Ford Motor Company Essay

Length: 4 pages Sources: 4 Subject: Business - Management Type: Essay Paper: #72436757 Related Topics: Cisco Systems, Multinational Companies, Landfill, Experiential Learning
Excerpt from Essay :

World's Most Ethical Companies: Analyzing Ford Motor Company

The Ford Motor Company, herein referred to as Ford, is a U.S.-based multinational manufacturer of transportation vehicles, particularly luxury cars and commercial trucks. It was formed by Henry Ford in 1903 and has its headquarters in Dearborn, Michigan. The company currently ranks second among America's largest automakers; and is fifth in Europe, and eighth in the world. Cisco Systems, one of its largest technological partners, acknowledges that the company's high-level moral consciousness in the treatment of its stakeholders has contributed to its success year after year. This text outlines the various ways through which Ford demonstrates its moral responsibility to different stakeholders and examines how these acts contribute to the company's overall success.

Ford's Moral Responsibility towards Customers

Organizations have a moral responsibility to ensure that customers receive value for their money and are kept satisfied through high-quality products. Ford goes out of its way to ensure the satisfaction of its customers, both product-wise and relationship-wise (Cisco Systems, 2007). The company acknowledges that consumers needs have evolved, and most of them now prefer cleaner and more fuel-efficient vehicles (Ford Motor Company, 2012). Ford has continually ensured that its products respond to these customer needs - the most recent effort being the release of the C-Max Solar Energi concept, a sun-powered vehicle that according to Mike Tinskey, the global director of vehicle electrification and infrastructure, would "reduce the annual greenhouse gas emissions a typical owner would produce by four metric tons" (Ford Motor Company, 2014).

Additionally, Ford commits itself to ensuring that customers have access to accurate information, and are in turn able to make informed choices on purchases (Cisco Systems, 2007). Through its interactive self-service websites at and, Ford is able to provide real-time responses and clarification to questions raised by dealers and customers (Cisco Systems, 2007). The company also runs a chat room and a number of car-related blogs, through which personnel are able to not only obtain customer feedback, but also assess customer satisfaction levels and make recommendations to management (Cisco Systems, 2007).

Ford's Moral Responsibility to the Environment

Every organization has a moral duty to protect the natural environment within which it operates, and hence, the health of the surrounding community. In its sustainability report 2012/13, Ford declares its commitment to reducing the harm caused by climate change; and puts forth a plan to reduce CO2 emissions by 30% - from 2010 to 2025. This commitment to environmental protection has been demonstrated in a number of ways, the first being the reduction of CO2 emissions from the company's operations in the U.S. And Europe by 15% and 14% respectively between 2007 and 2012; and globally by 1% (Ford Motor Company, 2012). These reductions have been due to the release of a number of environmentally friendly products, including the C-Max Solar Energi mentioned previously, the Fusion Energi, and the Focus Electric (Ford Motor Company, 2012). Moreover, Ford has expressed its commitment to support climate change policies, pledging to work together with all relevant stakeholders to ensure the development of comprehensive frameworks for reducing greenhouse gas emissions (Ford Motor Company, 2012).

Ford's Moral Responsibility towards Employees

Organizations have a moral responsibility to ensure the safety of employees, reward them fairly, and provide them with opportunities for personal development. Ford acknowledges its employees as its most valuable asset (Ford Motor Company, 2012). In its Health and Safety vision, the company expresses its aspiration to "achieve zero fatalities and no serious injuries, and to protect and continually improve the health of" its workforce (Ford Motor Company, 2012). In actualizing this vision, the company runs a wellness program referred to as the ONE Ford Healthcare Strategy, which seeks to improve the health of not only salaried employees, but also their families by providing tools and resources...


The program's equivalent, referred to as the Enhanced Care Program, caters for the company's hourly workforce. In this case, employees are assigned a nurse care manager who guides them towards achieving their healthcare goals (Ford Motor Company, 2012).

The company makes use of external and internal benchmarking in establishing safe working conditions for its workforce, and putting in place "appropriate safeguards for potentially hazardous conditions" (Ford Motor Company, 2012). Procedural controls and personal protective equipment such as masks are used to protect employees from exposures and accidents (Ford Motor Company, 2012). Internally, the company's annual President's Health and Safety Award Program provides platforms for plants to learn from each other's various programs and procedures for assessing and managing risk. On an external front, the company participates in a multi-industry group program, where participants share information on occupational health and safety improvement practices for replication (Ford Motor Company, 2012).

The company also engages its employees in a series of interactive forums, ranging from diversity councils to joint labor-management committees; intranet chats and surveys; and town hall meetings, giving them opportunities to influence the company's working practices and conditions (Ford Motor Company, 2012). Furthermore, employees are given opportunities to enhance their personal skill levels through teamwork, social networking, coaching and mentoring, task forces, special projects, experiential learning and training facilities (Ford Motor Company, 2012).

Effects of Moral Consciousness on Ford's Bottom-line

Ethical behavior has a lot to do with organizational success, especially in an increasingly competitive marketplace (Thomas, Schermerhorn & Dienhart, 2004). Thanks to the invention of the internet and the benefits of globalization, consumers have a wide variety of suppliers to choose from; and would obviously give priority to one who displays ethical behavior, be it in the treatment of employees, consumers, or the natural environment (Thomas, Schermerhorn & Dienhart, 2004). There are a number of benefits that Ford, for instance, stands to enjoy from its high level of moral consciousness.

To begin with, there are deemed to be significant cost-savings, particularly because by behaving in a morally responsible manner, the company avoids the additional costs in the form of legal fees or fines that result from legal battles with employee unions or consumer and human right groups. Secondly, morally responsible behavior earns an organization a positive reputation. People, both employees and customers, prefer to be associated with a reputable organization. In the long-run, therefore, the organization would achieve both customer and employee loyalty, and essentially avoid the costs that come with having to create the same. Finally, ethical behavior gives a company a competitive edge over its competitors and places it in a better position to sway customers and increase its market share through low-cost marketing techniques such as word-of-mouth advertising and customer referrals. In the end, therefore, morally responsible behavior reduces costs and increases profitability.

Ways in which the Company could improve its Treatment:

Of the Environment: currently, much of Ford's focus with regard to environmental protection is in the reduction of CO2 emissions. However, this policy only focuses on the aspect of clean air. The company noticeably ignores the other three aspects of environmental protection -- energy, water, and waste. A more comprehensive environmental policy would be more effective in guiding the company towards becoming a world leader in environmental protection. Volvo, for instance, developed a program to minimize solvent emissions, while at the same time reducing their products' fuel and water consumption levels, as well as waste to landfill, and the noise level of their wheel loaders (Volvo Group, 2012).

Of Employees: the company currently conducts a Pulse Survey every year to determine how satisfied employees are with their respective jobs (Ford Motor Company, 2012). The survey results are then incorporated into the planning review and used as a guide for policy-formulation (Ford Motor Company, 2012). The same procedure could be applied to obtain employee views on the organization's policies and programs, which would…

Sources Used in Documents:


Cisco Systems. (2007). Ford's Innovative Customer Relations Programs Increase Owner Satisfaction and Promise 20% Reduction in Annual Savings. Cisco Systems Inc. Retrieved 30 August 2014 from

Ford Motor Company. (2012). Sustainability 2012/13. Ford Motor Company. Retrieved 30 August 2014 from

Ford Motor Company News Center. (2014). Let the Sun In: Ford C-Max Solar Energi Concept Goes off the Grid. Gives Glimpse of Clean Vehicle Future. Ford Motor Company. Retrieved 30 August 20145 from -- ford-c-max-solar-energi-concept

The Volvo Group. (2012). The Volvo Group Sustainability Report 2012. The Volvo Group. Retrieved 30 August 2014 from

Cite this Document:

"Ford Motor Company" (2014, August 30) Retrieved August 8, 2022, from

"Ford Motor Company" 30 August 2014. Web.8 August. 2022. <>

"Ford Motor Company", 30 August 2014, Accessed.8 August. 2022,

Related Documents
Ford Motor Company Is an
Words: 1451 Length: 5 Pages Topic: Economics Paper #: 69877781

Based on the data presented in the Table 2, it is revealed that Ford is a company that is good for the investment opportunity. The profitability ratios are one of the key ratios to determine the financial health of a company. Based on the data in Table 2, Ford Company demonstrates the increase in the profitability ratios between 2008 and 2011. For example, the ROA increase from the loss of

Ford Motor Company
Words: 1304 Length: 5 Pages Topic: Economics Paper #: 43142510

Ford Motor Company Over the last several years, Ford Motor Company has been through a tremendous amount of challenges. This is because they were adversely impacted by the financial crisis and consumers switching to fuel efficient vehicles. Despite these issues, the firm has continued to adapt and become stronger. However, there are renewed worries that a secondary slowdown in consumer spending could adversely impact the automaker. To fully understand what is

Ford Motor Company With the
Words: 1673 Length: 6 Pages Topic: Economics Paper #: 96825364

Nevertheless, the company needs to move on its own as well in a continuous process of internal reform and different approach to the market. It is clear than many of the automobile producers, Ford included, have based so much of their production activity on large vehicles, adapted to the then-necessities of the U.S. market, but nevertheless unsuited for the economic trends that saw high oil prices and an increasing concern

Ford Motor Company
Words: 2561 Length: 10 Pages Topic: Business Paper #: 1942768

Ford Motor Company Analysis Ford's History, Development and Growth As Ford Motor Company itself proudly declares, "The dream became a business." The inception of Ford is one of the critical steps in the industrialization of America and the West in general. According to Ford's public relations department, "Ford Motor Company entered the business world on June 16, 1903, when Henry Ford and 11 business associates signed the company's articles of incorporation. With

Ford Motor Company Business Analysis Ford Motor
Words: 951 Length: 3 Pages Topic: Business Paper #: 33169742

Ford Motor Company Business Analysis Ford Motor Company Ford Motor Company is 4th on Fortune 500 List and 4th on Global 500 List and is the 2nd largest auto manufacturer in the world. Ford Motor Company has the advantage of Ford Motor Credit however, due to Firestone tire recalls the prices are the lowest prices in years with cash reserves sunk to $4.1 billion and $13 billion on acquisitions with $3.5 billion

Ford Motors Company Ford Motor Company Is
Words: 1529 Length: 4 Pages Topic: Business Paper #: 12476611

Ford Motors Company Ford Motor Company is an American Multinational company that was founded by Henry Ford in the year 1903. Ford's headquarter is in Dearborn Michigan in the United States where it specializes in the production of automobiles both commercial and luxury. Under its commercial category of vehicles, it trades under the Ford brand while its luxury cars trade under the Lincoln brand. Ford Motors is a well established company