By staff reporter XU XIAOYAN

On October 21, 2005, Ford CEO Jim Padilla and Yin Jiaxu (left), president of Changan Group, congratulate the Changan-Ford’s production capacity of 150,000-automobile production capacity.	Kenneth Hsu, vice president of Ford Motor (China) Ltd.	Liang Yinquan (middle) of Hoh Xil Wild Yak Team is a winner of a Ford Motor Conservation and Environmental Grant.

In addition to the advanced technologies and management methods that transnational corporations have brought to China, they have also introduced many corporate concepts, most notably that of corporate accountability/responsibility. Since 2000, the Ford Motor (China) Ltd. has awarded RMB 1 million (US$ 125,000) annually to those making outstanding contributions to environmental protection. The award, given with the aim of promoting active environmental protection, has been commended throughout Chinese society.

Most people are aware that automobiles are a main source of environmental pollution, yet cars are indispensable within a modern society. As a leading auto manufacturer, Ford is aware of its responsibility to lessen the damage that the internal combustion engine wreaks. One of its environmental protection endeavors is the Ford Motor Conservation and Environmental Grant.

From 2000 to 2003, Ford’s losses hit US $10 billion, but it was nevertheless during this period that the Ford Motor Conservation and Environmental Grant was introduced to China. Bill Ford, great grandson of the company’s founder Henry Ford and current chairman of Ford Motor Company, personally approved the award.

After six years of effort and an investment of RMB 15 million, 95 conservation projects have now been funded. They include rescuing endangered species, fighting desertification, tree planting, ecological surveys, and environmental education. This Ford-built platform has given Chinese NGOs and individuals a greater opportunity to participate in environmental protection activities and also helped to raise public awareness on the issue. The grant provides further incentive for all to care for the environment. The Seventh Ford Motor Conservation and Environmental Grant, whose theme is “Innovation, Development and Harmony between Humanity and Environment,” was launched nationwide on April 18, 2006. The awards ceremony will be held in late September.

Ford’s activities have won the company praise and admiration in all sectors of Chinese society. In 2005, the Ford Motor Company won the “Best Corporate Citizen Behavior Award” for the second time, in recognition of its active promotion of environmental protection. In 2006, the China Environmental Protection Foundation awarded Ford the “China Environmental Award ¨C Corporate Environmental Protection Green Oriental Award,” making it the first foreign enterprise ever to have won it.

Yet the Ford Motor Conservation and Environmental Grant is not simply an American concept transferred to China. It has been adapted to the country’s situation.

Kenneth Hsu, vice-president of the Ford Motor (China) Ltd., explains, “The main difference is that in China the grant is called an “award,” while in other countries it is termed a “donation.” In countries other than China, grants are given to selected individuals and entities, while in China it has a more competitive ethos. It is awarded to people or enterprises that have made the greatest monetary, physical or effective donation to environmental protection. It thus singles out unknown heroes, supports conservationists, and arouses environmental protection awareness in the whole community. In the coming years we will consider setting a theme for each year that reflects China’s most serious environmental problem.”

In addition to its efforts within environmental protection, the Ford Motor Company performs its social accountability in an all-round way. “I believe that there is a difference between a good enterprise and a great enterprise. A good enterprise provides excellent products and services for its customers, while a great enterprise not only provides products and services, but also does its best to make this world a better one,” said Bill Ford, CEO and chairman of Ford Motor Company.

In 2003, the centenary of the Ford Motor Company, Ford published its Corporate Citizen Report, the first ever to appear in China. It summarizes the behavior of the Ford Motor Company as a corporate citizen, the principles it follows, and the achievements it has made. The report also details Ford’s contributions towards improving products and services, its giving of assistance to local partners in their development, and its participation in activities for the public good, such as environmental protection.

Ford plans to launch a “staff volunteer activity” in China next year whereby it will allow and encourage its staff members to take part in volunteer activities for at least two days a year, on company time. This activity has been ongoing in its other overseas branches for many years.

Within Ford, investment in sustainable development of its staff comes under two broad headings: health and safety and education and training. As regards the former, Ford Motors (China) Ltd. has established a staff health service project and set up specialized posts, such as industrial sanitary engineer, toxic substance engineer and bioengineer, in addition to doctors and nurses, to organize and monitor health and safety projects in various fields.

As to the latter, the Ford Motor Company provides comprehensive education and training opportunities for its staff, such as on-line courses, one to one teaching, training on leadership and managerial know-how, and other business-related skills. The company also provides financial assistance to those of its staff that wish to continue studying, and each year awards free participation in an MBA course to selected staff members.

Kenneth Hsu insists that the pursuit of profits and performing corporate social responsibility are not contradictory and that, on the contrary, one can benefit from the other. For instance, the Ford Motor Company has installed rain-collecting devices on its factory roofs, which are of immediate benefit when water is in short supply. He adds: “Similar investment in environmental protection has sharpened our competitive edge. In the long run, we should look beyond the financial balance sheet, and make decisions after considering matters from every angle.”

Hsu continues: “Judging from our many years’ experience, designating specific tasks to specific departments or personnel helps an enterprise perform its corporate responsibility to a higher degree.” Ford has set up a corporate social responsibility committee. It comprises vice-presidents of various departments, such as public affairs, governmental affairs, business planning, human resources, finance, and marketing. The committee regularly holds meetings in which it discusses corporate social responsibility strategy, reviews its activities, and explores new opportunities. The Ford Motor Company has participated in quite a number of social activities in China, mainly in the fields of environment, traffic safety, health, and education. The Ford Day at Fudan University is just one aspect of them.