Philosophy

Employees at Koch collaborate on glass board

People empowered by principles.

The success of Koch is rooted in the application of proven principles of human progress. The better we’ve understood and applied these principles, such as mutual benefit, comparative advantage and creative destruction, the more we’ve grown by helping others succeed. Principle Based Management™ is the business philosophy and framework developed by Charles Koch that we apply to innovate, improve and transform ourselves and our businesses to create greater value. Our future success depends on continuing to improve our ability to do so.

The principles that guide us.

Our Values, which are derived from principles of human progress, define who we are as an organization. They empower each of us to realize our potential by maximizing our contributions. Each of us has a responsibility to live by them daily. They are essential for the creation of virtuous cycles of mutual benefit.

1 Integrity

1. Integrity

Have the courage to always act with integrity.

2 Stewardship & Compliance

2. Stewardship & Compliance

Act with proper regard for the rights of others, especially regarding safety and the environment. Comply with all laws and regulations. Stop, think and ask.

3 Principled Entrepreneurship™

3. Principled Entrepreneurship™

Create virtuous cycles of mutual benefit by becoming a preferred partner of customers, employees, suppliers, communities and other core constituencies. Continually seek to identify and close the gaps between what you are and what you could be accomplishing if you were fully applying Principle Based Management™.

4 Transformation

4. Transformation

Transform yourself and help the company and others to do the same. Develop the visions, strategies, capabilities, products and services that will enable us to satisfy unmet needs and create superior value.

5 Knowledge

5. Knowledge

Seek and acquire the best knowledge from any and all sources that will enable you to innovate and improve results. Share your knowledge proactively. Provide and solicit challenge consistently and respectfully.

6 Humility

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

7. Respect

Treat everyone with honesty, dignity, respect and sensitivity. Include and embrace different perspectives, experiences, aptitudes, knowledge and skills in order to leverage the power of diversity.

8 Self-Actualize

8. Self-Actualize

Be all you can be. Identify, develop and apply your gifts and passions so you can best contribute in ways that are most meaningful to you. Be a lifelong learner.

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 Principle Based Management™ business philosophy 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.

A different kind of business book.

For more about how our unique business philosophy has propelled Koch Industries forward, check out “Good Profit” by Charles Koch.

GoodProfitBook.com

"Technological innovations, extreme politics, civil unrest, cyberattacks, demographic shifts and the global pandemic have accelerated the pace of change beyond what anyone anticipated. But these tumults and upheavals have only confirmed what I said in 'Good Profit' about the role of business in society: The only reason a business should exist (and the only way it can legitimately survive long term) is to create value in a responsible way."