In Reply to: Re: Brian Marks - IBM Japan Tax Evasion Link posted by Nigel Foster on 21 December 2003 at 01:38:04:
True but not the whole story. They also created a separate section of the existing fund and used the surplus to not make contributions on that defined contribution plan.
A further point. £10m or so in a fine re. Japanese Tax Authorities might be chicken feed in IBM's context but probably not your's and certainly not mine. It is a large fine and the significance of it goes way beyond the size, large as it is. They've been done, and in public. They've got form in Japan.
Three points:
1.There have now been numerous reports of IBM falling foul of National Authorities in one form or another. (e.g. Inland Revenue here, Japanese Tax Authorities, US fine for selling kit to Eastern Bloc and most recently an SEC investigation into what appears to be some kind of overstated revenue issue. Add to this alleged bribes in Argentina, Mexico and South Korea I seem to recall.). This is clearly not the IBM those who left before Gerstner knew. That makes me feel very uncomfortable indeed.
2.The "new blue" has problems all over the Globe. Its new face which appears to have lost integrity, isn't a local problem but appears instead to be systemic. In other words it is no more than a new IBM principle broadcast from Armonk just as Watson's big 3 were. If they would attempt to cheat revenue authorities do you honestly believe that you can expect them to be above board with you?
3.I'm afraid that it seems to me that the prognosis is very bad indeed. Count your lucky stars if you were prudent and put a bit aside for a rainy day.
My point then is that we'll never see any improvement until we understand the mindset of the Corporation as it is now. Then we have a chance but it will require action. IBM will only change for the better if it is humiliated by its ex employees engaging in a campaign of public awareness as to IBM's real persona, and a campaign which puts its business in jeopardy as the public wake up too. Without such a campaign you can forget any positive change. Sorry to be so direct but with respect to you this Board is a complete waste of time without action.
Happy Christmas.