Additionally, Ford engages with key suppliers through our Aligned Business Framework (ABF) program. Our ABF program includes three-stage process to address the management of sustainability issues, including human rights. First, 100% of current and newly nominated ABF suppliers have an aligned code of conduct to Ford’s?Policy Letter #24 Code of Human Rights, Basic Working Conditions and Corporate Responsibility. These suppliers then conduct internal training ensuring employees understand the code of conduct. Lastly, the supplier provides verification that code of conduct standards and expectations have been cascaded into their supply chain.
For further details on Ford Motor Company’s business operations, see the?annual report.
Ford Motor Company Supply Chain Standards
In our standard procurement process, we issue purchase orders that incorporate our Global Terms and Conditions (GT&Cs). The GT&Cs are further supplemented by our web-guides, which expand on our expectations and suppliers' obligations on specific topics. For example, our Social Responsibility and Anti- Corruption Web-Guide outlines our prohibition of child labor, forced labor (including human trafficking), physical disciplinary abuse and any infraction of the law. Our Environmental Web-Guide sets out environmental requirements, including the elimination of materials of concern and increasing the use of sustainable materials whenever technically and economically feasible.
Internally, we have adopted Policy Letter 24, our Code of Human Rights, Basic Working Conditions and Corporate Responsibility, to address workplace issues such as working hours, child labor, forced labor, nondiscrimination, freedom of association, health and safety and the environment. This policy applies to our own operations, and we encourage businesses throughout our supply chain to adopt and enforce similar policies in their own operations. Furthermore, we seek to identify and do business with companies that have aligned standards consistent with Policy Letter 24, including working to cascade these expectations throughout their own supply chain.
Our GT&Cs forbid the use of forced labor, child labor and physically abusive disciplinary practices.?Ford requires suppliers to certify compliance with applicable laws and the GT&Cs that govern the purchase of goods and services. We reserve the right? to terminate our relationship with a supplier if issues of noncompliance with our policies are discovered and/or noncompliance is not addressed in a timely manner.
Modern Slavery and Human Trafficking Policies
Our processes include actions to safeguard against human rights abuses including Modern Day Slavery. Modern Day Slavery can take many forms, including human trafficking, forced labor, or the worst forms of child labor. Ford's Policy Letter 24: Code of Human Rights, Basic Working Conditions and Corporate Responsibility, clearly states that we will not tolerate forced labor (including human trafficking) or child labor in our operations. We conduct internal audits of our manufacturing locations to ensure compliance.
As a part of our policy requirements, suppliers must comply with ethical recruitment principles. This includes prohibiting the use of misleading or fraudulent practices while offering employment, the use of recruitment fees,? and the confiscating, destroying, concealing, and/or denying access to employee identity documents.
Accountability and Grievance channels
We maintain internal/external accountability, holding all Ford employees and suppliers accountable to the standards on human trafficking set out in GT&Cs, web guides, and Policy Letter 24.?Employees and suppliers have multiple avenues through which to register complaints or grievances related to human rights and human trafficking, including a dedicated email inbox and a company hotline.??Ford Motor Company has developed The Right Way app, which is a free mobile app that is available in seven languages.? The app is available to our suppliers and other business partners to become more familiar with Ford ethical policies and practices. Within the app is the ability for individuals to report any suspected violations.?We investigate all reports and take actions when necessary.?
Assessment of Risks and Due Diligence
We performed a saliency assessment for Ford Motor Company to identify the salient Issues.?Nine issues were identified in the assessment including responsible sourcing of materials, forced labor, and child labor.??Action plans are being developed to address areas identified in the assessment.?We review our salient issues annually and communicate our progress externally through channels including our annual sustainability report and the UN Guiding Principles Reporting Framework Index.
We have conducted more than 40 human rights assessments, dating back to 2004, evaluating how our facilities around the world align with Policy Letter 24. The reports of recent assessments undertaken are available in our sustainability report.