Taking Action as an Industry
Despite the progress Ford has made implementing systems to ensure proper working conditions in our and our suppliers' facilities, we recognize that there are limitations to what Ford alone can do. The long-term sustainability of these efforts depends on the active participation of all parties in the value chain – from the original equipment manufacturers (OEMs) such as Ford, to the suppliers themselves, to the government agencies that set and enforce the regulations governing operations. Such collective action will not only minimize costs and increase efficiency for OEMs and suppliers alike, but also lead to further-reaching impact than individual companies taking steps in isolation.
Automotive Industry Action Group Initiative
In 2006, Ford was pleased to be among a group of major automakers and suppliers to announce the launch of a collaborative, industry-wide project focused on advancing a shared vision and promoting decent working conditions throughout our supply chains. The effort is coordinated by the Automotive Industry Action Group (AIAG) in partnership with Business for Social Responsibility (BSR), a nonprofit group that works with companies to advance responsible business practices. BSR received a $185,000 grant from the U.S. State Department to help support the project. Ford has contributed an "executive on loan" – the global manager of our supply chain sustainability group – to AIAG to support the project and facilitate sharing what we have learned based on our experience working on these issues within our own operations.
Progress and Plans
Project participants have established a set of guiding statements to create a shared industry voice on key working conditions issues. The statements cover the core elements of individual companies' codes and policies, joint codes created by other industries and key international standards. These elements include child labor, forced labor, freedom of association, harassment and discrimination, health and safety, wages and benefits, and working hours.
Another key objective of the project is to develop country-specific training sessions that can be delivered by AIAG. The sessions will be particularly targeted toward suppliers that are shared by multiple automakers. The initial areas of focus will be China and Mexico, with plans to conduct the first sessions in those regions by mid-2007.
Going forward, project participants plan to explore other areas of cooperation, including developing trainings tailored to other regions. Additionally, they intend to engage with others in the industry to continue to expand membership in the effort.
In 2006 the AIAG, the organization coordinating the industry effort, gave Ford Chairman Bill Ford its Executive of the Year award. In profiling Ford, the AIAG highlighted the Company's work on sustainability issues, including industry working conditions, as one of the reasons for the honor.
