Ford Motor Company's stakeholder management strategies and challenges

Ford: Apply the Issues and Concepts of Stakeholders

Ford Stakeholders in the Global Business Arena and the Government as a Stakeholder

Ford is one of the most reputable leaders of the international automobile industry. Despite its historic success, the past few years have not been easy ones for the vehicle manufacturer. Faced with the threat of changing customer demands, growing environmental concerns and intensifying competition, Ford Motor was forced to renounce its leading position within the United States to Japanese manufacturer Toyota. Regardless of the current issues, Ford argues that it did not register any real loses, but that the periods of lower sales and revenues were used to internally strengthen the company. This should be revealed by an improved ability to satisfy the changing needs of various categories of stakeholders.

A stakeholder can generically be perceived as an individual or group of individuals who is interested in the actions of the organization as this can influence his levels of personal or professional satisfaction (LaGuardia, 2004). In other words, a stakeholder is a party influenced by the organization and could include categories such as organizational staff members, business partners such as purveyors or distributors, the representatives of the community in which the given company operates, the general public, non-governmental not for profit entities or even federal institutions. The following paragraphs reveal the types of approaches implemented by Ford in dealing with some of these categories of stakeholders.

Ford employees

Ford has historically been focused on the well-being of its employees and has strived to present them with various incentives. The employer has subjected its staff members to numerous training programs that paved their path to professional formation; presented them with promotional opportunities; offered paid vacation (both the legally constituted one as well as company days); presented them with flexible working schedules or included them in special financial programs that allowed the employees to purchase Ford vehicles at attractive deals (Ford Motor Website, 2009). More recently however, the human resource strategies have focused on cost reduction, meaning not only the decrease in incentives offered, but also in the numbers of individuals employed. Thousands of jobs have been lost and more downsizing processes are on the way.

Ford communities

Ford Motor pries on its high levels of commitment to the causes of the communities in which it operates. The company has become involved in a series of actions to support community development. Some examples in this sense include the prizes offered to students that forward innovative ideas, the support in the fights against HIV / AIDS, the promotion of Latino culture, the forwarding of caring values and the promise to continually safeguard human rights, supporting education or supporting the disabled veterans (Ford Motor Website). What can however be noticed is that most of these endeavors address the American communities, with the company's efforts in foreign communities, where it also operates through manufacturing plants or selling locations, being fairly reduced. Additionally, as the economic crisis hit the company, the efforts to sustaining the development of communities have also decreased.

Ford suppliers

Not only in terms of suppliers, but also relative to other categories of business partners, Ford promotes diversity and equal rights. Their commitment has been recognized by Diversity Incorporated, which placed Ford on the 28th position of their annual Top 50 Companies for Diversity list (Ford Motor Website). The company takes one step forward in supporting the technological development of its purveyors. Their efforts are implemented through the JTF, or the Joint Technology Framework, "a special program aimed at improving suppliers' technical expertise" (Reuters, 2009).

Governmental institutions

The role of the government in his position as a stakeholder is more complex than that of any of the previous categories. First, the federal institution is interested in having Ford pay for all of its taxes, such as employees' contributions, import fares, income taxes and so on; from this standpoint, Ford has delivered its commitments. Then, the government is interested in seeing Ford regain its status as an undisputable leader of the American automobile industry and as such lead to the economic growth of the country and become an international symbol of the United States. Third, the government is interested in assessing the real situation of Ford and presenting it with the help it needs. The most eloquent example in this sense has been the granting of a $5.9 billion bailout loan to the company (Eddlem, 2009).

References:

LaGuardia, T.S., 2004, the Decommissioning Handbook, ASME Press

2009, Ford Motor Website, http://www.ford.com last accessed on November 2, 2009

2009, Ford Expands Supplier Diversity Leadership Role by Naming New Technology Innovation Partners, Reuters, http://www.reuters.com/article/pressRelease/idUS152392+09-Oct-2009+PRN20091009 last accessed on November 2, 2009

2009, T.R., Ford Takes $5.9 Billion Government Loan, the New American, http://www.thenewamerican.com/index.php/economy/markets-mainmenu-45/1290 last accessed on November 2, 2009