IBM's 2017 Corporate Responsibility Report
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2017 Corporate Responsibility Report Putting smart to work for our company and the world 1 2017 Corporate Responsibility Report | Contents 02 Chairman’s letter About this report IBM’s annual Corporate Responsibility Report is published during the second quarter of the subsequent calendar 04 Our approach to corporate responsibility year. This report covers our performance in 2017 and some notable activities during the first half of 2018. 07 Performance summary and awards In selecting the content for inclusion in our 2017 report, we have used the Global Reporting Initiative (GRI) reporting 12 Citizenship principles of materiality, sustainability context, stakeholder inclusiveness, and completeness. A GRI report utilizing 22 Environment the GRI G4 Sustainability Reporting Guidelines, as well as additional details about IBM’s corporate responsibility activities and performance, can be found at our corporate 31 IBM Research responsibility website. 34 The IBMer Unless otherwise noted, the data in this report covers our global operations. Information about our business and financial performance is provided in our 2017 Annual Report. 40 Supply chain IBM did not employ an external agency or organization to audit the 2017 Corporate Responsibility Report. 53 Governance As we continue to transform IBM into a cognitive solutions and cloud platform company, we regularly review our strategy and approach to corporate responsibility. This ongoing analysis helps us to identify and prioritize the issues of relevance to our business and our stakeholders. Chairman’s letter 3 2017 Corporate Responsibility Report | Chairman’s letter More than at any time in recent history, governments, These principles make clear how IBM has earned about who trains their AI systems, what data was Corporate Citizens. I am proud to say that in 2018 businesses and individuals are examining how our reputation as a responsible steward of data, used in that training and, most importantly, what IBM was once again honored to receive the Catalyst companies operate. They are voicing concern over and they provide a guidebook for how all companies went into the algorithm’s recommendations. IBM Award for leadership in building a diverse and how personal data is being handled and protected, can do the same — how they can design and deploy also believes that while bias can never be fully inclusive workplace — the only tech company honored the potential misuse of technology platforms, and new technologies in a way that advances the march eliminated, and our work to eliminate it will never in the past 20 years and the only company ever to the impact of automation and AI on jobs. They are of societal progress. be complete, we and all companies advancing AI have won the award four times. also examining the diversity and inclusion practices have an obligation to address it proactively. of these companies. Our Principles state: We believe that IBM’s policies, practices and IBM’s Principles are a reflection of a new era, programs offer compelling evidence for optimism: The world, in other words, is deeply in need of The Purpose of AI is to Augment one where technology increasingly influences every As more companies begin to adopt similar organizations that act responsibly. At IBM, for more Human Intelligence: aspect of society, from how government services approaches, a new era of global prosperity and than a century, we have sought to earn and keep We believe the real value in AI lies in its ability to are delivered, how we shop and entertain ourselves, progress becomes possible. the trust of our clients, partners, employees and with augment — not replace — human expertise. That belief to how children learn and physicians treat patients. the people in the many thousands of communities is reflected in the technologies we build and bring We invite all companies, not just tech companies, where we live and work. Indeed, that trust is why to market. We recognize that AI will change every to adopt these principles for their own use. governments around the world choose us to run job in some way. That is why we have been investing systems and services that serve their citizens. It in training IBM employees in new, in-demand skills This is not a new endeavor for IBM. From our also is why 95 percent of Fortune 500 companies and advocating for new approaches to skills educa- company’s start, IBM has adopted policies that rely on IBM to handle their data. tion, including the P-TECH educational model. promote inclusion and treat people with dignity Ginni Rometty and respect. Chairman, President and In this report, you will read about our Corporate Data and Insights Belong to Their Creator: Chief Executive Officer, IBM Responsibility efforts to reform education, protect Trust in the promise of the digital economy can only That legacy continues today — from our commitment the environment and advance new models for be earned through responsible and transparent to genetics privacy and LGBTQ equality for our inclusion and diversity. Yet, crucially, you will also data practices. IBM is dedicated to the protection employees to advocating for public policies that read about an area where there is increasing need of our clients’ data and to harnessing its power reflect our values. For example, in 2017, we took for corporate responsibility — our advocacy for to expand prosperity and opportunity. We firmly positions against the revocation of DACA and trust and transparency in the technology industry — believe that a client’s data and the unique insights against a discriminatory “bathroom bill” in Texas. and beyond. derived from that data belong to that client. We also reaffirmed our support for U.S. participation in the Paris Agreement on climate change. Indeed, as we continue to change the way the world New Technology, including AI Systems, works, we have turned our decades of experience Must Be Transparent and Explainable: IBM is consistently recognized as a corporate into a formal set of guidelines: IBM’s Principles of Society will only trust a technology that can be responsibility leader — from the Just 100 Trust and Transparency. understood. Technology companies must be clear and Fortune Change the World to the 100 Best Our approach to corporate responsibility High standards are smart business IBM pursues the highest standards of corporate responsibility as we work with clients and suppliers, support and empower employees, govern our company and connect to communities. IBM Cloud™ developers 5 2017 Corporate Responsibility Report | Our approach to corporate responsibility IBM’s core values are IBM pursues the highest standards of corporate IBM’s core values are embedded in all our corporate – We endeavor to effect widespread, measurable responsibility as we work with clients and suppliers, responsibility policies, practices and programs. and sustainable change. To maximize the impact embedded in all our support and empower employees, govern our These are: of our investments, we plan for the longevity company and connect to communities. Our definition and sustainability of our solutions by working to corporate responsibility of corporate responsibility reflects our expansive – Dedication to every client’s success make them scalable and transferable. footprint and spans environmental responsibility; policies, practices and social responsibility to our workforce, clients and – Innovation that matters, for our company Stakeholder engagement business partners; innovation to address critical and for the world programs. societal needs; and a culture of ethics and integrity — Engaging and collaborating with stakeholders guided by a rigorous system of corporate gover- – Trust and personal responsibility in all from a cross section of communities, governments, nance — that promotes transparency on a global basis. relationships investors and the social sector is integral to our business strategy. Public/private collaborations Responsibility for our economic, environmental We approach corporate responsibility as we do any are essential to overcoming societal challenges that and societal performance, as well as compliance engagement, by applying our talent and technology are too big for any single public entity or industry with laws, regulations and the corporate policies to develop innovative solutions for key societal sector to manage. Below is a small sample of the that govern our operations and practices worldwide, issues. We follow these principles in our corporate collaborations we engage in our corporate responsi- begins with our CEO and includes the IBM Board citizenship efforts: bility efforts. of Directors and its committees that regularly review performance and compliance. – We work closely with the public and private IBM is a founding member of the Responsible sectors, including local, regional and national Business Alliance (RBA) — formerly the Electronic A Corporate Responsibility Executive Steering governments, nonprofit organizations, universities, Industry Citizenship Coalition (EICC) — a nonprofit Committee provides leadership and direction across research organizations and school systems. industry group which enables companies to support our corporate responsibility activities. Chaired by continuous improvement in the social, environmental the vice president of IBM Corporate Citizenship, – We apply our best talents and technologies to and ethical responsibility of their supply chains. IBM the committee includes members from human help craft innovative solutions and then bring requires its direct