IBM Business Conduct Guidelines

IBM Business Conduct Guidelines 1
Contents
Letter from
the Chairman
1.0
Guiding Principles
1.1 Commitment to Integrity and Business Ethics
1.2 Using the Business Conduct Guidelines
1.3 Importance of Compliance
2.0
Speaking Up
2.1 Raising Concerns and Reporting Violations
2.2 Non-Retaliation Policy
3.0
In the Workplace
3.1 Work Environment
3.2 IBM’s Information and Property
• Proprietary and Confidential Information
–
– Inadvertent Disclosure
–
– External Inquiries, Contacts and Opportunities
• Intellectual Property
–
– IBM Intellectual Property
–
– Third Party Software
–
– Open Source Software
–
– Trademarks
–
– External Standards Organizations
• Use of IBM Assets and Premises
• IBM’s Right to Access and Use
• Leaving IBM
3.3 IBM’s Handling of Your Personal Information
3.4 Making Commitments
and Obtaining Approvals
3.5 Reporting, Recording
and Retaining Information
• Financial Controls and Reporting
• Retaining Records
4.0
In the Marketplace
4.1 Working with Organizations Outside of IBM
• Working with Suppliers
•
Working with Resellers and
Other Complementary Third Parties
• Working with Competitors

4.2 Competing Fairly
• Statements About Competitors
• Selling Against Competitive Orders
4.3 Acquiring and Using Information
• Information About Others
• Personal Information About Individuals
•
Proprietary and Confidential Information
Owned by Others
4.4 Gifts, Amenities and Bribes
• Receiving Gifts, Amenities and Referral Fees
• Giving Gifts, Amenities and Other Value
4.5 Other Public Sector Matters
• Selling in the Public Sector
• Lobbying
• Campaign Visits on IBM Property
4.6 International Trade Compliance
• Exports
• Imports
• Antiboycott
4.7 Immigration
4.8 The Environment
5.0
On Your Own Time
5.1 Conflicts of Interest
• Assisting a Competitor
• Competing against IBM
• Supplying IBM
• Personal Financial Interests
•
Family and Close Relations Working
in the Industry
• Personal Use of IBM’s Time
5.2 Inside Information and Insider Trading
5.3 Public Service and Political Activity
•
Public Service
•
Political Office, Contributions
and Endorsements
5.4 Speaking Publicly and Social Media
6.0
Further Guidance
6.1
Other IBM Policies, Directives
and Guidelines
6.2 Additional Resources

2.0
Speaking Up
3.0
In the Workplace
4.0
In the Marketplace
5.0
On Your Own Time
6.0
Further Guidance
1.0
Guiding Principles
Dear IBMer,
At their most basic level, IBM’s Business Conduct Guidelines
describe what is expected of every IBMer in complying with
laws and ethical practices, wherever we do business.
However, the BCGs are, and always have been, something
more. By establishing them decades ago and giving them
the weight of a governing document, we sought to ensure
that all of our actions and relationships – with clients,
investors, colleagues and the communities in which we live
and work – would be grounded in our values as individuals
and as an enterprise.
This essential link between values and behavior goes back to
IBM’s founding as a company, more than one hundred years
ago. It is a powerful idea that has been embraced by millions of
women and men who call themselves “IBMers,” and who have
shaped IBM through era after era of profound change. It also
led us to come together as a global workforce several years ago
to reexamine and renew our values in a very new way for a very
new world, in an event we called ValuesJam. For us, what
emerged are not “IBM’s” but IBMers’ values:
• Dedication to every client’s success
• Innovation that matters – for our company and for the world
• Trust and personal responsibility in all relationships
For the same reason, we see our Business Conduct Guidelines
not as a set of top-down rules, but as a living expression of each
IBMer’s responsibility for demonstrating the highest standards
of trust in all of our actions and relationships. Today, this
personal responsibility is more relevant than ever. It used to be
said that you can’t expect what you don’t inspect. But continual
inspection is not practical in a world that is ever-more complex,
interconnected and rapidly changing. Nor is it desirable. To
manage not by processes but by values is to embrace a very
different management model.
I hardly find it necessary to remind IBMers to “act ethically.” I
know you feel as strongly as I do that anyone doing otherwise
does not belong at IBM. But as you reread and recertify your
agreement to our Business Conduct Guidelines, I hope you will
think anew about what they mean. Their continuing vitality is
central to the remarkable persistence of a distinctive enterprise
and culture. When you commit to these guidelines – to the
link between values and behavior – you strengthen our
collective understanding of what it means to be an IBMer.
Virginia M. Rometty
Chairman, President and Chief Executive Officer
Letter from
the Chairman

1.0
Guiding Principles
Your daily commitment to living the IBM Values
and following the Business Conduct Guidelines
distinguishes IBM and IBMers. It’s no exaggeration
to say that IBM’s integrity, reputation and brand
are in your hands.

Letter from
the Chairman
2.0
Speaking Up
3.0
In the Workplace
4.0
In the Marketplace
5.0
On Your Own Time
6.0
Further Guidance
1.0
Guiding Principles
1.1
Commitment to Integrity
and Business Ethics
IBM’s reputation for integrity and business ethics should never
be taken for granted. To maintain that reputation, you must
follow these Business Conduct Guidelines and exercise good
judgment in your decisions and actions.
As IBM employees, we may face ethical and legal questions;
some may be difficult ones. We should always decide these
questions in ways that are consistent with IBM’s Values:
• Dedication to every client’s success
• Innovation that matters—for our company and for the world
• Trust and personal responsibility in all relationships
Our Values in themselves may not provide obvious answers
in all cases, but they should serve as the basis for the choices
we make. Our Values also serve as the basis for the Business
Conduct Guidelines, which provide greater guidance on the
questions you may face.
1.2
Using the Business
Conduct Guidelines
In all instances, each of us must obey the law and act ethically.
The Business Conduct Guidelines provide general guidance
for resolving a variety of legal and ethical questions for us.
Employees are also expected to comply with other applicable
IBM policies, directives and guidelines, some of which are
referenced here. For example, employees who work in specialized
areas such as procurement, environmental, import, export,
or tax, must also comply with additional functional guidelines.
Remember, there are no simple shortcuts or automatic answers
for the choices we have to make in business today. No single
set of guidelines or policies can provide the absolute last word
to address all circumstances. Therefore, we expect IBMers
to use sound judgment in all of their conduct and ask for help
when needed.
1.3
Importance
of Compliance
1.2
Using the Business
Conduct Guidelines
1.1
Commitment
to Integrity and
Business Ethics
Integrity Tip
Acting with integrity and according to
our Values is often a question of
good judgment, and basic questions
like these will often help you to
eliminate any doubt about a decision
or proposed action:
—
— Is it honest?
—
— Does it conform to the Business
Conduct Guidelines?
—
— Do I really feel comfortable with
this decision?
—
— What if this appeared in the news?
—
— What if everyone were to behave like
this?
1.3
Importance of Compliance
If you have any questions about interpreting or applying the
Business Conduct Guidelines—or any other IBM policies,
directives, or guidelines—it is your responsibility to consult
your manager, IBM Counsel, or Trust and Compliance.
A violation of any IBM guideline can result in disciplinary
action, including dismissal.
Furthermore, IBM’s policy is to comply with all laws and
regulations that apply to its business. As you conduct IBM’s
business, you may encounter a variety of laws and legal issues,
including those in the areas described below. If you have
questions on specific laws or regulations, contact IBM Counsel.
Penalties for failure to comply with laws are severe and can
result in fines, lawsuits, loss of business privileges and, in some
cases, imprisonment of individuals.

2.0
Speaking Up
Your responsibility to know and follow the Business
Conduct Guidelines includes reporting potential
violations. IBM will promptly review your report,
and will not tolerate threats or acts of retaliation
against you.

Letter from
the Chairman
3.0
In the Workplace
4.0
In the Marketplace
5.0
On Your Own Time
6.0
Further Guidance
1.0
Guiding Principles
2.0
Speaking Up
2.1
Raising Concerns
and Reporting Violations
If you know of, or have good reason to suspect, an unlawful or
unethical situation or believe you are a victim of prohibited
workplace conduct, immediately report the matter through any
of IBM’s Communication Channels:
• Your manager is usually the best place to start
• IBM Human Resources
• Concerns and Appeals programs
• IBM Internal Audit (for violations related to financial
recording and reporting, business process violations and
inappropriate use of assets)
• IBM Security (for loss or theft of personal information or
IBM assets, including proprietary or confidential information)
• IBM Counsel
• IBM Trust Compliance
IBM’s Concerns Appeals programs include “Open Door”
to higher management and “Confidentially Speaking,”
which lets you raise your concern anonymously, if you so
choose. Furthermore, these programs allow you to submit
your concerns online, by email, regular mail or phone.
2.2
Non-Retaliation Policy
IBM will promptly review your report of unlawful or
unethical conduct, and will not tolerate threats or acts of
retaliation against you for making that report.
2.2
Non-Retaliation
Policy
2.1
Raising Concerns
and Reporting
Violations

3.0
In the Workplace
As part of IBM’s Globally Integrated Enterprise,
your workplace may include working from an IBM
location, a client location, or your home. Wherever
you are, you will interact with other IBMers,
and come in contact with sensitive information,
intellectual property, and other valuable assets.
Whether communicating in person, over the phone,
online,or by any other means or media, the
Business Conduct Guidelines apply.

Letter from
the Chairman
2.0
Speaking Up
4.0
In the Marketplace
5.0
On Your Own Time
6.0
Further Guidance
1.0
Guiding Principles
3.5
Reporting, Recording
and Retaining
Information
3.4
Making
Commitments and
Obtaining Approvals
3.3
IBM’s Handling
of Your Personal
Information
3.0
In the Workplace
3.1
Work Environment
IBM strives to maintain a healthy, safe and productive work
environment which is free from discrimination and harassment,
whether based on race, color, religion, gender, gender identity
or expression, sexual orientation, national origin, genetics,
disability, age, or any other factors that are unrelated to IBM’s
legitimate business interests. IBM will not tolerate sexual
advances, actions or comments, racial or religious slurs or jokes,
or any other comments or conduct that, in the judgment of
IBM management, creates, encourages or permits an offensive
or intimidating work environment.
Other prohibited conduct, because of its adverse impact on the
work environment, includes:
• Threats or violent behavior
• Possession of weapons of any type
• Use of recording devices, including cell phone cameras
and web cameras, except as authorized by management and
IBM Counsel
• A manager having a romantic relationship with a subordinate
• Use, distribution, sale or possession of illegal drugs or any other
controlled substance, except for approved medical purposes
• Being under the influence of illegal drugs, controlled
substances used for non-medical purposes, or alcoholic
beverages in the workplace
—
— Consumption of alcoholic beverages on IBM premises
is only permitted, with prior management approval, for
company-sponsored events
Furthermore, if IBM management finds that your conduct on
or off the job adversely affects your performance, that of other
employees, or IBM’s legitimate business interests, you will be
subject to disciplinary action, including dismissal.
Integrity Tip
If you believe you have been
subjected to prohibited workplace
conduct, immediately report the
matter through any of the designated
IBM Communications Channels,
including IBM’s Concerns and
Appeals programs. Your report of such
conduct will be reviewed promptly.
3.2
IBM’s Information
and Property
3.1
Work Environment
3.2
IBM’s Information
and Property
IBM has extensive assets of great value. These assets include
valuable proprietary information, such as IBM’s intellectual
property and confidential information, as well as physical
property and systems. Protecting all of our assets is critical.
Their loss, theft, misuse or unauthorized disclosure can
jeopardize IBM’s future.
You are personally responsible for protecting IBM’s assets in
general, as well as those entrusted to you. This includes those
assets that you have been authorized to provide to other IBM
employees, contract personnel, clients or others. To do this, you
should know and understand IBM’s security controls, processes
and practices. You should be alert to situations that could lead
to the loss, misuse, theft, or unauthorized disclosure of our
assets. Furthermore, you should report those situations to IBM
Security or your manager as soon as they come to your attention.
Proprietary and
Confidential Information
As an IBM employee, you will have access to information that
IBM considers proprietary. Most IBM proprietary information is
confidential, and often subject to copyright, patent or other
intellectual property or legal rights. It is also the result of the
hard work and innovation of many IBMers and investments made
by IBM. IBM’s competitive advantage from this information
would be lost if such information was improperly disclosed, even
if the disclosure is inadvertent. To help maintain the value of
this important information, it is critical that you follow all IBM
safeguards for protecting that information and that you only
disclose or distribute that information as authorized by IBM.

Letter from
the Chairman
2.0
Speaking Up
4.0
In the Marketplace
5.0
On Your Own Time
6.0
Further Guidance
1.0
Guiding Principles
3.5
and Retaining
Information
3.4
Making
Commitments and
Obtaining Approvals
3.3
IBM’s Handling
of Your Personal
Information
3.1
Work Environment
3.0
In the Workplace
3.2
IBM’s Information
and Property
IBM proprietary information is any information that IBM
owns, including for example:
• Information about current and future products,
services or research
• Business plans or projections
• Earnings and other financial data
• Personnel information including executive and
organizational changes
• Software in object or source code form
Inadvertent Disclosure
You should be careful to avoid inadvertent disclosure. Never
discuss proprietary information that IBM considers confidential
or which IBM has not made public with, or in earshot of, any
unauthorized person. Activities where inadvertent disclosure
could occur include a conversation (in person or by telephone)
in any public area, in a blog or within a social network. Also,
you should not discuss such information with family members
or friends. They might innocently or otherwise pass the
information on to someone else.
External Inquiries, Contacts, and Opportunities
IBM’s business activities are monitored by journalists, consultants,
securities analysts and others. In addition, as an IBMer, you
may be recognized by these individuals or groups as having
valuable expertise and be asked to provide your own insights
to them, with or without compensation. You should not
contact these individuals or groups or respond to their inquiries,
whether online (including social media), telephonically, or
otherwise, without authorization as follows:
• Journalists—IBM Communications
• Consultants or IT Analysts—IBM Analyst Relations
• Securities or Financial Analysts—IBM Investor Relations
• Environmental groups—Corporate Environmental Affairs
Similarly, if you receive a request for information related to
IBM’s business from an attorney, an investigator, law
enforcement, or other government official or agency, refer the
requestor to IBM Counsel. Immediately notify IBM Counsel
or Trust Compliance of any such requests.
Intellectual Property
IBM Intellectual Property
As an IBM employee you will have access to and may develop
IBM intellectual property. When you joined IBM, you
signed an employee agreement in which you assumed specific
obligations relating to intellectual property. For example, you
assign to IBM all of your rights in certain intellectual property
you develop. That intellectual property includes such things
as ideas, inventions, software, templates, publications and other
materials relating to IBM’s current or anticipated offerings,
business, research or development. Subject to the laws of each
country, this applies no matter where or when—at work or
after hours—you create such intellectual property. You must
disclose that intellectual property to IBM and protect it like
any other IBM proprietary information. In addition, you
should also seek advice and direction from your IBM
Intellectual Property Counsel before you file for a patent other
than through IBM, and provide IBM with copies of any patents
you have applied for or obtained.
Third Party Software
You should exercise caution in obtaining third party software
from others, including commercial and open source software.
Software includes computer programs, databases and related
documentation, and can be in any stage of development.
Software may be on tangible media (e.g. CDs, portable devices
and publications), or it may be downloadable or accessible for

Letter from
the Chairman
2.0
Speaking Up
4.0
In the Marketplace
5.0
On Your Own Time
6.0
Further Guidance
1.0
Guiding Principles
3.5
and Retaining
Information
3.4
Making
Commitments and
Obtaining Approvals
3.3
IBM’s Handling
of Your Personal
Information
3.1
Work Environment
3.0
In the Workplace
3.2
IBM’s Information
and Property
use online. The license for the software sets out the rights and
obligations that must be complied with, such as how and where
the software may be used, whether it may be modified or
distributed and, possibly, what rights IBM is obligated to grant
to others. The terms and conditions of the license agreement
must be strictly followed. You must follow applicable business
unit and CIO Office procedures before you load software
from any source onto any computer or device provided by IBM
or used primarily for IBM business purposes. You must also
follow those procedures before you distribute, access or receive
software from inside or outside of IBM, or otherwise accept a
license agreement.
Integrity Tip
Did you know that even if software is
free it may be unacceptable for use on
IBM systems or in our offerings? That
is because the license may not permit
such use or, possibly, no license was
provided (which may prevent any use
of the software in some countries).
There is also the risk that the software
contains harmful code, such as
viruses or Trojan horses, which can
be costly to IBM.
Open Source Software
Do not confuse open source software with software that is in
the public domain. Open source software licenses often
impose obligations that could result in a conflict of interest
with IBM and the inappropriate transfer of IBM’s intellectual
property rights. If you want to be involved with or use open
source software you must first obtain management approval
and comply with IBM’s Open Source Participation Guidelines.
Trademarks
IBM and many other companies have trademarks—words,
names, symbols or designs—that are used to identify and
distinguish the company and its products. It is important that
you properly use IBM’s and other companies’ trademarks.
For guidance on proper usage and acknowledgement of IBM’s
and certain third party trademarks, refer to IBM’s Copyright
and Trademark Information. In addition, you should not
use a word, name, symbol or design as a trademark without
first going through the Naming Approval Process.
External Standards Organizations
Before you participate in any external standards activity, you
must get approval from management, with guidance from
Intellectual Property and Standards. In addition to the
obligations that you and IBM may have to the standards
organization, you also need to understand your responsibilities
to protect IBM’s intellectual property; to submit to IBM any
intellectual property you create; to avoid conflicts of interest;
and to comply with antitrust and other laws.
Use of IBM Assets and Premises
Protection of IBM’s assets, workplace environment and business
interests, including compliance with legal requirements, are
critical to IBM’s operations and marketplace integrity. All IBM
assets—proprietary information, such as IBM’s intellectual
property and confidential information, as well as physical
property and systems—should only be used to conduct IBM’s
business or for purposes authorized by IBM management. This
obligation applies whether or not you developed the information
yourself, and it applies by law in virtually all countries where
IBM does business. IBM’s physical property and systems include
equipment, facilities, information and communication systems,
corporate charge cards and supplies. IBM’s property and
systems, including IBM connections to the Internet, should also
only be used for appropriate purposes. Incidental personal
use of such property and systems—meaning use that is limited
in duration, does not violate company policies, and does not
interfere with doing your job—may be permitted by management.
However, it is never permissible to use IBM’s systems for
visiting Internet sites that feature sexual content or gambling,
that advocate intolerance of others, or that are inconsistent
with IBM’s Values and business interests. It is also inappropriate
to use them in a manner that interferes with your productivity
or the productivity of others.

Letter from
the Chairman
2.0
Speaking Up
4.0
In the Marketplace
5.0
On Your Own Time
6.0
Further Guidance
1.0
Guiding Principles
3.5
and Retaining
Information
3.4
Making
Commitments and
Obtaining Approvals
3.1
Work Environment
3.0
In the Workplace
3.2
IBM’s Information
and Property
IBM’s Right to Access and Use
You should understand IBM has the right to inspect your use of
IBM assets, including your communications using IBM’s assets.
You should understand that IBM does not consider any such uses
of its assets to be private. Therefore, you should not place or keep
any personal items, messages or information that you consider
private anywhere in the IBM workplace, such as, telephone,
office, or email systems, electronic files, laptops, smartphones
and other personal communication devices, lockers, desks, or
offices. If you choose to do so, you should understand that IBM
may at any time, monitor, recover through technical or other
means, and review employee communications including emails
from personal email accounts, records, files, and other items
IBM finds through or in its systems, assets and any other IBM
areas or IBM provided facilities, for any purpose. In addition,
in order to protect its employees, assets, and business interests,
IBM may share outside of IBM anything it finds, such as with
its outside legal or other advisors, or with law enforcement.
Additionally, in order to protect its employees, assets and
business interests, IBM may ask to search an employee’s personal
property, including briefcases and bags, located on or being
removed from IBM locations. If you use personal electronic
devices for IBM-related work, then those devices may also be
examined by IBM. You are expected to cooperate with all
such requests. Employees, however, should not access another
employee’s work space, including email and electronic files,
without prior approval from management. For additional
information on access to company property and employee
personal property, refer to Access to Property Information.
Leaving IBM
If you leave IBM for any reason, including retirement, you
must return all IBM assets, such as documents and media
which contain IBM proprietary information, and you may not
disclose or use that information. Also, IBM’s ownership of
intellectual property which you created as an IBM employee
continues after you leave IBM. Regrettably, there have been
cases in which IBM’s proprietary information or other assets
have been wrongfully taken or misused. IBM has and will
continue to take every step necessary, including legal measures,
to protect its assets.
3.3
IBM’s Handling of Your
Personal Information
To the extent permitted by law, IBM and IBM authorized
companies and individuals collect and maintain personal
information which relates to your employment, such as
com
pen
sation, medical and benefit information. As a globally
integrated enterprise, IBM’s business processes, management
structures and technical systems cross country borders.
Therefore, you acknowledge that, to run its business, IBM and
its authorized companies may transfer personal information
about you as an IBM employee to any of the countries where
we do business. While not all countries have data protection
laws, IBM has worldwide policies that are intended to protect
information wherever it is stored or processed.
3.3
IBM’s Handling
of Your Personal
Information

Letter from
the Chairman
2.0
Speaking Up
4.0
In the Marketplace
5.0
On Your Own Time
6.0
Further Guidance
1.0
Guiding Principles
3.2
IBM’s Information
and Property
3.1
Work Environment
3.0
In the Workplace
3.3
IBM’s Handling
of Your Personal
Information
For example:
• IBM handles your personal information in accordance with
its corporate policies and practices, including Corporate
Policy 130, Corporate Instruction HR 113 and the
IBM Guidelines for the Protection of Employee Information
• Access to your personal information is restricted to people
with a need to know
• Personal information is normally released to outside parties
only with employee approval, except that IBM and authorized
companies and individuals may also release personal
information to verify employment, to satisfy the legitimate
requirements of a company or other entity which is
considering acquiring some of IBM’s business operations,
or for appropriate investigatory, business or legal reasons
Likewise, in your work you may have access to personal
information of others. You must ensure that you use and disclose
that information only as permitted by IBM policies or practices.
3.4
Making Commitments
and Obtaining Approvals
IBM’s approval processes are designed to help IBM protect its
assets and maintain appropriate controls to run its business
effectively, whether you are dealing with clients, IBM Business
Partners, suppliers, or other third parties. Within these
processes, authority for pricing, contract terms and conditions
and other actions may have been delegated to certain functions
and to line management. Making business commitments outside
of IBM’s processes, delegation limits or without appropriate
approvals, through side deals or otherwise, is not acceptable.
Modifications of pricing, contract or service terms, must be
approved by the appropriate level of management or authorized
function. Do not make any oral or written commitments
that create a new agreement or that modify an existing IBM
agreement with a third party without approval, consistent
with delegation levels. All commitments must be reported to
IBM Accounting to help ensure the accuracy of IBM’s books
and records.
3.5
and Retaining Information
Every employee records or reports information of some kind
and submits it to the company and others with whom we
interact. In doing so, you must ensure that all information is
recorded and reported accurately, completely and honestly.
Never make misrepresentations or dishonest statements to anyone.
If you believe that someone may have misunderstood you,
promptly correct the misunderstanding. Reporting inaccurate
or incomplete information, or reporting information in a way
that is intended to mislead or misinform those who receive
it, is strictly prohibited and could lead to serious consequences.
The following are some examples of dishonest reporting:
• Submitting an expense account for reimbursement of
business expenses not actually incurred, or misrepresenting
the nature of expenses claimed
• Failing to properly record time worked on a billable client
project, whether or not such time is charged to the client
3.5
and Retaining
Information
3.4
Making
Commitments and
Obtaining Approvals

Letter from
the Chairman
2.0
Speaking Up
4.0
In the Marketplace
5.0
On Your Own Time
6.0
Further Guidance
1.0
Guiding Principles
3.4
Making
Commitments and
Obtaining Approvals
3.3
IBM’s Handling
of Your Personal
Information
3.2
IBM’s Information
and Property
3.1
Work Environment
3.0
In the Workplace
3.5
and Retaining
Information
• For those eligible for overtime, failing to record all hours
worked including all overtime hours, which must be
management approved in line with IBM guidelines
• Providing inaccurate or incomplete information to IBM
management, IBM Internal Audit or IBM Counsel
during an internal investigation, audit or other review,
or to organiza
tions and people outside the company, such as
external auditors
• Making false or misleading statements in external financial
reports, environmental reports, import/export documentation,
or other documents submitted to or maintained for
government agencies
In order for IBM to conduct investigations and reviews, it
needs the help and cooperation of IBM employees. You are
required to fully cooperate with all authorized internal
investigations and reviews, and to promptly, completely, and
truthfully comply with all internal requests for information,
including interviews and documents, during the course of
such an investigation or review.
Financial Controls and Reporting
As a public company, IBM must follow strict accounting
principles and standards, to report financial information
accurately and completely, and to have appropriate internal
controls and processes to ensure that accounting and financial
reporting complies with law.
The rules for accounting and financial reporting require the
proper recording of, and accounting for, revenues, costs,
expenses, assets and liabilities. If you have responsibility for or
involvement in these areas, you must understand and follow
these rules.
Further, these rules also prohibit anyone from assisting others
to account improperly or make false or misleading financial
reports. Do not assist anyone to record or report any information
inaccurately or in a way that could be misleading. You should
also never provide advice to anyone outside of IBM, including
clients, suppliers and IBM Business Partners, about how they
should be recording or reporting their own revenues, costs,
expenses, and other assets and liabilities.
Retaining Records
Employees must comply with the guidelines in the
IBM Worldwide Records Management Plan in their retention
and disposal of IBM documents. The plan applies to information
in any media, including both hard copy and electronic records
such as email. It requires that information defined as “essential”
be retained in a recoverable format for the duration of its
assigned retention period. Information that is not essential or
whose retention period has expired should be disposed of as
soon as possible, unless it is subject to a document retention
order issued by IBM Counsel. Where such an order exists, you
must strictly follow the retention requirements specified in the
order until you receive a notice from IBM Counsel that the
order is no longer in force.
Integrity Tip
Under various laws, such as tax and
securities laws, IBM is required to
maintain accurate books. Violations of
laws associated with accounting and
financial reporting can result in fines,
penalties and imprisonment, as well
as a loss of public faith in a company.
If you become aware of any action
related to accounting or financial
reporting that you believe may be
improper, you should immediately tell
IBM, by informing IBM Accounting,
Internal Audit, your management,
IBM Counsel, or by using any of IBM’s
other Communications Channels.

4.0
In theMarketplace
You must be ethical and lawful in all of your
business dealings, whether you are selling,
buying or representing IBM in any other capacity.
Your communications and dealings with IBM
Business Partners, suppliers, competitors, clients or
others can directly impact IBM’s reputation and
our compliance with applicable laws.

Letter from
the Chairman
2.0
Speaking Up
3.0
In the Workplace
5.0
On Your Own Time
6.0
Further Guidance
1.0
Guiding Principles
4.7
Immigration
4.6
International
Trade Compliance
4.5
Other Public
Sector Matters
4.4
Gifts, Amenities
and Bribes
4.3
Acquiring and
Using Information
4.2
Competing Fairly
4.8
The Environment
4.0
In the Marketplace
4.1
Working with Organizations
Outsideof IBM
Other organizations have multiple relationships with IBM.
An IBM Business Partner may be both a client and a competitor.
Another organization may be an IBM supplier and client
at the same time. A few organizations may even be suppliers,
competitors, Business Partners and clients. No matter what
the context, you need to understand each relationship involved
in your dealings, and act in accordance with our guidelines.
Working with Suppliers
In deciding among competing suppliers, we weigh the facts
impartially to determine the best supplier. You should do
so whether you are in a procurement job or any other part of
the business—and regardless of whether it is a large or
small purchase.
You must not exert or attempt to exert influence to obtain
special treatment for a particular supplier. Even appearing to
do so can undermine the integrity of our established procedures.
Seeking reciprocity is contrary to IBM policy and may also be
unlawful. You should not tell a prospective supplier that your
decision to buy its goods or services is conditioned on the
supplier’s agreement to buy IBM products or services. This does
not mean that an IBM client cannot be an IBM supplier or that
IBM can never consider its other relationships with the supplier
when it is evaluating the supplier. It simply means that IBM’s
decision to buy goods and services from a supplier must be
made independently and apart from that supplier’s decision to
buy IBM products and services.
Working with Resellers and
Other Complementary Third Parties
IBM has relationships with complementary third parties, such
as IBM Business Partners, Independent Software Vendors,
and systems integrators, to help IBM market and install IBM
solutions. If you work with these third parties, you must follow
the applicable sales, marketing and services guidelines for
dealing with them, including the Guidelines for Working with
IBM Business Partners. In addition to their complementary
offerings, some of these third parties market products or
services that compete with IBM. When such a situation arises,
you must exercise caution and follow established guidelines
for dealing with competitors.
Working with Competitors
In the marketplace it is often clear when you are directly
competing with another company. However, a company with
which you are dealing in another context—such as a client,
a supplier, or even an IBM Business Partner—may also be a
competitor. Such situations require extra care. For example, it
is likely that you and competitors will, from time to time, meet,
talk and attend the same industry or association meetings.
Many of these contacts are acceptable as long as established
procedures are followed.
Integrity Tip
It is essential that suppliers competing
for IBM or a client’s business have
confidence in the integrity of IBM’s
selection process. That confidence
could be jeopardized if former
employees of IBM or close personal
friends or relatives of current IBM
employees, competing as suppliers,
are perceived to have an unfair
advantage. If your work involves the
use or selection of a supplier with
which you are connected, e.g. a supplier
owned by a family member, you should
disclose your relationship with that
supplier to your manager and the IBM
Global Procurement Ombudsman
Office, prior to any involvement in IBM’s
consideration of that supplier.
4.1
Working with
Organizations
Outside of IBM

Letter from
the Chairman
2.0
Speaking Up
3.0
In the Workplace
5.0
On Your Own Time
6.0
Further Guidance
1.0
Guiding Principles
4.7
Immigration
4.6
International
Trade Compliance
4.5
Other Public
Sector Matters
4.4
Gifts, Amenities
and Bribes
4.8
The Environment
4.0
In the Marketplace
4.1
Working with
Organizations
Outside of IBM
4.3
Acquiring and
Using Information
4.2
Competing Fairly
Acceptable contacts include sales to other companies in our
industry and purchases from them; approved participation
in joint bids; and attendance at business shows, standards
organizations and trade associations. However, these contacts
require caution.
Discussion or collaboration on prohibited subjects with
competitors can be illegal. In all contacts with competitors, avoid
discussion or collaboration on pricing policies, contract terms,
costs, inventories, marketing and product plans, market surveys
and studies, production plans and capabilities, and any other
proprietary or confidential information. You must also avoid any
discussion or agreement on dividing clients or territories.
If a competitor raises a prohibited subject, even lightly or with
apparent innocence, you should object, stop the conversation
immediately and inform the competitor that you will not
discuss these matters. If necessary, you should leave the meeting
and immediately report the incident to IBM Counsel.
Integrity Tip
Competition laws exist in almost all
countries where IBM does business.
The purpose of competition laws,
which also may be known as antitrust,
monopoly, fair trade or cartel laws,
is to prevent interference with the
functioning of a competitive market
system. Companies also may violate
competition laws without acting jointly
with other companies by, for example,
illegally monopolizing or attempting
to monopolize an industry or unlawfully
abusing a dominant position.
4.2
Competing Fairly
IBM will compete vigorously for business. However, you must
compete ethically and in compliance with our policies and the
law, no matter how competitive the environment.
Statements About Competitors
IBM sells products and services on their merits. Avoid false and
misleading statements about competitors, their products,
and their services. Be sure all comparisons to competitors are
substantiated, and that they are complete, accurate and
not misleading whenever they are made. Certain countries
prohibit comparative advertising.
Selling Against Competitive Orders
If a competitor already has a firm order (a legally enforceable
contract) from a client for the competitor’s product or service,
care should be taken when marketing competing IBM
products or services to that client. Letters of intent, free trials,
conditional agreements and similar arrangements are usually
not considered firm orders. It is often difficult to determine when
a firm order exists. When a situation is unclear, seek advice
from IBM Counsel.
4.3
Acquiring and
Using Information
Information About Others
In the normal course of business, it is not unusual to acquire
information about other organizations, including competitors.
Doing so is not unethical in itself. In fact, IBM quite properly
gathers this kind of information from legitimate sources for
such purposes as:
• Extending credit
• Evaluating suppliers
• Evaluating the relative merits of our own products, services,
and marketing methods against that of competitors

Letter from
the Chairman
2.0
Speaking Up
3.0
In the Workplace
5.0
On Your Own Time
6.0
Further Guidance
1.0
Guiding Principles
4.7
Immigration
4.6
International
Trade Compliance
4.5
Other Public
Sector Matters
4.4
Gifts, Amenities
and Bribes
4.2
Competing Fairly
4.1
Working with
Organizations
Outside of IBM
4.8
The Environment
4.3
Acquiring and
Using Information
4.0
In the Marketplace
There are, however, limits to how that information should be
acquired and used, especially information about competitors.
No company should use improper means to acquire another’s
trade secrets or other confidential information. Improper
solicitation or receipt of confidential data from any source,
including an IBM client, a competitor’s employees or any other
party, is wrong.
IBM will not tolerate any form of questionable intelligence-
gathering. Accordingly, you must not engage in or facilitate
any improper or illegal practices designed to collect potentially
confidential or sensitive information from competitors or
others, such as:
• Wiretapping, surveillance, hacking, bribery, theft
or trespassing
• Hiring a competitor’s employees to obtain the competitor’s
confidential information
• Accepting or using potentially confidential or sensitive
information if you have reason to believe it may have been
improperly or illegally obtained
Information about other organizations and individuals should
be treated with sensitivity and discretion. When working with
information, you should use that information in the proper
context and make it available only to other IBM employees with
a legitimate need to know. In presenting such information,
you should disclose the identity of the organization or the
individuals only if necessary. If specific identifying information
is not necessary, you should present the information in
aggre
gated form or by some other means.
Personal Information
About Individuals
As part of your work, you may have access to personal
information, such as information about consumers or employees
of clients, suppliers, IBM Business Partners and others. You may
only use such information to the extent necessary to fulfill your
assigned job responsibilities and in accordance with instructions
issued by management or applicable IBM policies, directives,
and guidelines. You may not use or alter the personal information
inappropriately or disclose it to anyone who does not have a
legitimate need for such information. If possible, information
should be made anonymous before disclosure to avoid
disclosing personal information of individuals. If you suspect
that personal information has been lost or stolen, you must
report it immediately to IBM Security.
Proprietary and Confidential
Information Owned by Others
Our business often requires the use, exchange or disclosure of
information that others may own and which they may consider
to be their trade secrets or intellectual property.
If you receive another party’s proprietary information, even
inadvertently, you must proceed with caution to prevent any
accusation that IBM misappropriated or misused the information.
For example, you should avoid receiving or using confidential
information owned by others unless (a) you are clearly authorized
to do so, and (b) an authorized confidentiality agreement is in
place between IBM and the other party or parties. The terms,
restrictions and other conditions that apply to using confidential
information can vary widely so it is important that you understand
and comply with the applicable obligations.
Integrity Tip
Did you know that even if you receive a
competitor’s confidential information
(such as a pricing proposal), by mistake,
innocently or even deliberately from
a client or other party, you should not
review it, distribute it, or otherwise use
it? Immediately call IBM Counsel or
Trust Compliance for guidance on
how to proceed.

Letter from
the Chairman
2.0
Speaking Up
3.0
In the Workplace
5.0
On Your Own Time
6.0
Further Guidance
1.0
Guiding Principles
4.7
Immigration
4.6
International
Trade Compliance
4.5
Other Public
Sector Matters
4.3
Acquiring and
Using Information
4.2
Competing Fairly
4.1
Working with
Organizations
Outside of IBM
4.8
The Environment
4.0
In the Marketplace
4.4
Gifts, Amenities and Bribes
The following are general guidelines on receiving and giving
gifts and business amenities. Types and values of gifts and
amenities can vary widely—ranging from advertising novelties
of nominal value, which you may give or accept, to bribes,
which you unquestionably may not. Additional guidance and
approval requirements are provided in IBM’s Corporate
Instruction Finance 168 (Business amenities and gifts). Under
these guidelines, senior executive management may approve
receiving or giving higher value gifts and business amenities
provided the gifts and business amenities are not prohibited
by law or known client, business partner or supplier practices.
Integrity Tip
Anti-corruption laws around the world,
including the U.S. Foreign Corrupt
Practices Act (FCPA), make bribery a
crime. This includes giving anything of
value (directly or indirectly) to a foreign
official to obtain or retain business
with the government. Foreign officials,
under the FCPA, can include executives
and employees of partially government-
owned corporations, universities,
public international organizations, and
other entities. Additional guidance is
provided in IBM’s Corporate Instruction
Finance 154 (Foreign Corrupt Practices
Act: Anti-bribery, record keeping, and
internal control requirements).
Receiving Gifts, Amenities
and Referral Fees
Neither you nor any member of your family may, directly or
through others, solicit or accept from anyone money, a gift, or
any amenity that could influence or could reasonably give the
appearance of influencing IBM’s business relationship with
that person or organization. If you or your family members
receive a gift (including money), even if the gift was unsolicited,
you must notify your manager and take appropriate measures,
which may include returning or disposing of what you received.
Unless you have been informed otherwise, you may accept
the following:
4.4
Gifts, Amenities
and Bribes
• Promotional premiums and discounts offered by
transportation companies, hotels, auto rental agencies and
restaurants, if based upon bonus programs for individuals
and offered to travellers generally
• A gift of nominal value, such as an advertising novelty, when
it is customarily offered to others having a similar relationship
with that person or organization
• With management approval, customary business amenities,
such as meals and appropriate entertainment, provided the
expenses are kept at a reasonable level and are not prohibited
by law or known practices of the giver
Similarly, when authorized by IBM you may refer clients and
others to third parties but you may not accept any fee,
commission or anything in compensation for this referral.
Giving Gifts, Amenities
and Other Value
You may not, directly or through others, offer or give any
money, gift, amenity or other thing of value to an executive,
official, employee or representative of any client, supplier,
IBM Business Partner or any other organization, if doing so
could influence or could reasonably give the appearance
of influencing the organization’s relationship with IBM.
You may:
• Give a gift of nominal value, such as an IBM advertising
novelty, if it is not prohibited by law or the organization’s
known business practices
• With management approval give customary business amenities,
such as meals and appropriate entertainment, provided the
expenses are kept at a reasonable level and are not prohibited
by law or known business practices of the recipient’s
organization

Letter from
the Chairman
2.0
Speaking Up
3.0
In the Workplace
5.0
On Your Own Time
6.0
Further Guidance
1.0
Guiding Principles
4.7
Immigration
4.6
International
Trade Compliance
4.3
Acquiring and
Using Information
4.2
Competing Fairly
4.1
Working with
Organizations
Outside of IBM
4.8
The Environment
4.4
Gifts, Amenities
and Bribes
4.0
In the Marketplace
4.5
Other Public
Sector Matters
However, prior management and IBM Counsel approval is
required if the intended recipient is an official, employee,
or representative of a government or government-owned entity,
or any of their family members. Additional policies and legal
limitations, including IBM’s Government Client Guidelines,
apply in such situations, even if a proposed payment is common
in the country or where local custom calls for giving gifts on
special occasions.
Beyond gifts and amenities, certain legal or ethical
restrictions may also apply when hiring current or former
employees of the government or their family members. You
must consult with IBM management and IBM Counsel before
any attempts are made to hire such persons.
Integrity Tip
For giving and receiving business
amenities and gifts, additional guidance,
including specific cost limits, can be
found in Corporate Instruction FIN 168.
In addition, use of IBM’s global approval
process for Compliance with
Transportation, Entertainment and
Business Amenities (CTEBA) is required
to ensure that amenities provided to
clients, IBM Business Partners, and
others comply not only with applicable
law, but also with the Business Conduct
Guidelines and our Values.
4.5
Other Public Sector Matters
Selling in the Public Sector
Public sector procurement laws are designed to ensure that
products and services are procured at fair and reasonable
prices. These laws vary widely and can be complex.
You should be sensitive to the following when working with the
public sector:
• Procurement laws generally require competitive bidding and
permit sole source procurement only in specific circumstances
• You may review an advance copy of a solicitation or tender
document only if the client has also made it available to
other bidders
• As a general rule, you may not prepare a solicitation
document on behalf of a public sector client, even at the
client’s request, or submit any anonymous documents, such
as white papers, to a public sector client, or encourage a public
sector client to sign an agreement before an award is made
to IBM
• You should never discuss business or employment
opportunities that could personally benefit any public sector
procurement personnel during an active or anticipated
procurement, and must not offer or provide gratuities or any
promises in connection with a procurement activity
• Prior to hiring an agent or consultant for a public sector
procurement you must ensure that doing so will not
create a conflict of interest, that the agent or consultant has
agreed to our Business Conduct Guidelines, that you
obtain management authorization and involve IBM Global
Procurement or IBM Counsel
• If we plan to use subcontractors, we need to ensure that the
subcontractors also follow our guidelines
You should follow these guidelines as well as IBM’s
Government Client Guidelines when dealing with the public
sector. Immediately report any actual or possible violation
of these guidelines or a public sector procurement law
or regulation to management, IBM Counsel, Trust and
Compliance, or through IBM’s other Communication Channels.
Integrity Tip
For giving and receiving business
amenities and gifts, additional guidance,
including specific cost limits, can be
found in Corporate Instruction FIN 168.
In addition, use of IBM’s global approval
process for Compliance with
Transportation, Entertainment and
Business Amenities (CTEBA) is required
to ensure that amenities provided to
clients, IBM Business Partners, and
others comply not only with applicable
law, but also with the Business
Conduct Guidelines and our Values.

Letter from
the Chairman
2.0
Speaking Up
3.0
In the Workplace
5.0
On Your Own Time
6.0
Further Guidance
1.0
Guiding Principles
4.7
Immigration
4.4
Gifts, Amenities
and Bribes
4.3
Acquiring and
Using Information
4.2
Competing Fairly
4.1
Working with
Organizations
Outside of IBM
4.8
The Environment
4.5
Other Public
Sector Matters
4.0
In the Marketplace
Lobbying
Any contact with government personnel for the purpose of
influencing legislation or rule making, including such activity
in connection with marketing or procurement matters, may be
considered lobbying. In addition, under some laws, lobbying
includes normal marketing and sales activities unrelated to
legislation or rule making. You are responsible for knowing
and adhering to all relevant lobbying and associated gift laws,
including all reporting requirements.
You must obtain prior approval from IBM Governmental
Programs and advice of IBM Counsel to lobby or authorize
anyone else (for example, a consultant, agent, or IBM Business
Partner) to lobby on IBM’s behalf—including when lobbying
is limited to normal marketing and sales activities.
Campaign Visits on IBM Property
Political campaigning is not allowed on IBM property. From
time to time, IBM may encourage public officials to make
non-partisan visits to IBM locations, to better understand our
offerings and our views on public policy issues. However,
non-partisan visits by public officials within 60 days of an
election in which they are participating are generally not
allowed, unless authorized by Government Programs and
IBM Counsel.
4.6
International
Trade Compliance
Exports
In our globally integrated enterprise, regardless of your work
assignment or location, your actions may have export
compliance implications. As a U.S. company, IBM’s hardware
and software products, services, and technology (i.e., technical
data for the design, development, production or use of those
products and source code) are subject to both U.S. and non-U.S.
export laws and regulations. Before IBM products, services and
technology can be exported, re-exported, or delivered anywhere,
IBM must validate that it has the authorization to export
under U.S. export regulations and any applicable non-U.S. laws
and regulations.
Export laws and regulations affect many IBM transactions,
including: intercompany transactions; in-country transfers of
technology to recipients who are not citizens or permanent
residents (e.g., where the recipient is a non-U.S. person located
in the U.S.); transactions with third parties, including clients,
suppliers, and original equipment manufacturers; use of IBM
Business Partners, alliance partners or agents to complete a
delivery or provide a service; and any relationship where IBM
will be involved with the export, re-export, or delivery
anywhere in the world of products, services, and technology.
4.6
International
Trade Compliance

Letter from
the Chairman
2.0
Speaking Up
3.0
In the Workplace
5.0
On Your Own Time
6.0
Further Guidance
1.0
Guiding Principles
4.7
Immigration
4.5
Other Public
Sector Matters
4.4
Gifts, Amenities
and Bribes
4.3
Acquiring and
Using Information
4.2
Competing Fairly
4.1
Working with
Organizations
Outside of IBM
4.8
The Environment
4.6
International
Trade Compliance
4.0
In the Marketplace
Export laws and regulations cover more than just physical
shipments. They also cover:
• Electronic transfers of, and remote access to, software
or technology
• Provision of services over a network, including e-business
and e-services
• Design, development and delivery of hardware, software
and solutions
• Travel outside the U.S. with IBM products or technology
• Providing technical specifications and performance
requirements to suppliers
• Disclosures of IBM technology to recipients that are not
citizens or permanent residents of the country (e.g., where
the recipient is a non-U.S. person located in the U.S.)
• The transfer of personal knowledge (technical assistance)
outside the U.S. or country of residency
Imports
As a major importer around the world, IBM must comply with
all import laws, regulations and requirements when engaging
in international trade. This includes compliance with
obligations made to government agencies when participating in
supply chain security and other trusted partnership programs.
Because of the continued globalization of IBM’s business, there
are many situations, some of them very subtle, in which your
role or work may have import implications.
In addition to the cross-border movement of physical items,
there may be import implications resulting from other activities,
such as:
• Change in manufacturing location, processes, or source
of supply
• Client activity requiring cross-border delivery
• Shipment of marketing samples or prototypes cross-border
• Calculation of product intercompany prices for sales to an
IBM location in another country
• Determination of product country of origin
• Maintenance of accurate data and records for product
inventory, sales, and shipment
Integrity Tip
IBM has a worldwide network of
experts who can help answer
questions about IBM’s import and
export control requirements. Visit the
Export Regulation Office for export
matters and the Import Compliance
Office for import and supply chain
security matters.
Antiboycott
IBM, its subsidiaries and affiliates, and their agents are
prohibited from following or supporting a foreign country’s
boycott of a country which is friendly to the United States.
A foreign country or an entity associated with the country
could make such a request in a bid invitation, purchase order
or contract, letter of credit, orally in connection with a
transaction, or in a number of other ways. IBM is required
to promptly report to the U.S. Government any request
to support a boycott or to furnish information regarding a
boycott. Examples of improper boycott requests include
requests that we refuse to do business with a certain country,
its citizens, or with certain companies who do business with
the boycotted country. A request that we provide information
about activities in a boycotted country, implement letters of
credit with boycott conditions, or issue negative certifications
of origin, also require legal scrutiny. If you hear of or receive
boycott-related requests, you must contact your manager,
IBM Counsel or the Export Regulation Office.

Letter from
the Chairman
2.0
Speaking Up
3.0
In the Workplace
5.0
On Your Own Time
6.0
Further Guidance
1.0
Guiding Principles
4.6
International
Trade Compliance
4.5
Other Public
Sector Matters
4.4
Gifts, Amenities
and Bribes
4.3
Acquiring and
Using Information
4.2
Competing Fairly
4.1
Working with
Organizations
Outside of IBM
4.0
In the Marketplace
4.7
Immigration
Cross-border travel for IBM business can raise immigration,
payroll, and corporate tax requirements and obligations under
IBM internal policies or the laws of the destination country.
For instance, valid work authorizations and documentation,
such as a work permit or a work visa, are usually required if you
are going to perform productive work in another country.
In addition, certain supplemental tax obligations may apply.
Always comply with IBM requirements related to cross-border
travel. In some cases this may require an IBM Assignment Plan
or Mobility Agreement before doing productive work (generally,
an activity that involves more than just business meetings) in a
country that is not your primary employment country.
4.8
The Environment
IBM is committed to worldwide leadership in environmental
protection. Any IBM employee involved with processes
that affect the environment, such as measuring, recording or
reporting discharges and emissions to the environment,
or handling hazardous waste, must comply with applicable
environmental regulations and permits, as well as IBM’s
environmental policies. Information and contacts related
to environmental compliance can be found at IBM’s
Corporate Environmental Affairs and Product Safety website.
As IBM employees, we each have a role to play in protecting
the environment. If you become aware of any violation of
environmental law or any action that could cause or may appear
to conceal such a violation you should immediately report the
matter to management or IBM Counsel.
4.8
The Environment
4.7
Immigration

5.0
OnYour Own Time
Your private life is very much your own. Nonetheless,
as an IBMer, your activities, both on and off the
job, can affect IBM’s reputation and business interests.
IBM counts on you to be guided by our V
alues and
Business Conduct Guidelines in all your activities.

Letter from
the Chairman
2.0
Speaking Up
3.0
In the Workplace
4.0
In the Marketplace
6.0
Further Guidance
1.0
Guiding Principles
5.4
Speaking Publicly
and Social Media
5.3
Public Service
and Political
Activity
5.2
Inside Information
and Insider Trading
5.0
On Your Own Time
5.1
Conflictsof Interest
A conflict of interest occurs when you advance a personal
interest at the expense of IBM’s interests. Some conflicts of
interest can be avoided through careful foresight and planning.
Others are unavoidable. In some cases, the mere potential for
or perception of a conflict can be problematic. It is up to you to
avoid situations in which your loyalty may become divided.
Some common conflicts are addressed below.
Assisting a Competitor
An obvious conflict of interest is providing assistance to an
organization that markets products and services in competition
with IBM’s current or potential product or service offerings.
You may not, without IBM’s consent, work for such an
organization in any capacity, such as an employee, a consultant
or as a member of its board of directors.
Competing against IBM
Also prohibited are individual pursuits that could conflict with
IBM’s current or future business interests. Outside the office,
many IBM employees engage in activities that generally relate
to technology, business advice or other products or services
IBM offers its clients. Often, such activities are in sufficient
conflict with IBM’s current or future business interests that
they are prohibited. Because IBM is rapidly expanding into new
lines of business and areas of interest, the company will
constantly redraw lines of acceptable activity. It is therefore
your responsibility to consult, in advance and on a periodic
basis, with your management or IBM Counsel to determine
whether your planned activity will compete with any of
IBM’s actual or potential businesses.
Integrity Tip
Even non-commercial projects—such
as some Open Source projects—can
have an impact on IBM’s current or
future business. Management should
be consulted both before and during
any such project, to regularly assess
the project’s impact on IBM’s interests.
5.1
Conflicts of Interest
Supplying IBM
Unless approved in advance by senior management and IBM
Counsel, you may not be a supplier to IBM, represent a supplier
to IBM, work for a supplier to IBM or be a member of its board
of directors while you are an employee of IBM. In addition,
you may not accept money or benefits of any kind for any
advice or services you may provide to a supplier in connection
with its business with IBM.
Personal Financial Interests
You may not have a financial interest in any organization if that
interest would create or give the appearance of a conflict of
interest with IBM. Such organizations include suppliers, clients,
competitors, IBM Business Partners, alliance companies and
others with which IBM does business. In all cases, a financial
interest is improper if your job, the amount of your investment,
or the particular organization in which you invested could—
when viewed objectively by another person—influence your
actions as an IBM employee.
If you have any involvement—direct or indirect—in deciding
whether IBM does business with an organization, you should not
obtain or maintain a financial interest in that organization.
Additionally, you must not accept or buy stock options or other
securities in any situation where there is a question that the offer
was motivated in whole or in part by your IBM employment, or
if the investment otherwise violates IBM policies, directives,
and guidelines.

Letter from
the Chairman
2.0
Speaking Up
3.0
In the Workplace
4.0
In the Marketplace
6.0
Further Guidance
1.0
Guiding Principles
5.4
Speaking Publicly
and Social Media
5.3
Public Service
and Political
Activity
5.0
On Your Own Time
5.1
al
s
se
g
5.2
Inside Information
and Insider Trading
Investments in closely-held organizations—typically, closely
held corporations, partnerships, and sole proprietorships—raise
unique, though no less compelling, concerns. Employees may
not make any investment in a closely held organization that is a
competitor, supplier, IBM Business Partner, distributor or
organization that remarkets IBM products. Any exceptions must
be specifically approved by management with the advice of
IBM Counsel.
You must not attempt to evade these investment restrictions by
acting indirectly through anyone else.
Integrity Tip
To help determine whether an improper
interest exists, you should ask yourself
the following questions:
—
— What is the extent and nature of the
relationship between IBM and the
other company? If the other company
is in more than one line of business,
how significant is the part that
competes with or supplies IBM?
—
— What is the size of my investment in
relation to my salary and other
family income, including income
from other investments? Is it
significant enough to cause me to
take some action as an IBM
employee to protect or enhance
my investment?
—
— Given the nature of my job in IBM,
could my actions as an IBM
employee affect (or appear to affect)
the value of my investment in the
other company?
Family and Close Relations
Working in the Industry
Close ties to others working in the industry—spouses,
immediate relatives, close friends and the like—present speci
security, regulatory and confidentiality concerns.
You may find yourself in a situation where someone you are
close to—such as a member of your family, spouse or
domestic partner—is a competitor or supplier of IBM, or is
employed by one. While everyone is entitled to choose and
pursue a career, such situations call for extra sensitivity to
security, confidentiality and conflicts of interest. The closenes
of the relationship might lead you to inadvertently compromi
IBM’s interests.
If you have any questions about your situation, you should
review it with your manager. Frequently, any risk to IBM’s
interests can be minimized through periodic reminders
regarding security protocol, and careful attention to avoidin
inadvertent disclosure of IBM confidential information.
However, in some instances, a change in the job
responsibilities of one of the people involved may be
necessary.
Personal Use of IBM’s Time
Whether or not your personal activity presents a conflict
of interest, you may not conduct non-IBM work or solicit such
business on IBM premises or while working on IBM time,
including time you are given with pay to handle personal matters.
5.2
Inside Information
and Insider Trading
In the course of your employment with IBM, you may become
aware of information about IBM or other companies that has
not been made public. The use or disclosure of such nonpublic
or “inside” information about IBM or another company for
your financial or other benefit is not only unethical, but it
also may be a violation of law. U.S. and other country laws
make it unlawful for any person who has “material” nonpublic
information about a company to trade the stock or other
securities of that company, including options, puts, calls, and any
derivatives, or to disclose such information to others who may
trade. Violation of such laws may result in civil and criminal
penalties, including fines and jail sentences. IBM will not tolerate
the improper use of inside information. These prohibitions also
apply anywhere in the world where we do business.
What is material inside information?
Material inside information is information which is not
available to the general public and which could influence a
reasonable investor to buy, sell or hold stock or securities.
While it is not possible to identify in advance all information
that could be viewed as material inside information, some
examples might include nonpublic information about: IBM’s
financial performance including unannounced earnings and

Letter from
the Chairman
2.0
Speaking Up
3.0
In the Workplace
4.0
In the Marketplace
6.0
Further Guidance
1.0
Guiding Principles
5.4
Speaking Publicly
and Social Media
5.1
5.0
On Your Own Time
5.2
Inside Information
and Insider Trading
dividend actions, acquisitions or other business combinations,
divestitures, major new product or services announcements,
significant advances in research, and other significant activities
affecting IBM.
Avoid improper use and disclosure of inside information.
For example:
• If you know that IBM is considering an alliance or is about to
announce a new product or make a purchasing decision
that could affect the price of the securities of an IBM client
or supplier or other company, you should not buy or sell
the securities of that company until after the information
becomes public
• If you know that IBM is about to make an announcement
that could affect the price of IBM’s own securities, you
should not buy or sell IBM securities on the open market
until after the announcement. For instance, if you have
visibility to any earnings information related to IBM, you
should not trade in IBM securities until the company
publicly announces its earnings
• You should not buy or sell the securities of a client or alliance
company based on any inside information you have about
that company
• If you have nonpublic information that IBM is about to
build a new facility or expand an existing facility, you should
not invest in land or in any business near the new site
• You should not disclose inside information about IBM
or any other company to IBM employees who do not have a
business need to know or to anyone outside of IBM
As with investments, you should not evade these guidelines by
acting through anyone else or by giving inside information
to others for their use, even if you will not financially benefit
from it. If you have any doubt about what you can or cannot
do in this area, you should consult with IBM Counsel.
Integrity Tip
Under certain circumstances, the
exchange of competitive information
with employees of a competitor can
be a crime, even if the people involved
do not directly intend to commit
one. Maintaining the confidentiality
of sensitive business information
can often be as much for your own
protection as IBM’s.
5.3
Public Service
and Political
Activity
5.3
Public Service
and Political Activity
IBM encourages all employees to pursue personal interests,
including active participation in their communities. While the
vast majority of such interests pose no particular concerns for
your IBM position, some do. Certain off-the-job activities can
affect your IBM position, or can otherwise reflect negatively
on IBM. In cases where there is doubt, you must decide whether
you can avoid harm through careful management of your
conduct, or whether harm is unavoidable, and therefore the
activity must be avoided.
Public Service
Participation in public and governmental service may pose
conflict of interest concerns. As a board or committee member,
for example, you may be confronted with a decision involving
IBM, such as a decision to purchase IBM products or services.
In such circumstances, your interest in IBM and your obligation
to the civic organization might pull you in opposite directions.
While you must weigh the concerns and bear responsibility for
your decision, you can and should seek advice from the civic
organization’s lawyer and from IBM Counsel. In all events, you
should make it clear that you are an IBM employee to avoid any
perception that you concealed your association with IBM.
Similarly, should you decide to abstain, you should state clearly
that you are doing so to avoid an actual or potential conflict
of interest.

Letter from
the Chairman
2.0
Speaking Up
3.0
In the Workplace
4.0
In the Marketplace
6.0
Further Guidance
1.0
Guiding Principles
5.2
Inside Information
and Insider Trading
5.1
5.0
On Your Own Time
5.3
Public Service
and Political
Activity
Political Office, Contributions
and Endorsements
IBM will not make contributions, payments or otherwise give
any endorsement or support which would be considered
a contribution, directly or indirectly, to political parties or
candidates, including through intermediary organizations,
such as political action committees, campaign funds, or trade
or industry associations. For example, IBM will not purchase
tickets, pay fees, or reimburse expenses for any event where any
portion of the funds will be used for election campaigns.
In many countries, political contributions by corporations are
illegal, though IBM will not make such contributions even
where they are legal.
You must not make any political contribution as a representative
of IBM. You may not request reimbursement from IBM,
nor will IBM reimburse you, for any personal contributions
you make.
Further, your work time or use of IBM assets is the equivalent
of such a contribution. Therefore, you will not be paid by
IBM for any time spent running for public office, serving as an
elected official or campaigning for a political candidate, unless
required by law. You can, however, take reasonable time off
without pay for such activities if your IBM duties permit and it
is approved by your manager. You also may use vacation time
for political activity. You must consult with IBM Governmental
Programs before accepting a political appointment to any
government entity or running for government office at the
local, state, or federal level.
5.4
Speaking Publicly
and Social Media
When you speak out on public issues or in a public forum, you
do so as an individual, and you should not give the appearance
of speaking or acting on IBM’s behalf. This is particularly
important with the rise of social networking media. You must
always be aware that such services are increasingly being
monitored by clients, colleagues and regulators alike.
Integrity Tip
Rightly or wrongly, anything said or
written in public—from the town square
to social networking pages on the
Internet—will remain documented
longer than you likely intended, and
may someday be read by a client or
colleague. You should carefully guard
against making statements that
might unintentionally reflect nega-
tively upon IBM, or that might create
the impression you are speaking for
IBM. When communicating in a blog,
wiki, social network, virtual world, or
other social media, ensure you follow
IBM’s Social Computing Guidelines.
5.4
Speaking Publicly
and Social Media

Letter from
the Chairman
2.0
Speaking Up
3.0
In the Workplace
4.0
In the Marketplace
5.0
On Your Own Time
1.0
Guiding Principles
6.2
Additional
Resources
6.1
Other IBM Policies,
Directives and
Guidelines
6.0
Further Guidance
6.1
Other IBM Policies,
Directives and Guidelines
• Corporate Directives, Policies and Instructions
• Government Client Guidelines
• Guidelines for Working with Business Partners
• Open Source Participation Guidelines
• Social Computing Guidelines
• Technical Ethics Guidelines—Global
• WW Records Management
6.2
Additional Resources
• Concerns and Appeals Programs
• Trust and Compliance
• Global Assignment and Immigration
• Import Policies and Guides
• Export Regulation
• Privacy Data Protection: Policies and Legislation
• Revenue Recognition
• Corporate Security website
• Global Procurement

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