Northrop Grunmman has been a company striving to meet and exceed the needs of the entire sectors. Such as employees, customers, shareholder, and the community at large. The key element that we use in achieving our goals is by maintaining a constant focus towards our core values. Mainting these values means that there is quality in everything that we do, ranging from demonstrating leadership, delivering customer satisfaction, acting with integrity, as well as regarding our suppliers as essential team members. The company is using these values as the foundation for actions and operating principles, sound and ethical decisions. Therefore this is or corporate report that summarizes performance for the year 2013

Northrop Grunnmman has been using corporate responsibility as its key component and operating strategies. As the company keep on growing and evolving, the company commitment to serve the communities and assist people who are in need also grows. Our company has focused on improving education, the environment, human services, supporting our armed forces, promoting cultural awareness and diversity. Following the unprecedented challenges that the world is currently facing, we remain focused on our strong values and maintain our commitment to maintain the highest ethical standards, striving for quality, embracing diversity, and keeping on to strengthened our position as a responsible global citizen.

We are a company that is leading in global security with 120,000 employees that provide products and solutions, innovative systems and technical services to government as well as commercial customers worldwide. A company that has produced about 32.9 billion in sales for 2012, together with a delivery innovative systems for applications ranging from undersea to outer space and cyberspace. Being known to be a leading global security company, we have always applied our core advanced technologies and competencies in addressing the diverse and complex issues that may have been facing our customers. That is to include defense our nation and its allies against homeland insecurity, cyber security, environment and climate change, and expansion of scientific frontiers of space. We have taken advantage of the broad base capabilities of our company to develop large-scale civil information systems that promotes the local, regional, state and federal government services.

Sectors and Products

We introduced a structure strengthen alignment with customers in January 2011, that was to improve the company’s program performance and growth potential. These were the five Northrop Grumman operating sectors:

Aerospace systems: They provide manned and unmanned aircraft, missile system, space systems, as well as advanced technologies that are critical to the security. Electronic systems of the nation: They Provides electronic countermeasures, airborne radar, navigation systems, airspace management systems precision weapons, space payloads, communications systems and government systems,  marine and naval systems, and information systems: They provide advanced information solutions for defense, civil agency and commercial customers, intelligence, including command and control systems, surveillance and reconnaissance systems, networked communications solutions, intelligence, and cyber security solutions. Shipbuilding: They provide the entire U.S. Navy’s nuclear-powered aircraft carriers; and among the companies that provide its nuclear-powered submarines as well as the current Fleet of de

Leadership Change

Corporate Governance and Ethics

Our company is committed to serve the needs and interests of our entire stallholders. The company’s principles of corporate governance operate closely with our core values while partnering with our customers, employees, shareholders, supplies, and the community at large. The fact that we are committed to ethics is a mirror that guides our integrity towards our service to the nation.

Guiding Corporate Governance Principles

The company has Board of directors who is responsible for governance oversight, and based on the policy, must consist of a membership that comprises of at least 75 percent independent directors.  The Board of directors has the obligation to abide by the Principles of Corporate Governance that reinforces values of the company. There is always an annual review of the governance principles by the Board of directors seeking ways of improving and modifying them as per the existing circumstances.

Channels Available for Employees to Report Actions and Seek Guidance on Ethics

Generally, the Corporate Office of Ethics and Business Conduct is responsible for operating a nationwide, with toll-free phone number for whoever may be in need of guidance on business conduct and ethics, as well as for reporting suspected violations. Under the administration of a third party company, there is a 24/7 availability for speaking with a trained intake specialist. Moreover, we have an online reporting system that is available for each and every employee through the internet. For example 4,500 contacts were received in 2012.

Monitoring and Resolving a Potential Violations

Availability of an OpenLine system makes the company to be in a position to track calls from total number, type of contact, sector, to allegations with or without merit, after which a disciplinary action follows. There are reports and merits which provide trending data that determines opportunities for targeted training and communications, with publication of the results being done in the quarterly ethics newsletter. In 2011, there were 4,500 total OpenLine contacts with 431cases that alleged different forms of   internal governance malfeasance, which was a 5% decrease from 2010. The company took various disciplinary actions from these investigations including taking a step to term 40 employees for ethics and business conduct violations.

Shortcoming in 2012

In that year, there was an independent peer reviews by Corporate Quality Council for assessing the effectiveness of the quality policy implementation by the company as well as to share the existing best practices that are related to quality. Some of the issues that CQC addressed included inconsistent process discipline, lack of awareness of governing processes and requirement, and a continued cost and schedule pressures that overshadows quality at times. The company is seeing the benefit in terms of qualitative of a heightened awareness and focus at large on the quality to the company. The next mission is to translate the very awareness into targeted, sustainable performance improvements.

Supplier Base

The company instills “One Northrop Grumman” charter throughout the procurement process. The main objective is to establish a single consistence operation focus with the customers and the supplier base. For example, in 2011 we kept on enhancing our supply chain competitive advantage after transitioning non-product commodity procurement starting with the business sectors to Procurement Shared Services, which was an organization guided by Enterprise Shared Services, (Northrop Grumman (March 20, 2006). The intent is to enhance improvement in commodity sourcing efficiencies across multiple functions. There was also an integrated supply chain intelligence strategy that analyzes and selects the best supply chain associations, boards, councils, and academic institutions, paving the way to realize the vision to be world-class by Supply Chain Leadership Council.

Instilling Quality Standards Including Ethics throughout the Supply Chain

Each and every supplier of Northrop Grumman is always a valued team member. The company does not accept poor practices that come from suppliers in any area of operation. They have to consider quality, diversity, human rights and labor, occupational health and safety or environmental responsibility. There was no any incident in which Northrop Grumman Corporation was cited or fined for any supplier issues or procurement violations in 2011. Each and every supplier to Northrop Grumman was able to receive an annual letter that outlined the company’s ethics policies and code of conduct. In that year we sent more than 17,000 of such letters. Moreover, the company has continued to reiterate the theme of ethics through process controls that has been built into the company’s supply chain bidding or request for information response schedules, and the general technical as well as financial evaluation processes. Like to make sure there was an adequate evaluation, the company’s procurement processes always keep technical bid data in a separate place from financial data.

Generally, Northrop Grumman as a company tend to support national diversity trade associations through participating in sponsorship targeted outreach through the National Association of Women Business Owners, Center for veterans Enterprise, the National Center for American Indian Enterprise development, the united States Hispanic Chamber of Commerce, the Asian Business Association. Some further tenets that the company use to develop our supply chain include : Northrop Grumman procurement employees in the company has to review the procurement integrity annually; sign a certification specifying stating that they will never be engaged in supplier bribes, gifts, or kickbacks; the employees should always identify any conflicts of interest that might be existing with current and potential suppliers; employees within the procurement should perform due diligence while assessing whether there has been debarring or suspension in the supply in any way, and  incase these suppliers have any connection to terrorist organizations.

Diversity throughout the Supply Chain

In ensuring diversity within the supplier base, Northrop Grumman Company has managed to subcontract more than $4.2 million to Black Colleges and universities and minority Institutions (hBCu/mI) in 2011. The company has also went a head to sponsor four hBCu/mIs under the NGC University Alliance Program, (Northrop Grumman (March 31, 2006). They have been participating in celebration to build awareness of such universities and the colleges, bridge differences, enhance resources.

The company strong commitment to diversity and inclusion starts with written policies and procedures meant to foster a nondiscriminatory workplace that is supported by senior leadership. The company strictly sticks on to Equal Employment Opportunity (EEO) together with Affirmative Action (AA) principles and policies, as they build them into our daily operations across the company. Our company tends to publish annual Affirmative Action plans documenting specific actions that improve the representation of minorities and women and for integrating veterans as well as disable. Such plans reaffirm the company’s commitment to ensure there is equal employment opportunities for qualify employees and applicants without regard to color, sex, race, religion, or national origin/ancestry.

Conclusion

Northrop Grunmman is a company that is committed and dedicated to its services and through this report it is evidenced that we are a company that is competence and follow adhere to Corporate Social Responsibilities. The report summarizes some of the main objective that the company has been struggling to achieve throughout the year.

References

Northrop Grumman (March 20, 2006). Northrop Grumman Becomes Co-pilot for NASA’s Great Moonbuggy Race. Press release.

Northrop Grumman (March 31, 2006). Northrop Grumman Makes $25,000 Donation to Boys      and Girls Club of Annapolis and Anne Arundel County. Press release.

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