Ford Makes Ethical Companies Rank For 8th Straight Year

Ford Motor Co. was named one of the World’s Most Ethical Companies for the eighth year in a row, which the automaker says is the longest streak for any auto manufacturer to be placed on the list.

Ford was acknowledged for making Partnership for a Cleaner Environment (PACE) part of its ethics and sustainability drive. That program was launched by Ford in late 2014 to encourage sustainability practices, including water and energy conservation, throughout its global supply chain.

Other issues examined for the 124 companies that made this year’s World’s Most Ethical Companies include looking at the company’s operations for human rights and worker safety; and sourcing “conflict-free minerals” from companies following ethical guidelines in how their workers are treated.

Volvo Car Group, based in Sweden, was the only other automaker to be placed on this year’s list.

The ranking has been put out by Ethisphere Institute since 2007 and has been based on acknowledging “companies who recognize their role in society to influence and drive positive change in the business community and societies around the world.”

Last year, Ford expanded its PACE program by inviting supply chain partners to participate in sharing information and resources including best practices and training and evaluations. One goal of the program has been to get suppliers to meet both legal requirements and Ford’s own standards.

The program added tools that help suppliers reduce carbon-dioxide emissions and waste, along with helping them make their water and energy consumption more efficient. The new best practices and monitoring tools are geared at helping suppliers track and achieve their own sustainability goals. Those suppliers choosing to do so can report their own environmental progress and share their own best practices with their partners and communities.

Suppliers were invited to join last year, bringing the number up to 40 participating companies over the past two years. Ford would like to see the network grow, with 1,100 supplier sites in Ford’s supply chain located in more than 40 countries.

The company sees creating strong relationships with supply chain partners, employees, and customers, as essential to its global growth and meeting its own corporate policies. Sustainability goals have been part of it, with the company committed to water and energy conservation, using renewable energy like wind and solar, and rolling out a fleet of electrified vehicles.

“Strong ethics and corporate citizenship are the foundation of our business philosophy, which demonstrates to our customers what we stand for as a company,” said Bill Ford, Ford’s executive chairman. “This honor is a reflection of Ford’s core values, and it shows that our employees are continuing to make the right decisions every day for all of our stakeholders.”

Participating PACE suppliers will save 550 million gallons of water over the next five years. Ford said that’s enough to fill 837 Olympic swimming pools. Carbon emissions could be reduced by nearly 500,000 metric tons worldwide over that time, which would be like eliminating the carbon emissions of over 50,000 homes a year.

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Some of the best sustainability practices that Ford and its suppliers are using include making cooling tower operations more efficient, cutting down on compressed air usage while manufacturing, and getting rid of single-pass cooling systems. Simple practices also help, like replacing energy burning incandescent lightbulbs with energy efficient LED bulbs.

Global automotive supplier Denso has been participating in PACE since it started in 2014. The systems and components supplier has set carbon-dioxide reduction targets in its manufacturing process. Power and water efficiency has been helped by switching over to closed circuit cooling systems and T-8 LED lighting.

“We are serious about protecting lives and preserving the planet, and sharing best practices with Ford helps further that mission to sustain the environment globally,” said Jim Laney, Denso senior manager of safety, health and environment in North America.


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