Koch Industries employee on a tower

At the heart of how we work.

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To succeed in today’s world of rapid change, we must have a heightened sense of urgency and the commitment to continually transform our performance. Our approach, Market-Based Management®, encourages and equips individuals to practice lifelong learning, drive innovation, embrace transformation and achieve self-actualization – all contributing to a healthy, growing organization.

Eight principles. Infinite potential.

Market-Based Management is the business philosophy and framework developed by Charles Koch that we apply to innovate, improve and transform ourselves in order to create greater value. Our MBM® Guiding Principles define who we are as an organization. We live by them daily, as they are essential to the creation of virtuous cycles of mutual benefit. 

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1. Integrity

Have the courage to always act with integrity.


Stewardship & Compliance

2. 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™

3. 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.



4. 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.



5. 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.



6. 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.



7. 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.



8. 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.

At the foundation of our approach is Market-Based Management.

By applying the same shared values that unleash prosperity in free societies – such as value creation, equal rights, personal responsibility, openness and toleration – we take initiative and challenge the status quo to create value for others. See how we’re bringing MBM to life.

Charles Koch in front of a book shelf
Charles Koch explains virtuous cycles of mutual benefit.

Growth through transformation.

Since 1961, the growth of Koch Industries has outperformed the S&P 500 by nearly 26 to 1.

How did one organization create such dramatic, long-term growth? Especially in light of countless other companies that failed to adapt and ceased to exist?

We believe the answers to our success lie in our MBM business philosophy coupled with perpetual transformation focused on creating real value by helping people improve their lives. In understanding the very nature of change, finding the courage to embrace it, occasionally, we even help drive it by challenging basic assumptions and each other to discover new and better ways to create value for others.

Koch Industries vs. S&P 500S&P 50020181960
Good Profit by Charles Koch

Bottom line, it’s about more than money.

The MBM business philosophy is built on finding better ways to meet people’s needs long term. For more, check out the book “Good Profit.”