Ford Works With Its Suppliers In China To Improve Workplace Standards And Conditions
Ford Motor Company 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.
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 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 (AIAG) and China Association of Automobile Manufacturers (CAAM) 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 been delivered to nearly 300 suppliers of Changan Ford Mazda Automobile Co. across China.
“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"
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.
About Ford Motor in China
Ford Motor Company, a global automotive industry leader based in Dearborn, Michigan., U.S.A., manufactures and distributes automobiles in 200 markets across six continents. The company’s automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Credit and Ford Service. Ford Motor Company celebrated its 100th anniversary in 2003.
Ford Motor Company’s history in China can be traced to 1913, when its first Model T was imported and sold in Shanghai. Currently, Ford’s wholly owned subsidiaries and JVs in China include Ford Motor (China) Limited, Ford Motor Research & Engineering (Nanjing) Co., Ltd., Ford Automotive Finance (China) Ltd., Changan Ford Mazda Automotive Co., Ltd., Changan Ford Mazda Automotive Co., Ltd., Nanjing Company, Changan Ford Mazda Engine Co., Ltd., and Jiangling Motors Co., Ltd. Ford Motor has introduced a number of exciting models to the Chinese market, including Ford Mondeo, Ford Focus, Ford S-MAX, Ford Transit, Volvo S40, Mazda3, as well as several imported models from Jaguar, Land Rover, Lincoln and Volvo, and service brand, Ford Service.
Ford Motor China 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 (CEGC), which to date has sponsored more than 130 groups/individuals with more than 25 million yuan to assist environmental protection efforts in the country.
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