Is IBM ethical?

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Privacy & surveillance Confirmed You decide

IBM stops providing facial recognition to police for mass surveillance

IBM announced it will no longer provide facial recognition technology to police departments for mass surveillance and racial profiling.

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npr.org
IBM will no longer provide facial recognition technology to police departments for mass surveillance and racial profiling, Arvind Krishna, IBM's chief executive, wrote in a letter to Congress.

Climate & energy Allegation Against

IBM Corp. is accused of contaminating groundwater

A New York federal judge won't let IBM Corp. entirely out of a suit from the village of Endicott alleging that the computer giant's old headquarters contaminated groundwater with forever chemicals and other pollution, only tossing claims related to one of the three wells at issue.

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law360.com
A New York federal judge won't let IBM Corp. entirely out of a suit from the village of Endicott alleging that the computer giant's old headquarters contaminated groundwater with forever chemicals and other pollution, only tossing claims related to one of the three wells at issue.

LGBTQ+ policies Confirmed You decide

IBM extends health-care coverage to same-sex couples

IBM extended health-care coverage to same-sex couples, becoming the largest U.S. employer to do so.

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deseret.com
With 110,000 employees in the United States, IBM is the largest employer yet to extend health-care coverage to couples of the same sex.
A steady march by corporate America toward providing benefits for the partners of lesbian and gay employees took its largest step forward Thursday when IBM announced that it would do so for its domestic work force beginning in January.
latimes.com
IBM to Offer Benefits Plan to Gays' Partners - Los Angeles Times

Labor & working conditions Ruling Against

Judge finds cause to believe IBM discriminated against older employees

A judge determined there was cause to believe IBM discriminated against older employees between 2013 and 2018.

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law360.com
IBM Nets Deal To End Ex-Sales Specialist's Age Bias Suit - Law360
statesman.com
IBM was hiring at the same time, and Swanson applied for two management positions that fit his skills.
The new federal court complaint didn’t detail the outcome of any EEOC investigation but did point to other cases in which the agency found reasonable cause to believe IBM had a pattern and practice of firing older workers.
Austin lawsuit accuses IBM of age bias in AI hiring software
supremecourt.gov
( In Re: IBM App.032-033.) On August 31, 2020, the EEOC issued a determination finding reasonable cause to believe that IBM engaged in classwide age discrimination, on the basis of “top-down messaging from [IBM’s] highest ranks directing managers to engage in an aggressive approach to significantly reduce the headcount of older workers to make room for Early Professional Hires” and evidence that “it was primarily older workers .
Appendix F 69a cause to believe that IBM discriminated against older employees between 2013 and 2018.
Indeed, over the last several years, IBM has been in the process of systematically laying off its older employees in order to build a younger workforce.
Appendix E 32a Equal Employment Opportunity Commission (“EEOC”) issued a determination that there was reasonable cause to believe IBM had in fact discriminated against older employees during the time Plaintiffs were laid off.
theguardian.com
And a recent lawsuit against IBM alleges that AI tools discriminated against older workers.
theregister.com
IBM's layoffs during this period – the subject of numerous age discrimination lawsuits, many of which have quietly settled – can also be viewed through the lens of financial engineering to maximize executive compensation awards.
IBM accused of mislabeling mainframe sales to cheat market
theregister.com
IBM, an age discrimination complaint filed in September by two human resources managers.
The lawsuit describes the 2020 US Equal Employment Opportunity Commission (EEOC) determination [PDF] that "there is reasonable cause to believe that [IBM] has discriminated against [employees] on the basis of age." And it highlights reporting to that effect from ProPublica, as well as more recent revelations about IBM executives dismissing older workers as "dinobabies."
IBM and Kyndryl again sued for age discrimination

Corporate conduct Allegation Against

IBM is accused of concealing cybersecurity incidents

IBM is accused of downplaying or concealing incidents before entering government agreements requiring it to certify no significant unresolved cybersecurity issues.

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fortune.com
William Barlow, IBM’s former vice president of threat intelligence, alleged in the complaint that the companies failed to disclose multiple breaches over years by attackers linked to foreign governments and made false assurances about the security of their systems in order to win and keep federal contracts.
International Business Machines Corp. and AT&T Inc.’s computer systems were repeatedly breached by foreign hackers, and the companies concealed those intrusions from the US government in violation of the law, according to a lawsuit from a former IBM cybersecurity official.
It also says IBM downplayed or concealed incidents before entering government agreements requiring it to certify it had no significant unresolved cybersecurity issues.
IBM, AT&T accused by whistleblower of covering up foreign hacks | Fortune
bloomberg.com
International Business Machines Corp. and AT&T Inc.’s computer systems were repeatedly breached by foreign hackers, and the companies concealed those intrusions from the US government in violation of the law, according to a lawsuit from a former IBM cybersecurity official.

Privacy & surveillance Confirmed You decide

IBM signs $69.8M facial recognition contract

IBM signed a $69.8 million contract with the British government to develop a facial recognition platform for immigration and law enforcement.

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business-humanrights.org
Despite these announcements, last month, IBM signed a $69.8 million (£54.7 million) contract with the British government to develop a national biometrics platform that will offer a facial recognition function to immigration and law enforcement officials...
techspot.com
According to documents reviewed by Liberty Investigations and The Verge, IBM inked a $69.8 million contract with the British government to create a biometrics platform complete with facial recognition functionality just last month.
theverge.com
Despite these announcements, last month, IBM signed a $69.8 million (£54.7 million) contract with the British government to develop a national biometrics platform that will offer a facial recognition function to immigration and law enforcement officials, according to documents reviewed by The Verge and Liberty Investigates, an investigative journalism unit in the UK.

Corporate conduct Settlement Against

IBM settles bribery charges with $10M payment

IBM pays $10M to settle charges it bribed Chinese and Korean officials.

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thehill.com
IBM to pay $10M to settle charges it bribed Chinese, Korean officials

Workplace equity Settlement Against

IBM paid $17 million to settle discrimination allegations

‌Acting Attorney ​General Todd Blanche said on ‌Friday ⁠that IBM ⁠has agreed ​to ​pay $17 ​million ‌to resolve allegations of discrimination through ‌illegal ​diversity, ​equity ​and ‌inclusion practices.

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federalnewsnetwork.com
Terry Gerton Let’s talk about IBM and their recent settlement on the 10th of April they reached a $17 million settlement over their DEI programs with the Department of Justice.
finance.yahoo.com
The DOJ's allegation that IBM considered race, national origin, or sex in hiring and promotion decisions lands in the exact place SHRM data shows workers are already watching.
finance.yahoo.com
For example, similar to the October complaint, the executive alleged that following President Donald Trump's January 2025 executive order directing federal agencies and federal contractors to end DEI programs, IBM removed "several high profile African American employees," despite having "no performance-based reason to terminate" them, to appease the Trump administration and retain favored status for securing large federal contracts.
finance.yahoo.com
IBM allegedly considered factors such as race, color, national origin, and sex when making employment decisions. The company's actions included using a diversity modifier that linked employee bonuses to demographic targets, the news release stated.
IBM Agrees To Pay The US $17M In Settlement Over A Lawsuit Accusing The Tech Firm Of Promoting DEI
finance.yahoo.com
‌Acting Attorney ​General Todd Blanche said on ‌Friday ⁠that IBM ⁠has agreed ​to ​pay $17 ​million ‌to resolve allegations of discrimination through ‌illegal ​diversity, ​equity ​and ‌inclusion practices.
IBM to pay $17 million to settle discrimination allegations, DOJ says
finance.yahoo.com
The settlement stems from allegations by the U.S. Department of Justice that IBM, as a federal contractor, "knowingly" made false claims about compliance with anti-discrimination laws while implementing policies that considered race and sex in employment decisions.
IBM Pays $17 Million To Settle DOJ DEI Allegations: Executive Bonuses Tied To Demographic Targets
finance.yahoo.com
IBM strikes $17M deal to end feds’ probe of DEI programs
For example, the agency claimed that IBM's compensation practices caused employees to take these protected categories into account when making employment decisions.
Per the settlement agreement, DOJ alleged that IBM knowingly violated Title VII of the 1964 Civil Rights Act and discriminated against applicants and employees on the basis of race, color, national origin or sex.
fortune.com
The IBM settlement is a reminder that employment decisions must be built on criteria that can withstand scrutiny.
The DOJ’s allegation that IBM considered race, national origin, or sex in hiring and promotion decisions lands in the exact place SHRM data shows workers are already watching.
gothamist.com
A former New York-based IBM employee accused the company of favoring South Asian workers at the expense of African Americans, and blamed the Trump administration's anti-diversity, equity and inclusion policies as the impetus for the alleged wrongful treatment, according to a racial discrimination lawsuit filed in federal court in White Plains.
cnn.com
The DOJ in May 2025 began using the False Claims Act to target diversity initiatives at colleges and alleged that IBM, as a contractor, violated the act by maintaining “practices that the United States contends were discriminatory employment practices,” according to the announcement on Friday.
fastcompany.com
This past week, IBM agreed to pay $17 million over claims that its DEI programs allegedly violated the law—the first instance of an employer settling a case that the government brought under this initiative.
justice.gov
The settlement resolves allegations that IBM failed to comply with these requirements and knowingly maintained practices that the United States contends were discriminatory employment practices.
International Business Machines Corporation (IBM) has agreed to pay the United States $17,077,043, inclusive of civil penalties, to resolve allegations that it violated the False Claims Act by failing to comply with anti-discrimination requirements in its federal contracts due to practices the United States contends discriminated against employees and applicants for employment because of race, color, national origin, or sex.

Corporate conduct Confirmed Against

IBM refusal to license microcode to split machines

IBM is investigated for refusing to license microcode to "split" machines.

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justice.gov
investigated whether IBM's refusal to license microcode to "split" machines constituted a

Labor & working conditions Allegation Against

IBM is accused of age discrimination and retaliation

A lawsuit accuses IBM and Kyndryl of age discrimination under the ADEA and retaliation under Title VII.

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theregister.com
The lawsuit accuses IBM and Kyndryl of age discrimination under the federal Age Discrimination in Employment Act (ADEA), retaliation under the Title VII of the Civil Rights Act, and various state employment law violations.
IBM and Kyndryl again sued for age discrimination