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Principios destacados

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Accountability

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Accountability, properly understood, is to take account of what happened and appropriately recognize those who contributed positively or negatively to results…
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Alignment of Incentives

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Aligning the interests of employees with the interests of the company, our customers and society…
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Be Open

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Believe in Yourself

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Benchmarking

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Closing gaps is more than benchmarking against others, but benchmarking can be useful. Learn more through “Closing Gaps.”
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Bottom-Up vs. Top-Down

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A bottom-up approach respects the inherent worth of each person and unleashes creativity, initiative and talents…
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Build Personal Knowledge

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Building trust

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Capabilities

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Koch’s long-term success has come from a focus on building capabilities that enable us to create superior value…
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Changing Paradigms

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Closing Gaps

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We seek to close the gap between what we are doing, however good, and what we could be doing if we were fully applying our principle-based framework.
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Comparative advantage

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Contribution Motivated

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Contribution motivated people are energized by continuously trying to improve, innovate, transform and creatively get results – which enables them to live lives of meaning.
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Contribution to Koch’s long-term success

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Cooperation and Teamwork

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A fundamental principle of human progress is the division of labor by comparative advantage and the resulting increase in cooperation. Learn more through “Division of Labor by Comparative Advantage.”
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Creative Destruction

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As entrepreneurs create new businesses, products, services, processes, methods or types of organizations, less-effective ones become obsolete…
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Diversity

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Division of Labor by Comparative Advantage

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Employees have a comparative advantage in a group when they can perform an activity at a lower opportunity cost than others…
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Economic Measures

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It is essential for us to have measures that help us understand reality and properly focus our efforts. Economic measures are a subset of the measures we need to be successful. Learn more through “Measures.”
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Economic Thinking

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Economics is the study of choice in using scarce resources that have alternative uses…
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Embrace Change

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Empowerment

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When individuals believe they have a gift that can be developed and are free to determine and control their own lives, they are empowered to contribute…
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Experimental discovery

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Experimentation and Experimental Discovery

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To drive creative destruction, we encourage numerous well-designed experiments to determine which new businesses, products, services, processes, methods or type of organization will be successful…
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Headwinds and Tailwinds

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Applying the concept of headwinds and tailwinds helps us transform our ability to succeed in a variety of environments.
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Humility

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Humility is the absence of arrogance, not the denial of strength or intelligence...
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Innovation

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Integrity

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Integrity means being committed to and living by a beneficial moral code...
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/content/koch/language-masters/en/principles-in-brief/integrity

Knowledge

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Knowledge is more than data, facts or information; it’s about applying understanding and know-how profitably to improve results....
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Life of Meaning and Synergy

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Marginal Analysis

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What is the profitability of additional units of production, of one more or less plant, or of a larger versus a more modest investment? Marginal analysis looks at the benefits and costs associated with a specific change.
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Measures

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It is essential for us to have measures that help us understand reality and properly focus our efforts…
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/content/koch/language-masters/en/principles-in-brief/measures

Motivation

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Multiple intelligences

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Mutual Benefit

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At Koch we strive to apply a win-win philosophy in all we do.
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Openness

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An open society encourages honest exchanges of knowledge, opinions and ideas...
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Options

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Possessing an option provides the ability or right, but not the obligation, to take an alternative course of action...
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/content/koch/language-masters/en/principles-in-brief/options

Our Values

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Of all the proven principles of human progress, these eight are the foundational values of our culture and thus are among the most important for all of us to exemplify daily. They are an essential aspect of our Virtue and Talents dimension. They define who we are as an organization and are necessary for the long-term success of Koch and each of us.
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/content/koch/language-masters/en/principles-in-brief/our-values

Overcoming Entropy and Bureaucracy

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At Koch, our approach to overcoming entropy is to create and deploy energy and knowledge through our principle-based framework…
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Overcoming entropy and bureaucracy

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Partner with those who share our vision and values

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Partnerships

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The more people with different and advantaged capabilities join together the more successful they and their organizations will be…
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Personal Knowledge

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We only truly know something when we can apply it to get results …
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Personal knowledge vs. conceptual knowledge

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Principle-Based vs. Rule-Based

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Setting expectations according to general principles without prescribed, detailed directives or rules is core to our culture and long-term success…
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Principled Entrepreneurship™

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We depend on the entrepreneurial contributions of our employees…
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Property Rights

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Clear and protected property rights stimulate beneficial investment. To encourage a strong sense of ownership and entrepreneurship, employees are held accountable for a set of responsibilities and their results.
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/content/koch/language-masters/en/principles-in-brief/property-rights

Republic of Science

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The republic of science principle describes the way the scientific community ideally organizes itself so knowledge is generated and shared freely, leading to beneficial innovations.
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Requirements for Human Action

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What causes people to act?
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Respect

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Treating everyone with dignity and respect not only leads to better outcomes, it is the right thing to do. Respect is more than treating others kindly...
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Rewards, recognition and compensation

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Right Role

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Roles and responsibilities are designed to fit each employee’s talents and interests, but in relation to the roles and capabilities of other employees in a way that optimizes the group’s overall performance. Learn more through “Division of Labor by Comparative Advantage.”
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Risk

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As employees, we are expected to apply Koch’s risk philosophy, not our own…
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Risk management

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Satisfy Unmet Needs

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Identifying and satisfying unmet customer needs is essential to successful Principled Entrepreneurship™. Learn more through “Principled Entrepreneurship.”
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Scientific Method and Challenge

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After developing a theory, strive to disprove or find flaws in it, rather than trying to defend or justify it.
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Seek Help

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Seek Mutual Benefit

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Self-Actualize

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To self-actualize is a deeply personal and unique journey of discovering your aptitudes, developing skills and using them in productive ways.
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Stewardship and Compliance

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The essence of stewardship is recognizing our obligation to always act in a manner that respects the rights of others…
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Subjective value

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Supervisor responsibilities

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Talents

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Time Preference and Long-term Focus

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Transformation

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Transformation doesn’t mean doing what we’ve been doing a little better or a little faster. It means doing things in entirely new ways…
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Virtuous Cycles of Mutual Benefit

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Virtuous cycles of mutual benefit are a never-ending, mutually beneficial process of opportunity generation.
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