Economics Paper on Implications for Financial Sustainability

Environmental sustainability entails the financial health of a business. Customer satisfaction is critical for the success of any organization. Hence, through its program, Ford has been able to ensure financial sustainability in its operations. Due to the partnership with the suppliers the company improved its efficiency by using sustainable products and services. The company has boosted its revenue by committing to environmental conservation by investing in sustainable products. Contrary to other companies that have had to fight lawsuits and emission scandals, Ford has seen its operations run smoothly.

Accordingly, Ford has been able to incorporate recycled and renewable input materials into most of its products while ensuring social responsibility within the supply chain model. An environmental shift is a trend observable in the automobile industry. For example, General Motors advocates for car sharing to reduce emissions while Volkswagen has been struggling to recover from the emission cheating scandal. While promoting its financial sustainability, Ford strives to embrace economic and financial opportunities that arise from the pressure to reduce emissions in the manufacturing processes. Sustainability encompasses sourcing of sustainable materials for production. Therefore, Ford has managed to double on its ethical and sustainable materials development to aid in manufacturing and thus produce quality and efficient vehicles that appeal to diverse customers. This initiative is capable of boosting sales and improving the revenue.

The financial bottom line of the company has improved because the company engages with efficient suppliers who provide sustainable products. The costs of production are relatively reduced as a result of using sustainable materials to manufacture automobiles. For instance, in line with environmental sustainability, Ford recently announced a $4.5 billion investment program in its electrification program, which, in turn, will lead to the manufacturing of more than 13 electric vehicles in line with their 2020 plan. Further, more profits have been generated through its “Project Better World” that helps automobiles and services meet the needs of the underserved communities. The company is slowly penetrating new markets by spearheading initiatives that help to bring access to medical care and services to remote places in Africa. This initiative differs from earlier discussions because Ford has been able to map new markets that potentially improve on its financial bottom line.

Ford implemented the “PACE” program to help check the impacts of the company’s activities on the environment. The company strives to reduce carbon emissions to the atmosphere by partnering with customers and suppliers. Comprehensively, Ford has integrated financial, social, and environmental plans to represent best practices of the company. Though Ford is profit-driven, it ensures customers are happy and that the raw materials used in the manufacturing processes are sustainable. The “PACE” and “Project Better World” programs are crucial in impacting on the social lives of customers, managing the environment, and boosting profits for the company. For example, the inroads that Ford has been making in Africa in search for new markets have been beneficial in various ways. For instance, this has helped promote infrastructural development in many areas while the company has gained recognition and new markets. Conflict is effectively eliminated through active involvement and participation of the various stakeholders including Ford, environmental agencies, customers, and suppliers, among others. For instance, this partnership has impacted positively on social and financial sustainability through reducing carbon emissions and use of water. Ford needs to align 100 percent of its operations to social, financial, and environmental sustainability to achieve more milestones.