Setting Expectations for Our Suppliers

Every supplier doing business with Ford is subject to Ford's Global Terms and Conditions. This core contract reflects our prohibition of the use of forced labor, child labor and physical disciplinary abuse. These requirements were added in January 2004 for production suppliers and in September 2005 for all others. We have provided a standard for these areas – the same as we use in our own facilities (Ford's Code of Basic Working Conditions) – that supersedes local law if our standard is more stringent. The Global Terms and Conditions also prohibit any practice in violation of local laws.

In addition, the Global Terms and Conditions serve to:

• Set the expectation that suppliers will work toward alignment with our CBWC in their own operations and their respective supply chains in the areas of harassment and discrimination, health and safety, wages and benefits, freedom of association, working hours, bribery and corruption, community engagement, and environment and sustainability
• Make clear Ford's right to perform third-party site assessments to evaluate supplier performance
• Communicate that Ford can terminate the relationship for noncompliance or for failure to address noncompliance in a timely manner