In 1921 the Computing-Tabulating-Recording Co. changed the company’s name to
International Business Machines Corporation- IBM was born. Under the first president,
Thomas J. Watson Sr., IBM increased significantly its business and reached net earnings of $
2 million in 1924. The driving force of the company’s success has always been an innovative
product, which could make the business life easier. By doing so, electric typewriters have
been introduced in the 1930s and remained the flagship product in the next ten years. After
the World War II IBM kept its innovation focus, as well, producing, for instance, the first data
storage devices (hard disk), which soon became the industry standard. Since the 1960s the
company has switched its strategy more to the mainframe production and developed a product
named “System/360”, a network of small and large computers, which could be used by all
companies regardless of their industry. Because of the emphasis on central computer stations,
IBM received the nickname “Big Blue” during this time. Finally, in the 1981, the first IBM
PC was introduced, which was a breakthrough in the electronics business.
Big Blue was always and continues to be a pioneer in the electronic business and
consequently dominates the market, although competition in this industry became fierce.
Besides, not only IBM’s products have been always innovative but also its management
strategy – the employee focus, the environmental concern, or the philanthropic activities. This
mixture of the achievement and the employee/environment orientation allowed the company
to persist in business for over 80 years.
Table of Contents
- 1. THE COMPANY
- 2. THE BACKGROUND
- 3. IBM's POLICY
- 3.1. The maker
- 3.2. The global corporate culture
- 3.2.1. The social quality
- 3.2.2. The environmental quality
- 3.2.3. The economic quality
- 4. THE CONCLUSION
Objectives and Key Themes
This text aims to analyze IBM's business ethics within the context of globalization. It examines IBM's historical development, its corporate policies regarding social responsibility, and its role as a multinational corporation (MNC) influencing the global business environment.
- IBM's historical development and innovative product strategies.
- The impact of globalization on multinational corporations.
- The concept of corporate social responsibility (CSR) and its different interpretations.
- IBM's proactive approach to CSR, encompassing social, environmental, and economic aspects.
- The trade-offs between corporate profitability and social responsibility.
Chapter Summaries
1. THE COMPANY: This chapter details the history of IBM, from its founding as the Computing-Tabulating-Recording Co. in 1921 to its transformation into the multinational corporation known as IBM. It highlights key moments in IBM's evolution, including its early successes under Thomas J. Watson Sr., its innovation in electric typewriters and data storage devices, its shift towards mainframe production with the System/360, and the revolutionary introduction of the IBM PC in 1981. The chapter emphasizes IBM's consistent innovation in both products and management strategies, including its employee-focused approach, environmental concerns, and philanthropic activities, contributing to its enduring success over 80 years. The chapter concludes by establishing IBM's current status as a global player with significant influence on the business world, employing over 380,000 people and generating over $100 billion in annual revenue.
2. THE BACKGROUND: This chapter sets the stage by discussing the impact of globalization on multinational corporations (MNCs). It explains how MNCs, like IBM, navigate the global marketplace by adopting either differentiation or low-cost strategies. The chapter then addresses the growing public debate surrounding the social responsibility of MNCs, particularly concerning cost-cutting measures that sometimes involve questionable practices such as child labor or environmental damage. The lack of a universally accepted definition of "social responsibility" is highlighted, emphasizing the individual interpretations and trade-offs made by company leaders. The chapter introduces Carroll's model of social responsibility, offering a theoretical framework for understanding the varying approaches of corporations to social issues. The chapter concludes by underscoring the immense influence MNCs exert on the environment and living standards, often exceeding that of some governments, thereby underscoring the crucial importance of their social responsibility.
3. IBM's POLICY: This chapter focuses on IBM's specific policies regarding social responsibility. It positions IBM as a model MNC due to its global presence and influence, suggesting its practices set trends for other corporations. The chapter characterizes IBM's approach as "proactive," exceeding minimum requirements in its commitment to social responsibility while maintaining a focus on profitability. It aligns IBM's actions with the theoretical frameworks discussed previously. The chapter emphasizes that IBM’s objectives address key issues such as poverty, equal opportunity, environmental concerns, consumer issues, and employee welfare. This comprehensive approach to CSR positions IBM as a leader in ethical business practices within the global marketplace.
Keywords
IBM, business ethics, corporate social responsibility (CSR), globalization, multinational corporations (MNCs), innovation, management strategy, social responsibility, environmental responsibility, economic responsibility, global marketplace, Carroll's model.
Frequently Asked Questions: Analysis of IBM's Business Ethics in a Globalized World
What is the main topic of this text?
This text analyzes IBM's business ethics within the context of globalization. It examines IBM's historical development, corporate policies regarding social responsibility, and its role as a multinational corporation (MNC) influencing the global business environment.
What are the key themes explored in this analysis of IBM?
Key themes include IBM's historical development and innovative product strategies; the impact of globalization on multinational corporations; the concept of corporate social responsibility (CSR) and its different interpretations; IBM's proactive approach to CSR, encompassing social, environmental, and economic aspects; and the trade-offs between corporate profitability and social responsibility.
What is covered in the "The Company" chapter?
This chapter details IBM's history, from its founding to its current status as a global player. It highlights key moments in its evolution, including its early successes, innovations in technology, and its employee-focused approach, environmental concerns, and philanthropic activities. It establishes IBM's current position as a global leader with significant influence.
What is discussed in the "The Background" chapter?
This chapter discusses the impact of globalization on MNCs, their strategies in the global marketplace, and the growing public debate surrounding their social responsibility. It explores the lack of a universally accepted definition of "social responsibility" and introduces Carroll's model as a framework for understanding corporate approaches to social issues. It emphasizes the significant influence MNCs have on the environment and living standards.
What does the "IBM's Policy" chapter focus on?
This chapter focuses on IBM's specific policies regarding social responsibility, positioning IBM as a model MNC due to its proactive approach. It highlights IBM's commitment to social responsibility across social, environmental, and economic aspects, while maintaining a focus on profitability. It aligns IBM's actions with theoretical frameworks discussed earlier.
What are the key takeaways from the chapter summaries?
The summaries highlight IBM's long history of innovation and its evolution into a global leader. They emphasize the complexities of corporate social responsibility in a globalized world, and position IBM as a company that proactively addresses social, environmental, and economic responsibilities.
What keywords are associated with this analysis?
Keywords include IBM, business ethics, corporate social responsibility (CSR), globalization, multinational corporations (MNCs), innovation, management strategy, social responsibility, environmental responsibility, economic responsibility, global marketplace, and Carroll's model.
What is the overall objective of this text?
The text aims to provide a comprehensive analysis of IBM's business ethics in the context of globalization, offering insights into its historical development, corporate policies, and its role as a significant influence in the global business environment.
What is Carroll's model, and how is it relevant to this analysis?
Carroll's model provides a theoretical framework for understanding the different approaches corporations take towards social responsibility. It helps analyze and contextualize IBM's approach within the broader discussion of corporate social responsibility.
Who is the intended audience for this analysis?
The intended audience is primarily academic, focusing on researchers and students interested in business ethics, corporate social responsibility, and the impact of globalization on multinational corporations.
- Quote paper
- Dr. Aleksander Szymanski (Author), 2003, IBM and the business ethics, Munich, GRIN Verlag, https://www.grin.com/document/170150
