Knowledge Management Report On ABB Company

Company ProfileABB is a global leader in power and automation technologies. Based in Zurich, Switzerland, the company employs 150,000 people and operates in approximately 100 countries. The firm’s shares are traded on the stock exchanges of Zurich, Stockholm and New York.ABB’s business is comprised of five divisions that are in turn organized in relation to the customers and industries we serve. The company in its current form was created in 1988, but its history spans over 120 years. ABB’s success has been driven particularly by a strong focus on research and development. The company maintains seven corporate research centers around the world and has continued to invest in R&D through all market conditions.The result has been a long track record of innovation. Many of the technologies that underlie our modern society, from high-voltage DC power transmission to a revolutionary approach to ship propulsion, were developed or commercialized by ABB. Today, ABB stands as the largest supplier of industrial motors and drives, the largest provider of generators to the wind industry, and the largest supplier of power grids worldwide.Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

History of The CompanyASEA and BBC merge to form the new company, with headquarters in Zurich, Switzerland. The new group, which started operations on Jan. 5, 1988, had revenues of $17 billion and employed 160,000 people around the world. ABB launches Azipod, a family of electric propulsion systems that are fixed to the outside of ships providing both thrust and functions. They increase maneuverability, efficiency and the space available on board. ABB launches the Flex Picker, a delta robot uniquely designed for the picking and packing industry. ABB delivers world’s first commercial high-voltage shore-to-ship electric power, helping reduce greenhouse gas emissions from ships berthed at the Swedish port of Gothenburg. Products Offered by The

CompanyPower Products are the key components to transmit and distribute electricity. The division incorporates ABB's manufacturing network for transformers, switchgear, circuit breakers, and cables and associated equipment.Power Systems offers turnkey systems and services for power transmission and distribution grids, and for power plants.This division provides products, solutions and related services that increase industrial productivity and energy efficiency.The Low Voltage Products division manufactures low-voltage circuit breakers, switches, and control products, wiring accessories, enclosures and cable systems to protect people, installations and electronic equipment from electrical overload.The main focus of this ABB business is to provide customers with products and solutions for instrumentationCables and Cable Accessories Cooling Systems Generator Circuit Breakers High Voltage Motors Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

Insulation Components Low Voltage Products (< 1000 V) Medium Voltage Products (1 - 50 kV) Power Electronics Power Generation Solutions Power T&D Solutions Railway Transformers


Services Provided by The CompanyRapid responseThe experts are at clients’ service around the clock through service contracts providing support to ensure reliable system performance.Lifecycle managementThe company provides tools and expertise to help clients analyze, optimize and extend the lifespan of your equipment.Operational EfficiencyWe help you optimize your equipment and systems availability and throughput which will improve your profit margin.Performance improvementABB is your strategic partner to solve challenges in terms of productivity, availability, reliability, safety, costs, energy and emissions.

ABB Technologies That Changed The WorldThe company has developed the following products which have changed the living style of the people and the world as a whole

HVDC ABB’s high voltage direct current (HVDC) technology has had a truly revolutionary impact on the way that electrical energy is delivered to consumers all over the world. Variable-speed drives ABB's variable-speed drives control the speed of electric motors to match the task in hand, saving power and improving performance in industrial plants, shops, offices and homes, across the world .The industrial robot ABB pioneered the world’s first electrically powered industrial robot and the world’s first industrial paint robot 40 years ago • Today, there are more than 160,000 ABB robots in operation – perhaps the largest installed base in the world.


Substations As the world's leading supplier of electrical substations, ABB has delivered key advances that have improved the reliability and flexibility of transmission and distribution systems in the most demanding environments, from deserts and mountains to offshore rigs and city centers. Extended automation ABB pioneered one of the world’s first distributed control systems in the early 1980s and remains to this day the global market leader and the company with the largest installed base of process automation systems worldwide. Marine propulsion ABB’s Azipod® propulsion systems have had a huge impact on the operating efficiency of ships and floating vessels – reducing their energy consumption and greenhouse gas emissions by as much as 25 percent. Flexible AC transmission systems ABB pioneered FACTS technology in the 1950s and remains the market and technology leader to this day. In the past 50 years ABB has executed around 750 FACTS projects worldwide and has stood for the vast majority of technology breakthroughs. Network management ABB network management and utility communications solutions monitor, control, operate and protect the world’s power systems. Crane systems Several hundred million containers and billions of tons of bulk cargo pass through the world’s ports each year. Much of it is Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

loaded, unloaded and stacked by highly automated cranes equipped with ABB automation and electrical systems. Transformers ABB delivered one of the world’s first transformers in 1893. Today, ABB is the global leader in this vital power technology, with a leading global market share and an innovation track record that is second to none.


MissionImprove performance

ABB helps customers improve their operating performance, grid reliability and

productivity whilst saving energy and lowering environmental impact.

Drive innovation

Innovation and quality are key characteristics of our product, systems and

service offering.

Attract talent

ABB is committed to attracting and retaining dedicated and skilled people and

offering employees an attractive, global work environment.


VisionAs one of the world’s leading engineering companies, we

help our customers to use electrical power efficiently, to increase industrial productivity and to lower environmental impact in a sustainable way.


Regional and Country Managers

North America: Enrique SantacanaPakistan: Arfeen KhalidOman : Saeed FahimSaudi Arabia : Mahmoud ShabanCanada: Daniel AssandriSouth America: Sergio GomesArgentina: Christian NewtonAruba: Ramon MonrasIndia: Bazmi Husain


Knowledge Management Helps

Global sharing and teamwork Continuous improvement of service deliveryCapture of knowledge as assets of the companyThe re-learning of ongoing service skills and competenciesFoster innovation


KNOWLEDGE MANAGEMENT

Improving theinformal flows ofknowledgebetweenIndividuals

Building systemsfor codifying andsharingknowledge withinthe firm

Tapping into newknowledge fromsources outsidethe firm

Three Elements of Knowledge Management


Production Information Management

Production and process managers have become empowered knowledge workers. ABB's solution for Production Information Management drastically simplifies production management by enabling performance monitoring, downtime management and maintenance support, as well as providing statistical production analysis tools. The key to production planning is the on-line access to information without delays. Industrial IT for Production Information Management provides reliable reports on the plant production situation: product stocks, capacities of process equipment, availability, etc. Performance MonitoringThe performance monitoring functionality provides functions including running plant overview, industry specific calculating and reporting capabilities for production, and material storage. Reporting using standard formats is simply a matter of clicking.Mission levels, is now easier than ever. Powerful tools including production tracking and reporting process operations monitoring and reporting KPIs, including OEE calculations and presentations material storage management energy and mission reportingDowntime Management /

Maintenance SupportABB's Industrial IT solution for maintenance support makes sure you know for certain what your most costly problems are, taking the guesswork out of maintenance by integrating facilities for easy Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

identification of failing equipment. Identification of failing equipment is based on event and alarm statistics. Multi-dimensional Pareto analysis is used to find out the real and most costly weak points in the production process and provides support for forecasting the next maintenance event. Maintenance events of specific process equipment are forecasted by using equipment running hours, production totals, cumulative energy utilization, etc. Statistical Production Analysis /

Excel Add-InABB provides powerful tools to effectively monitor and analyze quality related process variables. This information enables operators to compensate or to eliminate assigned causes before out-of-specification product is produced. In Knowledge Manager Statistical Production Analysis, trend functions X Chart, EWMA chart and CUSUM chart have been selected to match manufacturing process specific requirements. Statistical production analysis also provides X-Y graphs (scatter plots) to plot two variables against each other to see the possible correlation between them and histograms for easy view of statistics of run-time quality measurements. Cross correlation calculation with time lag compensation is an important tool to get meaningful information out of your process data.


IBM Lotus Same timeIBM Lotus Same time is client–server application and middleware platform that provides real-time, unified communications and collaboration for enterprises. Those capabilities include presence information, enter resistant messaging, web conferencing, community collaboration, and telephony capabilities and integration. It is sold by the Lotus Software division of IBM.Features

Lotus Same time EntryProvides basic presence and instant messaging.Lotus Same time StandardProvides additional functionality to Lotus Same time Entry,Lotus Sometime AdvancedProvides additional real-time community collaboration and social networking functionality to Lotus Same time Standard, including: (persistent chartrooms, instant screen sharing)Lotus Same time Unified TelephonyProvides additional telephony functionality to Lotus Same time Standard or Lotus Same time Advanced,Lotus Same time GatewayProvides server-to-server interoperability between disparate communities with conversion services for different protocols, presence information awareness, and instant messaging.


IBM Lotus Team WorkplaceA new tool to enhance the existing practice.It is to be integrated with existing applications.Self service application.Changes over appearance and functionality can be customized with template design.

What the meeting center offers to ABB employees?Managing projects and supporting internal processes.Intensifying relationshipExchange of knowledgeTeams across boundariesQuick place (QP) by GWMScreen sharing, document attachment, messaging and polling

ABB Meeting Centre Web RoomRHS – meeting participants and their status

Bottom left – interaction tabWhiteboardMeeting moderator-controls the meetingPurpose and Targets


Project teams, task forces, account teams.Revised docs, presentation and work progress need to be shared among customers, consultancies, extra genies, vendors and suppliers.QP – one common place without affecting the ABB standardsLessons Learnt at ABBTechnology a business need is an absolute must and requisiteKey Success Factors People and InteractionABB went for “System on Demand” instead of “System on Supply approach”ABB focused on creating conditions instead of organizing Knowledge SharingKM needs brains and teams and shared contextHuman Interface Technical Contact

CommitmentWe are committed to a high standard of integrity which is expected of every employee and in every country where we do business.

Integrity LeadershipIntegrity leadership involves every dimension at ABBAt ABB, integrity begins with leadership, responsibility and accountability. The tone from the top is clear: we are committed to integrity and we walk away from non-compliant business. Recurring integrity messages from our CEO and other senior leaders in Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

videos, articles and letters, serve to reinforce our commitment to doing business without breaking the rules. But integrity leadership does not stop at the top. Our integrity program relies on local management to lead by example. All local business unit managers have to regularly lead discussion about integrity issues to ensure that the ethics message comes from the same person that sets the business targets: integrity is the business of the business. With support from top leadership, local leadership, committed integrity resources, and partner resources (like Human Resources and Sustainability Affairs) throughout the company, we are able to foster a strong and sincere culture of integrity.

Global ResourcesThe integrity program – led by the chief integrity officer – is supported by integrity resources at headquarters and around the world.


Over 330 people, both full time and part-time, work on our integrity program and processes. Regional and country integrity officers, covering all countries in which we do business, are a fundamental part of our integrity team.

Community Engagement"Trust is built through transparency and honesty. To be successful, we must build each stakeholder's trust through the integrity of our words and our actions."

Hanna van der Put, Chief Integrity OfficerABB supports international efforts to embed integrity into the conduct of business sectors. While government initiatives are vital to continued progress against corruption, the private sector has an important role to play. ABB contributes to the following organizations and initiatives related to integrity.World Economic Forum's PACI

ABB is a signatory to the World Economic Forum’s “Partnering Against Corruption Initiative” (PACI), signed by more than 100 companies committed to strengthening efforts to counter corruption and bribery. PACI offers a risk mitigation platform to help companies to design and implement effective policies and systems to prevent, detect and address corruption; benchmark internal practices against global best practice through peer exchange and learning; and to level the playing field through collective action with other companies, governments and civil society United Nations Global Compact


As a founding member of the United Nations Global Compact, ABB has been closely involved in its development. ABB’s understanding of human rights and day-to-day business benefits from involvement in such organizations. ABB participates in collective action initiatives against corruption. In addition, ABB has taken note of the UN Guiding Principles on Business and Human Rights and is using its recommendations to assess expectations of corporate behavior.

Business Ethics Leadership Alliance (BELA)

ABB is a member of organizations such as the Business Ethics

Leadership Alliance (BELA), a community that connects senior compliance practitioners with industry thought leaders and provides the comprehensive tools and resources needed to advance the dialogue and raise the bar for best practices.

TRAC Leadership

ABB is a Lead Supporter of TRAC, the first global platform that captures, assesses and shares baseline due diligence information on organizations and individuals across the supply chain. With a universal ID number (TRAC Number) assigned to all approved applicants, this secure, web-based tool creates a new standard for base level due diligence benefitting both buyers and sellers. TRAC is a tool provided by TRACE International, Inc., a non-profit membership association that pools resources and cost-effective Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

anti-bribery compliance solutions for multinational companies and their commercial intermediaries (sales agents and representatives, distributors, suppliers, etc.).

Sustainability Management

ABB subscribes to externally developed charters and principles for sustainability management. Applying such principles is helping ABB to make progress in core areas. Additionally, ABB has a long list of principal memberships and associations involving sustainability.

Working Groups and Conferences

ABB also regularly engages in working groups to help eradicate corruption by cooperating with global companies across industries such as in-country Transparency International round table discussions and G20 anti-corruption working group conferences.Integrity Team A large and experienced teamThe team – led by the chief integrity officer – consists of regional and country integrity officers, supported by a central team in ABB headquarters.

Diane de Saint VictorGeneral Counsel, member of the Executive Committee"ABB is committed to fostering a culture where integrity is woven into the fabric of everything we do. We want integrity embedded in our people, our businesses and processes. This means acting responsibly as


individuals and as a company. We regularly evaluate our culture of integrity, and will continue raising the bar relentlessly."

Hanna van der PutChief Integrity Officer"ABB employees need to understand that behaving with integrity is considered a core element of any successful career at ABB. It is every bit as important as a good engineering or business education. Integrity is one of ABB's five strategic imperatives, and it is the responsibility of every ABB manager to ensure that their employees embrace it."

Dominique SpeekenbrinkHead of Antitrust Practice Group"As an essential pre-requisite for successful business, every ABB employee has a personal responsibility to walk away from any business that might engage the company in anti-competitive practices. This commitment is strongly embedded in ABB’s culture and we strive to live up to this non-negotiable standard in our company."

External RecognitionABB recognized for demonstrated leadership in ethical business practices.ABB, the power and automation technology group was named by the Ethisphere Institute, a leading international organization dedicated to best practices in business ethics, to its 2013 list of the world’s most ethical companies. “We are pleased with the progress we have made in embedding integrity in our business processes and our organization,” said Diane de Saint Victor, ABB General Counsel and member of the Executive Committee. Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

“Being recognized by Ethisphere supports our view that ethical practices are key to ABB’s long term success.”In compiling its list, Ethisphere reviews codes of ethics, litigation and regulatory infraction histories; evaluates investment in innovation and sustainable business practices; looks at activities designed to improve corporate citizenship; and studies nominations from senior executives, industry peers, suppliers and customers.The Ethisphere Institute has compiled an annual list of the world’s most ethical companies since 2007. For the 2013 list, which is the largest to date, Ethisphere reviewed nominations from companies in more than 100 countries and 36 industries.The research-based Ethisphere Institute is a leading international think-tank dedicated to the creation, advancement and sharing of best practices in business ethics, corporate social responsibility, anti-corruption and sustainability. Ethisphere provides the only third-party verifications of compliance programs and ethical cultures that include: Ethics Inside Certification, Compliance Leader Verification™ and Anti-

Corruption Program Verification. ABB has earned both. Standards

"ABB is committed to fostering a culture where integrity is woven into the fabric of everything we do. We want integrity embedded in our people, our businesses and processes. This means acting responsibly as individuals and as a company.”


Diane de Saint Victor, General Counsel.When you work with integrity, non-compliant behavior is simply not an option.

For many years, the compliance program built a strong foundation of uncompromising insistence that we comply with the law wherever we do business and always abide by the rules. The change to integrity marks a significant step in our maturity as a company, reflecting our aspiration to embrace standards of conduct that are even higher compared to our old compliance requirements.From strict compliance with the letter of the law driven by top-down communications, we are now evolving toward a business driven model supported by individual accountability and personal ownership of our business principles

*Based on the DuPont Bradley Curve for Occupational Health and SafetyWe want integrity embedded in our people, our business and our processesAll ABB compliance standards, rules and guidelines remain in force. Behaving with integrity is the next step on the path, in which these Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

standards, rules and guidelines are internalized and become second-nature everywhere in the organization.All employees need to understand that behaving with integrity is considered a core element of any career at ABB. It is every bit as important as a good engineering or business education. Integrity is one of ABB's five strategic imperatives, and it is the responsibility of every ABB manager to ensure that their employees understand it.The ABB Code of Conduct is the framework that explains the behavior ABB expects of every employee and stakeholder around the world. It is based on ABB's business principles: Responsibility, respect and determination.Responsibility, respect, and determinationABB employees and stakeholders apply these business principles to their work and actions on a daily basis. Our principles are about providing our customers affordable products and services without compromising on quality or reliability. But they are also about doing the right thing more generally – following the law, acting honorably and treating each other with respect. The ABB Code of Conduct provides a framework for employees and stakeholders to put business principles into practice with utmost integrity. It is the foundation so that everything we do in connection to our work at ABB should be, and will be, measured against the highest possible standards of ethics and integrity. Unconditional commitmentWe relentlessly set our standards higher for practical as well as ambitious reasons: our unconditional commitment to integrity helps us hire the best people, who develop and provide great products and services, which in turn attracts loyal customers and business partners. Trust and mutual respect among ABB employees and stakeholders is the core of our success, and they must be earned on a daily basis. Employees are expected to read the ABB Code of Conduct and use it in their day-to-day work, always keeping in mind that they each have a personal responsibility to incorporate the principles – and encourage others to incorporate the principles – into their actions. It is available in more than 40 languages to assure its accessibility to everyone at ABB. Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

Employees who have questions or concerns, or who think that one of their colleagues may be falling short of our commitment to the ABB Code of Conduct and to working with utmost integrity, are expected to speak up.Who has to follow the ABB Code of Conduct?We expect all of our employees to read, acknowledge, and follow the ABB Code of Conduct. Failure to do so will result in disciplinary action, and may lead to termination of employment with ABB. Additionally, we expect ABB third parties, consultants, contractors, and anyone assigned to provide temporary work or services for ABB, to follow the ABB Code of Conduct in connection to their work for our company. Failure to do so may result in termination of their relationship with ABB. Does ABB have a Supplier Code of Conduct?It is imperative to ABB that our suppliers, who we regard as our “extended enterprise,” conduct business respectfully and with a high standard of integrity, in line with the ABB business principles. As such, the ABB Supplier Code of Conduct is integrated into our day-to-day operations and is a fundamental part of our Supplier Qualification, Development and Evaluation Requirements. Standards and Policies: The Group

DirectivesTo guide our employees and prevent integrity concerns, ABB has designed a set of

directives that will maintain our position as a world-class company with zero tolerance for illegal or unethical behavior.

A strong set of internal controlsThe group directives provide specific guidelines for the practical application of the ABB Code of Conduct into our day-to-day activities. With a strong set of internal controls and a clear picture of what is expected of our ABB community, we strive to create a culture of integrity reflected in our behavior.Our group directives reinforce the following areas:

Bribery and corruption is prohibited in all business dealings, whether with public officials or private sector business partners. As a rule, facilitation payments are not permitted.Substance-based due diligence is mandatory prior to the appointment of ABB representatives, such as intermediaries and third party agents. Centralized and transparent approval processes with appropriate controls over performance, is mandatory prior to any remuneration payments. Political and charitable contributions are subject to detailed internal policy and controls


The gifts, entertainment and expenses policy defines thresholds, approval processes and their documentation, with additional controls for public officials.Agreements with subcontractors and consortium partners are aligned with ABB’s commitment to integrity in the performance of the contract, including commitments not to violate anti-bribery laws. Suppliers must also maintain integrity standards which are satisfactory to ABB and agree to the ABB Supplier Code of Conduct.Compliance due diligence is mandatory for any acquisition target or joint venture. Thorough integration strategies are implemented.

Antitrust Guidance NotesComplying with antitrust requirements is non-negotiable at ABB. We believe in a competitive, free enterprise system because it guarantees that our work and innovation will be rewarded

We must ensure our continuous compliance with competition and antitrust laws.The ABB Code of Conduct requires us to compete fairly, safeguard confidential information and be mindful of antitrust risks. Our behavior in our teams, with customers, other business partners and in the communities where we operate, must be guided by our business principles – respect, responsibility and determination – in compliance with antitrust requirements. ABB relies on each employee to live by this commitment.To support this commitment and increase awareness about antitrust risks, the antitrust practice group has created three antitrust guidance notes aimed to provide rules and guidance for all ABB employees on how to conduct themselves in accordance with antitrust requirements in certain high risk areas.Following a "do’s and don’ts" approach, the antitrust guidance notes are designed to address practical business situations and focus on specific topics which could raise antitrust concerns:1. Participation in trade association meetingsSubmitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

2. Competitive intelligence gathering versus commercially sensitive information exchanges3. Participation in benchmarking exercises"To be successful on a sustainable basis, we have to build each customer’s

trust through the integrity of our words and actions." – ABB Code of

Conduct.


Appointment of ABB RepresentativesExpecting the utmost integrity from ABB representatives, such as intermediaries and agents, is paramount to our company.

Additional processes and controls for ABB representatives, intermediaries and agentsSpecial care is required when selecting ABB representatives, such as intermediaries and agents, to ensure that they follow ABB rules and commit to working with the highest level of integrity. All appointments are subject to robust, structured approval processes and remuneration guidelines are predefined. ABB uses standard agreements that include anti-bribery provisions, audit rights, and rights to terminate agreements for violations of the ABB Code of Conduct. An electronic database is used to support the appointment process and associated due diligence of intermediaries and agents. It also provides instruction for proper controls during execution of their activities and an approval process for remuneration payments. All ABB representatives receive anti-bribery training prior to being appointed.Gifts, Entertainment and

ExpensesOur success as a company is based on the quality and reliability of our products and services.

To protect our reputation, our customers and stakeholders can trust us to only give or receive

legitimate and reasonable business gifts and entertainment.

Legitimate and reasonable gifts, entertainment and expensesOur group directive on gifts, entertainment and expenses covers both giving and receiving. As a company, we respect a global thresholds and approval processes, taking into consideration local standards in the various regions in which we do business.We also recognize that other companies and customers often have their own code of conduct to abide by, and we are committed to never putting Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

anyone in a position to violate their commitments. Our controlled and transparent approval process for gifts, entertainment and expenses, serves to support our employees so that they can feel confident they are not crossing the line.Furthermore, additional controls have been developed for public officials. Employees of government owned or controlled companies are subject to these heightened standards.In order to determine whether gifts, entertainment or expenses are appropriate, each employee should consider the following criteria: Made for the right reason: The gift and entertainment should be given as an act of appreciation, friendship or hospitality;No obligation: The gift, entertainment or reimbursement of expense does not place the recipient under any obligation;No expectations: Expectations are not created in the giver or an associate of the giver or have a higher importance attached to it by the giver than the recipient would place on such a transaction;Made openly: If made secretly then the purpose will be suspect;No misuse of expenses: Payment or reimbursement of expenses shall not be misused to hide inappropriate gifts or entertainment;Appropriate: The nature of the gift, entertainment or expense is appropriate and is in line with both general business practice as well as local cultural and ethical standards;Legality: It conforms to the laws of the country where it is made and any other applicable laws;Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

Conforms to the recipient's rules: The gift, entertainment or reimbursement of expenses meets the rules or code of conduct of the company or organization where the receiving person is employed; andInfrequent: such giving or receiving is not a regular happening between the giver and the recipient.


Reporting ChannelsMultiple reporting channelsReporting an integrity concern has never been easier.ABB offers employees multiple reporting channelsEmployees are not just encouraged, but are required to speak up and to report any suspected or observed violations of the law, the ABB Code of Conduct, or if they are asked to do something that might be a violation.Reports may be made to a supervisor, a regional or country integrity officer, the chief integrity officer, and ombudsperson, or the ABB Business Ethics Hotline.Employees may report via e-mail or through the Business Ethics HotlineEmployees may report possible violations anonymously by using the Business Ethics Hotline or by sending an e-mail to the chief integrity officer, using a free e-mail account that does not reveal a name. Employees must be aware, however, that anonymous reports may be more difficult to investigate.Confidentiality will be maintained to the fullest extent possible. Retaliation against any employee who in good faith reports a concern to the company about illegal or unethical conduct will not be tolerated and be subject to disciplinary action. The same applies to any intentional abuse of these reporting processes.The key is to speak up and bring integrity concerns into the open so that problems can be resolved quicklyEmployees who have questions about a specific situation should ask for help by using any of the contacts mentioned above. The key is to speak up and bring concerns into the open so that problems can be resolved before serious harm can occur.Reports are received and processed by an independent service provider who forwards the report to the integrity office at ABB headquarters for further review. ABB takes all reasonable steps to ensure the confidentiality of any personal information that you may provide in your report. All reports are subject to appropriate investigation and are brought to full closure using systematic processes and tracking systems.It is a breach of the ABB Code of Conduct to fail to report a violation or suspected violation that employees know about or to refuse to cooperate with the investigation of a suspected violation.Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

Each employee is responsible for ensuring that his or her conduct and the conduct of anyone reporting to the employee fully comply with all applicable laws and the ABB Code of Conduct.The ABB Business Ethics Hotline was introduced in 2006 for the purposes of providing all ABB employees and stakeholders, worldwide, with a means to report suspected violations of the ABB Code of Conduct or applicable laws...as an employee?

ABB employees should report their concerns initially to their direct management, country integrity officer, country human resources manager, ombudsperson, or alternatively, through their country specific Business Ethics Hotline number. Employee country hotline numbers are available on the ABB intranet website. Employee reporting..as a stakeholder?

ABB stakeholders include any ABB business partner, customer, shareholder, agent, distributor, supplier or representative. In order for an ABB stakeholder to make a report to the ABB integrity office, they


need to have some type of existing or prior business relationship with ABB.


Classifications of issues

The first step in submitting a report is to choose the primary issue that you are reporting. Below you will find examples of integrity issues and their correct classification.Customers, vendors and business partners

Customer/supplier relations

Kickbacks, inappropriate gratuities and other unethical or illegal dealings with customers or suppliers. Environment, health, safety and security

Alcohol or substance abuse

The unlawful use, possession, sale, conveyance, distribution, concealment, transportation or manufacture of illegal drugs, intoxicants, controlled substances or drug paraphernalia in the workplace or while conducting company business. Environmental/safety concernEnvironmental/safety concern. Threats and physical violenceAny actions or conduct that threatens violence or injury to other people in the workplace, on company property pr in company vehicles. Financial and business integrityAntitrust or fair trading violationDiscussions or agreements with competitors about prices or credit terms, submission of bids or offers, allocation of markets or customers, restrictions on production or distribution or boycotts of suppliers or customers. Conflict of interestSituation where an employee’s personal interests conflict with obligations to the company, including holding positions outside the company, owning a financial interest (other than less than one percent of Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

the capital stock of a public company) in a business that does business or competes with the company. CounterfeitingQuestions or issues related to counterfeiting. Improper business relationship

Concerns regarding improper business relationships. Improper gifts and entertainment

Concerns regarding improper gifts and entertainment. Legal or contractual issue

Concerns regarding legal or contractual issues. Misrepresentation of informationConcerns regarding misrepresentation of information. Out-of-policy paymentConcerns regarding out-of-policy payments. Quality controlComplaints about product or service quality or effectiveness; allegations of product tampering; violation of policies and practices for manufacturing controls; allegations of non-compliance with product standards or service delivery. Self enrichmentConcerns regarding self enrichment. Legal and regulatory issues

Conflict of interestSituation in which an employee's personal or professional interests may be opposed to or conflict with the interests of the company. Falsification of documentsFalse entry of facts or data on a company document. Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

FraudDeliberate deception practiced in order to secure unlawful or unfair gain. Other

Communications and computer systems

Concerns about potential misuse of company computer and/or communication systems. Confidential or proprietary information

Concerns about sharing information that is owned by the company. Espionage and sabotage

Spying to obtain proprietary company information and provide it to a competing company. General concern

Any allegation, concern, or inquiry that does not fall within the other categories.What kind of information do I need to provide?When making a report to the ABB integrity office, reporters are encouraged to disclose their identity. Reports can be made anonymously; however, ABB strongly encourages reporters to provide their contact details or email address so that contact can be maintained throughout the investigation. ABB will take all reasonable steps to ensure confidentiality throughout the reporting process, so people filing reports should not fear that their identity or issue will be improperly disclosed or abused. Complaints made in good faith will not expose any reporter to sanctions. When making your report, please be aware that the information you provide or the allegations that you make could result in decisions that affect employees of ABB and other third parties involved in the matter. We therefore kindly Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

ask you to provide us only with information that is accurate to the best of your knowledge. We also ask that you provide all relevant facts, dates, persons, details and explanations in relation to your report that could assist the ABB integrity office in their investigation of the matter. Reports which cannot be substantiated will not justify further investigation or review. The ABB Ombuds

ProgramOn July 20, 2009, ABB launched a global Ombuds program ensuring an

additional reporting channel for employees.

The ABB ombudspersons are respected, experienced business colleagues

available for additional guidance and support

Our ombuds program, with 63 ombudspersons in 48 countries, provides an additional resource for employees to use when they have questions or concerns. Our ombudspersons are neither lawyers nor HR personnel, they are senior business people chosen for both their experience and respect within the company.


Last updated April 1, 2012

Preventing and detecting


ABB continuously monitors risks in the business environments where we

operate.

ABB works with a risk-based focus and maintains additional controls for

increased risk exposure

Anti-bribery reviews

Anti-bribery reviews of business units globally are conducted frequently throughout the year by the internal audit department. This is a review of business processes, accounts and balances, and test transactions to assess robustness of controls and identify possible violations.Anti-fraud program

The anti-fraud program is monitored by the internal audit department, which regularly evaluates fraud risk exposure and developing trends. This program is a substantive cross-functional analysis of 21 program elements and response plan to prevent and detect potential fraud. Internal surveys

Internal surveys are conducted to understand employee attitudes, awareness and perceptions of integrity and compliance at ABB, and to monitor progress and address potential gaps in ABB’s culture of integrity. High-risk area process

Enhanced integrity and compliance processes have been developed to address certain areas with greater compliance risk. Additional due diligence reviews and controls are implemented for identified risk areas.Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

Whistleblower Protection Policy

ABB encourages employees to speak up and bring their concerns to light so that problems can be resolved before any harm occurs.Resolving integrity concerns

ABB's Code of Conduct, group directives and operating procedures are intended to prevent and detect improper or illegal activities. Employees are not only encouraged but required to report any violations or suspected integrity violations.The whistleblower protection policy creates a safe and confidential environment for employees to make such reports. This policy governs the reporting and investigation of alleged improper or illegal activities at ABB, as well as the protection afforded to those ABB employees who report them (the “whistleblowers”). ABB will address any complaints of interference, reprisal, retaliation, threats, coercion or intimidation against employees who report, or disclose possible improper or illegal activities. ABB will protect those who come forward to report such activities.Retaliation against any employee who in good faith reports a concern to the company about illegal or unethical conduct will not be tolerated and will be subject to disciplinary action.Employees are not only encouraged but required to report any violations

or suspected integrity violations

Confidentiality will be maintained to the fullest extent possible. All reports are subject to appropriate investigation and are brought to full Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

closure using systematic processes and tracking systems. It is a breach of the ABB Code of Conduct to fail to report a violation or suspected violation that employees know about or to refuse to cooperate with the investigation of a suspected violation. Top Ten Speaking-Up

Myths1. Myth: If I call the Business Ethics Hotline, my claim will be ignored.Fact: All claims are formally reviewed to determine the proper course of action. Not all claims require a formal investigation, but we are committed to responding to every report.2. Myth: I’ll face retaliation for talking to my country integrity officer or calling the Business Ethics Hotline.Fact: No. Retaliation is not tolerated at ABB and violators of this policy will be dealt with accordingly. Country integrity officers are here to help all employees handle ethical dilemmas and address important questions. If retaliation is a serious concern, anonymous reports may also be submitted, unless prohibited by local law, to the Business Ethics Hotline.3. Myth: The Company can trace my call to the Business Ethics Hotline.Fact: No. A call to the Business Ethics Hotline is received by an independent third-party provider who will pass only the message to the ABB integrity officers at headquarters. The number is anonymous and cannot be traced.4. Myth: Even if my claim is substantiated, those involved will not be disciplined.Fact: Integrity stories published on the ABB intranet (“Cases of Consequence”) show that all employees, regardless of rank, are disciplined when appropriate, up to and including termination of employment at ABB.5. Myth: My claim will automatically be sent to Human Resources.Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

Fact: All reports and allegations are first reviewed by the integrity office at headquarters. When appropriate, the office of special investigations will conduct a proper investigation of certain claims. Many employment related issues can be best addressed by human resources on a country or regional level, but they will not be contacted unless the employee who raised the concern is notified.6. Myth: It is not right to blow the whistle on your co-workers.Fact: Speaking up is always the right thing to do when done in good faith. It is important to remember that anyone who engages in behavior that violated ABB policy or the law is harming themselves, their colleagues and ABB. Reporting a concern can bring that to positive end.7. Myth: I’ll never hear about what the company does with my claim.Fact: We cannot discuss specifics and/or disciplinary action with anyone other than the employee involved, but we provide an overview of our action to the caller as soon as the case is opened and once the case is closed.8. Myth: If I raise a concern my manager will find out that I called the Business Ethics Hotline or talked to an integrity officer.Fact: Whether your claim is anonymous or not, every effort is made to maintain the confidentiality of your report.9. Myth: Our company culture does not support speaking up.Fact: This is simply not true. ABB is a company with integrity and wants every employee to take personal responsibility for raising good faith concerns when they think something is not right. ABB also wants every manager or integrity officer to respond to such questions with openness and interest. If this is not the case in your workplace then it is a situation that needs to be reported and escalated to higher management immediately.Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

10. Myth: It doesn’t involve me; therefore, I don’t have to get involved.Fact: Even if you are not directly involved in or affected by the situation you believe is not right, looking the other way is not a good idea. Employees acknowledge the ABB Code of Conduct when they join ABB, and the document clearly states that it is key to speak up

and bring concerns into the open so that problems can be resolved quickly before

serious harm can occur. It is also a breach of the ABB Code of Conduct to fail to

report a violation or suspected violation that employees know about. Asking questions and raising concerns protects you and ABB in the long run.


Training and Communications

Face-to-face trainingFace-to-face training sessions allow for real-time interaction and discussions of difficult

issues, allowing every employee time to receive additional guidance as needed.

An inclusive, two-way approach to personal accountability and responsibility for every employeeFace-to-face training is required for all of our employees worldwide on the ABB Code of Conduct and anti-bribery. ABB stands by the fact that face-to-face training has the highest impact and the company makes every effort to commit time and resources to educate and empower our employees.Additional face-to-face training courses are tailored to different audiences at higher risk. Selected integrity topics such as antitrust and integrity leadership are provided to employees in appropriate positions and functions.Face-to-face training sessions create constructive dialogue through the business and provide time for employees to work through and learn from real examples within ABB. The sessions allow for real-time interaction and discussions of difficult issues, allowing every employee time to receive additional guidance as needed.

E-learningHighly engaging and interactive e-learning is available to over 100,000 employees

around the world, ensuring education delivery through computer tracking and

certification.

E-learning courses allow learners to take training according to their scheduleE-learning courses on the ABB Code of Conduct and anti-bribery are also required for all email account holders worldwide (over 100,000 employees) with completion tracked and certified.The latest mandatory e-learning module on FCPA and anti-bribery is available in 32 languages. Our e-learning is tailored to terms used as part of ABB’s business. Targeted courses are mandatory for employees with responsibilities in specific risk areas including integrity leadership, antitrust, and export credit agencies.Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

Our e-learning courses are highly engaging and interactive, allowing all e-learners to take training according to their own schedule. It allows employees the opportunity to think about and digest important information at their own pace.Communication activities

Regular and wide-ranging communications activities ensure that employees in every location are fully aware of ABB’s commitment to integrity and of the consequences of unethical action. Raising awareness and visibility of integrity throughout ABBTo support integrity training, a range of communications has been designed to raise the awareness and visibility of integrity in every physical location.Regular integrity communications are posted every ten to fourteen days on the ABB intranet such as: Cases of consequence Acting with integrity What should I do Integrity videos with messages from leadershipCases of consequenceThe “Cases of Consequence” stories report real breaches of ABB’s Code of Conduct by employees, and explains how they were discovered and dealt with.A story published in March 2012, for example, explained how a group of employees had submitted fraudulent entertainment and expenses claims by splitting bills into small amounts that didn’t require special approval. The contracts of all employees concerned were terminated.Other articles present dilemmas that frequently occur in the course of business and explain how best to address them. The dilemmas are presented in the form of questions that employees might ask, such as: Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

“One of our customers recently offered me 2 tickets for the Olympics in London and I have accepted them. Now, I am afraid that I will contravene ABB's Code of Conduct. I do not want to disappoint the customer as he has clearly spent a lot of money on them. What should I do?”Posters, brochures and wallet cardsSeveral Business Ethics Hotline poster campaigns have been rolled out in all locations around the world to encourage reporting and to raise awareness of specific areas of risk. This is particularly useful for spreading the integrity message to factory workers who don’t have access to the Intranet. Constant integrity messages and visuals throughout the company reinforce a strong culture of integrity. In addition, display stands and integrity boards at a number of traffic points promote the Business Ethics Hotline. ABB Code of Conduct booklets, integrity informational brochures, and wallet cards are made available for employees to take with them.


Key Messages for Employees

ABB’s technology makes a major contribution to businesses and

communities around the world. It is not, however, only what we do, but

how we do it, which will determine our reputation with our stakeholders

and ensure our continued success.

The message from the top is clear

At ABB, performance is measured not only by the results achieved, but also how these results were achieved," said Ulrich Spiesshofer, ABB's Chief Executive Officer. "This is why our stakeholders can rely on the fact that our services, operations, and daily business are based on ethical behavior."On joining the company, employees are required read, understand, and commit to abide by ABB’s Code of Conduct.


Key messagesEvery employee at ABB must understand that:: ABB must not, should not, and will not break the law ABB competes and wins only by playing by the rules The ABB Code of Conduct and the detailed policies written in the ABB Group Directives, together explain the behavior expected of every employee. ABB remains proactive by implementing ongoing and systematic training and communications, conducting internal surveys, and committing resources to advisory channels such as the Ombuds program and the Business Ethics Hotline.

Management's Responsibility

The chief responsibility for ensuring that employees are aware of and embrace these messages lies with the businesses. Top division managers and financial controllers regularly review and report on integrity and compliance developments in their business, and the issues are a regularly required agenda item for division reviews. They are also an element in the divisions’ business performance evaluations.“ABB is committed to fostering a culture where integrity is woven into the fabric of everything we do,” said Diane de Saint Victor, ABB’s general counsel. “We want integrity to be embedded in our businesses and processes, and reflected in our employees' behavior. This means acting responsibly as individuals and as a company.”


Resolving IssuesABB enforces a strict zero tolerance policy for violations of the law and of the ABB Code of Conduct and investigates all alleged integrity concerns.ABB office of special investigations

Resolving any potential integrity concerns.

All reports come into the office of special investigations, a function of the integrity team reporting to Group Legal and Integrity at ABB headquarters in Zurich. There are currently 19 officers globally, divided between the United States, Switzerland, Hong Kong and Abu Dhabi. Office of special investigations develops and drives investigative processes in order to detect, investigate and remediate criminal and financial exposure through integrity or compliance weaknesses to ensure compliance with the ABB Code of Conduct and all applicable laws. The special investigation officers work in a coordinated effort with functions such as internal audit and Group Legal and Integrity in delivering a wide-range of Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

investigation support on all aspects of conducting investigations at ABB.


Disciplinary Action"A culture of integrity is a prerequisite for a world-class business. Many

valuable customers choose to do business with us in part because they know

ABB behaves in a responsible and ethical way, and that we respect the

needs of individuals, society, and the environment. Our policies also reflect

a zero-tolerance stand against illegal and unethical behavior."

– Ulrich Spiesshofer, Chief Executive Officer

The ABB Code of Conduct is enforced through systematic disciplinary actions.

The Human Resources Disciplinary Protocol is ABB’s formal process for dealing with the individual consequences of integrity and compliance matters. The process was institutionalized in 2004 with the creation of the Human Resources Disciplinary Committee (HRDC) at headquarters. Additional committees have been established at the regional level since 2008. ABB employs Human Resources Disciplinary Committees at headquarters and in the regions to implement disciplinary decisions based on investigative results.


Remediation"ABB employees need to understand that behaving with integrity is

considered a core element of any career at ABB. It is every bit as important

as a good engineering or business education."

– Hanna van der Put, Chief Integrity Officer

ABB is committed to preventing reoccurring problems through enhanced

processes and controls, training and communications.Remediation is an important part of the global ABB integrity program and a key aspect of preventing reoccurrence of potential issues. ABB seeks to identify risk early on so that each situation can be assessed and sustainable remediation measures applied quickly. ABB conducts periodic review and testing of the implementation of the code of conduct, standards, and procedures designed to evaluate and improve their effectiveness in preventing and detecting violations of the Code of Conduct, local laws and ABB's integrity program, taking into account relevant developments in the field and evolving international and industry standards. Remediation Is a Key Aspect of

Ongoing ImprovementFollowing detection of an integrity concern, ABB takes the appropriate steps to resolve the situation and to help prevent the reoccurrence of such an event. Lessons learnt and ongoing Submitted to Sir Abid Saleem by Imtiaz Ahmad, Zain-ul-Abideen, M. Uzair, Waheed Iqbal

improvements in order to anticipate future trends allows ABB to initiate proactive action plans designed to mitigate risks for ABB on a long-term basis.


Education

Knowledge Management Report On ABB Company