Celia Moore Corporate Citizenship Corporate Affairs Executive IBM
Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East & Africa CSR and PROGRESS: Creating a Smarter Planet © 2009 IBM Corporation
Corporate Citzenship is a top issue for CEOs 5 GENUINE NOT JUST GENEROUS 1 HUNGRY FOR CHANGE 2 2 INNOVATIVE BEYOND CUSTOMER IMAGINATION 33 GLOBALLY INTEGRATED 44 DISRUPTIVE BY NATURE “The Enterprise of the Future goes beyond philanthropy and compliance and reflects genuine concern for society in all actions and decisions”
Corporate Citizenship is an opportunity to create business value Organizations today are embracing a more sustainable approach to business -- one that takes into account the environmental and societal impact of their activities. By factoring this accountability into their strategy, they implement new ways to source, manufacture, and distribute goods in a more sustainable manner, often while simultaneously lowering costs. And, based on more transparent and proactive engagement with employees, consumers and the communities where they operate, organizations are becoming better equipped to create products and services for a smarter planet. IBM Corporate Responsibility report 3
Studies and CEO surveys recognise that Corporate Responsibility creates business value The Enterprise of the Future will be… Genuine not just generous “How Vanguard Companies Create Innovation, Profits, Growth, and Social Good“ IBM features strongly as a exemplar 4 “Many companies are creating real value through their environmental, social, and governance activities through increased sales, decreased costs, or reduced risks… … the best of them create financial value in ways the market already assesses. ” “The Enterprise of the Future goes beyond philanthropy and compliance and reflects genuine concern for society in all actions and decisions”
Institutional and other stakeholders now have higher expectations of business to deliver social, as well as economic, impacts. IBM is leading… “People still want markets – but they want markets with a conscience” Jose Manuel Barroso, President, European Commission “Certainly this is no time to retreat into our shells. Quite the contrary, it’s time to go on the offense. Although some companies are reacting to the present crisis by hunkering down and hoping to ride out the storm, from both a business and a societal standpoint, we are taking a different approach, across every aspect of our company’s existence and our relationships with all communities and constituencies. In the broadest of IBM’s roles, as a global citizen, we believe that the issues facing the world are too critical and far too urgent - and the opportunities to make meaningful progress on them too immediate – not to act now. ” “We want people who are here at IBM to do great things for somebody else. We must create this connection between IBMers and being in the service of others – other colleagues, our clients, our communities, society. When we do, and only then, can IBM be a great company” 5 Samuel J. Palmisano
The CSR Value Curve: a shift from cost to returns Growth Platform Strategic Philanthropy Legal and Compliance Adherence to law in the countries of production, operation and distribution 6 Alignment of charitable activities with social issues that support business objectives Values-based Self Regulation Incorporates the company's value system and/or code of conduct to guide business behavior Efficiency Measurable cost savings through efficient or winwin scenarios Access to new markets, new partnerships or product/service innovations that generate revenue
IBM’s Corporate Citizenship and our Smarter Planet initiative combine to deliver society’s expectations “The most interesting result of our smarter planet initiative, to me, is how it is causing our business strategy and citizenship strategy to merge. The issues we are addressing – from clean water, to safe food, to sustainable and vibrant cities, to smarter work, to empowered communities – are not a choice between business strategy and citizenship strategy. They are both. ” “Building a smarter planet isn’t simply a recipe for economic growth; it’s also a recipe for radically expanded economic and societal opportunity. It’s not just a way to make the planet more efficient, but also to make it more sustainable. It’s not just a way to do well by doing good; it’s also a way to do good by helping all the world’s regions and people do well. ” 7
Infusion of Intelligence into the Way the World Actually Works Our world is becoming INSTRUMENTED Our world is becoming INTERCONNECTED Virtually all things, processes and ways of working are becoming INTELLIGENT 88
1 billion transistors for each person on earth. BECAUSE IT CAN. 1 trillion things connected to the net. By 2010, 30 billion RFID tags, embedded into our world. Cloud computing as a means of provisioning computing resources. 9
+ + = An opportunity to think and act in new ways— economically, socially and technically. 10 10
IBM has a long tradition of leadership in Corporate Social Responsibility. . CSR has been a force for business and social progress. Corporate Citizenship Steering Committee Senior executive representation from each functional area meet regularly to provide leadership and communicate direction on key issues internally and externally. Corporate Environmental Governance Citizenship and Affairs and Corporate Financial Product Affairs Accountability Safety 11 Employee Well. Being Global Human Resources Supply Chain Governmental Programs
IBM’s citizenship programmes Workforce diversity’s history of inclusion 2001 - present § Hired women before women were given a right to vote § Recruited first professional women § Appointed first female vice president § Hired first black salesman § Introduced first written Equal Opportunity policy 19721996 1935 -1953 § Hired first person with disability 1914 1899 § Extended IBM’s Global Work/Life Fund into 2005 12 § Added "sexual orientation, gender identity or expressions” to global equal opportunity letter § Spearheaded People with Disabilities marketing initiative on accessibility § Led support of Genetics Information Non-Discrimination Act in US § Helped to create Hispanic Leadership Fund § Added sexual orientation to nondiscrimination policy § Implemented domestic partner benefits
Leading by example IBM’s Environmental Tradition and Leadership 1971 T. J. Watson Jr. issued IBM’s first corporate policy on environmental protection 1976 Think, the company magazine, devoted an entire issue to IBM’s energy conservation and environmental programs 44% 1990 -2006 Between 1990 and 2006, IBM’s global energy conservation actions reduced or avoided CO 2 emissions equal to 44% of its 1990 emissions. 1990 Think devoted an entire issue to IBM’s environmental programs – beginning IBM’s annual Corporate Environmental Reporting 1991 Established IBM’s Product Stewardship Program 1989 IBM offers its first product take-back program 1992 1997 IBM became the first major multinational to earn a single global registration to the ISO 14001 environmental management system standard 1994 95% 96% IBM becomes charter member of Energy Star program Collaborating to develop solutions… 13 Reduction in hazardous waste generation since the 1987 base year of this pollution prevention metric 2006 Amount of IT product and product waste processed by IBM’s Product End-of-Life Management operations that was reused or recycled 2005 Established Global Materials Recovery Center Network for product re-use and recycling 1987 -2006 2005: Global Innovation Outlook 2. 0 2006 IBMers “jam” on innovations for a better planet, and IBM invests $20 M - Big Green Innovations - Intelligent Utility Network 2007 Intelligent Utility Network Intelligent Transportation Systems; Project Big Green
14
Corporate Citizenship programmes focus on key issues that impact society and our business: – Raising global standards and performance in education – Economic development and innovation – Broadening cultural awareness – Enabling access to IT – Promoting openness and trust through partnering Programmes showcase IBM expertise, enable access to senior government officials and gain high media attention. Participation by employees creates IBM ambassadors and advocates across the community 15
Raising educational achievement is a key element to drive and sustain the globalised economy § Kid. Smart § Try. Science § Power. Up the Game § Reinventing Education § Reading Companion § Mentor. Place 16
Tools for small business and innovative technology applications support economic development and enable our business in growth markets § “I consider CCR as one of the first three key business enablers in the current and coming years. ” – Mihai Tudor Country General Manager – Romania § “I believe the new citizenship programs will change the course of events for our business and for the brand. ”– Eray Yuksek Country General Manager – Turkey § “Our CCR programs have emphasized our commitment to the region and to building a knowledge based economy. ”– Takreem El. Tohamy General Manager - Middle East 17
Deep cultural awareness is a pre-requisite for the Globally Integrated Enterprise Employees volunteer in diverse communities The internet gives access to cultural experiences from different traditions around the world Automated translation enables dialogue between different cultures Immersion in different cultures brings deep learning 18
World Community Grid: collaborating computers You computer can help save the world when it isn’t serving you Results: 486. 396 members 1. 397. 168 computers 288. 546 years § Linking people’s idle computers together in a grid create supercomputer We’re using it to tackle some of the world’s most urgent threats. www. worldcommunitygrid. org 19
GLOBAL SCALE OF COLLABORATION, PARTNERING AND VOLUNTEERING 35 science research centres on 4 continents 400 partner community groups, 1000’s of teams 500, 000 individual members with 1. 4 m PCs 20 Page 5
INNOVATION THAT MATTERS – FOR OUR COMPANY AND FOR THE WORLD AIDS & Tropical diseases Over 40 drug candidates now in laboratory testing Better solar cells results since December 635 k Recent fast project launch response to pandemic threat Influenza Anti-viral Greater rice yield and resistance 13 m results since May 2008 Neuroblastoma most common cause of death in children with solid tumours $1. 6 m results returned since launch in March 8000 years research collapsed into 2 Cancer 21 Page 3 Mitigate climate impacts New diagnostic and therapeutic models Modeling stage complete. leading directly to $2. 5 m extra funding
Great Rivers Partnership with The Nature Conservancy The Challenge Lack of meaningful data to enable stakeholders to make informed decisions about water conservation Global Conservation and Sustainable Development IBM takes the lead on a key global societal and environmental issue § Direct link to topics from Innovation Jam and GIO 2. 0 § First-of-a-kind approach to make freshwater data accessible to stakeholders, e. g. governments, businesses, academics, nonprofits, other experts and the general public § Uses an integrated data management and analysis system incorporating key water modeling and visualization techniques to create a water management tool to support informed and collaborative decision making § Starting in Brazil with the Paraguay-Parana River System for proof-of-concept then expanding to Yangtze River in China 22
IBM’s Sam Palmisano Announces the Global Citizen’s Portfolio (‘GCP’) Corporate Service Corps Personal Learning Accounts Enhanced Transition Services July 25, 2007 I. B. M. Plan Ties Training and Accounts By Steve Lohr I. B. M. , often a trendsetter in business practices, is taking a step to address the workers’ economic problem — a step it hopes other companies will follow and help encourage a change in tax policy. Sam Palmisano, IBM Chairman, President & CEO, …“This is truly path breaking, ” said Rosabeth Moss Kanter, a professor at announces the Harvard business school. “The significance is that it’s controlled by IBM Global Citizen’s the individual. I’m not aware of any other major corporation doing Portfolio in that. . . This is reinventing how a company develops the social contract with Washington, D. C. its workers in a highly mobile, global economy, ” she said. (July 2007) …Mr. Palmisano pushed for the learning accounts and the 401(k)-style arrangement, which he said recognized the “dual set of responsibilities in today’s world” of both the individual and the corporation. “It puts the *For details on Personal Learning Accounts and Enhanced Transition Services Programs, see Press Room right balance of motivation into the system, ” he said. “Everyone has some 23 skin in the game. ”
Our future global leaders need: n Deep understanding of the business, economic, and political landscape of emerging markets n The ability to develop relationships with the social sector, local government, NGOs and other influencers n Sensitivity towards different cultures and customs n The ability to work within and lead multi-cultural teams n Awareness of core societal, educational and environmental challenges impacting the way we do business in the 21 st century n Understand maintain the highest global integrity standards 24
The Corporate Service Corp is one of IBM’s initiatives to address the global talent challenge, and meet changing employee expectations Developing awareness of different cultures is one of the major areas of personal development Living and working together for a month and in a modest hotel provides opportunities to know each other from all sides and created strong bonds 25
+ + = An opportunity to think and act in new ways— economically, socially and technically. 26 26
World Community Grid: collaborating computers You computer can help save the world when it isn’t serving you Results: 486. 396 members 1. 397. 168 computers 288. 546 years § Linking people’s idle computers together in a grid create supercomputer We’re using it to tackle some of the world’s most urgent threats. www. worldcommunitygrid. org 27
Contacts and references § Celia_moore@uk. ibm. com § http: //www. ibm. com/ibm/responsibility/ § http: //www. worldcommunitygrid. org/ § http: //www. ibm. com/ibm/ideasfromibm/us/corporateservice/20081112/index. shtml § http: //www-935. ibm. com/services/us/gbs/bus/html/ceostudy 2008. html 28
- Slides: 28