The Science of Success

The “science of human action” and “market-based management” are the foundations of Charles G. Koch’s libertarian business philosophy and the principles behind his successful corporation.

“Market-based management” (MBM)

Koch is the chairman and CEO of Koch Industries Inc. (KII), founded by Fred Koch, his father. Fred launched the Winkler-Koch Engineering Company, which specialized in a “thermal cracking process for converting heavy oil into gasoline.” In the 1930s, the company set up 15 plants in the Soviet Union. In 1940, Fred joined the Rock Island Oil & Refining Company, which preceded KII. He owned 23% of the firm.