Ford Motor Company says it has delivered another record year in China, not only in terms of sales, but also with the ongoing introduction of a pioneering program that helps improve the standards and working conditions of companies in its supply network.
"Our goal is to have all of our suppliers in China participate in this management program" said Mei-Wei Cheng, chairman and CEO of Ford China. "Ford sees it as our direct responsibility to ensure that each of our partners are providing their staff with a legal and decent work environment and working conditions. It's a part of doing good business and we're willing to make an investment to help achieve this."
According to the company's press release, roughly 300 suppliers to Ford's joint-ventures in China have implemented its advanced supplier management program. This includes a series of tough review and inspection systems, backed by comprehensive training focused on raising awareness of working conditions issues throughout the supply chain, provide best practice examples and practical exercise that would support labor law compliance. The aim is to help suppliers meet Ford's comprehensive global supply chain requirements and adhere to local laws and regulations that cover work environment, health and legal employment.
Ford says it operates worldwide under the belief that as globalization increases, companies need to effectively and actively manage the relationships between their operations, employees and the broader communities on which they depend. The company's concern and responsibility for employee welfare goes well beyond those it directly employs.
Ford is also among a number of global automotive companies working with the Automotive Industry Action Group and China Association of Automobile Manufacturers to collaborate in the joint delivery of training for their respective suppliers. AIAG is a nonprofit organization of car manufacturers and part suppliers that promotes cooperation and effective communication between customers and suppliers to improve the business process.
In 2003, China became the first market in Asia to implement Ford's new global program for training, monitoring and managing the working conditions and labor laws of its supply chain. The program was later rolled out across other markets within the company's Asia Pacific & Africa region, including India and Thailand.
This year in China, the AIAG/CAAM training program has reportedly been delivered to nearly 300 suppliers of Changan Ford Mazda Automobile Company across China.
Ford's labor law training in China has received strong support from the China Association of Automobile Manufacturers. The training mainly aims to convey relevant regulations of the Labor Law of China and encourage all suppliers to meet safety standards in their production processes and working environment.
In addition to suppliers, Ford has global programs that provide relevant training to in-house staff guidance to purchasing and engineering staff every year, providing timely updates on labor laws and regulations.
Darrell Doren, Ford's regional manager for Supply Chain Sustainability, Asia Pacific & Africa, explained, "We strive to maintain long-term relationships with our suppliers, which provides a real advantage for a mutual understanding of our supplier management program. It also provides additional benefits, as adherence to the policies helps deliver increased quality and has a positive impact on their employee retention."
In addition to the supply chain program, Ford continues to invest in various corporate responsibility programs in China that include environmental protection, road transportation safety, health and education.
Ford Motor China says it is actively involved in various programs to support the environment, road safety, health and education. Since 2000, it has organized the Ford Motor Conservation and Environmental Grants, which to date has sponsored more than 130 groups and individuals with more than RMB25 million to assist environmental protection efforts in the country.