Case 1 Fordlandia

FORDLANDIA CASE

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OVERVIEW OF FIRST 2 CASE STUDY SESSIONS
• Fordlandia
– CSR in an international context
– Integration-Responsiveness framework
– Integrated Social Contract theory

• Sialkot
– Child labour as a CSR challenge
– Stakeholder theory
– CSR in the context of global governance

• Learning objectives
– To reflect on the context-specific nature of sustainability
– To discuss CSR in the context of international development
– To appreciate international CSR as a complex management challenge

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FORDLANDIA CASE – SESSION STRUCTURE
– Group work (1)
– Group presentations (1)
– Short(ish) lecture
– Group work (2)
– Group presentations (2)
– Wrap-up

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1.

WHAT IS THE CASE ABOUT?

2.

WHAT ARE THE TRADE-OFFS FORD MOTORS FACES AT THE FORDLÂNDIA
PLANTATION?

3.

PLEASE PROVIDE 1 MODERN DAY EXAMPLES OF THE PROBLEMS FORD
ENCOUNTERED.

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Ford in the 1920’s
 In the 1920s, Ford as symbol of economic success, led by iconic Henry Ford, at this time the wealthiest man on the planet  Mass production of Ford Model T
 Efficiency driven

 Fordism, social engineering
 5 Dollar wage, eventually enabling Ford workers to afford a Model T
 Rise of middle class

 Vertically integrated company
 However, one major exception: rubber for tire production
 Natural rubber had mainly been sourced from British plantations in
Southeast Asia
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Fordlândia
 Henry Ford’s decision to establish plantation in Amazon basin
 Aim: to decrease dependence on British suppliers, to lower cost of transportation

 Large-scale investment, Henry Ford’s pet project
 Land bought of the size of 20,000 km2
 After 7 years, plantation should be ready for rubber extraction  Equipment shipped down from Dearborn, Michigan
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Fordism in Fordlândia
 Attempting to replicate small-town America,
Fordist vision, social engineering in the Amazonas basin  “Civilizing the Jungle”
 Strict enforcement, controls
 Prohibition