Multinational Corporation: Effects on the Environment in the Host Country
There are many ways that multinational corporations can help the host countries environment where they reside. A very positive example is the Ford Motor Company. We will take a look into the abundant ways that Ford has helped its host countries environment and how it has changed policies over the years. With every company, you must follow before you lead. Therefore it is imperative that companies learn from the mistakes of others, and improve the community they are housed in before it is too late.
Ford Motor Company is based in Dearborn, Michigan, which is an important leader in the automotive industry (Ford Motor Company, 2007c). Ford Motor Company employs approximately 300,000 employees in its 108 worldwide plants (Ford Motor Company, 2007c). “Ford Motor Company was founded on June 16, 1903” (Ford motor Company, 2007b).
In the United States, in the Detroit area, Ford Motor Company redesigned the plants in order to help the environment instead of hurting it (“Digital Fordism”, n.d.). Ford Motor Company did this in an effort to repair the Rouge waterfront and surrounding areas (“Digital Fordism”, n.d.). This is just one example in the United States to show that the multinational corporations do not abandon the country they first resided in order to better help others.
In 1993, Ford Motor Company completely rebuilt a more environmentally efficient Windsor Eugine Plant in Windsor, Ontario (“Digital Fordism”, n.d.). The task was completed under government pressure, to both start recycling shipping containers, and “to reduce the plant’s environmental impact by controlling waste water runoff, reducing sound and sight pollution with green buffer zones, and recycling a 1920s-era factory with new technology” (“Digital Fordism”, n.d.).Another plant that Ford Motor Company owns in Ontario pioneered and implemented a Total Waste Management program (“Digital Fordism”, n.d.).
Due to the success of Ford Motor Company’s first environmental changes, they decided to implement the ISO-14001, which are “performance standards for environmental management (“Digital Fordism”, n.d.). Ford Motor Company is highly dedicated to find more solutions for the environmental problems that exist (“Digital Fordism”, n.d.).”The ISO-14001 review criteria were first put into place in the UK’s Halewood plants, but Ford now has 140 of its own facilities certified to these standards” (“Digital Fordism”, n.d.). Between 2000 and 2004, Ford Motor Company reduced their total carbon dioxide emissions from their plants worldwide by sixteen percent (Ford Motor Company, 2007a).
Obviously Ford Motor Company has a comparative advantage for operating in countries such as Brazil, Mexico, and Canada for many reasons (“Digital Fordism”, n.d.).One of the most important comparative advantages is that Ford Motor Company gains are that they are gaining better labor for a cheaper price. Brazil for example principally exports transport equipment (Sawyer & Sprinkle, 2006, p. 30). Therefore we can conclude that Brazil is one of the best countries to produce our automotive needs because they have specialized in that product.
There are many lessons that we can learn from Ford Motor Company to apply to Acme Motors in Nuevo Laredo. We can learn from their mistakes and improvements to see what works and what does not in order to help the environment not only in our country but also the host countries. As people who reside on Earth, we should understand that it is important to try to preserve throughout the world to ensure our survival.
Digital fordism. (n.d.) Retrieved January 30, 2007, from http://www2.cddc.vt.edu/digitalfordism/index.html
Ford Motor Company. (2007a). Environment. Retrieved January 30, 2007, from Ford Motor Company Web site: http://www.ford.com/en/company/about/publicPolicy/environment.htm
Ford Motor Company. (2007b). Henry ford & family. Retrieved January 30, 2007, from Ford Motor Company Web site: http://www.ford.com/en/heritage/fordFamily/default.htm
Ford Motor Company. (2007c) Overview. Retrieved January 30, 2007, from Ford Motor Company Web site: http://www.ford.com/en/company/about/overview.htm
Sawyer, W.C. & Sprinkle, R.L. (2006). International economics (2nd ed.). Upper Saddle River, New Jersey: Pearson Prentice Hall.