Supporting a Great Place to Work

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Ensuring a great place to work requires an understanding of employee satisfaction and what employees value about being part of Ford Motor Company. A great place to work must include a diverse workplace where employees feel valued and included. A safe workplace and a healthy workforce are also critical elements.

Employee Satisfaction

Each year, we ask our salaried workforce to participate in the Pulse survey to gain insight into employees’ overall satisfaction with the Company, their jobs, diversity and other aspects of workplace satisfaction. We encourage our employees to provide candid feedback, and we benchmark results and participation externally. Results of the survey are incorporated into our business planning review processes. Improving Pulse scores is an annual performance objective for many of our senior managers.

In 2010, 75 percent of our salaried employees participated in the survey, which includes a total of 52 items, eight of which make up what we call the Employee Satisfaction Index (ESI). Sixty-eight percent of respondents gave favorable ratings on the ESI in 2010, unchanged from 2009 levels. We continue to be above external benchmarks on this index.

The areas showing the greatest improvement were employee safety and employee adoption of the ONE Ford behaviors. Other areas showing improvement included employee satisfaction with supervision and diversity. Employee satisfaction with actions that are taken to improve quality maintained a high level of favorable employee satisfaction. In addition, employees continued to respond favorably to questions concerning quality work practices.

As part of our efforts to increase satisfaction, we are constantly improving our strategies for fostering open dialogue with employees. We have been enhancing our internal communication efforts to build trust and increase transparency. For example, we hold regular interactive webcasts with all employees, during which employees can submit questions directly to top executives. We also have a web-based forum for submitting and discussing innovative ideas.

In 2010, we created another index to measure what employees value about being part of Ford. The new Global Skilled & Motivated Team Index will provide insight into employee experiences in areas such as leadership quality, working together, employee development and work/life flexibility.

For more information on the Pulse survey, see the Data section of this report.

Diversity and Inclusion in the Workplace

Ford makes diversity and inclusion a priority of our Company. We believe that building and supporting a culture of respect is a business imperative that enables all of our employees to do their best work. A critical element of ONE Ford is our ability to work together across a global enterprise. Diversity and inclusion play a key role in creating the culture that brings our different perspectives and experiences together. This helps us work as a unified team to most effectively improve our business.

Ford values the skills, strengths and perspectives of our talented and diverse team. Our customers are located around the world, and we believe our diversity helps us achieve global automotive leadership, enabling the Company to be more innovative and focused on individuals in the workplace and marketplace.

Our employees recognize Ford’s efforts in this area. According to our 2010 Pulse survey, 82 percent of our workers globally believe Ford’s management is committed to diversity.

For detailed information on our U.S. workforce by minority groups and gender, please view the data charts.

Our definition of diversity includes all those things that make each of us unique individuals. Our backgrounds, opinions, experiences, perspectives and life situations are just some of the distinctions we bring to the global workplace. At Ford, diversity is:

• Respect – for our employees, customers, communities, dealers, suppliers and retirees
• Appreciation – of our differences
• Inclusion – of every person and every perspective
• Integrity – to do the right thing, always

We integrate our diversity strategy into our business using five strategic areas of focus:

• Leading the way – The executive leadership team, led by our CEO, champions diversity and inclusion at Ford. To work together effectively across the global enterprise, the leadership team ensures that diverse perspectives are integrated into business objectives and key human resources processes.
• Supporting our diverse workforce and strengthening our external partnerships – Ford currently supports a number of employee networks, including 11 Employee Resource Groups that help to foster diversity and inclusion. These include groups for employees of African ancestry; Hispanic, Asian-Indian, Chinese and Middle Eastern employees; veteran and active military employees; employees dealing with disabilities; female professionals; working parents; gay, lesbian, bisexual and transgender employees; and employees of multiple religious faiths. In addition to supporting our employees, these Resource Groups organize community volunteer activities and provide us with an opportunity to better understand the consumer needs and wants of individuals of diverse backgrounds. A number of these groups have chapters in our business units throughout the world.
• Fostering a respectful and inclusive environment – Ford’s commitment to inclusion is incorporated in ONE Ford expected behaviors and communicated in ongoing forums such as town hall meetings and training. As a part of these efforts, we have held a Diversity & Inclusion Summit each year since 1999 to recognize individuals and teams who have exhibited the inclusive ONE Ford behaviors critical to our success as a company. The participation of our employees from around the world in this Summit continues to grow. In 2010, our CEO and other senior executives honored 32 teams and individuals in a global ceremony, with participation from Brazil, China, Germany, Great Britain, India, Mexico, Turkey and the U.S.

• Supporting work/life flexibility – We encourage employees and managers to discuss both business and personal goals. Work/life flexibility creates a competitive advantage and addresses the needs of our global, multi-generational workforce. Ford Digital Worker is a global information technology program that supports ONE Ford and enhances employees’ ability to work remotely. Ford’s efforts to provide employees with tools such as WebEx, Instant Messenger and enhanced mobile access capability has increased employee productivity and satisfaction. Flexibility solutions vary depending upon locations, teams and employees. Examples include the following:

  • In the U.S., almost all of the salaried workforce occasionally use “flextime,” which allows employees to vary their daily work times. We have approximately 3,000 employees on formal work programs that involve telecommuting, part-time work and compressed work arrangements. Many more employees develop informal arrangements with their supervisors for occasional work from home. Our Flexible Work Network provides “flex mentors” to help advise employees on effective ways to work differently.
  • In Europe, we offer a variety of flexible working patterns. In the UK and Germany, for example, we support part-time working and telecommuting and offer child care facilities for the children of our employees.
  • In Canada, our many programs include “Summer Hours,” which gives employees an opportunity to work with their managers to identify a compressed work-week schedule during the summer months.
  • Ford South America established several programs aiming to leverage work/life flexibility, including flexible work locations.

Other employee resources include Employee Assistance Programs, “mothers’ rooms” for nursing mothers in some of our global locations, and wellness initiatives.

Ford has longstanding policies clearly stating that harassment in the work environment because of race, religion, color, age, sex, national origin, disability, sexual orientation or veteran status is a violation of the spirit and intent of the Company’s nondiscrimination policies, and Ford has a commitment to zero tolerance of this type of behavior. These policies apply to all individuals, including part-time, supplemental and agency employees. Ford understands its responsibility to foster a respectful work environment free of harassment or discrimination at all levels of the organization. We take this responsibility extremely seriously and thoroughly investigate any claim of violation(s).

Our collective bargaining agreements address this issue and allow union-represented employees the right to use the grievance process. Ford’s Code of Basic Working Conditions, as well as several global Policies and Directives, directly address the issue of respect and inclusion. These include:

• Local Equal Employment Opportunity Policy Statement
• Policy Letter No. 2: “Relationships with Employees”
• Policy Letter No. 6: “Equal Opportunity and Affirmative Action”
• Directive B-110: “Anti-Harassment/Zero Tolerance”

In the U.S., a number of avenues are available to employees who wish to make and/or document a complaint. These processes are communicated to all employees through the Open Door Policy and through various policies posted online. Some of these avenues are:

• Reporting the incident or concern to a supervisor or any other member of management
• Filing a complaint with the local human resources office
• Contacting the human resources representative at the division office or personnel relations at World Headquarters in Dearborn, Michigan
• Calling the corporate hotline, which is answered at World Headquarters
• Using peer review, which is an internal alternative dispute resolution process

The Company also has longstanding strong relationships with the Equal Employment Opportunity Commission (EEOC) and state civil rights agencies. In 2004, the Company signed a Universal Agreement to Mediate with the EEOC, which enhances our pledge to address claims of discrimination and/or harassment quickly and efficiently. We stand committed to cooperating with those civil rights agencies that provide resources to the people of our diverse communities in an effort to eliminate discrimination or harassment in the workplace.

Furthermore, the Company tracks data internally, which enables us to measure the effects of our policies and practices for prohibiting and preventing discrimination, harassment and any other unwanted or illegal behavior, and to leverage those policies to address issues efficiently and improve the overall morale of our workers. The internal tracking data and results are proprietary to Ford Motor Company.

Diversity and Inclusion Awards

We have received hundreds of awards in the last few years from publications and organizations that recognize the value we place on our employees and our ability to work inclusively. For example, we have been recognized by DiversityInc as a Top Company for Diversity since that award’s inception. Specific diversity awards given in 2010/2011 include the following:

• 100 Leading Women – Automotive News (Ford had more women recognized than any other automotive company)
• America’s Top Organizations for Multicultural Business Opportunities – DiversityBusiness.com
• Best Company for Maternity – Working Families, UK
• Best Diversity Company – Diversity/Careers in Engineering and Information Technology
• Corporate Equality Index, 100% Rating – Human Rights Campaign
• Diversity Elite 60 – Hispanic Business
• Diversity Leader – Profiles in Diversity
• 50 Best Places to Work – Glassdoor.com
• 40 Best Companies for Diversity – Black Enterprise
• Most Admired Employer for Minorities in Research Science – U.S. Black Engineer & Information Technology
• Top 10 Best Companies for Supplier Diversity – DiversityInc
• Top 25 Supplier Diversity Company – Hispanic Business
• Top 30 Employers for Working Families – Working Families, UK
• Top 50 Companies for Diversity – DiversityInc
• Top 50 Companies for Engineers – U.S. Black Engineer & Information Technology
• Top 50 Employers – Minority Engineer
• Top 50 Employers – Workforce Diversity for Engineering & IT Professionals
• Top 100 Employers – The Black Collegian
• Top 100 Employers – Stonewall (a UK-based lesbian, gay and bisexual advocacy group)
• Top Supporter of Historically Black Colleges and Universities – Career Communications Group, Inc., survey
• Top Company for Diversity & Inclusion – UPTOWN Professional

Working Conditions in Ford Plants

Ford’s Code of Basic Working Conditions (CBWC) applies to our own facilities as well as those of our joint venture partners and suppliers. Since 2004, we have conducted 53 formal assessments of Ford facilities, five of which were joint-venture facilities.

During 2010, we conducted assessments at our Louisville plant in Kentucky; our Valencia plant in Spain; Cuautitlan in Mexico; São Bernardo in Brazil; Pretoria in South Africa; and our joint-venture plant in Jiangling, China. These sites were selected by Ford’s Sustainability and Environmental Policy, Global Labor Affairs and Supply Chain Sustainability functions based on the sites’ impact on our supply chain, emerging issues, and the views of thought leaders, nongovernmental organization representatives and human rights activists.

The process for assessing Ford facilities includes a questionnaire completed by facility management and a detailed review of documents related to the full range of working conditions issues (e.g., collective bargaining agreements, grievance procedure logs, employee hotline records and health and safety audit reports).

The findings of the questionnaire and document review serve as the basis for interviews with facility management. Where procedures and/or documentation are lacking, or where we feel it would otherwise be valuable, the assessments also include facility visits.

The findings of the assessments are initially shared with human rights organizations with which Ford works and then published on our website. We have sought the opinions of neutral third parties who have visited plants and/or reviewed the assessment process, and they have agreed that the process is robust and has integrity.

The findings of the 2010 assessments were generally consistent with those of previous assessments. That is, they confirmed that Ford’s wholly and majority-owned facilities are operating in compliance with our CBWC. Reflecting the expanded scope of the CBWC, the assessments also discuss and document community engagement efforts, effects on indigenous populations and environmental initiatives. However, work with our partners can be impacted by local government legislation; in some cases, governments in developing economies may own some of a joint venture, and we need to be especially certain that CBWC elements and work rules are enforced. We plan to continue to monitor the facilities to detect and address any potential concerns.

We have received considerable and consistent positive feedback from external stakeholders about the policies and systems in place at Ford facilities. While we and our stakeholders have confidence in our systems, we nonetheless believe it is important to continue conducting the assessments given that conditions can change and new issues emerge.

For information on working conditions in our supply chain, see the Supply Chain section.