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© 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East & Africa

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Page 1: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

© 2009 IBM Corporation

CSR and PROGRESS:Creating a Smarter Planet

Celia Moore

Corporate Citizenship & Corporate Affairs Executive

IBM Europe Middle East & Africa

Page 2: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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GLOBALLY INTEGRATED

33HUNGRY FOR CHANGE

1

DISRUPTIVE BY NATURE

4

GENUINE NOT JUST GENEROUS

5

INNOVATIVE BEYOND CUSTOMER IMAGINATION

2

“The Enterprise of the Future goes beyond philanthropy and compliance and reflects genuine concern for society in all actions and decisions”

44

Corporate Citzenship is a top issue for CEOs

Page 3: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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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

Page 4: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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“The Enterprise of the Future goes beyond philanthropy and compliance and reflects genuine concern for society in all actions and decisions”

The Enterprise of the Future will be…

Genuine not just generous

“How Vanguard Companies Create Innovation, Profits, Growth, and Social Good“

… the best of them create financial value in ways the market already assesses.”

“Many companies are creating real value through their environmental, social, and governance activities - through increased sales, decreased costs, or reduced risks…

IBM features strongly as a exemplar

Studies and CEO surveys recognise that Corporate Responsibility creates business value

Page 5: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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Institutional and other stakeholders now have higher expectations of business to deliver social, as well as economic, impacts. IBM is leading…

“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”Samuel J. Palmisano

“People still want markets – but they want markets with a conscience” Jose Manuel Barroso, President, European Commission

Page 6: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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The CSR Value Curve: a shift from cost to returns

Values-based Self Regulation

Incorporates the company's value system and/or code of conduct to guide business behavior

Growth Platform

Access to new markets, new partnerships or product/service innovations that generate revenue

Legal and Complianc

e

Adherence to law in the countries of production, operation and distribution

Efficiency

Measurable cost savings through efficient or win-win scenarios

Strategic Philanthrop

y

Alignment of charitable activities with social issues that support business objectives

Page 7: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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“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.”

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.”

Page 8: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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Our world is becoming

INSTRUMENTED

Our world is becoming

INTERCONNECTED

Virtually all things, processes and ways of working are becoming

INTELLIGENT

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Infusion of Intelligence into the Way the World Actually Works

Page 9: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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1 billion transistors for each person on earth.

BECAUSE IT CAN.

1 trillion things connected to the net.

Cloud computing as a means of provisioning computing resources.

By 2010, 30 billion RFID tags, embedded into our world.

Page 10: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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+ + =An opportunity to think and act in new ways—

economically, socially and technically.

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Page 11: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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IBM has a long tradition of leadership in Corporate Social Responsibility. .CSR has been a force for business and social progress.

Corporate Citizenship Steering CommitteeSenior executive representation from each functional area meet regularly to provide

leadership and communicate direction on key issues internally and externally.

Corporate Citizenship Steering CommitteeSenior executive representation from each functional area meet regularly to provide

leadership and communicate direction on key issues internally and externally.

Governanceand

FinancialAccountability

CorporateCitizenship and

Corporate Affairs

EnvironmentalAffairs and

ProductSafety

EmployeeWell-Being

GlobalHuman

Resources

Supply Chain GovernmentalPrograms

Page 12: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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Hired women before women were given a right to vote

Hired first person with disability

Recruited first professional women

Appointed first female vice president

Hired first black salesman Introduced first written Equal

Opportunity policy

Helped to create Hispanic Leadership Fund

Added sexual orientation to nondiscrimination policy

Implemented domestic partner benefits

189

9

191

4

193

5-1

953

197

2-

199

6

2001- present

Extended IBM’s Global Work/Life Fund into 2005

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

Workforce diversity’s history of inclusion

IBM’s citizenship programmes

Page 13: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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Leading by example - IBM’s Environmental Tradition and Leadership

1992

IBM becomes charter member of Energy Star program

Collaborating to develop solutions…

2006

IBMers “jam” on innovations for a better planet, and IBM invests $20M

- Big Green Innovations- Intelligent Utility

Network

1990

1976

T.J. Watson Jr. issued IBM’s first corporate policy on environmental protection

Established IBM’s Product Stewardship Program

1991

1971

1990-2006

Think devoted anentire issue to IBM’s environmental programs – beginning IBM’s annual Corporate Environmental Reporting

1994Established Global Materials Recovery Center Network for product re-use and recycling

2007

1997

1989IBM offers its first product take-back

program

1987-2006

IBM became the first major multi- national to earn a single global registration to the ISO 14001 environmental management system standard

Intelligent Utility NetworkIntelligent TransportationSystems; Project Big Green

Between 1990 and 2006, IBM’s global energy conservation actions reduced or avoided CO2 emissions equal to 44% of its 1990 emissions.

44%

Think, the company magazine, devoted an entire issue to IBM’s energy conservation and environmental programs

Reduction in hazardous waste generation since the 1987 base year of this pollution prevention metric

95%

Amount of IT product and product waste processed by IBM’s Product End-of-Life Management operations that was reused or recycled

96%2006

2005 2005:Global Innovation Outlook 2.0

Page 14: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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Page 15: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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– 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

Corporate Citizenship programmes focus on key issues that impact society and our business:

Page 16: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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Raising educational achievement is a key element to drive and sustain the globalised economy

KidSmart TryScience PowerUp the Game Reinventing Education Reading Companion MentorPlace

Page 17: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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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

Page 18: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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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

Page 19: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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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

Page 20: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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science research centres on 4 continents

partner community groups, 1000’s of teams

individual members with 1.4m PCs

GLOBAL SCALE OF COLLABORATION, PARTNERING AND VOLUNTEERING

35

400

500,000

Page 5

Page 21: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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AIDS & Tropical diseases

Over 40 drug candidates now in

laboratory testing

CancerNew diagnostic and therapeutic models

leading directly to $2.5m extra funding

Greater rice yield and resistance

13m results since May 2008

Neuroblastoma most common cause of death in children with solid tumours

$1.6m results returned since launch in March

8000 years research collapsed into 2

Recent fast project launchresponse to pandemic threat

Influenza Anti-viral

Mitigate climate impactsModeling stage complete.

Better solar cells results

since December 635k

INNOVATION THAT MATTERS – FOR OUR COMPANY AND FOR THE WORLD

Page 3

Page 22: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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Great Rivers Partnership with The Nature Conservancy

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

Global Conservation and

Sustainable Development

The ChallengeLack of meaningful data to enable stakeholders to make informed decisions about water conservation

Page 23: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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IBM’s Sam Palmisano Announces the Global Citizen’s Portfolio (‘GCP’)

Corporate Service Corps

Personal Learning Accounts

Enhanced Transition Services

Sam Palmisano, IBM Chairman,

President & CEO, announces

IBM Global Citizen’s Portfolio in

Washington, D.C.(July 2007)

*For details on Personal Learning Accounts and Enhanced Transition Services Programs, see Press Room

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.

…“This is truly path breaking,” said Rosabeth Moss Kanter, a professor at the Harvard business school. “The significance is that it’s controlled by the individual. I’m not aware of any other major corporation doing that...This is reinventing how a company develops the social contract with its workers in a highly mobile, global economy,” she said.

…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 right balance of motivation into the system,” he said. “Everyone has some skin in the game.”

Page 24: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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Deep understanding of the business, economic, and political landscape of emerging markets

The ability to develop relationships with the social sector, local government, NGOs and other influencers

Sensitivity towards different cultures and customs

The ability to work within and lead multi-cultural teams

Awareness of core societal, educational and environmental challenges impacting the way we do business in the 21st century

Understand and maintain the highest global integrity standards

Our future global leaders need:

Page 25: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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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

Page 26: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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+ + =An opportunity to think and act in new ways—

economically, socially and technically.

26

Page 27: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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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

Page 28: © 2009 IBM Corporation CSR and PROGRESS: Creating a Smarter Planet Celia Moore Corporate Citizenship & Corporate Affairs Executive IBM Europe Middle East

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Contacts and references

[email protected]

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/ceostudy2008.html