Corporate Citizenship & Corporate Affairs
Corporate Social Responsibility:
An Integrated Approach
Stanley S. Litow
Vice President, Corporate Citizenship & Corporate Affairs
President, IBM International Foundation
CSVC Social Enterprise Symposium
Robert H. Smith School of Business
University of Maryland
March 1, 2012
© 2012 IBM Corporation
Corporate Citizenship & Corporate Affairs
It Doesn’t Matter What You Call It
ƒ Corporate Social Responsibility
ƒ Corporate Citizenship
ƒ Socially Responsible Investing
© 2012 IBM Corporation
Corporate Citizenship & Corporate Affairs
The Evolution of Philanthropy
Individual Philanthropy: 1900 – 1960
ƒ Carnegie Foundation (1905)
ƒ Rockefeller Foundation (1913)
ƒ Ford Foundation (1936)
Corporate Philanthropy: 1960s – 2000
Shared Value / Strategic Philanthropy: 2000 – 2010
© 2012 IBM Corporation
Corporate Citizenship & Corporate Affairs
The New Model of Philanthropy: From Spare Change to
Real Change – Linking Values to Business Strategy
Build a Smarter Planet
Create Sustainable Value
© 2012 IBM Corporation
Corporate Citizenship & Corporate Affairs
Innovation That Matters for the World: IBM’s best technology
and talent applied to critical societal issues
Critical Issues
IBM Technology
Sample Solutions
ƒ Jobs
ƒ Cloud
ƒ Celebration of Service
ƒ Education
ƒ Business analytics
ƒ Supplier Connection
ƒ Environment
ƒ Voice recognition
ƒ P-TECH
ƒ Health care
ƒ Grid
ƒ Disaster Response
ƒ Automatic language
translation
ƒ Corporate Service
Corps
ƒ Cities
ƒ Social networking
ƒ Smarter Cities
Challenge
ƒ Reading Companion
ƒ World Community Grid
ƒ Disaster Relief in a Box
ƒ SME Toolkit
© 2012 IBM Corporation
Corporate Citizenship & Corporate Affairs
Corporate Service Corps: Citizen Diplomacy
“This company builds relationships on the ground and grasps a foothold in growth
markets, which becomes a platform for follow on work.” – Forbes.com
1,400+ participants from 50 countries; 140 projects in 30 countries; $30M value
ƒ Cities include: Chengdu, Chiang Mai, Jakarta, Antofagasta, Johannesburg, Cebu
ƒ Countries include: Cambodia, Ghana, Indonesia, Kenya, Nigeria, South Africa, Vietnam
ƒ Partners include: FedEx, John Deere, Pepsi, Royal Bank of Canada, ABV, CDS, DOT, USAID
ƒ Results: 9 of 10 said “Best Leadership” program
9 of 10 said “Increased Cultural Awareness”
9 of 10 said “Helped Them Perform Their ‘Day Job’”
9 of 10 said “Increased IBM’s Role in GMU”
8 of 10 said “More Likely They Would Complete Their Careers at IBM”
ƒ 2012 – 2014: 100 percent increase in presence in Africa
ƒ Examples: Cebu – Economic Development
Johannesburg – Smarter Safety
Nigeria – Health Care
Kenya – Digital Villages
© 2012 IBM Corporation
Corporate Citizenship & Corporate Affairs
P-TECH: A New Model for American Education
“IBM is engaged in a really interesting experience…for ordinary public school kids.
You follow this program, you work hard, IBM will hire you at the end of this process.
And it suddenly gives kids an incentive. They say…‘there are practical applications
to what I’m doing in the classroom.’”
– President Barack Obama, September 26, 2011
ƒ U.S. community college completion rates are 25%
ƒ Innovative grades 9 – 14 school
ƒ Five more in Chicago (September 2012) – other cities on tap
ƒ Bloomberg announces P-TECH expansion in 2012 State of the City address
ƒ IBM commitments: Curriculum, mentors, internship, industry consortia,
jobs
ƒ Lauded by President Obama, Mayor Bloomberg, Mayor Emanuel
ƒ Wall Street Journal, New York Times, Meet the Press, CNN
© 2012 IBM Corporation
Corporate Citizenship & Corporate Affairs
PLUS: A comprehensive focus on STEM
ƒ Suite of education programs focused on Science, Technology,
Engineering and Math
– Education content: TryScience
– Teacher professional development: Transition to Teaching; Teachers
TryScience
– Volunteer resources: MentorPlace (select sites); ODC
ƒ Teachers TryScience (www.teacherstryscience.org)
– Rich content: 65 lessons integrated with 25 pedagogical supports by 2Q
2012
– Social networking tools for public and private collaboration
© 2012 IBM Corporation
Corporate Citizenship & Corporate Affairs
Celebration of Service: Skills-Based Volunteering
“IBM is undertaking the largest service challenge we have seen to-date…
creating not only an impact on communities, but applying their unique and
powerful IBM assets to catalyze a movement around service.”
– Michelle Nunn, Points of Light Institute
ƒ 3.2M+ hours
ƒ 300,000+ volunteers in 122 countries
ƒ 5,000+ organized service projects
ƒ Largest corporate one-day volunteer event
in history
ƒ Nearly 1M hours after Centennial Day of Service
ƒ Tools to improve management, i.e., Marketing, Strategic
Planning, Technology, Board Service
© 2012 IBM Corporation
Corporate Citizenship & Corporate Affairs
Smarter Cities Challenge: Cities Must Get Smarter
“I’m very optimistic, but my optimism is based on a very pragmatic approach…
the potential is there to create jobs. There's no doubt.”
– Tom Barrett, Mayor, City of Milwaukee
“The City of St. Louis is making strides in targeting crime with help from IBM.”
– Fox 2TV, St. Louis
ƒ 31 cities, including Glasgow, Helsinki, Milwaukee, Philadelphia, St. Louis
ƒ 180 team members, key relationships / media
ƒ Deepens capacity / eminence on key issues:
– Chaing Mai: Health Care
– St. Louis: Smarter Safety
– Milwaukee: Economic Development
– Edmonton: Smarter Transportation
– Syracuse: Urban Blight
ƒ City Forward: 81 cities, 39 countries
ƒ Year Two: 150+ applications
© 2012 IBM Corporation
Corporate Citizenship & Corporate Affairs
www.supplier-connection.net
One-stop shopping: small businesses become large-company suppliers to
spur job creation
Partners: AMD, AT&T, Bank of America, Caterpillar, Citigroup, Dell, Disney,
John Deere, JPMorgan Chase, Kellogg’s, Office Depot, Pfizer, UPS
Within two years, small businesses increase revenue by 170% and double
employment
Results:
ƒ IBM U.S. small business suppliers get over $1.4B in contracts, increased by
14% in 2011
ƒ Twenty-three new small businesses are now under consideration for bid
opportunities
ƒ Partnership with SBA
ƒ Voted #1 Idea to Spur Job Creation at HBS U.S. Competitiveness Summit
© 2012 IBM Corporation
Corporate Citizenship & Corporate Affairs
World Community Grid: Research to Make the Planet Healthier
ƒ Celebrating 7th anniversary
ƒ 2 million devices (and counting)
ƒ Runs on IBM Cloud and is now pre-installed for all IBMers
ƒ Since inception have launched 19 research projects and 9
have now completed the grid phase. Examples:
– AIDS; Cancer; Dengue Fever; Malaria; Muscular Distrophy
ƒ Recognition
– Awarded the ComputerWorld magazine 2011 21st Century
Award for Collaboration
– Featured in Fast Company magazine
© 2012 IBM Corporation
Corporate Citizenship & Corporate Affairs
Smarter SafetyNet: 900k Human Services NGOs in U.S.
Smarter SafetyNet = Sustainability
ƒ 2011: partnered with 4 multi-service NGOs to develop centralized data
capture system; "Smarter SafetyNet" improves services, saves time
and money
ƒ Cloud-based solution captures client, program, and contract data;
generates comprehensive reports designed to improve services
ƒ 2012: Smarter SafetyNet to be offered as a packaged grant
across the U.S. and cities worldwide
Entrepreneurship:
SME
SME Toolkit:
Toolkit: Small
Small Businesses
Businesses == Growth
Growth Partnership
Partnership with
with IFC
IFC
ƒƒ 5M+
5M+ users
users
ƒƒ Tools
Tools for
for business
business plans,
plans, marketing
marketing &
& sales,
sales, social
social media,
media, more….
more….
© 2012 IBM Corporation
Corporate Citizenship & Corporate Affairs
Measuring Corporate Social Responsibility
•Enhances recruitment / retention
•Drives technological innovation
•Opens new markets
•Attracts socially responsible investment funds
•Increases brand value: media and awards
#1 – by CERES
#1 – by Covalence
#2 – Top 100 Most Valuable Global Brands by BrandZ
© 2012 IBM Corporation
Corporate Citizenship & Corporate Affairs
Global Media Coverage
© 2012 IBM Corporation
Corporate Citizenship & Corporate Affairs
Challenges for the Future
1. Closer Collaboration Across All
Economic Sectors
2. Globilization
3. Measurement
4. Incentives
5. Linking to the Next Generation
© 2012 IBM Corporation
Corporate Citizenship & Corporate Affairs
© 2012 IBM Corporation