Business

Daniels Fund Ethics Initiative

University of New Mexico

http://danielsethics.mgt.unm.edu

Ford Motor Company Manages Ethics

and Social Responsibility

INTRODUCTION

Ford Motor Company, one of the “Big Three” automakers, was established in Detroit, Michigan, on

June 16, 1903. Founder Henry Ford converted an old wagon factory to house his new inventions.

The Model T, in particular, was the one turning point that put Ford on the map. Despite stiff

competition from rival General Motors, over the decades other Ford models such as the Mustang

and Taurus continued to push Ford forward. Today Ford is one of the world’s top automobile

companies—its Ford Focus was the world’s bestselling automobile in 2013.

Ford Motor Company was founded on strong core values, which has helped it to overcome many

obstacles and lead to its success. Despite ethical issues in the past, Ford Motor Company has proven

to be an ethical leader in the automobile industry. In 2013 it was selected by the Ethisphere

Institute as one of the world’s most ethical companies.

This case examines the ethical challenges and corporate social responsibility initiatives Ford Motor

Company has faced in its history. It begins with a history of Ford’s background. We follow with an

examination of Ford’s corporate culture and its emphasis on product quality. We then describe the

code of ethics the firm has adopted to keep it on an ethical course. The next section demonstrates

that despite its strong code of ethics, Ford has experienced serious misconduct in the past. Next, we

investigate how Ford has restored its reputation and instituted corporate responsibility initiatives

to benefit stakeholders. We conclude by examining Ford’s current status today.

COMPANY HISTORY

Henry Ford was a pioneer in business and entrepreneurship. Having an extreme talent and desire

for engineering, he became an employee of the Detroit Edison Company in 1890 and eventually

became chief engineer of the company. In 1862 he constructed his first...