Integrity has been the cornerstone of our business since TI was founded in 1930 as Geophysical Service Inc., an independent prospecting company established to do seismic oil exploration.
Eighty-five years later, our business has evolved to focus on technology, but our essence remains the same. Our core values of integrity, innovation and commitment define us, laying the foundation for our culture.
As director of Ethics, I am once again humbled by TI’s recognition today by the Ethisphere Institute as one of the world’s most ethical companies.
We have relished this distinction for nine consecutive years, grateful for its affirmation of our commitment to high ethical standards – and honored by our position as a global leader in defining and advancing the standards of ethics.
The World’s Most Ethical Companies designation recognizes organizations that have had a significant impact on the way business is conducted by fostering a culture of ethics and transparency at every level of the company.
Ethisphere’s assessment is based on its Ethics Quotient (EQ), a framework developed to provide a way to assess an organization’s performance in an objective, consistent and standardized way.
Scores are generated in five key categories: ethics and compliance program (35 percent), corporate citizenship and responsibility (20 percent), culture of ethics (20 percent), governance (15 percent) and leadership, innovation and reputation (10 percent).
At TI, our foundational belief in doing the right thing is woven throughout the fabric of our history. Even in our early days of oil exploration, our founders knew that our reputation for integrity was the company’s most effective marketing tool.
“Integrity rides at the highest levels in the exploration industry, where a man’s word is his bond,” said Cecil Green, who was among our company’s founders and served as exploration party chief during the 1930s. “I’m convinced that the high demands of science breed integrity and modesty as well.”
Eleven short years after our company was founded, petroleum exploration ventures began to wither under the foreboding threat of World War II. About that time, Green partnered with Eugene McDermott and Erik Jonsson to purchase our fledgling company, signing the papers only one day before the attacks on Pearl Harbor in December 1941.
During the war, the company obtained government contracts to make military equipment in our Dallas labs. This military manufacturing venture created a new business opportunity that grew into Texas Instruments.
In 1961, we became one of the first American companies to articulate our devotion to ethics in a written document. We issued Ethics in the Business of TI, abooklet that focused on ethical issues of the era, including price-fixing, misrepresentation, trade secrets, use of company assets, and gifts and entertainment. Within its pages, the book’s purpose was explained this way:
“Good ethics are good business, both from the moral and practical standpoint. The trust and respect of all people – fellow workers, customers, stockholders, suppliers, competitors, neighbors, friends, and the general public – are assets that cannot be purchased. They can only be earned.”
This ethics publication was revised each decade throughout the 1900s.
In 1987, as Americans grappled with the consequences of insider trading and corporate takeovers financed by junk bonds, TI established a formal Ethics Office and Ethics Committee, further demonstrating its commitment to operating with integrity.
In 1997, we published The Values and Ethics of TI, articulating the core values of integrity, innovation and commitment that had defined us for more than 60 years. In 2004, we revised the book to include our Code of Conduct.
And I am pleased to share that next month, in keeping with our rich history of commitment to ethical business practices, we will unveil our updated Code of Conduct.
The intent is to reflect recent changes in laws, regulations and practices and make the code more useful to employees and other stakeholders by presenting it in an interactive, searchable format and treating it not only as a living document, but a training tool.
We are proud of our heritage of ethics and look forward to unveiling the next chapter in our journey – an updated Code of Conduct guiding the behavior of every TIer around the globe.