Edwin Black presents a book accusing IBM of having knowingly involved in business with the Third Reich. As a result of this co-operation the Nazis were able to identify Jews across Europe and speed up their extermination. IBM’s Hollerith technology was used to register and sort people.
After a description of their history, Black shows in detail how IBM was able to accumulate millions of dollars in profit even though the two countries were at war with each other.
The aim herein is to discuss IBM’s business ethics and CSR approach during the beginning of the century as well as their role in the community today. Different models and theories will be used in order to explore IBM’s reasoning for the continued business with the enemy and their new role in our time. As a first step, one needs to map the different influences any company is exposed to, placing IBM in a broader context.
Companies are communities of different people, separated into staff and management. It is the responsibility of management to lead the company and to ensure the wellbeing of the employees . Another responsibility is to generate profitable Return on Investments. Without such profits the company would not be able to exist for a longer period of time .
Table of Contents
- Introduction
- Part I - IBM during the time of the Third Reich
- IBM - Who is it?
- IBM - The Leader Thomas J. Watson
- IBM - The Staff
Objectives and Key Themes
This paper aims to evaluate the ethical and Corporate Social Responsibility (CSR) implications of IBM's actions during World War II, specifically its business dealings with the Third Reich. It examines IBM's business ethics and CSR approach at the beginning of the 20th century and its current role in society, utilizing various models and theories to analyze the company's motivations and subsequent changes.
- IBM's business ethics during World War II
- The role of leadership (Thomas J. Watson) in shaping corporate ethics
- The impact of economic conditions on ethical decision-making
- The evolution of IBM's CSR approach
- The interplay between corporate structure, culture, and ethical behavior
Chapter Summaries
Introduction: This introductory section sets the stage by presenting Edwin Black's accusations against IBM for its complicity with the Nazi regime during World War II, highlighting the use of IBM's Hollerith technology in the systematic persecution of Jews. The paper's objective is clearly defined: to analyze IBM's ethical and CSR conduct during this period and its current practices, using relevant theoretical frameworks to interpret its actions and evolution. The introduction also provides a visual representation (Illustration 1) of stakeholder influences on management quality, setting the context for analyzing IBM's multifaceted interactions.
Part I - IBM during the time of the Third Reich: This section delves into IBM's operations during the Third Reich era, examining the company's structure, leadership, and workforce in relation to its ethical conduct. It explores how the corporate structure, management style, and the prevailing economic climate influenced ethical decision-making and actions. The section dissects the leadership style of Thomas J. Watson, exploring his ethical egoism and how his pursuit of profit maximization affected IBM's dealings with the Nazi regime despite the ethical implications. It also analyzes IBM's workforce, highlighting the role of employee loyalty and the company's impact on employment during the Great Depression, comparing the company's approach with the principles of scientific management.
IBM - Who is it?: This chapter lays the groundwork for understanding IBM's organizational structure and responsibilities. It defines the roles of management and employees, emphasizing management's responsibility for leading the company, ensuring employee well-being, and generating profits. The chapter also explains the importance of setting common goals and establishing organizational structures that encourage ethical behavior through reward systems, training, and the overall corporate culture. It highlights how organizational structures and the establishment of clear boundaries for acceptable behavior impact employee conduct.
IBM - The Leader Thomas J. Watson: This chapter focuses on the significant impact of Thomas J. Watson's leadership on IBM's ethical conduct. It describes Watson as a highly driven sales person whose actions reflected ethical egoism, prioritizing his own long-term interests even at the expense of ethical considerations. The chapter contrasts Watson's approach with modern CSR concepts, noting the difference between a pure marketing concept and a societal marketing concept. Watson's actions during wartime, ensuring employee salaries even if it meant breaking laws, are analyzed within the context of his leadership style and the prevailing norms. The chapter also examines the organizational structure under Watson’s leadership as a mutually understood system of rules, both formal and informal.
IBM - The Staff: This chapter examines the role of IBM's employees during World War II, characterizing them as highly loyal to Watson and the company. The chapter contrasts IBM's success in providing jobs during the Great Depression with the prevalent hardship and lack of social safety nets. It touches on the principles of scientific management, comparing it to IBM's employee training and sales-focused corporate culture. The chapter emphasizes the importance of management in establishing ethical codes of conduct, ensuring compliance, and rewarding ethical behavior while punishing misconduct. It highlights the significance of leadership in setting ethical examples and providing direction to the workforce during challenging times.
Keywords
IBM, corporate social responsibility (CSR), business ethics, World War II, Third Reich, Thomas J. Watson, ethical egoism, societal marketing concept, scientific management, corporate culture, stakeholder theory, Great Depression.
Frequently Asked Questions: IBM and the Third Reich
What is the main topic of this document?
This document provides a comprehensive overview of IBM's actions and ethical considerations during World War II, specifically its business dealings with the Nazi regime. It analyzes IBM's corporate social responsibility (CSR) and business ethics, focusing on the leadership of Thomas J. Watson and the impact of the prevailing economic climate.
What are the key themes explored in the document?
The key themes include IBM's business ethics during World War II; the role of leadership (Thomas J. Watson) in shaping corporate ethics; the impact of economic conditions on ethical decision-making; the evolution of IBM's CSR approach; and the interplay between corporate structure, culture, and ethical behavior.
What accusations against IBM are addressed?
The document addresses Edwin Black's accusations regarding IBM's complicity with the Nazi regime, particularly the use of IBM's Hollerith technology in the systematic persecution of Jews. It aims to analyze these accusations within the context of IBM's overall ethical conduct and CSR practices.
How does the document analyze IBM's actions?
The analysis utilizes various models and theories to interpret IBM's motivations and subsequent changes. It examines IBM's organizational structure, leadership style, workforce loyalty, and the influence of the Great Depression on its ethical decision-making.
What is the role of Thomas J. Watson in the analysis?
Thomas J. Watson's leadership style is a central focus, characterized as ethical egoism – prioritizing self-interest even at the expense of ethical considerations. His actions are compared with modern CSR concepts, contrasting a pure marketing concept with a societal marketing concept.
What is the significance of the Hollerith technology in the context of this study?
The Hollerith technology, developed by IBM, is highlighted as a key element in the accusations against the company. Its use in the Nazi regime's systematic persecution of Jews forms a crucial aspect of the ethical dilemmas discussed in the document.
How does the document address IBM's corporate structure and culture?
The document explores how IBM's corporate structure, management style, and overall culture influenced its ethical decision-making. It examines the roles of management and employees, the importance of setting common goals, and the impact of reward systems and training on ethical behavior.
What is the significance of the Great Depression in the context of IBM's actions?
The document considers the context of the Great Depression, highlighting IBM's success in providing jobs during a time of widespread hardship. This is analyzed in relation to scientific management principles and the company's overall approach to employee relations.
What are the key takeaways from the chapter summaries?
The chapter summaries provide a concise overview of the arguments presented in each section. They emphasize the ethical complexities of IBM's actions, the significance of leadership styles, and the impact of historical context on ethical considerations.
What keywords are associated with this document?
Keywords include IBM, corporate social responsibility (CSR), business ethics, World War II, Third Reich, Thomas J. Watson, ethical egoism, societal marketing concept, scientific management, corporate culture, stakeholder theory, and Great Depression.
- Quote paper
- BA (Hons) International Management Stefan Pertz (Author), 2005, IBM - An ethical company?, Munich, GRIN Verlag, https://www.grin.com/document/36337
