IBM Corporate Citizenship in Indonesia

IBM is investing in efforts to make it easier to adjust to clients' changing needs in the global economy - and systematically helping our employees learn new fields and master new skills so they remain competitive. Technology enables IBMers to work together and share ideas across geographies, time zones and cultures - whether they're down the hall or halfway around the world.

IBM is a leader in work/life integration programmes, as well as diversity policies. For example, women have long been an important part of IBM's workforce - and Indonesia was the first IBM country organization throughout the Asia/Pacific region to be led by a woman general manager, in 2000.

IBM Indonesia supports its employees' health and well being with a variety of programmes, such as the IBM Weight Loss Challenge, an annual health fair, sports activities, health education and immunization, and the Employee Assistance Program and counselling.

Individuals, small businesses and local communities can be the chief beneficiaries of the global economy - but only if they understand their options and are empowered to seize them. At IBM, we are looking at ways to use technology to facilitate cooperation, collaboration, competition, and to help break down the barriers to progress.

For example, the IBM Academic Initiative is a global programme to help universities teach technology skills, and has supported many leading universities in Indonesia. For example, IBM has supported the Institute of Technology Bandung develop its Information Engineering programme, and worked with Bina Nusantara University to enhance its training in IBM technology. IBM also developed a Student Opportunity System to help students find job opportunities with IBM and IBM Business Partners.

IBM's accessibilityWorks is technology that helps seniors and people with visual impairments to use the Internet more easily. In Indonesia, IBM has worked with the Mitra Netra Foundation to implement the programme.

Supporting volunteers

On Demand Community is IBM's global initiative to support our employees' volunteer work in their communities. In Indonesia, a team of 17 volunteers launched a project in 2007 to benefit young cancer patients at Dharmais Cancer Hospital in Jakarta. The team helped 15 children whose treatment kept them away from school, to continue learning with the help of materials from KidSmart. In 2008, the project expanded to include the Cipto Mangunkusumo Hospital, with more than 60 volunteers participating.

Humanitarian research

World Community Grid is an IBM initiative that uses grid computing to combine the otherwise unused power of 1 million PCs shared by people around the world. IBM has made this massive computing power available to researchers from public and not-for-profit organizations, supporting projects with humanitarian goals. Nearly one-third of IBM Indonesia employees participate.

Protecting the environment is a strategic imperative for IBM and integral to our values. Our commitment to environmental leadership focuses on minimising the potential impact of our own operations and products, as well as applying our technology, products and services to help clients and partners do the same.

Our comprehensive Environmental Management System governs our operations worldwide through programmes in energy conservation and climate protection, pollution prevention, product stewardship, audits and assessments, and the environmental evaluations of suppliers, among others.

Climate protection

Climate change is one of the most critical global environmental challenges facing the planet. IBM's comprehensive climate programmes include:

• Reducing the greenhouse gas emissions associated with our operations by conserving energy, using renewable energy, reducing perfluorocompound emissions, supporting alternative employee commuting options, and increasing the efficiency of IBM's logistics.
• Developing energy efficient products and providing diverse solutions for energy efficient data centres.
• Collaborating with clients and others on innovations that help protect the world's climate.

IBM's ability to innovate depends on a strong global supply chain, which is only as effective as our relationships with suppliers. We value long-term relationships that facilitate sustained growth and opportunities for IBM and our suppliers alike. Our Supply Chain Social Responsibility programme is based on Supplier Conduct Principles that outline IBM's expectations in regards to working hours, wages and benefits, employee health and safety, non-discrimination, communications, the environment and ethics. In Indonesia, all suppliers are required to sign and follow these principles.

Industry collaboration

In 2004, IBM was a founding member of the Electronics Industry Citizenship Coalition (EICC) and helped develop the EICC Code of Conduct, which assists suppliers by providing common standards for their work in the electronics industry.

Supply chain diversity

Through our sourcing practices we support a variety of diverse suppliers, including companies owned by minorities, women and people with disabilities. We have also established relationships with a number of organizations around the world that focus on supplier diversity programmes for businesses owned by women and minorities.

We believe that maintaining the highest standards of global corporate governance is essential to IBM's growth worldwide, especially in emerging markets.

Public policy

IBM maintains an approach to public policy that is both globally consistent and locally relevant. We work with governments, regulators and standard setters at global and local levels on key economic, governmental and societal issues, and we are dedicated to policy approaches that foster innovation, enable growth, and address key societal challenges.

Corporate governance

Members of the IBM Board of Directors collectively represent a variety of skills, backgrounds and perspectives. We consider this diversity to be essential to IBM's growth and success.

Governance of corporate citizenship

IBM Senior Management is ultimately responsible for our economic, environmental and social performance, as well as compliance with laws and with our various codes of conduct. The IBM Board of Directors and its committees oversee these efforts and review performance and compliance.

Privacy and security

Advances in technology that disseminates information widely, as well as the distribution of business processes among multiple entities and legal jurisdictions, are driving heightened interest in privacy. IBM is engaging with the private, public and civil sectors to develop new thinking and practices that help meet society's expectations of privacy and data protection - and to set exemplary policies and practices within IBM.

The IBM KidSmart Early Learning Programme integrates interactive teaching and learning activities into the pre-kindergarten curricula. Its centrepiece a colourful "kid-proof" learning station loaded with award-winning educational software.

In 2002, IBM launched KidSmart in Indonesia, donating equipment and teacher training to more than 285 public and private schools around Java Island, Bali, Nanggroe Aceh Darussalam, and North Sumatera including Nias, Yogyakarta Special Province and Bangka Belitung Province.

Starting in 2007, IBM focused the programme on schools catering for children with disabilities. Through a partnership with the Ministry of Education under the Directorate of Special Education, more than 70 schools have implemented the KidSmart learning programme to support their teaching programmes.

From 1990-2007, IBM's annual energy conservation efforts avoided nearly 3.1 million metric tons of carbon dioxide (CO2) emissions - an amount equal to 45 percent of the company's 1990 global CO2 emissions - and saved over $310 million.

(Reduction in energy consumption from downsizings or the sale of operations is not included in these figures.)

2008-09

• Recognized by President Susilo Bambang Yudhoyono for expertise in the area of crisis response for Indonesia.
• Recognition of IBM contribution in supporting Kalbe Eco-Friendly Data Center
• Most Admired Knowledge Enterprise Award - Dunamis HR Consultant
• Directorate of Special Education's Awards: Partnership in KidSmart Early Learning Programme for Special Education School
• Interbrand's 2008 Best Global Brands

2006-07

• Recognition from the Governor of Yogyakarta for IBM's contribution in Taman Pintar
• Warta Ekonomi Top Employer of Choice (sixth year in a row)
• Red Cross: Disaster Responsible Response for Bengkulu

Rahajeng Harumi
Corporate Citizenship & Corporate Affairs
rahajeng.harumi@id.ibm.com
(021) 523 8359

© 2009 International Business Machines Corporation Published May 2009. Data reflect YE2008.