How Effective is Your Ethics Program?
Our purchase orders include an Ethics Statement which encourages all suppliers to implement an effective ethics program.
In addition, Lockheed Martin expects our suppliers to conduct themselves in a manner consistent with the provisions in our Supplier Code of Conduct.
Does your Ethics program help your organization do just that?
The provisions in the Supplier Code do cover many, if not most, of the issues Lockheed Martin and its suppliers face every day: from Environment, Human Rights and Human Trafficking, to Counterfeit Parts and Conflict Minerals. Plus, there’s an additional benefit of adopting core elements of an Ethics program: maintaining a culture where employees feel empowered to speak up – giving leaders the chance to hear any bad news early, before a question becomes a major issue.
If your company could use some guidance to meet these expectations, give us a call. We have resources that can help.
Ethics Programs reduce the risk to your business...and ours
Compliance with the Supplier Code of Conduct
Topic-Specific Code Resources
Anti-Corruption
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.
Gifts & Business Courtesies
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.
Counterfeit Parts
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.
For more information, visit our Sustainable Supply Chain Management page or review the Counterfeits FAQs.
Human Trafficking
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.
Conflict Minerals
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.
For questions regarding Lockheed Martin's conflict minerals policy, visit our Sustainable Supply Chain Management page or contact conflict.minerals.info@lmco.com.
Environment
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.
Supplier Ethics Mentoring Program
Supplier Self-Assessment
Your company may already have multiple elements of an effective Ethics program. Our Supplier Self-Assessment Tool is a simple Excel spreadsheet that helps you determine where to focus your efforts. Take some time with your leadership to evaluate what is or isn’t being done in each of the twelve categories.
If your company is taking the assessment as part of the Supplier Ethics Mentoring Program, then this tool will be helpful in your next conversation with your mentor. If you are taking the assessment without a prior connection to one of our Ethics Mentors, please feel free to contact us about setting up a meeting.
Our 1:1 Mentoring Program
What To Expect
1st Meeting: Introduction to the Mentoring Program and the available resources, including the Self-Assessment Tool
2nd Meeting: Discuss where the supplier would like to start in developing or enhancing their program.
3rd and 4th Meetings: Referrals to resources to help the supplier build their program, including evaluation of the Elements of an Effective Program
Ethics Minicourses - Setting Up an Effective Ethics Program
In our Supplier Self-Assessment, we identified twelve key elements that make up an effective ethics program. Each of the elements are grouped into three tiers as a guide for companies to prioritize where to start first.
For some companies that are just starting development of a program, or are looking for the first steps in ensuring adherence to the Supplier Code, Tier 1 may be the place to start. For other companies that have begun programs, Tier 2 may be the next place to explore enhancing the program. And for companies with established programs, Tier 3 may be the place to start.
In each of the 12 ethics videos below, Lockheed Martin Ethics Officers walk you through the setup and implementation of each element of an effective ethics program.
Begin with Why You Need an Ethics Program which introduces what an ethics program is, why your company needs one, and how to navigate the 12-part minicourse series.
Elements of an Effective Ethics Program
Click on the overview icon, mini-course icons or “Watch Video” links below to launch each video.
Self-Serve Resources
Defense Industry Initiative on Business Ethics & Conduct
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.
Additional Resources
Explore a selection of additional Ethics & Compliance resources.
For more information on Suppliers at Lockheed Martin, be sure to visit the Supplier Wire Page.