Our Learning Journey Connecting with Society
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Connecting with Society Our Learning Journey TABLE OF CONTENTS A Message from the Chairman . .2 Operating Highlights . .5 Strategic Issues Update . .6 Introduction . .7 Climate Change . .8 Human Rights . .10 Business Principles . .12 Sustainable Mobility . .14 New Partnerships and Technologies . .16 Performance . .18 Progress in 2001 . .19 Stakeholder Relationships . .20 Employees . .22 Customers . .27 Investors . .30 Dealers . .32 Suppliers . .34 Communities . .37 Civil Society . .39 Product Performance . .40 Safety . .41 SUV Update . .44 Greenhouse Gases and Fuel Economy . .45 Materials . .48 Emissions . .50 Manufacturing Performance . 52 Energy . .53 Water . 56 Air . 57 Waste . .58 Land . .59 Sustainable Manufacturing: A Special Section . .60 Public Policy Performance . .62 Staying Connected . .64 Index to Global Reporting Initiative Indicators . .65 About This Report As part of our CERES commitment, Ford Motor Company publishes an annual corporate citizenship report. In it, we discuss our evolving view of corporate citizenship (sustainability) and provide a candid assessment of our social, economic and environmental performance during the previous year. We support the Global Reporting Initiative (GRI) and used the GRI guidelines in preparing this report. More information on GRI is available at www.globalreporting.org. This is our third corporate citizenship report, covering calendar year 2001. Some events of early 2002 also are discussed. The data in this report covers all of Ford’s wholly and majority owned automotive operations and, where applicable, Ford Financial Services and the Hertz Corporation, unless otherwise noted. Data in this report is subject to internal quality controls, but none has been independently verified. An Incomplete Work of Industrial Art... Arteaga Photo On last year’s cover, it was the Golden Gate Bridge under construction. This year, it is the St. Louis Arch. Beautiful works at a point when they were not yet complete, but when the end goal was clear, when the vision embodied in the design and the work was finally obvious. When the artistry was so bold as to provoke an endless series of questions. That is the state of corporate citizenship today —an unformed work, many years in the making, with still more years required before the form and function are visible to all. It also is the state of Ford Motor Company today— a century old, yet still a work in progress. As with great art of any kind, it leads to questions. Fundamental questions. How many more years will it take before the shape of our future is clear to all? Who are the designers? Who are the artisans? What meaning lies in such graceful works? About Our Web Site Credits Throughout this report, you will find the symbol Design by The Quintek Group. Photographic assistance that indicates additional information can be found on provided by Studio 22 and Ford Photographic. Contributing www.ford.com. You also may wish to view our 2000 editors: Leah Haygood, Rebecca Calahan Klein and Kevin Sweeney. and 1999 reports on our Web site. Copy editor: Suzanne Fleming. Managing editor: Brad Simmons. A Message from the Chairman Citizenship is at the Core of Our Rebuilding Efforts In the 20th century, no company had a greater impact on the lives of people around the world than Ford Motor Company. My great-grandfather, Henry Ford, put the world on wheels by mass- producing simple, reliable automobiles that those who built could afford. He also was a pioneering environmen- talist who advocated recycling and renewable energy sources, and a social activist whose $5 a day wage changed the way companies viewed their employees. His remarkable legacy teaches and inspires us. Here at the start of the 21st century, as we approach our 100th anniversary as a company, our goal is to have an even greater impact on people’s lives in the next 100 years. We want to continue to provide the world with mobility by making it affordable in every sense of the word—economi- “ cally, environmentally and socially. The foundations of society This report outlines our progress in are the men and means to those three areas, which are the keys to making the personal mobility grow things, to make things, business sustainable. and to carry things. As long Economically, 2001 was a difficult year for us. On January 11, 2002, we as agriculture, manufacture, announced a plan to dramatically and transportation survive, improve the products, profitability and shareholder value of the Company. the world can survive any economic or social change.” My Life and Work by Henry Ford 1924 2 VISIT OUR WEB SITE www.ford.com /go /corpcit rebuilding This plan focuses on three key corporate citizenship. But that doesn’t And we are proceeding on schedule elements: products, cost reduction and mean we will abandon our goals or with the development of the Ford aligning our manufacturing capacity change our direction. Rouge Center, which will transform with worldwide demand. It lets us Our revitalization plan is working. our historic Rouge manufacturing get back to the basics of building great Although it includes many short-term complex in Dearborn, Michigan, into products, and doing so profitably. actions, the plan gains momentum a global model of lean and sustainable A legitimate question to ask is over the next several years as we manufacturing. whether our intense focus on the launch new products. By mid-decade, Socially, we continue to have a economic side of our business will we will generate billions of dollars of major impact as a large company distract us from our environmental improved profitability. with a worldwide presence. In 2001, for example, our total charitable giving reached an all-time high of $139 million for projects focused on Difficult business conditions make education, the environment and it harder to achieve the goals we set for community development. ourselves in many areas, including corporate Unfortunately, our efforts to strengthen our business economically citizenship. But that doesn’t mean we will will have an adverse effect on some abandon our goals or change our direction. employees and communities. We expect to reduce our workforce by 35,000 people worldwide, on a base of 350,000, when all our actions are and social efforts. As we said in last Our environmental efforts also build completed—including closing five year’s report, corporate citizenship can momentum as we introduce new prod- plants in North America by mid- only be achieved in the context of a ucts. In the United States, we are decade. We will make every effort to strong and profitable business. But it’s committed to continuous improve- make the changes as non-disruptive also true that businesses can only be ment in the fuel economy of all of our and mutually beneficial as possible. as successful as the communities, and vehicles. In Europe, we have agreed, We realize that some of the things the world, that they exist in. That along with others, to reduce the that must be done will be painful and makes ongoing corporate citizenship average CO2 emissions of the vehicles will impact people’s lives in difficult efforts essential. we sell there. ways. But I sincerely believe that Difficult business conditions make The Company also has set a global these actions will do the most good it harder to achieve the goals we set target to reduce energy use at its facili- for the most people in the long term. for ourselves in many areas, including ties on a production-normalized basis. 2001 Corporate Citizenship Report — Our Learning Journey 3 A Message from the Chairman Citizenship at the Core... Continued That philosophy—doing the most ment, with new revelations about good for the most people over time— corporate misconduct seeming to is what drives our efforts. Not make news almost daily, the commit- everyone will be satisfied with our ment to transparency and accounta- plans or our progress in every area. bility has never been more important. Reasonable people, who agree on what Our 100th anniversary next year the problems are, can have legitimate gives us an opportunity not only to disagreements about the most effective celebrate our heritage, but also to way to solve those problems. That philosophy—doing the most good for the most people over time—is what drives our efforts. Bill Ford, left, presents the keys We believe that open and candid prepare for the challenges ahead of to the first production 2002 communication is a tool for resolving us. By working to create sustainable Thunderbird to Steve Hamp, these disagreements and finding solu- personal mobility for everyone, we president of Henry Ford Museum tions. By providing a common ground will honor our past and secure and Greenfield Village, outside of information, we hope this report our future. Ford World Headquarters. will help build understanding and support dialogue that leads us toward consensus. We want all of our stake- holders to be our partners as we move forward. And in the current environ- Left to right: Nick Scheele, Bill Ford and Carl Reichardt at the October 30, 2001, press briefing that announced new Company leadership. 4 VISIT OUR WEB SITE www.ford.com /go /corpcit Operating Highlights Ford Motor Company (in this report, PERFORMANCE HIGHLIGHTS 2001 “Ford” or “the Company ”), headquar- PRODUCT tered in Dearborn,Michigan,istheworld’s VEHICLES 2001 Model Year 2001 Model Year Better/(Worse) second-largest automotive company. (Cars and light trucks) Fuel Economy CO2 Emissions Than 2000 Ford is publicly owned and listed on Ford U.S.1 23.1 mpg (10.2 L /100km) 238 g/km unchanged the New York, Pacific Coast and several Ford U.K. 33.4 mpg2 (7.0 L /100km) 170 g/km 3% European stock exchanges (NYSE: F). Jaguar U.K.