Question

At Ford Motor, do decisions consider fairness from stakeholder perspectives? [200 words or more, please][Will give thumbs up]

Answer 1

Ford Motor Company’s corporate social responsibility (CSR) programs are designed to respond to the demands and interests of the firm’s stakeholders. Ford impacts these stakeholder groups through its business activities. At the same time, the stakeholders are significant because they affect the company through their purchases and sociopolitical pressure. As one of the biggest U.S.-based automobile manufacturers, Ford must address the needs of its stakeholders to maintain its industry position. Thus, improving corporate social responsibility efforts can help sustain Ford’s long-term development toward its aim of becoming the global market leader.

Although Ford Motor Company faced significant ethical challenges in the past, it is taking a proactive approach toward eliminating future issues. It holds the distinction of being the only one of the “Big Three” carmakers to avoid having to be bailed out by the government during the 2008- 2009 recession. This showed that the company had made a significant turnaround and was financially viable enough to weather the economic storm. In contrast, the government only just recently sold off its shares in General Motors, which it bailed out in 2009 with $49.5 million. It is estimated that taxpayers lost $10.5 billion. By avoiding a government bailout, Ford was able to improve its reputation and gain a competitive edge over its major rivals. The company was also able to outsell its rival Toyota in the United States in 2012 and 2013.

Ford has taken proactive measures toward improving its internal processes, such as improved testing procedures and internal quality control. The firm made a renewed commitment to consumer safety, environmental sustainability, and stakeholder appreciation. This has led to its four-time nomination as a world’s most ethical company. These results are based upon an intensive review of Ford’s social responsibility efforts, innovation, transparency, communication, citizenship, corporate governance, and business practices

Ford has learned from its past mistakes and has taken proactive measures toward ensuring consumer safety and satisfaction. Ford is an elite company that has secured an ethical reputation. It must continue to investigate ways to improve corporate social responsibility and sustainability without compromising consumer safety or quality.

Ford has excellent corporate social responsibility performance. The company has major programs and strategies to address the interests of its stakeholders. The improvement in the company’s performance following the 2008 reform under the One Ford plan is of note. However, for long-term sustainable operations, the company must emphasize more of product development and cost minimization in its corporate social responsibility efforts. For example, more affordable, more energy-efficient, hybrid or electric vehicles can increase customer satisfaction and add to the company’s business performance.