| www.ibm.com |
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| Share Price (3/15/07): | $93.45 |
| OVERVIEW: | |
| Market Value (3/15/07): | $140.7 BIL |
| Revenue (2006): | $91.4 BIL |
| Employees: | 329,373 |
| Return on Equity 2006: | 30.6% |
| HIP PRACTICES: | ||
| Vision: | "Innovation that matters for the world" includes aspirations for both impact and profit. | |
| Metrics: | Outcomes for individual community initiatives but no company-wide rollup of social impact measures. Goals in product stewardship focus on avoiding substances deemed by scientific community to be harmful. Focus on RoHSD (Restriction of Hazardous Substances Directive from European Union) compliance. Significant product take-back program- started in 1989 in Europe, since expanded to 21 countries. |
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| Financials: | Improving competitiveness of products--and hence market share--through energy efficiency. Anecdotal instances of financial return from community volunteerism or in-kind contributions. |
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| Accountability: | Once per year board sets goals for Corporate Responsibility and reviews last year. (Since 1995 has been reporting volumes of product waste collected and recovered resold, refurbished or recycled) in an annual corporate environmental report. 2005 report on enhanced energy efficiency of new (IBM-branded) personal computers, new servers, point-of-sale terminals, storage subsystems and tape drives. Not clear what percentage of all new or existing products this represents. In Feb. 2007 first analysts report, in-person and teleconference, with sustainability mutual funds on IBM's "social business performance." Product Stewardship program to develop, manufacture and market products with better energy efficiency, which can extend product life, and which incorporate recycled content and environmentally preferable materials and can be more easily recycled. |
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| Decision-Making: | Stakeholder process includes "jams" and Global Innovation Outlook (GIO) that brings together government, non-profits, and company through a network of meetings worldwide, web and in-person. Customer Environmental Performance Database and 140 other tool sets are online, aggregating performance, benchmarks, and implementation ideas are shared worldwide. |
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| HIP OUTCOMES: | ||
| Health: |
Anecdotal impact of products that enable greater health or access for those with barriers to overcome, e.g. voice recognition and auto translation, web-based literacy for non-literate children and adults, world community grid to bring on-demand business tools to wide audience. 22 IBM locations qualify for the EPA's Best Workplace for Commuters list; with IBM as a whole being ranked in the top 20 for three years running. To qualify, the location must have at least one commuter benefit, like employer-paid tax-free transit. 71,000 employees, 11,000 retirees participating in 4.6 million hours worth of community service total tracked to date. In Minnesota 33% of employees participate, in California 19%. Some international geographies over 25% actively engaged in community service; India 27.5%, China 30%. |
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| Wealth: |
Anecdotal evidence of returns to employees, customers and community from volunteerism: e.g., Companhia Vale do Rio Doce (CVRD), a South American mining company, saved $250,000 and improved employee education through its corporate university by implementing IBM Knowledge Factory with the help of IBM Business Consulting Services. |
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| Earth: |
Conservation efforts reduced 38% of carbon-dioxide emissions since 1990. Through conservation and renewable energy efforts, 161 million kWh of electricity and 1.82 million gallons of fuel were saved worldwide. Equal to reduced emissions of more than 156,000 tons of CO2 and other combustion-related gases and $10.6 million in energy cost savings. 53,670 metric tons of end-of-life products and product waste were processed, only 1.59% of which was sent to landfills. Exceeded goal of no more than 3%. This represents more than 40% of the estimated 130,000 metric tons of new company IT equipment manufactured and sold in 2005. Cumulative recorded waste recovery since 1995 is 1.16 mil metrics tons (1.3 Bil pounds). Met goal of 100% of new personal computers and applicable products meet ENERGY STAR criteria in 2005. |
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| Equality: |
In 2005, IBM spent $2.1 billion of the $39 billion it spends on its supply-chain with suppliers from businesses owned by women, lesbians, gays, veterans, and minorities around the world. 31% of the 329,373 employees are women, while ethnic minorities make up 24% of the employee base. Two women of 18 executive team leaders.(11%). |
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| WHAT'S NEXT: | ||
| Practices: | Comprehensive rollup of social and environmental returns on IBM's massive employee-community engagement. | |
| Outcomes: | More strategic collaborations at the regional, national or international level drives higher human and environmental impact, goodwill and revenue wins. | |
| OTHER RATINGS: | ||
| KLD: Companies are rated from negative (0) to positive (6) in seven areas.. | Community: 6.0 Governance: 1.3 Diversity: 6.0 Employees: 4.8 Environment: 4.9 Human Rights: 3.4 Product: 5.0 Included in KLD Indices for: Domini 400, Broad Market Social Index, Large Cap Social Index |
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| Calvert Rating: Companies are rated on a scale of 1 (substantially below Calvert standards) to 5 (superior). | Environment: 4 Workplace: 4 Business Practices: 3 Human Rights: 3 Community Relations: 5 Included in Calvert funds: Yes |
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| RESOURCES: | ||
| Sustainability or CSR Report: | IBM Corporate Responsibility | |
| Annual Report: | IBM Annual Report |
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--Lisa LaMotta and Sara Olsen
