1. General
An organization, like an individual, must build on a bedrock of sound beliefs if it is to survive and succeed. It must stand by these beliefs in conducting its business. Every manager must live by these beliefs in making decisions and in taking actions.
The beliefs that guide IBM activities are expressed as IBM Principles.
2. Respect for the Individual
Our basic belief is respect for the individual, for each person's rights and dignity.
It follows from this principle that IBM should:a. Help employees develop their potential and make the best use of their abilities.
b. Pay and promote on merit.
c. Maintain two-way communications between manager and employee, with opportunity for a fair hearing and equitable settlement of disagreements.
3. Service to the Customer
We are dedicated to giving our customers the best possible service. Our products and services bring profits only to the degree that they serve the customer and satisfy customer needs. This demands that we:
a. Know our customers' needs, and help them anticipate future needs.
b. Help customers use our products and services in the best possible way.
c. Provide superior equipment maintenance and supporting services.
4. Excellence Must Be a Way of Life
We want IBM to be known for its excellence. Therefore, we believe that ever task, in every part of the business, should be performed in a superior manner and to the best of our ability.
Nothing should be left to chance in our pursuit of excellence. For example, we must:a. Lead in new developments.
b. Be aware of advances made by others, better them where we can, or be willing to adopt them whenever they fit our needs.
c. Produce quality products of the most advanced design and at the lowest possible cost.
5. Managers Must Lead Effectively
Our success depends on intelligent and aggressive management which is sensitive to the need for making, an enthusiastic partner of every individual in the organization.
This requires that managers:a. Provide the kind of leadership that will motivate employees to do their jobs in a superior way.
b. Meet frequently with all their people.
c. Have the courage to question decisions and policies;
have the vision to see the needs of the Company as well as the operating unit and department.d. Plan for the future by keeping an open mind to new ideas, whatever the source.
6. Obligations to Stockholders
IBM has obligations to its stockholders whose capital has created our jobs. These require us to:
a. Take care of the property our stockholders have entrusted to us.
b. Provide an attractive return on invested capital.
c. Exploit opportunities for continuing profitable growth.
7. Fair Deal for the Business Associate
We want to deal fairly and impartially with associates we do business with.
Historically, this has meant our suppliers of goods and services. In the current environment, in addition to suppliers, we have a variety of joint ventures, research partners, and third-party channels of distribution, including independent dealers, VAD'S, VAR'S, and OEM contractors. Each of these is a "supplier" of resources, expertise, or technology that we need to move our business forward. And all of these relationships must be managed with the same care and the same ethical concern that we have traditionally pledged our suppliers. Specifically, we should:a. Select business associates according to the quality of their products, services, or expertise, their general reliability, and competitiveness.
b. Recognize the legitimate interests of both the business associate and IBM when negotiating a contract; administer such contracts in good faith.
c. Avoid having business associates become unduly dependent on IBM.
8. IBM Should Be a Good Corporate Citizen
We accept our responsibilities as a corporate citizen in community, national and world affairs; we serve our interests best when we serve the public interest. We believe that the immediate and long-term public interest is best served by a system of competing enterprises. Therefore, we believe we should compete vigorously, but in a spirit of fair play, with respect for our competitors, and with respect for the law. In communities where IBM facilities are located, we do our utmost to help create an environment in which people want to work and live. We acknowledge our obligation as a business institution to help improve the quality of the society we are part of. In the conduct of all our business activities, IBM takes positive actions to insure equal opportunity to all, without regard to race, color, religion, national origin, age or sex-. It is also our policy to provide employment opportunities to qualified handicapped individuals, disabled veterans and veterans of the Vietnam-era. We want to be in the forefront of those companies which are working to make our world a better place.