IBM
Information technology

Overall

Owned USA
Rating C
About the Ratings
International Business Machines Corporation
USA

Company Assessment

(Last updated Nov 2024)
International Business Machines Corporation
Praise
JUST Capital ranking
JUST Capital polls Americans every year to identify the issues that matter most in defining just business behaviour. For their 2024 rankings the public identified 20 issues, which are organised under the headings Workers, Communities, Customers, Shareholders and Environment. JUST Capital then define metrics that map to those issues and track and analyse the largest, publicly traded U.S. companies. This analysis powers their rankings, in which this company ranked 60th of 937 companies, and 2nd of 21 Computer Services companies.
CDP Climate Change score of B
In 2023, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to reduce greenhouse gas emissions and mitigate climate change risk. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Climate Change score of B.
Source: CDP (2023)
100% on Corporate Equality Index
This company is listed as having best practice on a report card on lesbian, gay, bisexual and transgender equality in corporate America.
62.6% in conflict minerals rankings
As You Sow's 2019 report, Mining the Disclosures, is a deep analysis of 215 companies' human rights performance in relation to sourcing conflict minerals from the Democratic Republic of the Congo (DRC). This company's score was 62.6% (Good).
54.1% in Digital Inclusion Benchmark
The 2023 Digital Inclusion Benchmark ranks 200 companies on their responsibility to advance a more inclusive digital society. The companies were assessed using four measurement areas: access, skills, use and innovation. This company ranked #16/200, with a total score of 54.1/100.
Criticism
F grade in Plastic Promises Scorecard
As You Sow's 2024 Plastic Promises Scorecard measures the corporate ambition and action of 225 large companies across six industries on six core pillars of plastic packaging pollution prevention: 1) Recyclability, 2) Reduction, 3) Recycled Content, 4) Recovery, 5) Reuse, and 6) Producer Responsibility. This company received a grade of F.
13.18% for supply chain practices in China
The Green Supply Chain Corporate Information Transparency Index (CITI) evaluates consumer-facing companies that have a sizeable supply chain in China. The evaluation uses government supervision data and public information to assess the environmental management of their supply chains in China. This company received a score of 13.18/100 (retrieved 24 Nov 2023).
Source: IPE (2023)
CDP Water Security score of D
In 2023, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to manage and govern freshwater resources. Responding companies are scored on six key metrics: transparency; governance & strategy; measuring & monitoring; risk assessment; targets & goals; and value chain engagement. This company received a CDP Water Security score of D.
Source: CDP (2023)
Workers rights in China
A 2023 report by China Labor Watch investigated labour conditions in China's consumer electronics sector using three stages of research: analysis of social media posts, case studies through online research, and in-person factory investigation. Labour abuses identified in factories supplying this company include excessive working hours, wage theft and wage arrear, workplace bullying and verbal abuse, mandatory overtime, and illegal use of student interns.
CEO Pay Ratio of 271:1
In 2022 the median pay for a worker at this company was US$61,242. The CEO was paid 271 times this amount. Exorbitant CEO pay is a major contributor to rising inequality. CEOs are getting more because of their power to set pay, not because they are increasing productivity or possess specific, high-demand skills. The economy would suffer no harm if CEOs were paid less (or taxed more). In contrast, the CEO-to-typical-worker compensation ratio was 20-to-1 in 1965 and 58-to-1 in 1989.
Information
Prison labour in USA
Major corporations, including this one, use prison labour in the USA, where prisoners are paid slave wages as low as 23 cents an hour doing work which is often dangerous, toxic and unprotected. While much of the work done by prisoners is for the military, other major corporations are taking advantage of the cheap labour in both federal and state US prisons.
Workers rights in China
This 2016 investigative report by China Labour Watch reveals poor work conditions for Chinese workers making products for this company. Labour rights violations include excessive overtime, forced labour, low wages, inadequate training and working 3 months without a single day off. [Listed under Information due to age of report]
49.1% in Newsweek Green Ranking 2017
This company received a score of 49.1/100 in the Newsweek Green Ranking 2017, which ranks the world's largest publicly traded companies on eight indicators covering energy, greenhouse gases, water, waste, fines and penalties, linking executive pay to sustainability targets, board-level committee oversight of environmental issues and third-party audits. Ranking methodology by Corporate Knights and HIP Investor.
Excessive CEO pay
As You Sow's 2022 report, 'The 100 Most Overpaid CEOs', reveals the 100 most overpaid CEOs from USA's 500 largest public companies (as determined by the S&P 500 list). This company's CEO, Arvind Krishna came in at number 42 on the list, having been paid US$17,009,682 in 2021. According to the report, "Most CEOs have come to be grossly overpaid, and that overpayment is harmful to the companies, the shareholders, the customers, the other employees, the economy, and society as a whole."
Involvement with Israel
The independent research centre Who Profits has identified this company as complicit in Israel's ongoing occupation of Palestinian and Syrian land.
Responsible Minerals Initiative member
This company is a member of the Responsible Minerals Initiative (formerly the Conflict-Free Sourcing Initiative), which helps companies address conflict minerals issues in their supply chains. The RMI provides information on conflict-free smelters and refiners, common tools to gather sourcing information, and forums for exchanging best practices on addressing conflict minerals. Membership is open to companies that use or transact in tantalum, tin, tungsten or gold (3TG). Founded in 2008 by members of the Electronic Industry Citizenship Coalition and the Global e-Sustainability Initiative.
Source: RMI (2019)
Responsible Business Alliance member
This company is a member of the Responsible Business Alliance (formerly the Electronic Industry Citizenship Coalition), a non-profit coalition of electronics companies which supports the rights and wellbeing of workers and communities worldwide affected by the global electronics supply chain. RBA members commit and are held accountable to a common Code of Conduct and utilize a range of RBA training and assessment tools to support continuous improvement in the social, environmental and ethical responsibility of their supply chains.
Source: RBA (2022)
Sustainable Brands member
This company is a Bronze Member of the Sustainable Brands Network, the leading peer to peer, learning and networking group designed to support brands in meeting their sustainability goals and ultimately become those leaders of the next sustainable economy.
C rating at ClickClean.org
Greenpeace's 2017 report 'Clicking Clean' looks at the energy footprints of large data centre operators and popular websites and applications, and calls on these companies to power their data centres on renewable energy. Companies are graded (A,B,C,D,F) on their commitment to and procurement of renewable energy, as well as energy efficiency, transparency and advocacy. This company's final grade was C. [Listed under Information due to age of report]
Workers rights in Mexico
This 2015 report by Good Electronics rates electronics companies on their compliance with labour rights in Mexico. This company was rated 'bare minimum'.
Modern Slavery statement
California, the UK and Australia have all enacted legislation requiring companies operating within their borders to disclose their efforts to eradicate modern slavery from their operations and supply chains. Follow the link to see this company's disclosure statement.
Conflict Minerals Ranking
In November 2017 the Enough Project published Demand the Supply, which ranked consumer electronics and jewelry retail companies on their efforts to develop conflict-free minerals supply chains from Congo. Companies were ranked on reporting; sourcing conflict-free minerals from Congo; supporting the artisanal mining communities in Eastern Congo; and conflict-free minerals advocacy. This company received a score of 42/120. [Listed under Information due to age of report]
8.5/20 in Social Benchmark
The 2024 Social Benchmark assesses the world's 2,000 most influential companies on their responsibility in meeting society's fundamental expectations towards three measurement areas: respecting human rights, providing decent work, and acting ethically. This company was assessed in 2023 and received a score of 8.5/20. The average score was an alarmingly low 4.6/20 and the highest score was 15.5/20.
52/100 S&P Global ESG Score
This company received an S&P Global ESG Score of 52/100 in the IT Services & Internet Software and Services category of the S&P Global Corporate Sustainability Assessment, an annual evaluation of companies' sustainability practices (last updated 23 Sep 2022). The rankings are based on an analysis of corporate economic, environmental and social performance, assessing issues such as corporate governance, risk management, environmental reporting, climate strategy, human rights and labour practices.
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Company Details

Type:
Public company
Revenue:
79.6 billion USD (2018)
Employees:
350,600 (2018)

Contact Details

Address:
Armonk, New York, USA
Website:
www.ibm.com

Products / Brands