BUSINESS ESSAY 1

FORD MOTOR COMPANY

The Ground Floor - CEL (CBBU 1001-R02)
Instructor: Prof. William Sickles
Student: Jonathan Tran

Ford Motor Company, a century-old automotive giant, has undergone significant

transformation recently. Beyond its core business of manufacturing vehicles, Ford has embarked on a

journey toward becoming a leader in sustainability and innovation, incredibly successful in carbon

neutrality and pay equity (Digital Marketing Institute, 2024). This essay will analyze Ford's

campaigns toward their purpose and provide recommendations for Ford to continue pursuing social

purpose and generate social welfare.

Ford is committed to building a better world where everyone can move and pursue their

dreams (Ford, n.d.). Primarily, Ford aimed to create a more sustainable economy and committed to

achieving carbon neutrality across its business operations by 2050, with ambitious interim targets to

address climate change sooner (Mich, 2020). The company is taking a multi-faceted approach,

focusing on electric vehicles, renewable energy, and sustainable supply chain. Regarding the electric

car, Ford Motor Company is investing in a comprehensive lineup of EVs and plug-in hybrids to

reduce tailpipe emissions (Dearborn, 2024). The campaign includes constructing the Tennessee

Electric Vehicle Center at Blue Oval City and expanding the Ohio Assembly Plant to produce a new

electric commercial vehicle.

Additionally, Ford is transforming its Ontario plant into an EV manufacturing complex, with

a delayed launch of three-row electric vehicles to 2027 to leverage new battery technology. These

actions will bring Ford one step closer to their goal of producing 600,000 new EVs per year, reaching
their two million EVs capacity in the upcoming years (Whalen, 2023), which will significantly lower

the amount of fossil fuel consumed. Furthermore, these programs also lead to a more sustainable

supply chain, one facet of Ford's holistic approach. In recent years, the company has conducted 30

supplier audits along select critical mineral battery supply chains at all tiers of the mine site and

audited its nickel, lithium, and cobalt due diligence management systems (Dearborn, 2023) to figure

out areas requiring modification. Between 2017 and 2022, Ford reduced emissions from its

manufacturing facilities by 40%. In 2022, 60% of the electricity usage was carbon free (Dearborn,

2023). One expects that with the projects being deployed, Ford will continue lowering the supply

chain emissions in the future.

Furthermore, to promote a world where "every person is free to move and pursue their

dreams" (Ford, n.d.), Ford has conducted numerous activities toward removing the pay gap and

equity promotion. Ford is known for building its corporate strategy with the diversity, equity, and

inclusion (DEI) strategies implemented in every business aspect. The company has prioritized

attracting and retaining diverse talent, recognizing that diversity of perspectives and backgrounds is

critical to achieving the best products and services (Ford, n.d.). Regarding payments, Ford has been

doing regular salary audits, creating compensation adjustments, and promoting transparency in

compensating as an effort toward pay equity. As a result, the company announced in 2020 that it had

achieved gender pay equity for its salaried employees in the United States (Ford, n.d.). Ford has also

been recognized in the Bloomberg Equality Index since 2018 (Ford, n.d.), and in 2023, it achieved a

score of 86.92/100 in the report (Ford, 2023). Lastly, the company is also credited for narrowing the

wage differentials paid by other firms in the auto industry through their voluntary equal wage policy

(Lanning, 2021), proving that the company is influencing the firm and promoting social welfare in

the global economy.

 Even though the company has been conducting specific campaigns to achieve its goal, one

would suggest Ford implies further campaigns to broaden their target stakeholders. The first strategy

is for Ford to focus on promoting their electric or plug-in-hybrid truck and van and cooperate with

local government to promote a greener public transportation system. For instance, Ford has been

developing their Ford e-transit as a large transit vehicle (Korum Ford, n.d.). If Ford could jump in

substituting 5700 buses in New York City (Wikipedia, n.d.), it would save ~4000 kg of CO2

emission per kilometer of transportation 1. Another recommendation is to host a "Community

Connection Tour" to further engage with diverse communities and enhance mobility. They could

start with organizing a road trip, in which at each destination, Ford would partner with local

businesses, non-profits, and community organizations to tailor each event to specific local needs.

Ford could offer free rides for low-income households to have an opportunity to travel while

showcasing advanced mobility solutions like electric and autonomous technology and provide career

workshops and resources in collaboration with local job training programs. Additionally, Ford could

collect participant feedback to continuously improve their product lines and deepen its community

engagement.

In conclusion, Ford Motor Company's sustainability and social equity initiatives highlight its

dedication to creating a positive global impact. By investing in electric vehicles, enhancing supply

chain sustainability, and advancing pay equity, Ford is making significant strides toward building a

better world where everyone can move and pursue their dreams. To further this progress, the

company could expand its efforts by promoting electric commercial vehicles and engaging directly

with communities through targeted outreach programs. These additional measures would strengthen

Ford's role as an industry leader and amplify its contributions to social welfare.

1
Based on rough estimation that the average CO2 emission for the buses is 822 g/km (Carbon
Independent, n.d.)
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