Culture and Corporate Social Responsibility
Executive summary
International Business Machines Corporations (IBM) is an international information technology company with its headquarters in New York. IBM produces and sells computer hardware, software. Also, IBM conducts research and currently holds the record for most US generated patents. Among the most famous inventions by IBM include the Automated Teller Machine (ATM), the hard disk drive and the floppy disk. IBM operates in over 170 countries with approximately 350,600 employees. Based on the enormous geographical presence and the massive workforce, there is a need for employees to develop a shared organizational culture to ensure uniformity in the operations across all countries. Also, it is vital to engage in corporate social responsibility in the original nation as well as all host nations.
Introduction
IBM operates in over 170 countries, with a workforce of approximately 350 600 employees. United States is the original country that hosts IBM, and the headquarters are located in New York. India is a host nation, hosting one of the branches of IBM. Since the company in the two countries is the same, the organizational culture in both countries is similar. A uniform organizational culture ensures that IBM meets its vision and goals, regardless of the country. Also, corporate social responsibility ensures that IBM maintains good relations with the public domain internationally. However, corporate social responsibility differs in different countries, depending on the needs of diverse communities.
Culture
Organizational structure is a system of shared beliefs, values and assumptions that guide people working in an organization. According to Watkins (2013), corporate culture plays an essential role in shaping the behaviour and attitude of employees and helping them focus on the primary goal. Organizational culture dictates how members of an organization dress, act and even perform their tasks. An international corporation such as IBM requires a global corporate structure which applies to all employees across the globe.
The national organizational structure of IBM in the US is similar to the one in India. Employees at IBM refer to themselves as IBMers. The name unites all employees of IBM across the globe and reminds them that they are part of a global organization with a shared vision. IBMers believe in the progress and that the application of intelligence, reason and science can improve business, society and the human condition (IBM, 2019). IBMers in both US and India are dedicated to building trust and personal responsibilities in all relationships. Cultivating a common goal for all IBM operation countries ensures that all employees have a common organizational culture.
IBM organizational culture in the US is firm since it is the original corporation. IBM upholds creativity and innovative thinking above all cultures. Creativity and Innovative thinking lie at the core of IBM and therefore, employees understand the importance of thinking outside the traditional ways of conducting business. According to Ghemawat (2007, 7), distance can alter the cultural organization and prevent an international corporation from succeeding in some parts of the world. Therefore, the organizational culture should be tailored to fit within the context of different communities. In line with Hofstede (2009, 2), differences in cultures across countries determine the way business is done across different cultures. US and India hold different cultural belief systems. Therefore, for IBM to succeed in India, the organization must tailor the global organizational structure to align with the Indian culture. Indian IBMers become motivated when the organizational structure is at par to their societal culture. However, IBMers across the globe work towards a common goal, despite working in different parts of the world.
Corporate Social Responsibility
Corporate social responsibility (CSR) is the activities that organizations engage in to integrate social and environmental concerns of the community they operate within. The events are not aimed towards making profits, but they are meant to maintain good relations with the community by contributing to the wellbeing of society. According to Rangan et al. (2015), companies must develop coherent CSR strategies that maximize their positive impact on the social and environmental systems in which they operate. Thus, the activities should be logical to ensure the organization and their publics develop and maintain a mutual relationship.
IBM pursues the highest standards of corporate responsibility in all we do — supporting and empowering employees, working with clients and suppliers, and governing our company (IBM, 2019). IBM takes part in promoting education and skills, implementing disaster resiliency programs as well as health programs. The CSR in the country of origin is replicated across its subsidiaries overseas. However, the various programs are tailored to meet the needs of specific societies. The P-tech schools are an innovative public school that sponsor children interested in information technology. The P-tech schools offer exposure to hardworking students by equipping them with skills and resources. Currently, there are 200 P-tech schools with over 10,000 students in over 18 countries. Therefore, IBM replicates the CSR of offering education and skills to their subsidiaries overseas. All CSR activities by IBM satisfies responsibility because of moulding the future generation of IBMers.
All CSR activities by IBM adhere to Carroll’s four-part definition of CSR which encompass encompasses the economic, legal, ethical, and discretionary (philanthropic) expectations that society has of organizations at a given point in time (Carroll, 2016, 2). By educating young people in P-tech school, IBM is not only offering free education to potential children but also preparing the next generation of IBMers. The students in P-tech schools are educated in line with the organizational culture of IBM; therefore, most of them are absorbed by IBM upon the completion of their education. Stakeholder theory suggests the community within which an organization operates is vital to the survival and success of a corporation (Fontaine, 2006, 2). Therefore, IBM has invested in ensuring the wellbeing of the communities within which they operate since the community members are also essential stakeholders.
Recommendation
Organizational culture at IBM influences CSR and is no gap between corporate culture and CSR. At present, IBM is absorbing many P-tech grads to work as full-time employees. P-tech schools teach their students the values that are upheld at IBM. Therefore, there is no gap between organizational culture and CSR at IBM.
Conclusion
The organizational culture at IBM drives all aspects of business in the organization. Although IBM is an international organization, all CSR activities in different parts of the globe are replicated. The organizational culture and CSR activities correlate because all activities are geared towards achieving the goals of IBM.
References
Carroll, A.B., 2016. Carroll’s pyramid of CSR: taking another look. International journal of corporate social responsibility, 1(1), p.3.
Fontaine, C., Haarman, A. and Schmid, S., 2006. The stakeholder theory. Edlays education, 1, pp.1-33.
Ghemawat, P., 2007. Differences across countries: the CAGE distance framework. Harvard Business School Press, Redefining Global Strategy: Crossing Borders in a World Where Differences Still Matter, Boston, USA, pp.8-10.
Hofstede, G., 2009. Geert Hofstede cultural dimensions.
IBM. (2019). Eduction and Skills . Retrieved October 18, 2019, from IBM: https://www.ibm.org/impact/education
Rangan, V.K., Chase, L., Karim, S. (2015). The truth about CSR. Harvard Business Review Jan / Feb 2015 issue
Watkins, M. (2013): What Is Organizational Culture? And Why Should We Care? Harvard Business Review. May 2013.