Transcription
Corporate Sustainability Report
GD CORPORATESUSTAINABILITY REPORTLetter from Our CEO3Our Business4Our Compass10Ethos11Values at Work12Commitment to Ethics13Supply Chain Excellence15Continuous Improvement17Our People18Employee Health and Wellness20Employee Safety23Diversity25Our Commitment26Supporting Service Members27Supporting Our Communities32Environmental Responsibility37
LETTER FROM OUR CEO 3OUR ETHOSHONESTYTRUSTHUMANITYALIGNMENTVALUE CREATIONTo Our Shareholders:General Dynamics is an international company of tens of thousands of employeesin North America, the United Kingdom and Europe. We engage in diverse businessesacross a broad array of markets. General Dynamics’ employees are welders,aerospace engineers, computer programmers, naval architects, safety officers andmechanics. What unites us all, however, is our Ethos—our defining moral characteras a company. This Ethos is built upon five principles:Honesty: We tell the truth to ourselves and to others. Honesty breeds transparency.Trust: We trust each other to do the right thing.Humanity: We are compassionate and empathetic. We respect the dignity,rights and autonomy of others.Alignment: We are united in our commitment to our values.Value Creation: We create value by doing the right thing for our shareholders,our customers, our employees and our communities.Our Ethos informs everything we do, in ways both obvious and subtle, and makesus a stronger company. In the following pages, you will see the ways in which ourEthos undergirds our culture and our commitment to our communities, employees,customers and shareholders.Sincerely,Phebe N. NovakovicChairman and Chief Executive Officer
OURBUSINESSAs one of the world’s leading aerospace anddefense companies, we are dedicated todelivering superior products and services forbusiness aviation; combat vehicles, weaponssystems and munitions; shipbuilding; andcommunications and information technology.
OUR BUSINESS 5Total 30.9BGD Revenue 2014AEROSPACE 8.6BCOMBAT SYSTEMS 5.7BIS&T 9.2BGeneral Dynamics was incorporated in 1952, and since thenhas grown organically and through acquisitions. For nearly four decades, we expandedour offerings to include tanks, rockets, missiles, warships, fighter aircraft and electronicsto all segments of the military. In the early 1990s, we sold nearly all of our divisionswith the exception of Electric Boat and Land Systems. In the mid-1990s, General Dynamicsbegan expanding again, acquiring combat vehicle-related businesses, additionalshipyards, Gulfstream Aerospace Corporation and information technology product andservice companies.Today we are a global organization, operating through four business groups: Aerospace,Combat Systems, Information Systems and Technology and Marine Systems. Every day,people around the world depend on our products for their safety and security.MARINE SYSTEMS 7.3B
OUR BUSINESS Aerospace 6AerospaceGeneral Dynamics’ Aerospace group is at the forefront of the business-jetmarket. We are known for our superior Gulfstream aircraft and industry leadingproduct service and support, with a global network of people, service centersand parts designed to respond quickly to customers’ needs, wherever they maybe. Our Jet Aviation business is known for exceptional maintenance, repair,aircraft management and FBO services to a global customer base through anetwork of facilities across four continents. We also offer complex completionsfor business-jet and single- and double-aisle aircraft.The Aerospace group has two business units and approximately 17,000employees in 18 countries.
OUR BUSINESS Combat Systems 7Combat SystemsGeneral Dynamics’ Combat Systems group is a global leader indesigning, manufacturing and modernizing some of the world’smost recognized land combat platforms, from main battle tanksand tracked combat vehicles to light armored vehicles. We alsoproduce a broad range of high-performance armament, munitionsand weapons systems.Combat Systems has three business units with more than13,000 employees in 14 countries.
OUR BUSINESS Information Systems and Technology 8Information Systemsand TechnologyGeneral Dynamics’ Information Systems and Technology group develops,manufactures, improves and secures the systems of sophisticated defense,aerospace and communications products. Our IT business develops andimplements large-scale IT networks and systems and provides IT professionalservices. Our C4ISR business is a leading integrator for land, sea, air,space and cyber defense, with an established global presence in securecommunications systems, command and control systems and cyber solutions.Information Systems and Technology has more than 44,000 employeesin 36 countries.
OUR BUSINESS Marine Systems 9Marine SystemsGeneral Dynamics’ Marine Systems group designs, buildsand repairs complex naval platforms. We are a leadingdesigner and builder of submarines, surface combatants,auxiliary and combat-logistics ships and commercial JonesAct ships.Marine Systems has three business units with 23,000employees and shipyards located throughout theUnited States.
OURCOMPASSWe have a set of values that drive and determinehow we do business. These values inform ourcommitment to good corporate citizenship,sustainable business practices and communitysupport.
OUR COMPASS Ethos 11EthosGeneral Dynamics’ ethos is our distinguishing moral nature. Ouremployees are a community of people dedicated to this ethos. Eachof us has an obligation to behave according to our values. In thatway, we can ensure that we continue to be good stewards of theinvestments in us by our shareholders, customers, employees andcommunities, now and in the future.OUR ETHOS IS ROOTED IN FIVE VALUESHONESTYTRUSTWe tell the truth to ourselvesand to others. Honesty breedstransparency.We trust each otherto do the right thing.HUMANITYALIGNMENTWe are compassionate andempathetic. We respect the dignity,rights and autonomy of others.We are united in ourcommitment to our values. VALUE CREATIONWe create value by doing the right thing for our shareholders,our customers, our employees and our communities.
OUR COMPASS Values 12We believe that we have a responsibility tobe good corporate citizens and we believein sustainable business practices.Valuesat WorkThese values drive how we operate our business.We relentlessly pursue operating excellence byinnovating, improving our processes and reducingwaste. We believe in being wise stewards of capitaland resources, as informed by our values.These values govern how we interact with each otherand our customers, partners and suppliers. We seekpartners and suppliers who adhere to these values intheir businesses and we hold them to that standard.These values guide the way that we treat our workforce. We believe we have a responsibility for thehealth and safety of our employees. We treat all ofour employees with dignity and respect and providethem with fair compensation and equal employmentopportunity. We stand behind basic universal humanrights, including that employment must be voluntary.We oppose human trafficking in all forms.These values also determine how we connect withour communities. We believe that we have a responsibility to be good corporate citizens and we believe insustainable business practices that include supporting the environment and the communities in whichwe work.We remind ourselves often of who we are and whatwe do. Our ethos undergirds our culture, our businessmodel and our daily interactions.Honesty. Trust. Humanity. Alignment. Value Creation.
OUR COMPASS Ethics 13ETHICSWe pride ourselves on our responsible and ethicalpractices, which play an important role in thecommunities where we live and work. This cultureof ethics is the bedrock for every employee,ensuring we act with integrity, honesty and showrespect for others.
OUR COMPASS Ethics 14Commitmentto EthicsWe pride ourselves on our responsible and ethicalpractices, which play an important role in thecommunities where we live and work. This cultureof ethics is the bedrock for every employee, ensuringwe act with integrity, honesty and respect for others.Our employees take this responsibility seriously andunderstand their essential role in preserving GeneralDynamics’ reputation.General Dynamics is committed to maintaining thehighest standards of ethics and integrity in everythingwe do. Introduced in 1986, our ethics programprovides many resources to help employees do theright thing. With readily available tools and resources,we help all employees understand and uphold ourstandards of ethical business conduct, includingmandatory training every year.Our employee ethics handbook, commonly knownas the “Blue Book,” states our expectation that allemployees conduct business in accordance with thelaw, our policies, our values and our business-ethicsprinciples. We expect our suppliers, vendors,contractors and joint-venture partners to developethics and compliance programs consistent withour values.We reinforce our commitment to our ethics programin a number of ways, including a Business EthicsHelpline and website. Both are available at all timesand accessible in numerous languages, from whichall matters are investigated and resolved promptly,discreetly and professionally.We strictly prohibit retaliation against anyone whoraises an ethics or compliance issue in good faith.HUMAN RIGHTSGeneral Dynamics is vigilant in our watch againsthuman rights violations. This is reflected in ourcompany’s ethos—with our commitment to respectingthe dignity, rights and autonomy of others—andreinforced through employment, ethics and procurementpolicies designed to ensure protection against humanrights abuses.We partner with organizations such as the Just AskPrevention Project, a group that is working to combatthe growing prevalence of teen human traffickingin the Northern Virginia area. Just Ask is leading apublic awareness and prevention campaign designedto mobilize the local community by educating differentgroups about the existence of sex trafficking andways to identify those who may be impacted. We areproud to lead by example in our community.
OUR COMPASS Supply Chain 15Supply ChainExcellenceOur suppliers play a critical role in our ability todeliver quality products and services to our customers.They help us fulfill our commitment to good corporatecitizenship and sustainable business practices.Working together with our suppliers to ensuresocially responsible performance and being goodstewards of our environment is a key part of ourcorporate responsibility efforts.By taking a proactive, long-term approach to ourglobal supply chain, we meet our customers’ needfor quality, timely products. We have developedbest-in-class supply chain relationships and coreprocesses. And we work across all our businessesto ensure we maintain our performance and valueacross the supply chain. One example is our onlinesupplier registration portal, which helps our businesses better identify potential suppliers—and theinformation is shared throughout General Dynamics.We continue to enhance our efforts through ourSupply Chain Management Council, which includesexperts from across our business who frequentlymeet to share ideas and best practices, leverageresources and create shared technologies andprocesses. The work of the Council ensures wecapture the value created by our supply chaindepartments throughout the business.General Dynamics is also committed to working withdiverse businesses. We partner with small disadvantaged businesses, women-owned small businesses,veteran-owned small businesses, service-disabledveteran-owned small businesses, SBA-certifiedHUBZone small businesses, Native American-ownedsmall businesses, minority owned companies andAbility One organizations.General Dynamics is widely recognized for our effortsto develop and support a diverse supplier base,including: U.S. Department of Defense Nunn-Perry awardsin recognition of outstanding Mentor-Protégé teams U .S. Department of Veterans Affairs CorporateChampion and Corporate Achievement awards fromthe Center for Veterans Enterprise U.S. Department of Justice Small Business Awards
OUR COMPASS Supply Chain 16Thousands of suppliers provide materials and services that help us build ourproducts, and we work closely with our supply chain partners to maintainsustainable practices and conduct business in a way that upholds our values.We have established mechanisms to assess risk and ensure compliance, andwe constantly look for new ways to reduce risk throughout our supply chain.CONFLICT MINERALSWe work with our supply chain to trace potentialsources of conflict minerals. In 2014 alone, weconducted more than 10,000 supplier inquiriesrelating to conflict minerals.Every year, in line with U.S. Securities and ExchangeCommission (SEC) regulations, we submit a ConflictMinerals Report and a Specialized Disclosure Report.Minerals, including tin, tantalum, tungsten andgold, originating from the Democratic Republic ofCongo and surrounding countries are often referredto as conflict minerals because armed groups areknown to exploit illegally the minerals’ trade tofund their activities, furthering conflict in the region.In our report to the SEC, we address our efforts tounderstand the presence of these minerals in oursupply chain, including: Surveying and working with our suppliers to identifythe presence of conflict minerals in products thatare supplied to us. Engaging with many of our suppliers about thepotential presence of conflict minerals in materials. Introducing contractual terms and conditions asappropriate to urge suppliers to report responsibly.Our most recent SEC disclosure and filing arepublished on our website and can be found here:www.gd.com/conflictminerals.We have established mechanisms to assessrisk and ensure compliance, and we constantlylook for new ways to reduce risk throughoutour supply chain.
OUR COMPASS Continuous Improvement 17Continuous ImprovementThere is a deeply embedded culture of continuousimprovement at General Dynamics. It’s in everythingwe do. It’s the driver that makes our company agileand helps ensure our continued performance.This culture enforces a shared commitment to driveconsistently toward the future and to embrace change.This focus on continuous improvement is infectious.Our employees are encouraged to think differentlyand bring new ideas to the table. It’s a priority at alllevels of our company, with every employee engagedin finding new ways to do things faster, better andmore cost-effectively, and to push the boundariesof our potential.We celebrate this culture at an annual corporate-widemanufacturing symposium. Employees from everybusiness submit abstracts detailing improvementsthey developed and implemented, particularly onesthat can be applied to other General Dynamicsfacilities. Those with the best submissions travelto and participate in the symposium and speak infront of their peers, and awards are presented tothe best of the best. This annual event has becomea prestigious one, with employees vying for theopportunity to participate.
OURPEOPLEAt the heart of our company are our employees,who rely on their intimate knowledge of customerrequirements and a unique blend of skill andinnovation to develop and produce the bestpossible products and services. Our team’s skilland dedication are reflected in our agility andcontinued performance as an organization.
OUR PEOPLE Employee Health and Wellness 20Our wellness programs provide resources,information, motivation and support tohelp our employees make healthy lifestylechoices and minimize health risks.Employee Healthand WellnessWe are committed to helping our employeesand their families lead healthy, productive lives.Our wellness programs provide resources,information, motivation and support to help ouremployees make healthy lifestyle choices andminimize health risks. These programs vary bybusiness and location, reflecting the needs ofemployees and the characteristics of nationalhealthcare delivery systems.Most of our locations offer on-site influenzaimmunizations and health screenings, andmost also facilitate employee exercise. Manyoffer a broad range of on-site health servicesin addition to educational programs andwellness events.In 2014 alone:61%Of eligible employees participatedin biometric screenings46%Of enrolled employees and theirspouses received a preventiveexamination22On-siteHealth coaches worked withand supported our employees½Wellness initiatives helped loweremployee absences by ½ dayper employee per year
OUR PEOPLE Employee Health and Wellness 21HEALTH AND WELLNESS PROGRAMSMission Systems offers monthly webinars to all employees, providing information to helpmanage and improve their health and wellness, including healthy eating tips and ways todeal with stress. Our on-site health coaches help employees meet their health and wellnessgoals and assist with managing chronic conditions, and we hold company-wide fitnesschallenges and reimburse fees for gym memberships and weight-loss programs. We alsofeature short videos on the intranet to introduce employees to available benefits, informationsuch as 401(k) tips and ways to better manage health reimbursement accounts.NASSCO partners with a healthcare provider tooffer an on-site clinic at its San Diego shipyard.At the clinic, which opened in 2007, employeescan see a physician assistant for any healthconcerns and receive complete physicals at theirconvenience, without having to leave work.Employees also have access to an on-site wellnesskiosk, offered in partnership with another company.At the kiosk, which is manned by a doctor oneday per week, employees can get physicals, obtainreferrals to specialty departments and get answersto any health questions.NASSCO is building a Wellness Center whereemployees can use computer kiosks to log in totheir healthcare provider account and get adviceon ways to lead healthier lives and find programsthey can share with their families.
OUR PEOPLE Employee Health and Wellness 22Electric Boat offers its people many health andwellness programs. One example is a programcalled “It All Counts,” which helps employeesand their dependents manage their health. Theprogram encourages employees to get annualphysicals and offers biometric health screenings.We also make it easy for employees to fill prescriptions at one of our two on-site Family Pharmacies.The “Building Better Health” program offersresources to help employees maintain healthierlives and builds a health-oriented culture.This program received 13 worksite health awardsover the past three years. And in 2014, we wererecognized by the Providence Business News asone of the “Healthiest Employers of Rhode Island.”Land Systems encourages employees to takecare of themselves through a program called“Life Matters.” We also have a very activeEmployee Assistance program. Each year, weorganize health fairs and offer employees flushots. And several of our locations offer aweight management program, fitness reimbursements, in-house fitness centers, personaltraining, exercise groups, fitness classes anddietary guidelines to help our employees leada healthy lifestyle.
OUR PEOPLE Employee Safety 23Employee SafetyNothing is more important than our employees’safety. We have clear, consistent policies andstandards requiring that we operate in a waythat promotes the safety and well-being ofour employees.Across the business, we take measures to preventworkplace hazards, enforce a culture of continuousimprovement to ensure our processes helpreduce injuries and illnesses and comply withthe governing health and safety laws.Many of our business units have beenrecognized for their commitment and successin promoting health and safety amongtheir workers.We have made significant improvements inergonomics and worker safety in our BathIron Works shipyard. For example, we hadnumerous injuries related to hand grinding in2007. We took a number of actions to correctthe issue, from using tools that vibrate lessto increasing employee training with a focuson recognizing and identifying ergonomics risksand ways to mitigate those risks. We alsostarted an Ergo Cup Competition to encourageemployees to develop their own innovativeergonomic solutions, and by 2013, we hadwon three Ergo Cup Awards at the AppliedErgonomics Conference.Our efforts in this area were featured in the Journal ofOccupational and Environmental Hygiene. The article,“Prevention Through Design Ergonomics Program at BathIron Works,” highlighted our success in transforming ourworkplace and winning multiple safety awards.
OUR PEOPLE Employee Safety 24Mission Systems’ Bloomington manufacturingoperations was honored with their 10th consecutiveGovernor’s Workplace Safety Award in 2014 fromthe Minnesota Safety Council. The facility hasan extensive self-review process that includesmanufacturing self-auditing and monthly officearea safety inspections, all done through a safetyawareness monitoring program.Gulfstream is continuously looking for new ways toprotect employees and encourages employees to reporthazards and near misses and to contribute their ideasfor improvements. We have implemented a numberof new programs to increase safety at all Gulfstreamsites, including: T he Safety Management System, an effectiveapproach to managing aviation product safetyand identifying and reducing risks for employees,the company and customers Q -Pulse, an online reporting system in whichemployees can report hazards and near-misses T he tooling/equipment safety and control department,created to standardize the development of tools andimplement tooling procedures enterprise-wide toreduce the risks that can come with mechanicscreating and using different toolsThrough a combination of sound policies, tools,techniques and procedures, Land Systems’Canadian manufacturing plant in London, Ontario,achieved more than 5.5 million hours with nolost-time injuries since May 2013.
OUR PEOPLE Diversity 25DiversityA diverse workplace yields better ideas and outcomes,and we are committed to promoting diversity ofthought, experience, perspectives and capabilities.Each business, and each individual, makes a uniquecontribution to our company. We recognize thatdiversity is good for our team and our shareholders,and it’s critical to our future competitiveness.General Dynamics proudly supports a culture ofinclusion that encourages a work environment thathonors diverse opinions. Employees can flourishhere: they know their individual skills, abilities andviewpoints are honored. Our diverse, global businessis united by a common goal of being the best in thebusiness, delivering shareholder value and being agood corporate citizen in each of the communitieswhere we do business.Our ongoing support of the Black Engineer ofthe Year, National Society of Black Engineers,Out for Work, Out and Equal, Society of HispanicProfessional Engineers, Society of WomenEngineers, Student Veterans of America and Womenof Color in Engineering and Science, to name a few,demonstrates our commitment to diversity withinour company and in our industry.
OURCOMMITMENTGeneral Dynamics values the opportunity tomake a positive impact in people’s lives bystrengthening the communities where we live,work and do business. From helping veteransand military families to improving education andhealth, we continually look for ways to make adifference wherever we can.
OUR COMMITMENT Supporting Service Members 27Supporting Service MembersWe proudly support our employees who serve in military reserves. For example, we created amilitary employment policy for employees in the U.S. military reserves that goes beyond the UniformedServices Employment and Reemployment Rights Act (USERRA). We ensure that all eligible employeeswho are called to military active duty are afforded appropriate compensation, benefits and job protection.We protect them financially by continuing to pay any difference between their service income and theirincome from General Dynamics.AROUND THE WORLDGeneral Dynamics Information Technology signeda National Statement of Support for the Guard andReserve. The statement, supported by the EmployerSupport of the Guard and Reserve (ESGR), a U.S.Department of Defense office, commits us to: H onoring and enforcing the UniformedServices Employment and Re-EmploymentRights Act. Providing our managers and supervisors with thetools they need to effectively manage employeeswho serve in the Guard and Reserve. Embracing the values, leadership and uniqueskills service members bring to our workforce andencouraging opportunities to hire Guardsmen,Reservists and Veterans. Continually recognizing and supporting U.S.service members and their families in peace,in crises and in war.General Dynamics’ Canadian operations have beenrepeatedly recognized by the Canadian Forces LiaisonCouncil (CFLC) for our support of our Reservistemployees. The Reserve Force Employer SupportAwards honor organizations with progressive militaryleave policies and adjustable work schedules forReservist employees. Presented every two years at theProvincial and National Levels, we have been honoredwith the 2009 National Award and award for theprovince of Ontario, and the 2013 awards for theprovinces of Alberta and Quebec.We were one of the first companies to sign the UKArmed Forces Corporate Covenant, confirming ourcommitment to the forces, including an active andpositive reservist policy.General Dynamics is helping members of the SpanishArmed Forces transition to civilian jobs in partnershipwith the Spanish Ministry of Defence. The program,called SAPROMIL, provides training resources for jobsoutside of the military.
OUR COMMITMENT Supporting Service Members 28General Dynamics shows its commitment andrespect for the men and women in uniformwho bravely defend and secure our freedoms.We provide funding, volunteers and specialprograms to support the military, veteransand their families.Jet Aviation honors wounded militaryveterans with an inventive program.Applying the unique capabilities of ourworkforce, we completely customizevehicles suited to each veteran’s specificneeds. In 2013, we transformed a HarleyDavidson motorcycle into a rolling tributeto a veteran wounded in combat inAfghanistan. In 2014, we customized astock John Deere Gator all-terrain vehicleto restore part of the mobility a soldiersacrificed when he lost his left leg abovethe knee in combat in Afghanistan. Ouremployees volunteer hundreds of hoursto build these one-of-a-kind vehicles.
OUR COMMITMENT Supporting Service Members 29Land Systems supports our military veterans.Several locations conduct annual Veterans Dayceremonies for employees. A volunteer, employeerun veterans committee at our facility in Lima,Ohio, constructed the Freedom Flag Monumentin memory of all veterans. The team in Ohioalso has a veterans committee, which providescare packages for all employees called to activeduty and offers an assistance program fortheir families.In addition, Land Systems supports military andveteran non-profit organizations including theWounded Warrior Project, the U.S. Marine CorpsToys for Tots campaign, USA Cares, Veterans ofForeign Wars of the U.S. (VFW) and the MichiganArmed Forces Hospitality Freedom Center at theDetroit Metropolitan Airport, a privately fundedhospitality center for members of the military,veterans and their families. Employees alsorun collection drives for the CPT Kyle ComfortFoundation and mail care packages to militarypersonnel serving overseas.
OUR COMMITMENT Supporting Service Members 30Gulfstream sponsors Georgia Institute of Technology’sVET2 training program, which helps active-duty Armysoldiers prepare for the transition to the civilian workforce. After completing one week of academic training,participants receive a three-week placement withGulfstream. At the end of the course, participantsearn a professional certificate from a world-renownedacademic institution and are well-positioned to landa civilian job.Friends at Electric Boat Troop SupportGroup provides care packages to U.S.military personnel serving in Iraq,Afghanistan, Kuwait and other countries.The group’s team of volunteers gatherdonations through fundraising luncheonsand other activities. The group hassent more than 7,787 care packagescontaining over 69,710 pounds of careitems to support our brave armed forces.Bath Iron Works supports the VeteransNo Boundaries program, providing ourveterans and their families with muchneeded recreation. This program servesdisabled military veterans through aseasonal multi-day sport camp retreat.Activities include alpine skiing, snowboarding, snowshoeing, Nordic skiingand biathlon in the winter and paddling,cycling, shooting, archery, rope courses,zip-lines and fishing in the summer.
OUR COMMITMENT Supporting Service Members 31This facility is staffed seven days a week byUSO volunteers, serving service members andtheir families, many of whom are stationedat nearby Ft. Stewart.Gulfstream showed its support for the troops by sponsoring therenovation of the Savannah-Hilton Head International Airport’s USOLounge in 2014. This facility is staffed seven days a week by USOvolunteers, serving service members and their families, many ofwhom are stationed at nearby Ft. Stewart.Mission Systems supports Sentinels of Freedom, an organizationthat helps permanently disabled veterans become self-sufficient,integrated members of their local communities after they returnto civilian life. We sponsor a “life scholarship” and we bring ingraduates of the Sentinels program to work for us, including onewho is currently working at our Scottsdale, Arizona, facility.
OUR COMMITMENT Supporting Our Communities 32Supporting OurCommunitiesGeneral Dynamics supports the communities where we work and live th
Employee Health and Wellness 20 Employee Safety 23 Diversity 25 Our Commitment 26 Supporting Service Members 27 Supporting Our Communities 32 Environmental Responsibility 37. 3 To Our Shareholders: General Dynamics is an international company of tens of thousands of employees in North America, the United Kingdom and Europe. We engage in diverse .
