Our Supplier Code of Conduct, referenced in the ethics clause of all new purchase orders, expresses the expectations we hold for our suppliers, and mirrors the standards we set for our own employees, Board of Directors, and other business associates.
In early 2017 our purchase orders were revised to state that both Lockheed Martin and its suppliers "are expected to conduct themselves in a manner consistent with the principles expressed in either the Lockheed Martin Supplier Code of Conduct, or the Defense Industry Initiative (DII) Model Supplier Code of Conduct."
It has been translated into multiple languages to better serve our international supplier base.
Topic-Specific Code Resources
We have a zero-tolerance policy for corruption, and prohibit anyone conducting business on our behalf, including suppliers, from offering or making any improper payments of money or anything of value to government officials, political parties, candidates for public office, or other persons.
For more information, read our policy on Compliance with the Anti-Corruption Laws.
We compete on the merits of our products and services and do not use the exchange of business courtesies to gain an unfair competitive advantage. We expect the same of our suppliers in the offering or receipt of any gift or business courtesy, including cash and cash equivalents.
For more information, refer to our policy on Gifts, Hospitality, Other Business Courtesies, and Sponsorships or our annual letter to suppliers regarding gifts and business courtesies.
We expect our suppliers to develop, implement, and maintain methods and processes appropriate to their products and services to minimize the risk of introducing counterfeit parts and materials into deliverable products. Effective processes should be in place to detect counterfeit parts and materials, and mark parts obsolete as appropriate.
We expect our suppliers to not engage in the use of forced, bonded (including debt bondage) or indentured labor, involuntary prison labor, slavery, or trafficking of persons. This includes transporting, harboring, recruiting, transferring, or receiving vulnerable persons by means of threat, force, coercion, abduction, or fraud for the purpose of exploitation.
For more information on Lockheed Martin's efforts to combat human trafficking, visit our Human Trafficking page.
We expect our suppliers to take steps to determine if their products contain conflict minerals (tin, tantalum, gold, and tungsten) and if so, implement supply chain due diligence processes to identify sources of these minerals and support efforts to eradicate the use of conflict minerals which directly or indirectly finance or benefit armed groups in the Democratic Republic of Congo or adjoining countries.
We expect our suppliers to operate in a manner that actively manages risk, conserves natural resources, and protects the environment. We expect our suppliers to apply environmental management system principles in order to establish a systematic approach to the management of risks/hazards and opportunities associated with the environment, including potential risk from regulatory non-compliance, reputational loss, and opportunities for business growth through operational and product stewardship.
For more information, visit our Energy, Environment, Safety and Health page.
The Ethics Statement in all Lockheed Martin purchase orders “encourages all suppliers to implement an effective ethics program, including adopting a written code of conduct.”
An effective ethics program, as defined by FAR 52.203-13 and other laws and regulations, can help your company develop a culture in which employees feel empowered to speak up – so you can address any issues before they negatively impact your business.
Lockheed Martin provides a variety of free self-serve resources (below) to help you meet our expectations and comply with your legal requirements through our Ethics Supplier Mentoring Program.
Elements of an Effective Ethics Program
Supplier Self-Assessment Tool
Ethics Program Element Infographics
Next, download the one-page guides below to quickly understand the 'what,' 'why' and 'how' of each element of an effective ethics program.
During our webinars, Lockheed Martin Ethics staff walk participants through setup and implementation of each element of an effective ethics program, presenting small business case studies where applicable and citing useful free resources. Tune into one webinar or all five.
- Why You Need a Formal Ethics Program and How to Get Started Today - April 5 - Slides
- Setting Up an Effective Ethics Program, featuring LM supplier Win-Tech, Inc. - Slides
- Developing Policies, Procedures and a Code of Conduct to Mitigate Risk - Slides
- Training and Communicating on Ethics, and Assessing Your Ethics Program - June 12 @ 2-3pm ET - Register
- Enabling Employees to Speak Up and Addressing Issues Raised, featuring LM supplier Raloid Corporation - June 26 @ 2-3pm ET - Register
The Defense Industry Initiative on Business Ethics & Conduct (DII) offers a complimentary quarterly live webinar series during which industry experts discuss important ethics and compliance topics.