Fourteen of the world's largest automakers have agreed to new standards for their suppliers on sustainability and responsibility issues, including human rights, working conditions, and business ethics. With dual announcements made in Michigan and Brussels, two corporate responsibility business associations, AIAG and CSR Europe, outlined the new agreement. Participating companies include BMW, Chrysler, Daimler, Fiat, Ford, GM, Honda, Jaguar/Land Rover, PSA Peugeot Citroen, Scania, Toyota, Volkswagen, Volvo Cars, and Volvo Group.

AIAG is a not-for-profit organization of OEMs, parts and service suppliers, and government entities focused on reducing supply chain complexity through global standards and harmonized business practices. CSR Europe is a similar business network focused on sustainable growth.

Earlier supplier guidelines were developed by AIAG in 2009, in collaboration with Ford, GM, Chrysler, Honda, and Toyota. In Europe, automotive companies, organized by CSR Europe, also collaborated supply chain sustainability. The two organizations joined forces to craft the new international agreement. “People and the environment are the automotive industry's most important resources,” it says. "We are working together to attain the highest standard in business integrity and in the social and environmental performance of our supply chain. We expect that suppliers will uphold these standards and cascade them down their supply chain.” 

To establish the guiding principles, AIAG and CSR Europe worked with the 14 automakers to find the common points of agreement among the companies. Individual automotive companies may also have their own standards, codes, and policies that supersede the common guiding principles. 

The companies are expected to operate “honestly and equitably throughout the supply chain,” in accordance with local laws pertaining to: anti-corruption; anti-competitive business practices; protection of intellectual property; safe working conditions; respect for company and personal data; export controls, labor laws, and conflicts of interest. Environmental standards include reducing energy use, water consumption, and greenhouse gas emissions.

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