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Ford Sustainability Report 2006/7

GRI Index Notes

4. Governance, Commitments, and Engagement

Element Notes
4.3 A majority of the Board is comprised of independent directors as defined by the Corporate Governance Principles and existing rules that govern Ford. Independence and diverse backgrounds are important considerations in selecting new candidates for the Board.
4.5 Information on Ford's corporate governance practices, including the principles and policies that govern the conduct of the Board and the members of the Board can be found in the Company's 2006 Proxy statement and at http://www.ford.com/en/company/corporateGovernance/default.htm.
4.6 Information on Ford's corporate governance practices, including the principles and policies that govern the conduct of the Board and the members of the Board can be found in the Company's 2006 Proxy statement and at http://www.ford.com/en/company/corporateGovernance/default.htm.
4.7 Ford's Nominating and Governance Committee of the Board of Directors identifies individuals qualified to become directors and officers and recommends candidates to the Board, taking into account the qualifications needed at that time. Information on Ford's corporate governance practices, including the principles and policies that govern the conduct of the Board and the members of the Board can be found in the Company's 2006 Proxy statement and at http://www.ford.com/en/company/corporateGovernance/default.htm.
4.8 The Sustainability Report is structured according to Ford's Business Principles which can be found in the downloads section.
4.9 Information on Ford's corporate governance practices, including the principles and policies that govern the conduct of the Board and the members of the Board can be found in the Company's 2006 Proxy statement and at http://www.ford.com/en/company/corporateGovernance/default.htm.
4.10 Information on Ford's corporate governance practices, including the principles and policies that govern the conduct of the Board and the members of the Board can be found in the Company's 2006 Proxy statement and at http://www.ford.com/en/company/corporateGovernance/default.htm.
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Stakeholder Engagement

Element Notes
4.15 Major stakeholders are identified and selected based on whether they are impacted or believe they are impacted by the operations or practices of the Company.
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5. Performance Indicators

ECONOMIC

Economic Performance

Element Notes
EC1 Information related to operating costs is referenced as "automotive costs of goods sold" in the Company's Annual Report on Form 10-K. Information related to payments to providers of capital is referenced as "cash paid interest expenses" and "stockholder dividends" in the Company's Annual Report on Form 10-K.
EC4 Our local or regional operations sometimes enter into agreements with governments to receive incentives such as reduced taxes or fees in return for commitments to job creation or other economic development activities. The nature and magnitude of these agreements are not tracked centrally. Detailed discussion of this indicator was omitted from the report because it failed the materiality test.
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Market Presence

Element Notes
EC6 Ford doesn't track this information, however we recognize that in several of the localities in which we operate, suppliers set up operations nearby to support Ford operations. In addition, the local economic development model described is aligned with our Supplier Diversity Development initiatives. Attributes of our Supplier Diversity Development initiatives include: economic development rationale, local employment opportunities and workforce development, supplier development and a considerable financial history of purchases from minority and women owned companies. These initiatives operate exclusively in the United States and are driven in part, by compliance with federal requirements. Globally, a mandated Black Economic Empowerment Program also drives supplier development and local employment for Ford in South Africa.
EC7 Ford's recruiting initiatives are designed to be inclusive and hire from all segments of the diverse populations and communities we live and work in. Opportunities for employment and advancement are available on a nondiscriminatory basis – without regard to race, color, religion, age, gender, sexual orientation, national origin, handicap or veteran status. We take affirmative action in accordance with the law to have minorities and women represented appropriately throughout the workforce and to provide qualified handicapped persons, disabled veterans and veterans of the Vietnam era opportunity for employment and advancement.
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Indirect Economic Impacts

Element Notes
EC9 Our established accounting methods allow us to track expenditures for items like environmental protection and controls, safety investments, etc. but do not include methods for estimating costs associated with indirect economic, environmental or social costs and benefits. For example, during the last five years, we took charges to our consolidated income for engineering, research and development we sponsored in the following amounts: $7.2 billion (2006), $8.0 billion (2005), $7.4 billion (2004), $7.3 billion (2003), $7.5 billion (2002). Engineering, research and development is focused on improving the performance (including fuel efficiency), safety and customer satisfaction of our products, and to develop new products.
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Emissions, Effluents and Waste

Element Notes
EN21 Significant discharges to water by type are not currently tracked at the corporate level. The Company is collecting baseline data on discharges to municipal wastewater treatment plants and this data will be reported as soon as practical. Detailed discussion of this indicator was omitted from the report because it failed the materiality test.
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Overall

Element Notes
EN30 Our established accounting methods allow us to track expenditures for items like environmental protection and controls, but do not include methods for estimating costs associated with indirect economic, environmental or social costs and benefits. For example, during the last five years, we took charges to our consolidated income for engineering, research and development we sponsored in the following amounts: $7.2 billion (2006), $8.0 billion (2005), $7.4 billion (2004), $7.3 billion (2003), $7.5 billion (2002). Engineering, research and development is focused on improving the performance (including fuel efficiency) of our products, and to develop new products.
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SOCIAL: LABOR PRACTICES AND DECENT WORK

Employment

Element Notes
LA2 We have chosen not to report on turnover because the information is considered proprietary.
LA3 Substantially all of the hourly employees in our Automotive operations in the United States are represented by unions and covered by collective bargaining agreements. Most hourly employees and many nonmanagement salaried employees of our subsidiaries outside the United States are also represented by unions. Approximately 200,000 Ford Motor Company employees belong to unions worldwide.
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Labor/Management Relations

Element Notes
LA4 Substantially all of the hourly employees in our Automotive operations in the United States are represented by unions and covered by collective bargaining agreements. Most hourly employees and many nonmanagement salaried employees of our subsidiaries outside the United States are also represented by unions. Approximately 208,000 Ford Motor Company employees belong to unions worldwide.
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LA6 Approximately 75 percent of the Company's workforce globally are covered by the health and safety committees. This includes the entire manufacturing workforce and some staff organizations.
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LA7 Does not include subcontracted workers.
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Training and Education

Element Notes
LA10 While Ford offers its employees a wide array of educational and training opportunities, the Company does not currently track the information needed to report on this indicator. Detailed discussion of this indicator was omitted from the report because it failed the materiality test.
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Diversity and Opportunity

Element Notes
LA13 We have chosen not to report on the ratio of basic salary of men to women because the information is considered proprietary.
LA14 Information on gender and minority group membership is filed in our EEO-1 report per federal requirement.
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SOCIAL: SOCIETY

Anti-Competitive Behavior

Element Notes
SO7 Legal actions are described in the Company's Annual Report on the Form 10-K.
SO8 Additional information on fines for non-compliance with laws and regulations can be found in the Company's Annual Report on the Form 10-K.
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SOCIAL: PRODUCT RESPONSIBILITY

Customer Health and Safety

Element Notes
PR2 Information on all legal procedings and incidents of non-compliance can be found in the Company's Annual Report on the Form 10-K.
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Products and Service Labeling

Element Notes
PR3 Ford's vehicles are subject to numerous labeling requirements that vary by country, region and state. We maintain compliance through our normal product requirement compliance systems. In Europe, we use an Eco-label that goes beyond legal requirements and also inform customers in the driver's manual about the impact of air conditioning on real-world fuel economy.
PR4 Information on all legal procedings and incidents of non-compliance can be found in the Company's Annual Report on the Form 10-K.
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Marketing Communications

Element Notes
PR7 Information on all legal procedings and incidents of non-compliance can be found in the Company's Annual Report on the Form 10-K.
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Compliance

Element Notes
PR9 Information on all legal procedings and incidents of non-compliance can be found in the Company's Annual Report on the Form 10-K. Detailed discussion of this indicator was omitted from the report because it failed the materiality test.
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