A report on Corporate Social Responsibility of International Business Machines Corporation (IBM) SUBMITTED TO Rabeya Sultana, Assistant Professor, Department Of MIS, University of Dhaka SUBMITTED BY Akibul Kowser Pahlowan Student ID: 61222-15-055 Summer Semester 2012 Department of MIS. University of Dhaka. Candidate’s Declaration
I certify that the report entitled “A report on Corporate Social Responsibility of International Business Machines Corporation (IBM)” submitted as a term paper of the course Introduction of Business is the result of my own research, except where otherwise acknowledged and this project report in whole or in part has not been submitted for an award including a higher degree, to any other University or institution. Name: Akibul Kowser Pahlowan Signature: ……………………… Date: ……………………… Table of Contents 1. INTRODUCTION| 4| 2. What is corporate social responsibility? | 5| 3. Company Profile:| 6| 4. Case Study:| 7| . Other Example of CSR Activities of IBM:| 8| 6. Why IBM involved with Corporate Social Responsibility (CSR)? | 8| 7. Why IBM involved with Corporate Social Responsibility (CSR)? | 9| 8. Conclusion:| 9| INTRODUCTION : Corporate Social Responsibility (CSR) is becoming an increasingly important activity to businesses nationally and internationally. As globalization accelerates and large corporations serve as global providers, these corporations have progressively recognized the benefits of providing CSR programs in their various locations. CSR activities are now being undertaken throughout the globe.
Corporate Social Responsibility (CSR) is the responsibility of an organization for the impacts of its decisions and activities on society, the environment and its own prosperity, known as the “triple bottom line” of people, planet, and profit. Not only do responsible, sustainable and transparent approaches help build brand and reputation, they help strengthen the community and therefore the marketplace. A solid business plan, embedded into the business culture, reflecting organizational values and objectives through strategic CSR application, will help to build a sustainable and profitable future for all.
What is corporate social responsibility? The term is often used interchangeably for other terms such as Corporate Citizenship and is also linked to the concept of Triple Bottom Line Reporting (TBL), which is used as a framework for measuring an organization’s performance against economic, social and environmental parameters. The rationale for CSR has been articulated in a number of ways. In essence it is about building sustainable businesses, which need healthy economies, markets and communities. The key drivers for CSR are1:
Enlightened self-interest -creating a synergy of ethics, a cohesive society and a sustainable global economy where markets, labor and communities are able to function well together. Social investment – contributing to physical infrastructure and social capital is increasingly seen as a necessary part of doing business. Transparency and trust – business has low ratings of trust in public perception. There is increasing expectation that companies will be more open, more accountable and be prepared to report publicly on their performance in social and environmental arenas.
Increased public expectations of business – globally companies are expected to do more than merely provide jobs and contribute to the economy through taxes and employment. ” Company Profile: IBM is the world’s largest information technology company. It is a leader in developing computer servers, software, storage devices and microchips. It also fields a large business consulting division. The company has operations in more than 60 countries. It has a major presence in New York with headquarters in Armonk, research facility in Yorktown Heights, and a massive chip-making facility in Fishkill.
IBM is a world leader in research and development and number of corporate patents received annually. The company was founded in 1911 as the Computing Tabulating Recording Corporation through a merger of three companies: the Tabulating Machine Company, the International Time Recording Company, and the Computing Scale Corporation. CTR adopted the name International Business Machines in 1924, using a name previously designated to CTR’s subsidiary in Canada and later South America. Its distinctive culture and product branding has given it the nickname Big Blue.
In 2012, Fortune ranked IBM the #2 largest U. S. firm in terms of number of employees (433,362), the #4 largest in terms of market capitalization, the #9 most profitable, and the #19 largest firm in terms of revenue. Globally, the company was ranked the #31 largest in terms of revenue by Forbes for 2011. Other rankings for 2011/2012 include #1 company for leaders (Fortune), #1 green company worldwide (Newsweek), #2 best global brand (Interbrand), #2 most respected company (Barron’s), #5 most admired company (Fortune), and #18 most innovative company (Fast Company).
IBM holds more patents than any other U. S. -based technology company, and has nine research laboratories worldwide. Its employees have garnered five Nobel Prizes, six Turing Awards, nine National Medals of Technology, and five National Medals of Science. Famous inventions by IBM include the automated teller machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the Universal Product Code (UPC), the financial swap, SABRE airline reservation system, DRAM, and Watson artificial intelligence. The company has undergone several organizational hanges since its inception, acquiring companies like SPSS (2009) and PwC consulting (2002), spinning off companies like Lexmark (1991), and selling off product lines like ThinkPad to Lenovo (2005). Case Study: IBM and Thai Red Cross Strike Socially Responsible HIV Partnership. In 2010 2. 7 million became infected with HIV, bringing the total tally to 34 million HIV positive people in the world. Despite the fact that medication to treat the condition has increased the life expectancy of those infected with the virus and delayed the onset of AIDS, the best way to fight the problem is avoiding infection in the first place.
Thailand is seen as success story in terms of policies to stop the spread of the virus. During the 1990s the government introduced a comprehensive program that resulted in a reduction of visits to commercial sex workers, made condoms popular and reduced the spread of other sexually transmitted diseases. As a consequence, infection figures dropped from 143,000 in 1991 to 19,000 in 2003. Currently, just over 500,000 people live with HIV in that country while new infections stand at around 16,000 per year.
The latest step in the fight against HIV in Thailand is an agreement between the Thai Red Cross AIDS Research Center and IBM. The socially responsible deal is part of a drive to make Bangkok a zero HIV infection city by 2015. IBM will be donating its business analytics software and technology expertise to enable TRCARC to design more effective intervention strategies to help end the spread of HIV/AIDS. The partnership is part of a wider global move to end HIV infections called Getting to Zero, which was launched by UNAIDS.
The objective of the campaign is not only to stop new HIV infections, but also to fight discrimination against people living with the virus. “HIV infection is one of the most serious public health threats Thailand is facing. Unfortunately, only 40 per cent of the HIV infected population knows they are living with the HIV or AIDS and gets access to antiretroviral treatment services. This situation results in continuing spread of the life-threatening virus and new infections are rising every year,” said TRCARC’s director, Professor Emeritus Praphan Phanuphak.
IBM’s software will enable the center to access information and share outputs with collaborating agencies such as the Department of Disease Control and Ministry of Public Health, which will then be able to strengthen HIV prevention efforts. Previous campaigns to prevent and deal with HIV cases were hampered by the use of outdated information. IBM’s software will help researchers make more informed decisions and will help staff share knowledge and skills.
One of the key aspects of the software is that it creates an online behavioural survey with high-risk groups, which can be used as the basis for a database. The IBM DB2 database software makes data retrieval time a lot faster, reducing it from two months to five minutes. It can also develop advanced, fully automated reporting with the use of IBM Cognos business intelligence software that enables better analytics and reporting of behavioral records associated with people with high risk of infection.
Other features include table and maps to help staff make better decisions and implement more effective strategies based on real-time analysis. Elsewhere IBM is also lending its expertise to HIV drug research. The company’s World Community Grid, a network that provides researchers with the spare computing power of two-million PCs owned by 600,000 individuals and organizations, has enabled the Scripps Research Institute to discover two new compounds that could lead to medicines for those infected with HIV. Other Example of CSR Activities of IBM: Creating innovation that matters for the world:
The primary focus of IBMs corporate citizenship activities is on developing initiatives to address specific societal issues, such as the environment, community economic development, education , health, literacy, language and culture. We employ IBM’s most valuable resources, our technology and talent, in order to create innovative programs in these areas to assist cities and communities around the world. For example, IBMs Corporate Service Corps program annually deploys teams of selected high potential employees to emerging regions to work with government, nonprofit and nongovernmental organizations on critical local projects.
Since the program began in 2008, nearly 300 IBMers from 44 countries have been placed on 29 teams in 9 countries: Brazil, China, Ghana, Malaysia, the Philippines, Romania, Tanzania, Turkey and Vietnam. Teams have completed projects around water quality, disaster preparedness and project management. Our World Community Grid initiative utilizes grid and cloud computing technologies to harness the tremendous power of idle computers to perform specific computations related to critical research around complex biological, environmental and health-related issues.
Another example of IBMs citizenship activities is On Demand Community, our employee volunteer initiative. Since its inception in 2003, over 140,000 employees and retirees have registered and per-formed over 9 million hours of volunteer service around the world. In a study of the program published by the Points of Light Foundation, On Demand Community is identified as the archetypical model for a new approach to corporate community involvement, calling it a “model without peer. ” “When the tsunami and earthquake struck Asia, IBM didn’t just cut a check for relief funds and call it a day.
The company used its techno-logical expertise and skilled people to create what government and relief agencies could not: information systems to effectively track relief supplies and reunite families,” said Rosabeth Moss Kanter, Ernest L. Arbuckle Professor at Harvard Business School, in her book, SuperCorp. Why IBM involved with Corporate Social Responsibility (CSR)? A key driver for IBM’s approach to CSR is the need to maintain its market position in a changing business environment. IBM recognises that CSR benefits the company’s business by helping enhance a company’s reputation so increasing its brand value.
Further benefit from CSR comes from demonstrating thought leadership. For IBM thought leadership includes being recognised as contributing to shaping the agenda of policy and practice outside of the company, whereby IBM is recognised for both great products and great ideas. The people at IBM are persuaded that CSR helps drive shareholder value. Businesses that get CSR right “will have a significant advantage attracting investors, talent and customers, developing new products and services, and gaining access to new markets and new opportunities.
It also will help them improve operational efficiency and reduce costs, and meet regulatory requirements, which can allow them to qualify for incentives and avoid penalties” Conclusion: IBM has been a leader in corporate social responsibility for nearly 100 years, contributing technology, talent and cash to nonprofit organizations and educational institutions around the world. Our activities are designed to help people to become smarter, and to develop future leaders capable of improving the quality of life for themselves and in the cities where they live—making for a smarter planet.