Knowledge Management Report On ABB Company.

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

History of The Company
ASEA 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
Company
Power 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 instrumentation
Cables and Cable Accessories Cooling Systems
Generator Circuit Breakers High Voltage Motors
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
Company
Rapid response
The experts are at clients’ service around the clock through service contracts providing
support to ensure reliable system performance.
Lifecycle management
The company provides tools and expertise to help clients analyze, optimize and extend
the lifespan of your equipment.
Operational Efficiency
We help you optimize your equipment and systems availability and throughput which
will improve your profit margin.
Performance improvement
ABB is your strategic partner to solve challenges in terms of productivity, availability,
reliability, safety, costs, energy and emissions.
ABB Technologies That Changed The
World
The 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 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.

Mission
Improve 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.

Vision
As 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 Santacana
Pakistan: Arfeen Khalid
Oman : Saeed Fahim
Saudi Arabia : Mahmoud Shaban
Canada: Daniel Assandri
South America: Sergio Gomes
Argentina: Christian Newton
Aruba: Ramon Monras
India: Bazmi Husain

Knowledge Management
Helps
Global sharing and teamwork
Continuous improvement of service delivery
Capture of knowledge as assets of the company
The re-learning of ongoing service skills and competencies
Foster innovation

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 Monitoring
The 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 reporting
Downtime Management / Maintenance
Support
ABB'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 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-In
ABB 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 time
IBM 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 Entry
Provides basic presence and instant messaging.
Lotus Same time Standard
Provides additional functionality to Lotus Same time Entry,
Lotus Sometime Advanced
Provides additional real-time community collaboration and social networking
functionality to Lotus Same time Standard, including: (persistent chartrooms,
instant screen sharing)
Lotus Same time Unified Telephony
Provides additional telephony functionality to Lotus Same time Standard or
Lotus Same time Advanced,
Lotus Same time Gateway
Provides server-to-server interoperability between disparate communities with
conversion services for different protocols, presence information awareness, and
instant messaging.

IBM Lotus Team Workplace
A 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 relationship
Exchange of knowledge
Teams across boundaries
Quick place (QP) by GWM
Screen sharing, document attachment, messaging and polling
ABB Meeting Centre Web Room
RHS – meeting participants and their status
Bottom left – interaction tab
Whiteboard
Meeting moderator-controls the meeting
Purpose 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 standards
Lessons Learnt at ABB
Technology a business need is an absolute must and requisite
Key Success Factors People and Interaction
ABB went for “System on Demand” instead of “System on Supply approach”
ABB focused on creating conditions instead of organizing Knowledge
Sharing
KM needs brains and teams and shared context
Human Interface Technical Contact
Commitment
We are committed to a high standard of integrity which is expected of
every employee and in every country where we do business.
Integrity Leadership
Integrity leadership involves every dimension at ABB
At 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 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 Resources
The 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 Officer
ABB 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 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 team
The 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 Victor
General 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 Put
Chief 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 Speekenbrink
Head 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 Recognition
ABB 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. “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 Safety
We want integrity embedded in our people, our business and our processes
All ABB compliance standards, rules and guidelines remain in force. Behaving with
integrity is the next step on the path, in which these 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 determination
ABB 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 commitment
We 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.
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 Directives
To 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 controls
The 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 Notes
Complying 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 meetings
2. Competitive intelligence gathering versus commercially sensitive
information exchanges
3. 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
Representatives
Expecting 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 agents
Special 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
Expenses
Our 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 expenses
Our 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 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;
 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; and
 Infrequent: such giving or receiving is not a regular happening
between the giver and the recipient.

Reporting Channels
Multiple reporting channels
Reporting an integrity concern has never been easier.
ABB offers employees multiple reporting channels
Employees 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 Hotline
Employees 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 quickly
Employees 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.
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 concern
Environmental/safety concern.
Threats and physical violence
Any actions or conduct that threatens violence or injury to other people in the
workplace, on company property pr in company vehicles.
Financial and business integrity
Antitrust or fair trading violation
Discussions 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 interest
Situation 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 the capital stock of a public company) in a business
that does business or competes with the company.
Counterfeiting

Questions 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 information
Concerns regarding misrepresentation of information.
Out-of-policy payment
Concerns regarding out-of-policy payments.
Quality control
Complaints 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 enrichment
Concerns regarding self enrichment.
Legal and regulatory issues
Conflict of interest
Situation in which an employee's personal or professional interests may be opposed to
or conflict with the interests of the company.
Falsification of documents
False entry of facts or data on a company document.
Fraud
Deliberate 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
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 Program
On 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.

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 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 Myths
1. 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.
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.
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 training
Face-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
employee
Face-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-learning
Highly 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 schedule
E-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.
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 ABB
To 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 leadership
Cases of consequence
The “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:
“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 cards

Several 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 messages
Every 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 Issues
ABB 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 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
Improvement
Following 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 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.

Knowledge Management Report On ABB Company.

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