Ford Motor Company
The automotive supply chain is one of the most complicated of any industry. There are often six to ten levels of suppliers between an automaker and the source of raw materials that enter the manufacturing process.
Additionally, Ford engages with key suppliers through our Aligned Business Framework (ABF) program. Our ABF program includes three-stage process to address the management of sustainability issues, including human rights. First, 100% of current and newly nominated ABF suppliers have an aligned code of conduct to Ford’s Policy Letter #24 Code of Human Rights, Basic Working Conditions and Corporate Responsibility. These suppliers then conduct internal training ensuring employees understand the code of conduct. Lastly, the supplier provides verification that code of conduct standards and expectations have been cascaded into their supply chain.
For further details on Ford Motor Company’s business operations, see the annual report.
Ford Motor Company Supply Chain Standards
In our standard procurement process, we issue purchase orders that incorporate our Global Terms and Conditions (GT&Cs). The GT&Cs are further supplemented by our web-guides, which expand on our expectations and suppliers' obligations on specific topics. For example, our Social Responsibility and Anti- Corruption Web-Guide outlines our prohibition of child labor, forced labor (including human trafficking), physical disciplinary abuse and any infraction of the law. Our Environmental Web-Guide sets out environmental requirements, including the elimination of materials of concern and increasing the use of sustainable materials whenever technically and economically feasible.
Internally, we have adopted Policy Letter 24, our Code of Human Rights, Basic Working Conditions and Corporate Responsibility, to address workplace issues such as working hours, child labor, forced labor, nondiscrimination, freedom of association, health and safety and the environment. This policy applies to our own operations, and we encourage businesses throughout our supply chain to adopt and enforce similar policies in their own operations. Furthermore, we seek to identify and do business with companies that have aligned standards consistent with Policy Letter 24, including working to cascade these expectations throughout their own supply chain.
Our GT&Cs forbid the use of forced labor, child labor and physically abusive disciplinary practices. Ford requires suppliers to certify compliance with applicable laws and the GT&Cs that govern the purchase of goods and services. We reserve the right to terminate our relationship with a supplier if issues of noncompliance with our policies are discovered and/or noncompliance is not addressed in a timely manner.
Modern Slavery and Human Trafficking Policies
Our processes include actions to safeguard against human rights abuses including Modern Day Slavery. Modern Day Slavery can take many forms, including human trafficking, forced labor, or the worst forms of child labor. Ford's Policy Letter 24: Code of Human Rights, Basic Working Conditions and Corporate Responsibility, clearly states that we will not tolerate forced labor (including human trafficking) or child labor in our operations. We conduct internal audits of our manufacturing locations to ensure compliance.
As a part of our policy requirements, suppliers must comply with ethical recruitment principles. This includes prohibiting the use of misleading or fraudulent practices while offering employment, the use of recruitment fees, and the confiscating, destroying, concealing, and/or denying access to employee identity documents.
Accountability and Grievance channels
We maintain internal/external accountability, holding all Ford employees and suppliers accountable to the standards on human trafficking set out in GT&Cs, web guides, and Policy Letter 24. Employees and suppliers have multiple avenues through which to register complaints or grievances related to human rights and human trafficking, including a dedicated email inbox and a company hotline. Ford Motor Company has developed The Right Way app, which is a free mobile app that is available in seven languages. The app is available to our suppliers and other business partners to become more familiar with Ford ethical policies and practices. Within the app is the ability for individuals to report any suspected violations. We investigate all reports and take actions when necessary.
Partnerships with External Organizations
We are members of Responsible Business Alliance (RBA), a non-profit coalition of more than 140 companies from the electronic, retail, automobile and toy industries. Ford was the first automotive company to join the RBA. The alliance's aim is to promote high standards in human rights, safety and security, environmental protection and business ethics. We are active members on multiple committees and a member of the Board of Directors.
We are a member of the Automotive Industry Action Group (AIAG) Corporate Responsibility Steering Committee and the AIAG Board of Directors. We also co-chair the AIAG’s Supply Chain Sustainability Committee, which works to increase supplier capability for managing human rights and working conditions in the sector.
We are members of Drive Sustainability (The Automotive Partnership: Drive Sustainability. This partnership of 10 automotive OEMs has a commitment to move to the next level of sustainability and supply chain management in the automotive industry. The partnership, launched in 2017 and facilitated by CSR Europe, builds on the work of the European Automotive Working Group, of which Ford was an active participant.
We are active members in multiple responsible mineral sourcing groups. In particular, Ford is a member of Responsible Mineral Initiative (RMI). We have been recognized as a Top 100 conflict mineral influence leaders for the last three years for our work in the area of conflict minerals.
Global Internal/External Trainings
We conduct training and build capability both internally and with our suppliers. We regularly conduct internal training on our Policy Letter 24 and the supply chain sustainability program with our global purchasing staff. We also require suppliers in high-risk countries to attend training to raise awareness of Ford's requirements and legal obligations, including those related to forced labor and child labor. We along with collective group of automotive OEMs, jointly held training in Thailand, Mexico, and Hungary that was based on the Automotive Industries Guiding Principles and Practical Guidance in 2018. This training are a key element of our due diligence process.