Responsibility at IBM

2012 Corporate Responsibility Report

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Overview

In this section, Chairman, President and Chief Executive Officer Ginni Rometty’s letter describes how IBM’s goal to unite its business and citizenship strategies is taking shape. We take a thoughtful, comprehensive approach to corporate responsibility and corporate citizenship at IBM, and we integrate that approach into many aspects of our company. In this section you will also find a high-level overview of some of our major activities.

Communities

It’s not enough to develop world-class technology, services and expertise—at IBM we realize we must directly apply these things to the communities in which we live and work in order to have a positive impact. In this section, you will find examples of the ways we practiced this approach over the course of 2012 and into 2013.

The IBMer

A great company is forever evolving and growing. At IBM, we make it a top priority to hire, support and retain the people who make us a great company. In this section, you will find examples of the ways we support both the personal and professional development of our employees.

Environment

IBM’s unwavering commitment to environmental protection is evidenced across all of our business activities, from our research, development, products and services to the solutions we provide our clients that help them be more protective of the environment. In this section of IBM’s Corporate Responsibility Report, you will find information on our environmental programs, performance and solutions during 2012.

Supply Chain

Social and environmental responsibility is an important part of our business relationships with our suppliers. We work closely with them to encourage sustained improvement throughout our global supply chain and across various aspects of corporate responsibility. In this section you will find examples of how we set requirements for the companies we do business with, grow the global diversity of our supply base and collaborate with industry groups and stakeholders.

Governance

IBM’s culture of ethics and integrity is guided by a rigorous system of corporate governance. In this section, you will find examples of the many ways we govern the conduct of the company, manage risk and contribute our expertise to public discourse.

Awards & Metrics

Many of our corporate responsibility efforts received recognition from others in 2012. The most significant of these are listed in “Awards and Recognition.” We rely on a number of metrics to measure our corporate responsibility efforts. Our Key Performance Indicators and other significant metrics can be found in “Performance Summary.”

Supply Chain

With suppliers located in close to 100 countries, social and environmental responsibility is a major facet of our corporate responsibility efforts and we have incorporated this into our business relationships with our valued suppliers.

IBM’s supply chain is a strategic asset that helps us deliver consistently high-quality goods and services to our customers on a local and global level. We are very aware of the importance that comes with having a supply chain of this magnitude and, as such, we have crafted our social responsibility efforts in unison with our providers to promote sustainable performance as a shared objective. And to this end, in light of the increased interest many stakeholders have in our global supply chain, we continue to enhance our initiatives described here.

Supplier spending: $35.3 billion total in 2012

2012 supplier spending by category 2012 supplier spending by supplier location

In 2012, approximately 90 percent of our global spend in Production and Logistics Procurement (in support of our hardware and logistics business operations) occurred with the following firms:

Acbel Polytech Altis Semiconductor
Amkor Technology Applied Materials
ASML Avnet
Benchmark Brocade
Celestica Cisco Systems
Compro Business Services Dai Nippon Printing
Delta Electronics Elpida Memory
Emerson Network Power Emulex
Endicott Interconnect Flextronics
Fuji Electric Geodis
GLOBALFOUNDRIES Hitachi
Hon Hai Hynix
Intel Jabil Circuit
Kingston Technology KLA-Tencor
Kyocera Lam Research
Lenovo Mellanox Technologies
Micron Technology NEC
NetApp NuFlare Technology
Pegatron QLogic
Samsung Seagate
Shin-Etsu Handotai SMART Modular Technologies
Tel-Ad Electonics The Karrie Group
Tokyo Electronic Ltd. Toshiba
Venture Volterra
Wistron Xyratex

In Services and General Procurement (in support of our software, services and overall operations) approximately 45 percent of our global spend was with the following firms:

Adecco Group American Airlines
American Express Artech Information Systems
AT&T BMC Software
CA Technologies CBRE Group
CDI Cisco Systems
Clarius Group Collabera
CTG CVS Caremark
Deloitte Touche Tohmatsu Delta Air Lines
EMC Fluor
Fujitsu George P. Johnson
Hays Hewlett-Packard
Hilton Hitachi
HSG Zander Infinite Computer Solutions
Infor Global Solutions Internet Initiative Japan
IT Holdings Johnson Controls
Jones Lang LaSalle Juniper Networks
LeasePlan Lenovo
Manpower Marriott
Microsoft Mitsubishi
Oracle Randstad
Ricoh Rocket Software
SAP SDI International Corp.
SHI International Sumitomo Corporation
TES Verizon
WPP Group ZeroChaos
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