Sustainability Reporting Insights: The Case of Ford Motor Company

Abstract

This case will help students comprehend the materiality concept within the context of sustainability reporting in the automotive industry. Students researching sustainable business reporting frameworks can use Ford Motor Company's sustainability report to understand how that firm assesses the materiality of sustainability issues and integrates sustainable development initiatives within its overall business strategy. Students will gauge Ford's sustainability performance and explore how the company and its peers assess the materiality of sustainability issues. They thus can assess the motivations and judgmental nature behind sustainability reporting and challenges facing preparers. Assignable on an individual or team basis, this case introduces important, and interesting, sustainability reporting concepts and issues. With increasing investor interest in sustainability factors, we argue that accounting programs should provide an overview of sustainability reporting to accounting majors. Because it focuses on disclosures relevant to investors and other stakeholders, we view Financial Accounting courses, including International Accounting courses, as the most appropriate opportunity to employ this case. However, we also adapted this case successfully in a Managerial Accounting course.