IBM Values

A lesson in corporate citizenship Group 6, Section B

The measure of any enterprise or institution is not what it says about

itself, but what others say about

it, and whether they choose to affiliate with itas employees, as clients, as investors, as neighbors,

as fellow global citizens.

Virginia M. Rometty President and Chief Executive Officer, IBM

IBM Corporate Citizenship

CEO Sam Palmisanos Values jam to find common values for all its employees, make them identify with and internalize those values and apply them in order to be in sync with the company values Dedication to a clients success Innovation Trust and personal responsibility in relationships Business Conduct Guidelines as the LCM of all reporting, ethics, contractual and financial integrity transactions- signed every year by every IBMer from new hires to managers

Beyond Responsibility: Innovation that matters to the world

Taking values and responsibility from within IBM to the entire supply chain so that all stakeholders are benefited Various executives worked on government relations, community relations and reform philanthropy CTO also oversees product safety & quality, environmental issues besides R&D Due to social initiatives (e.g.- K12 public education reform), IBM could leverage its position at the govt. policy table on diverse issues (e.g.- education, people mobility, trade liberalization, OSS standards)

Strategy and Values

Reinventing Education
Process of joint solution finding Globalization and innovation agenda Business transformation by integrating resources, using IBM specific skills and through external business partner RE solutions: wired for learning, Web portal for Arab women, EXITE technology camp

Strategy and Values(cont..)

Accessibility
Making technology accessible for people with disability Donated hardware, software, curriculum assistance for training centers supportive environment for IBM employee with disability Angelica Galve, HR director lost his eyesight due to diabetes, worked effectively and promoted Best Mainframe Developer of IBM, India is visually challenged

Mobilizing Individuals

On Demand Community
Largest corporate community volunteer program Empowered individuals to take responsibility as desired 37,000 signed up, 1.4 million hours of service in the first year

World Community Grid

Power grid technology to address critical health and environmental issues Projects: Human proteome folding, Fighting AIDS, cancer research project, drought prediction, global hunger etc.

IBMSmart

Leveraging right partners to enhance IBMs role in producing social value

KidSmart was introduced in rural India, a first for IBM, with a foundation as a committed partner
75 centres in less than 18 months Dramatic increase in school environment and drop in teacher attrition Access to interactive educational software propagated rural schools ahead of many city schools In China, with central governments dominant role, KidSmart quickly expanded to all provinces of China

2000 KidSmart Centres in 400 kindergarten and early education schools

T3 programs for role model teachers, to train other teachers, were very successful Russian implementation faced difficulties, but when it was launched, it received wide public reception and extensive media coverage

Cultural Heritage Projects

Three dimensional scanning techniques, used for digitally restoring Michelangelos Pieta, found uses in telemedicine application

Vatican library scholarly project-Two dimensional manuscript scanning , remote access to holdings
The scanning technologies were used to scan the entire collection of the Hermitage museum under the hermitage project The hermitagemuseuem.org displayed the entire collection and taught art history as well Eternal Egypt project digitized Egyptians cultural treasures and connected museums together with historical and cultural sites Virtual reconstructions connected with current sites usin robotic cameras, accessible from cell phones Tour guides came on board after realizing the projects value Eternal Egypt successfully portrayed IBM as a global organization which can deliver; critical for winning future projects and shielded IBM from reactions to post 9/11 events

Cultural Heritage Projects

Forbidden City Initiative combined elements of Eternal Egypt Project with an interactive virtual world

Established as one of top ten priorities of IBM

Other cultural initiatives New Museum of African American History- an oral history website English Arabic social networking site with machine translation features Brazils museum for Portugal language with futuristic exhibits based on IBMs webospehere

Key questions
Why CSR? What lessons can businesses learn from IBMs experience What can IBM do more as an GIE Is direct community service the way forward

Why CSR?

Carrolls four-part model of corporate social responsibility

Why CSR?

Preserve the ecosystem of your consumers, employees and partners Engage Customers 50% of customers prepared to pay an extra 5% (Landor Associates) NEW CUSTOMERS 83% of people will trust a company more if its socially responsible Employee Engagement 29% of 18-24 year olds would take a pay cut to work for a socially responsible company (Burson-Marsteller) Disruptive innovation CSR is increasingly becoming a source of developing products at lower costs to serve the bottom end A case for corporate ethics through CSR: Friedmans Theory? BP, ITC

Lessons from IBMs experience

CCCA was never a distraction for IBM, instead it established IBM as a company oriented towards building long-term relationships IBMs societal initiatives triggered many innovations and demonstrated IBMs capabilities and commitments Media attention, public goodwill, prime partners, governments respect were the added benefits Transition to Training/Public Service programs allowed IBMers to envision meaningful work in later stags of life alongwith meeting societal needs.

How to do more?...
What it has already done more, recent initiatives

City of Philadelphia, IBM Announce Efforts to Improve Workforce Development IBM Opens $50 Million Smarter Cities Challenge Grant Program to 2012 Applicants Mayor Emanuel Announces IBM Grant to Reinvigorate Chicago's K-12 Schools and City Colleges, Help Increase Student Readiness for 21st Century Jobs

IBM Boosts Commitment to Africa, Doubles Employee Leadership Development and Public Service Program
IBM and University of Antioquia Cooperate to Seek Drug for Leishmaniasis Treatment IBM Helps to Support Kenya's Electronic Government Development Goals IBM Awards Grants to Help Build a Smarter Planet IBM Reduces $50 Million in Electricity Expenses, Boosts Conservation Efforts IBM Donates More Than 2.5 Million Hours of Volunteer Service to Communities Worldwide as Part of Centennial Day of Service

Direct Community Service

Part of its Celebration of Service, designed to allow employees, retirees, clients and business partners to donate their time and expertise during the company's Centennial year, 300,000 IBMers around the world - close to three quarters of its global workforce involved Volunteered in more than 5,000 projects in 120 countries, meeting civic and societal challenges and serving millions in need.

Since January 2011, IBMers, retirees and their families have donated more than 2.5 million hours of service to communities worldwide.