The Market-Based Management® business philosophy that Charles Koch created and helped apply throughout Koch companies is built on the Guiding Principles. Among the many things that have changed since “Good Profit” was first published are Koch Industries’ Guiding Principles. To learn more about the changes Charles Koch describes as “more necessary, more urgent and more fundamental” than “any that we have made in the past,” visit KOCHind.com/philosophy.
Integrity Have the courage to always act with integrity.
Stewardship & Compliance Act with proper regard for the rights of others. Put safety first. Drive environmental excellence and comply with all laws and regulations. Stop, think and ask.
Principled Entrepreneurship™ Practice a philosophy of mutual benefit. Create superior value for the company by doing so for our customers and society. Help make Koch the preferred partner of customers, employees, suppliers, communities and other important constituencies.
Transformation Transform yourself and the company. Seek, develop and utilize the visions, strategies, methods and products that will enable us to create the greatest value.
Knowledge Acquire the best knowledge from any and all sources that will enable you to improve your performance. Share your knowledge proactively. Provide and solicit challenge consistently and respectfully.
Humility Be humble, intellectually honest and deal with reality constructively. Develop an accurate sense of self-worth based on your strengths, limitations and contributions. Hold yourself and others accountable to these standards.
Respect Treat everyone with honesty, dignity, respect and sensitivity. Embrace different perspectives, experiences, aptitudes, knowledge and skills in order to leverage the power of diversity.
Self-Actualization Be a lifelong learner and realize your potential, which is essential for fulfillment. As you become increasingly self-actualized you will better deal with reality, face the unknown, creatively solve problems and help others succeed.
Koch companies embrace the free market in business operations by systematically applying MBM® through several areas of focus.
Vision: Focusing on where and how the organization can best apply its capabilities to create the most value for others. Be a leader in innovation, enabling the company to remain a preferred counterparty.
Virtue and Talents: Hiring and retaining people based on values before talent, so that everything the organization does reflects the MBM Guiding Principles.
Knowledge Processes: Creating, acquiring, sharing and applying relevant knowledge, while measuring and tracking how the organization creates value.
Decision Rights: Ensuring the right people are in the right roles with clear responsibilities for which they are held accountable, and having decision-making processes that create value.
Incentives: Rewarding people according to the long-term value they create for the organization, in harmony with the Guiding Principles.