Background
Ford Motor Company serves as an example of an American corporation with a well-designed corporate social responsibility (CSR) policy. Ford’s CSR is based on two fundamental pillars — adherence to legal norms and ethical duty to various stakeholders, ranging from customers to employees. Ford (2021a, p.7) states its corporate purpose as “to help build a better world, where every person is free to move and pursue their dreams.” This purpose statement finds its reflection in the practical CSR initiatives.
Ford CSR: The CEO’s Perspective
A CEO’s task lies in adapting the corporate image and policies in ways that allow the organization to withstand the challenges of time. In the case of Ford, following the trends is not sufficient — the company seeks excellence in the legal and ethical pillars of social responsibility. As such, Ford perceives CSR as a domain that grants a desirable competitive advantage. Due to this standpoint, Ford strives to align its CSR policy with the stated purpose of building a better world where people are daring and free.
For instance, the legal pillar of CSR implies strict adherence to the existing agreements and legislation. Ford acknowledges the issue of climate change and aspires to reach carbon neutrality by 2050 in accordance with the Paris Agreement (Ford, 2021a). However, a mere commitment to a standard benchmark is not a sign of excellence. Therefore, Ford expands its boundaries by joining the state of California in pursuit of stricter greenhouse gas standards (Ford, 2021a, p. 41). By making such a step, Ford manifests the readiness to excel in environmental protection and pursue a better world for everyone. Every person deserves to live in a world with clean air and fresh water, and Ford is ready to make its contribution to this goal.
In regard to the ethical pillar of CSR, Ford follows the same pattern of excellence. Once again, simple adherence to the expected norm is not satisfactory. The company is ready to promote ethical standards and act beyond the expected behavior and legislation. For example, Ford conducted a diversity and inclusion (DEI) audit with the assistance of Deloitte and appointed its first Racial Equity Director in history (Ford, 2021a, p. 64). Such an action was not mandatory by U.S. law; however, Ford took it in order to enhance employee experience. The Racial Equity Director is responsible for detecting and eliminating any potential systemic barriers and inequities. Therefore, this appointment aligns with a message of equality embedded into Ford’s corporate purpose. Ford’s employees are one of the vital stakeholders, the unsung heroes, the moving force behind any corporate achievement. As such, Ford perceives CSR initiatives aimed at employee experience improvement as critical for retaining competitive advantage in the labor market. Satisfied employees who see genuine care from the company are bound to be loyal.
Furthermore, it is necessary to stress that any CSR initiative must be aligned with the corporate purpose to be genuine and effective. When Ford declares the wish to promote freedom worldwide, it includes the willingness to provide decent working conditions for the employees. In this regard, Ford strives to maintain a healthy and safe work environment, follow ethical recruitment practices, and ensure workers’ right to freedom of association (Ford, 2021b, p. 12). In Ford’s vision, CSR goes hand-in-hand with sincerity — a company cannot achieve meaningful results in CSR if its actions are not aligned with the corporate purpose. Overall, Ford utilizes CSR to create a mutually satisfying connection with its customers and employees, its key stakeholders.
References
Ford. (2021a). Integrated sustainability and financial report 2021. Web.
Ford. (2021b). UN Sustainable Development Goals index 2021. Web.