Our principled approach
Our Vision is to succeed long term by applying proven Principles of Human Progress to help people improve their lives. To achieve this, we use Principle Based Management™ (PBM™) — our framework for putting these principles into practice. PBM shapes our culture, guiding our decisions and empowering employees to contribute in meaningful ways.
The origin of Principle Based Management
Long before it ever had a name, the idea of applying a set of principles to guide work and life was central to Charles Koch’s journey. His aptitude for math revealed his ability to understand and apply abstract concepts. He began studying disciplines as diverse as economics, psychology, anthropology and management, combining those learnings with his personal experience in multiple countries and cultures, and with numerous business models.
Over time, Charles realized a clear truth: people flourish when they are free to challenge, innovate and contribute — in other words, when they apply Principles of Human Progress. PBM took shape as a framework to help individuals apply these principles to thrive in business and life.
The remarkable success of Koch and its employees has always been rooted in proven Principles of Human Progress. The better we've applied these principles ... the more we've prospered by benefiting others.
Empowering employees
We hire first for values, then talents. By focusing on mutual benefit, we build relationships where people and the company both succeed. This gives employees the chance to grow, take on new challenges and make meaningful contributions.
Advancing stewardship
Stewardship is a foundational principle within our PBM framework. At its core, stewardship at Koch is about respecting the rights of others and managing resources responsibly. Stewardship requires compliance with all laws and regulations and always acting in a manner that reinforces a bottom-up system of equal rights.
Continually transforming
In a world of rapid change, our company strives to create virtuous cycles of mutual benefit — the process of continually building capabilities that create value for others. This never-ending, mutually beneficial process of opportunity generation has allowed us to grow 9,000-fold since 1960. Watch as Charles Koch explains the approach that has helped Koch transform and succeed.
Understanding PBM: Charles Koch’s books
Over the past 50 years, Charles Koch has published several books to help articulate our PBM framework and its evolution. These books provide context for how to apply Principles of Human Progress in business and more broadly in society. “Becoming a Principle-Driven Leader” is the most recent.
Explore PBM
Discover stories, resources and tools to help you understand and apply PBM.
News & resources
From employee features to investments, innovations and community support, catch up with Koch.
