1. Would IBM’s value statements have caused IBM to act differently in the three situations described in the case? Explain.
2. Are Google’s actions in the situations described in the case consistent with Google’s value statements? Explain.
3. Compare and contrast the IBM and Google value statements. Do the two values statements have different purposes? Are they appropriate for IBM and Google?
4. Should a for-profit organization have a values statement? If so, what should be its purpose?
IBM and Google are two of the most successful firms in the history of business. Since the demise of Bell Laboratories following the breakup of AT& T, IBM has had the world’s leading corporate research labs. Five IBM scientists have won Nobel Prizes in physics (compared with 12 from Bell Labs), and every year since at least 1992 IBM employees have been granted more patents than employees at any other firm in the world.1 More importantly, some technology analysts consider IBM’s research more fundamental, yet more practical, and its patents more valuable, than those of most competitors.
Google was founded in 1998 by two Stanford computer science graduate students, Larry Page and Sergey Brin, at the start of the Internet boom. Google quickly became the world’s dominant search engine and gained widespread fame for its corporate culture. Google offered employees free healthy lunches and dinners, and snack tables were spread throughout the firm’s offices. Google buildings included space for bicycles, pets, pool and foosball tables, volleyball courts, and gyms. The firm offered employees free massages, meditation classes, and yoga sessions. Employees were encouraged to spend 20% of their time at work on projects of their choice, which led to innovative developments and motivated employees.