Automakers Cooperate for the Good of People and Environment Worldwide

It might come as a surprise to consumers and auto industry insiders alike that 14 global automakers have recently reached an unprecedented agreement that will benefit the environment, and the millions of workers worldwide who make vehicles. The companies— BMW Group, Chrysler Group LLC., Daimler, Fiat S.p.A., Ford, GM, Honda, Jaguar/Land Rover, PSA Peugeot Citroen, Scania, Toyota, Volkswagen, Volvo Cars and Volvo Group—have all endorsed a new set of guidelines intended to make sure their suppliers treat workers fairly, practice business ethically, and reduce environmental impact. The 14 automakers together produce more than half the world’s vehicles made each year, so getting them behind this common set of standards will have a profound impact on the way cars are made throughout the industry—and around the world.

Working Together: Good for Business and the World

What’s driving the industry to take these steps? Well, it’s simply good business. Automakers and suppliers of all sizes face heightened compliance and extended responsibility expectations, from materials sourcing, handling, reporting and disposal requirements to improving factory working conditions. That’s why my colleagues and I at the Automotive Industry Action Group (AIAG), a not-for-profit association of more than 1,000 automakers and suppliers, helped broker this latest agreement. It’s imperative that we work together to develop, socialize and deploy industry best practices on a range of issues for our global supply chains. Here are some other examples.

Accelerating Action on Conflict Minerals

At the recent AIAG Corporate Responsibility Summit near Detroit, I joined with other members of the global auto industry to launch an awareness campaigndesigned to accelerate action on conflict minerals, which was identified in a new survey as the most significant issue facing the industry this year. The newcampaign microsite illustrates what action the auto industry has taken on the issue; and how companies can engage with AIAG on conflict minerals and meet the May 31, 2014 deadline to file a Conflict Minerals Report with the U.S. Securities and Exchange Commission, as required by law.

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Tanya Bolden is Corporate Responsibility Program Development Manager at AIAG, a nonprofit organization where original equipment manufacturers (OEMs), suppliers, service providers, government entities and academia have worked collaboratively to drive down costs and complexity from the supply chain by development of common processes and standards.