1 Ethics & Sustainability for the Global Impact Generation SBAA Conference Leo Mackay Vice President, Ethics & Sustainability July 2014.

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Presentation transcript:

1 Ethics & Sustainability for the Global Impact Generation SBAA Conference Leo Mackay Vice President, Ethics & Sustainability July 2014

2 The Need: Leaders who… Create impact with global relevancy Appreciate practical ethics Manage complexity through transparency

3 Lockheed Martin Perspective We solve complex challenges, advance scientific discovery and deliver innovative solutions to help our customers keep people safe and provide them essential services. Space Systems Aeronautics Information Systems & Global Solutions Missiles & Fire Control Mission Systems & Training

4 Needed: Global “Throw-weight” Generate sustainable value, nurture global leaders

5 Global Impact relevancy factors Greater pressure for managing total value chain impacts

6 Managing Sustainability Progress

7 Global Defense Spending Migrating to Non-Traditional Markets

8 Transparency International Corruption Perception Index

9 Elements of Practical Ethics Code of Conduct & Policies Independent Structure Awareness Training Outreach Compliance Training Reporting Mechanisms Employee Survey NOVA Ethics Award Monitoring

10 Enhanced Era of Transparency

11 More Disclosure, More Analysis 61% Sustainability strategies necessary to be competitive Source: 2010 and 2013 BCG-MIT SMR Sustainability and Innovation Survey 88% Corporate Citizenship important to decisions made by grad students, investment and purchasing professionals Source: The Conference Board Sustainability Practices Median indicators disclosed in Corporate Sustainability reports across 10 industry sectors Source: The Conference Board and Journal of Cleaner Production, Vol. 20, Industries to be covered by sustainability accounting standards by 2015 Source: Ethical Corporation

12 Enhanced Investor Calls Markets Regulation –SEC Disclosure on Conflict Minerals and Cyber Intrusions –European Union Social Impact Disclosure Rulemaking Voluntary Paradigms and Product Development –Principles for Responsible Investment in Farmland –Green Bond Principles –REDD+ Framework (de-forestation) –Impact Investing Fund Managers Shareholder Activism –Human Rights –Political Fundraising –Carbon Divestment Source: UN PRI

13 Molding future sustainable leaders Integrity links to returns (How to embed practical ethics?) o Willingness to speak up and report violations Agile thinkers manage complexity (How to innovate and win?) o Collaborate and harness stakeholder feedback Act with total impact in mind (What factors to prioritize?) o People-planet-profit insights with best available data