflect the essential role that companies can play in promoting human rights, which is a longstanding goal of U.S. foreign policy” (Mittelhauser, 2011.para.1.). Acting director Mark Mittelhauser boasts about Ford’s participation in the fight for ‘labor’ rights of workers across the world. What a great company strategy; Ford’s own employees have to feel comforted by the fact that the company is fighting for their rights as workers and as humans. Ford Motor Company has surpassed the government standards for CSR, and continues to strive for a cleaner, safer world (Mittelhauser, 2011).
The Ford Motor Company has already taken great strides to ‘eradicate’ labor issues all around the world. “Much of [Ford’s] focus is on eradicating labor abuses within international supply chains, whether in pig iron from Brazil, cotton from Uzbekistan or cocoa from West Africa” (Mittelhauser, 2011.para.3.). Ford will not tolerate any of their suppliers abusing workers, no matter the country. Ford’s stand should be a model for all world companies, large and small; they understand that happier employees produce better products and profit, and that all humans have certain rights.
It is most important for the automobile industry to take on a CSR program for a plethora of reasons; for instance, automobiles use gasoline and diesel, which in turn pollutes the air that we humans and animals breathe. Since it is not practical to eliminate automobiles, a company must reduce the amount of emissions each vehicle produces. The factory itself puts out a carbon footprint that has to be controlled by regulation and corroboration with government and world leaders. Corporate Social Responsibility is a world effort and Ford is very proud to be a part of it (Ford, W. Mulally, A., 2011).
The global marketplace can be very brutal for any company; with different trends, cultural, economy, and regulations, the company must adhere to a diversity of standards and requirements. Ford however, has embraced the challenges of the global marketplace and its diversity. Ford Motor’s President and Executive Chairman believe that, “ the companies that lead these changes will create new “green” jobs and generate profits while reducing fuel use and CO2 emissions, benefiting both the economy and the environment” (Ford, W. Mulally, A., 2011para.3.). What a commitment for a company to not only make, but to keep. Yet, that is exactly what Ford has been doing; making and producing electric automobiles, better MPG on their gasoline and diesel powered automobiles, and steadily improving on lessening the carbon impact on the world (Ford, W. Mulally, A., 2011).
As the world grows more aware of the dangers of climate change, it is more important than ever to cut the pollution down to a feasible level. The hottest trend going in the world today as a whole is electric and hybrid automobiles. The Ford Motor company has made a commitment to focusing on providing affordable, reliable, quality vehicles to supply the new demands of a new generation. New vehicles such as the ‘Lincoln MKZ Hybrid’ and many others similar to it are being made (Ford, W. Mulally, A., 2011). Ford is leading the automotive movement for less dependence on foreign resources. It is not a wonder Ford is a top competitor in the automotive industry.
All companies are responsible to their stock holders, consumers, community, country, and the world as a whole. Ford is responsible for giving their consumers quality, affordable, safe vehicles, while supporting the community. World issues are certainly more complicated to solve; but, Ford has strapped on the responsibility with American pride and heart. Since the days of Henry Ford, Ford Motor Company has projected an attitude of gratitude and a “help the fellow man” mentality; one way of doing that is taking responsibility for their carbon footprint. This is just one of the ways that Ford is being responsible to the world as a whole. It is not surprising this company is a top leader in Corporate Social Responsibility (Ford, W. Mulally, A., 2011).
Every company should implement a CSR program. It not only shows the owner’s character and concern for their community, country, and world issues, but, it also appeals to the consumers. The new world generation of ‘tree huggers’ respect a company that cares about their echo system and environment, it seems that humanity cares more about the environment than previous generations. There is more information offered now than in earlier generations of the economical boom era. This just means that there is more awareness about the consequences of not conceding to the echo system, and what is in store if the world does not conform to the requirements of nature and air quality (Maguire, 2011).
There are many things that a corporation must do to participate fully with the ethics of Corporate Social Responsibility, but, there are also many things that should not be done as well. A company should never offer ‘token’ gestures to show a minimum CSR requirement that is poor policy that will not pay off. A corporation should show the same response and responsibility standard to all; to pick and choose the way to respond will create resentment in the business world, and alienate that company. Corporate Social Responsibility in tells more than just doing the minimum to look good to the public; it is taking immediate action when necessary and called for (Maguire, 2011).
In conclusion, Corporate Social Responsibility is an important part and inclusion in every company. Every entity that takes from the earth should respectfully give back to it; it is the responsible duty of us all. There is way too much information on global warming and echo-critical issues to ignore this problem any longer. And doing the minimum to simply concede to societies demand for excellence will no longer suffice.

References
Ford, W.C., Mulally, A. (2011, February 18). Blueprint for Sustainability: The future at work.
Ford Motor Company. http://www.corporate.ford.com/about-ford/
Maguire, A. (2001, February 20). Implementing Corporate Social Responsibility. Ainsworth
Maguire. http://www.evancarmichael.com/Public-Relations/267/Implementing-Corporate-
Social-Re…
Mittelhauser, M. (2011, February 19). Office of international labor affairs and corporate social
Responsibility, bureau of democracy, human rights and labor, U.S. department of state.
Ford Motor Company. http://corporate.ford.com/news-center/news/featured-stories-details