A Better World: Corporate Responsibility in the Face of Increasing Globalization
Mr. W. Wayne Booker
Vice Chairman
Ford Motor Company
Aloha!
It is a pleasure and an honor to address this group…in this turning-point year.
Whether you consider the year 2000 as the first year of the 21st century…or the last year of the old one…the fact is that such events almost compel us to reflect. And to reflect on the last 100 years is to reflect on the greatest season of change ever experienced by mankind.
Looking back, we see a century of dramatic progress: Improvement in transportation, in communications, in education, health care, life expectancy and in dozens of other areas.
But for far too many people, the 20th century began and ended without bringing them the same benefits that we and so many others enjoy. Therefore, completing that better world remains a daunting challenge.
This morning, I would like to share a few observations about corporate responsibility, as seen from the global perspective of Ford Motor Company.
It is as difficult a topic as it is an important one and I do not think for a minute that Ford has found the best way to deal with it. We still are searching, adapting and learning. We also recognize clearly that governmental policies have traditionally played a far larger role than do corporate actions, although stronger business-government partnerships will, no doubt, play larger roles in the foreseeable future.
Like many of your companies, we believe Ford has a long tradition of being a good corporate citizen and acting ethically - supporting education, charities and the good causes of communities in which we do business, and working to conserve natural resources. It is a tradition started by our founder, Henry Ford. It is a good tradition. It also is not enough.
A large segment of the population now wants - demands - a world that is cleaner, fairer, safer, more equitable and more secure. An even larger segment will join them in the coming years of this century.
Our market research and our common sense tell us that these consumer demands will include not just better products, but better producers of those products!
Consumers will want to know the codes of conduct with which global companies conduct business. They expect clearly delineated standards, and they expect openness - transparency - the ability to see adherence to those standards.
The public expectations of corporations are also much broader today. Once we may have thought of ourselves as having a single bottom line. Today, we have three: economic, social and environmental. Soon, widely accepted measurements will be in place to make corporate social and environmental results as accessible and understandable to the public as financial results are today.
This year, following the guidelines established by the Global Reporting Initiative, or GRI, Ford Motor Company is pilot-testing a Corporate Citizenship Report. The purpose of this report is to inform shareholders and the public on Ford's environmental, social and economic goals and progress toward meeting them. GRI is a shared effort among companies, governmental agencies and advocacy groups.
In the not-too-distant future, this type of candid assessment - and the demand for results - will increasingly affect not only consumers' purchase decisions but their investment ones as well. In fiercely competitive global markets, where information is instantly available to everyone, consumers will - literally - have all the knowledge and all the choices in the world.
Already, in the United States, Dow Jones recently created a new sustainability global stock index. In the past two years, the amount of money in socially responsible investment funds, while still small in comparison to other investment funds has grown by more than 80 percent, and is growing still, today.
We don't see this as a passing fad. What people know, or think they know, about your company is going to be delivered to them via the Internet, as well as via traditional media. When people are empowered with knowledge and choices, they will do what they perceive to be best for themselves, their families and their communities.
For global companies, the meaning is clear. We must know what our consumers and our communities want, what they are being told by others and we must communicate our views candidly. Most importantly, we must support those views with action. We must do the right thing.
This means having one set of values, one set of standards, worldwide, with facilities in emerging markets operating to the same set of principles as those in our most mature markets.
It means offering customers - no matter where in the world they might be - the same levels of service as those offered in our more traditional markets.
It means true corporate citizenship in every place where we have a corporate presence - and a willingness to stick with the people there through good times and through bad.
It means doing what's right when one has the means to reasonably do it - and not simply when regulations force one to do it.
It means doing business in such a way that it augments the existing culture.
It means doing right - just because it's right.
I will not try to stand here today and claim that Ford Motor Company has the final answer in any of these regards. Butt we are making efforts.
In Terms of Customer Service:
In the Philippines, where customers once waited seven months for delivery of a vehicle, a new, state-of-the-art plat has shrunk order-to delivery times to a matter of days. Not only that - dealers can access our new Santa Rosa plant via the Internet and modify orders even as the vehicle is going down the assembly line. The color of a vehicle can, for instance, be changed right up to the time it enters the paint booth.
In Terms of Social Responsibility to the Community:
In Turkey, where earthquakes created national hardships last year, our Ford people did not pack up and leave. They dug in, created tent cities for those rendered homeless, and even now are helping to build permanent housing for those displaced by disaster. And Ford people have made similar humanitarian efforts following the earthquakes in Taiwan and the floods in Mozambique.
In Terms of Taking Care of the Environment:
In North America, every Ford F-series truck, minivan, or SUV is now a low-emission vehicle or better…even though the laws requiring such action are years away from taking effect.
In Vietnam, our assembly plant has not disrupted local agriculture. On the contrary, that plant cleans its wastewater so effectively that it becomes an important source of irrigation water - and during the dry season, it is the only source of irrigation water.
And in Brazil, Ford is taking ongoing action to protect the rain forests - simply because we have the ability to do so, and doing so benefits the planet.
Again, I am not saying any of this to place my company on a pedestal. We do not have all the answers. We may not even have asked all the right questions. But I do believe that these examples - and the other fine examples shown by global companies worldwide, many of whom are represented here today - amply demonstrate both the potential…and the responsibilities…we have to make this world a better place.
Can we do this in every case? Frankly, we cannot. In countries that do not treat global companies with transparency, that erect barriers to trade in the form of punitively high tariffs and restrictive laws, we can have little presence, and little impact. And if you look around the Pacific Basin as we recover from the Asian economic difficulties, you can easily see the proof of this. The countries that welcomed global companies with equitable and fair environments are recovering, even thriving, while those that did not still struggle.
Clearly, part of a better world is a more open world.
A look back through the 20th century shows that we are moving toward that goal of a better world. As global companies, our challenge is to lead the way responsibly as we enter this new century. We have reached our present statures through superior products and services. We will reach our full potential only when we offer a superior way of life - for every single person on this planet.
On behalf of Ford Motor Company, let me say that I look forward to continuing with you all on this most exciting quest.
Thank you.