IBM and the business ethics

Seminar paper from the year 2003 in the subject Business economics - Business Ethics, Corporate Ethics, , language: English, abstract: In 1921 the Computing-Tabulating-Recording Co. changed the company's name toInternational 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 innovativeproduct, which could make the business life easier. By doing so, electric typewriters havebeen introduced in the 1930s and remained the flagship product in the next ten years. Afterthe World War II IBM kept its innovation focus, as well, producing, for instance, the first datastorage devices (hard disk), which soon became the industry standard. Since the 1960s thecompany has switched its strategy more to the mainframe production and developed a productnamed System/360 , a network of small and large computers, which could be used by allcompanies 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 IBMPC was introduced, which was a breakthrough in the electronics business. Big Blue was always and continues to be a pioneer in the electronic business andconsequently dominates the market, although competition in this industry became fierce. Besides, not only IBM s products have been always innovative but also its managementstrategy the employee focus, the environmental concern, or the philanthropic activities. Thismixture of the achievement and the employee/environment orientation allowed the companyto persist in business for over 80 years.