Progress

Like our ONE Ford plan, our overall corporate governance and our sustainability governance serve as the foundations of our financial recovery and keep sustainability on the radar as we expand our market shares in key regions of the world. The following are among our highlights and progress in the governance arena since our last report was published.

In early 2012, we revised our Policy Letter 24, which embodies our commitment to human rights. Originally titled the Code of Basic Working Conditions, the policy was renamed the Code of Human Rights, Basic Working Conditions and Corporate Responsibility, reflecting its expanded scope and alignment with the “protect, respect and remedy” framework designed by John Ruggie, Special Representative to the United Nations Secretary General on business and human rights at the international level.

Also in early 2012, we enhanced our web guide for Social Responsibility and Anti-Bribery and our supplier guide for social responsibility. The supplier guide for social responsibility now includes specific guidance on anti-bribery and responsible sourcing from conflict-affected and high-risk areas. Supplier guides such as this one are an extension of our Standard Terms and Conditions for all suppliers and spell out Ford’s requirements for suppliers across a range of performance areas.

In December 2011, we supported an all-day conference hosted by the George Washington University and the United Nations Global Compact at which government officials, corporations and nongovernmental organizations shared stories of best practices and challenges regarding human rights, with the aim of improving overall performance on human rights issues.

In February 2012, we began the implementation of SUMURR – Sustainable Urban Mobility with Uncompromised Rural Reach – in Chennai, India. The objective of this project is to leverage our SYNC® technology and the IT “cloud” to provide access to health care services to women in the rural areas outside of Chennai. The project illustrates one way we continue to lead in human rights business practices, going beyond compliance and focusing on critical issues that impact our business.

Finally, in 2011 and early 2012, Ford received a number of recognitions for our corporate responsibility work, our reporting and our governance practices. For example, Ford was ranked first among U.S. companies in its sector in Newsweek magazine’s “Green Rankings”. See Awards and Recognitions for additional awards received.

This section of the report discusses Ford’s overall and sustainability governance, including how we address human rights and other ethical issues and our management of key sustainability issues.