Policy Letters and Directives

Policy Letters establish a framework of broad, basic principles within which the Company conducts its business globally. Corporate Directives provide more in-depth information on narrower topics than Policy Letters, and therefore may only apply to a particular segment of the business, or specific activities.

In addition to Policy Letters and Directives, numerous descriptions of business practices, handbooks and statements of business standards govern the conduct of employees globally.

The following are Ford standards with particular relevance to sustainability.

Human Rights

Our Code of Basic Working Conditions (CBWC) covers issues such as child labor, forced labor, working conditions and others. Ford originally adopted the CBWC in 2003, and in 2006 we updated it to include additional commitments on "community engagement and indigenous populations," "bribery and corruption," and "environment and sustainability." In 2007, the updated CBWC was issued as a formal Policy Letter.

Diversity

We are committed to the goal of equal opportunity in all aspects of our business and to the affirmative actions required to make that goal a reality. The pursuit of equal opportunity is not only right and appropriate, it is also sound business practice. Our Policy Letter and related Directives address equal opportunity and affirmative action. Disparate treatment on the basis of race, religion, color, age, sex, national origin, disability, gender identity, sexual orientation or veteran status is contrary to the spirit and intent of our nondiscrimination policies.

Bribery and Corruption

Our Policy Letters and Directives govern integrity within Ford and state that it is our policy to comply fully with the laws of each country in which we do business. Further, no employee may agree to, make or solicit, for their benefit or that of the Company, any improper payments or other improper benefits, directly or indirectly, to or from any government or government agency official, legislator or other government employee or person purporting to represent government agencies. In most countries, employees and contract personnel must immediately report through the Company reporting system any requests or solicitations for an improper payment.

Political Contributions

Our Policy Letter on governmental relationships encourages employees to participate in political and governmental affairs and recognizes that Company efforts and programs to encourage employee participation must respect fully the right of employees to use personal time as they choose and decide the extent and direction of their political activities. We do not make contributions to political candidates or political organizations nor otherwise employ Company resources for the purpose of helping to elect candidates to public office, even when permitted by law, nor do we take a position for partisan political purposes, that is, specifically for the purpose of advancing the interest of a political party or candidate for public office. With proper executive approval, contributions may be made to support or oppose a state or local ballot proposal if such contributions are permitted by law and if the issue is of significant interest or importance to Ford.

The Ford Motor Company Civic Action Fund, supported by voluntary donations from Ford employees, gives campaign contributions to national, state and local political candidates from both major political parties in the United States. See the Political Contributions case study for more information. A list of contributions made during 2007 can be found at the Federal Election Commission Web site.

Customer Satisfaction and Safety

Ford has several policy statements aimed at increasing the quality of our products and promoting the safety of our customers. Our Policy Letter on quality sets the foundation for a process that emphasizes the importance of quality in everything we do and notes that the customer defines quality. It establishes Quality as Job #1 and emphasizes the importance of our Quality Operating System and the use of metrics and data to make decisions. Our Policy Letter on vehicle safety sets forth Ford's commitment to design and build vehicles that meet or exceed applicable laws and regulations, and to advance the state of the art in safety wherever practicable. We strive for continuous improvement in vehicle safety, which applies to accident avoidance attributes as well as occupant protection systems. This policy requires that we will be demonstrably active and responsible in all areas of automotive safety, including vehicle design and manufacture, operator behavior and the highway environment.

Environment and Employee Health

Our Policy Letters on the environment make clear that sustainable economic development is important to the future welfare of Ford and society in general. Protection of employee health and the environment are important considerations in business decision making and are early, integral parts of the planning process. Our products, services, processes and facilities are planned and operated to incorporate objectives and targets and are periodically reviewed to minimize to the extent practical the creation of waste, pollution and any adverse impact on employee health or the environment. Protection of health and the environment is a Company-wide responsibility of employees at all levels.

Privacy

The trust and confidence of our customers are important to Ford Motor Company and essential to building long-term relationships and delivering excellent products and personalized services. The Company recognizes that customers, employees and others have concerns about privacy and expect us to protect and handle personal information responsibly.

Ford is committed to implementing responsible consumer privacy and data-handling practices. The Company's Policy Letter and related Directives are designed to ensure the continuing trust and confidence of individuals who entrust us with personal information. The Company continues to develop a global policy that articulates our commitment to implementing responsible privacy and data-handling practices.

Advertising

In the United States, Ford Marketing Standards A-201 and A-203 govern Ford advertising creation and review. These standards contain the legal requirements for Ford advertising. The FTC Act and Amendments, which essentially state that all advertising must be truthful, not misleading and based on prior substantiation, also govern advertising creation and review. The FTC has a series of "Guides" on advertising topics such as fuel economy, environmental matters, price, warranties and other subjects. All 50 states have adopted a state form of the FTC Act that governs advertising in each of the states. Regulation M (Truth-in-Leasing) and Regulation Z (Truth-in-Lending) govern the creation and review of advertising with credit messages. The major U.S. television networks – ABC, CBS and NBC – also have standards that govern advertising creation.