Priorities: Corporate Responsibility Report Stakeholder Engagement

Stakeholder engagement is one of the foundations of our successful strategy at Northrop Grumman. Our stakeholders, each with distinct priorities, comprise a broad and vibrant range of audiences.

To engage each audience effectively, we aim to provide accurate information regarding our corporate goals and performance. Increasingly, we use many methods to engage with our stakeholders and obtain performance feedback. That feedback allows us to analyze and prioritize corporate responsibility issues as part of our materiality assessment and reporting methodology. In part, this information also informs direct actions and programs we undertake to improve our performance everywhere we operate.

When engaging with stakeholders, we start with prioritizing their concerns. We also evaluate each stakeholder relationship to our business and the importance of the issue being raised. As in previous years, we adapted the content of this report to meet the needs of our stakeholders. Specifically, we evaluated our performance based on input from customers, investors, employees, government and industry, business partners, professional associations, and suppliers.

In addition to this printed report we have a Corporate Responsibility microsite available online with additional data and more in-depth explanations.

Visit: crreport.northropgrumman.com

Our Key Stakeholders

Academia, Community, Customers, Employees, Government, Industry, Partners, Policymakers, Professional Associations, Shareholders, Scientists and Suppliers.

2016 Key Stakeholder Topics

Ethics and integrity

  • Ensuring compliance with laws, regulations, policies and procedures and acting with the highest standards of integrity and ethical behavior.
  • Promoting a “Speak Up” culture and addressing allegations of wrongdoing to ensure corrective action is taken as needed.
  • Training our Northrop Grumman employees annually on ethics and compliance awareness.

Diversity and inclusion

  • Evaluating current strategies and developing new approaches to ensure adequate sources of diverse talent for all hiring requirements.
  • Analyzing employment and turnover trends of veterans and People with Disabilities to identify programs to improve our reputation as an employer of choice.
  • Creating networks for our employees to connect and contribute to our Employee Resource Groups.

Environmental, Health and Safety

  • Ensuring compliance with all regulations, while reducing the frequency of injuries, by assessing job practices, improving ergonomics and increasing employee awareness.
  • Including consideration of customer goals and priorities in establishing Northrop Grumman’s environmental sustainability goals.
  • Strategically planning for water conservation with an emphasis on regions with water quality and/or availability risks.

Supplier Responsibility

  • Performance management and compliance to regulatory requirements.
  • Developed a new Supplier Standards of Business Conduct which set forth the fundamental requirements that we expect our suppliers to comply with at all tiers.

Corporate Citizenship

  • Collaborating with leadership at each site to develop community outreach plans, which we review regularly.
  • Engaging with nonprofit community partners to submit grants for funding using a grants system, which provides ongoing communication to the nonprofit partner throughout the grants process.
  • Improving education by creating a diverse pipeline of talent specifically in science, technology, engineering and math (STEM).
  • Sustaining our commitment to support active-duty military, veterans and their families.

Methods for Gathering Feedback

We use face–to–face meetings, employee surveys and feedback channels, online and social media, email, environmental and regulatory audit processes, government policy and legislative engagement, needs assessment studies, supplier development activities, industry councils, and internal working groups.

Other examples of our activities during 2016 include:

  • Hosting bi-weekly environmental sustainability data management team meetings to encourage collaboration and to discuss systems, challenges/opportunities and expectations.
  • Hosting monthly Environmental, Health, and Safety (EHS) regulatory update meetings.
  • Hosting quarterly EHS Leadership Council meetings to evaluate internal governance programs and strategic plans, track progress, identify future changes to regulatory policy and develop health and safety targets.
  • Benchmarking environmental goals and performance by evaluating environmental sustainability goals at our customers, industry peers and best-practice leaders.
  • Using diversity conference activities to compile “lessons learned” to share with leadership and employees.
  • Consulting our 12 Employee Resource Groups (ERGs), which represent over 200 chapters and 19,000 employees, on numerous issues that may arise as well as collaborate on responses to various industry surveys.
  • Hosting industry compliance meetings in conjunction with various non-profit and government organizations including Equal Employment Advisory Council, National Industry Liaison Board, OFCCP Institute and National Labor Exchange.

Engagement frequency

We met regularly with our various stakeholder groups. Key discussion topics included but are not limited to:

  • Primary, secondary, informal and university education.
  • Corporate philanthropy.
  • Environmental programs in our operating communities.
  • Wounded veterans, veteran homelessness and other support to similar programs.
  • Programs in our focus areas and non-profit agencies.

Staying Informed: Diversity and inclusion

Our stakeholder engagement efforts, and frequency of contact, related to our diversity and inclusion efforts included:

  • Diversity and Inclusion Leadership Council meetings: monthly.
  • Sector Diversity and Inclusion Council meetings: monthly.
  • Employee Resource Group meetings: monthly.
  • Individual employee and Employee Resource Group collaboration: daily.
  • External diversity organizations/partners (Society of Women Engineers, National Society of Black Engineers, US Business Leadership Network, etc.): daily to monthly.
  • Monthly, quarterly and semi–annual Equal Employment Opportunity and diversity metrics reviews with senior management.

EHS Management

We maintain a proactive approach to stakeholder engagement related to Environmental, Health and Safety (EHS) management across the company. For example, externally, we meet with stakeholders regularly. We engage with internal subject matter experts at least bi-weekly, sector EHS and executive representatives monthly, and at least semi-annually with internal executives, partner organizations and others. Our engagement strategy includes conference briefings, white papers and peer-to-peer collaboration via industry association meetings. We discuss in more detail our regular engagement activities throughout this report.


Partners and Professional Associations

We maintain affiliations with a variety of organizations to enhance business performance, collaboration, community involvement, diversity and inclusion, employee relations, the environment, health and safety, sustainability strategies and initiatives, innovation and supplier relationships. A partial list of these organizations is below.

  • AbilityOne.
  • Aerospace Industries Association.
  • American Bar Foundation (ABF) Center on Diversity and Law.
  • American Indian Science and Engineering Society.
  • Asian American Engineer of the Year.
  • Asian Business Association.
  • Association of Climate Change Officers.
  • Association of Corporate Contributions Professionals.
  • Black Business Association.
  • Black Engineer of the Year.
  • Boston College Center for Corporate Citizenship.
  • Capital Area Gay and Lesbian Chamber of Commerce.
  • Conservational International Business and Sustainability Council.
  • Corporate Counsel Women of Color 13th Annual Career Strategies Conference.
  • Corporate EcoForum.
  • Corporate Environmental Enforcement Council.
  • Department of Veterans Affairs Center for Verification and Evaluation.
  • Equal Justice Works.
  • Great Minds in STEM.
  • Institute for Supply Management.
  • International Aerospace Environmental Group.
  • International Audit Protocol Consortium.
  • Latin Business Association.
  • Legal Aid Society.
  • Military Spouse Employment Partnership.
  • Minority Corporate Counsel Association.
  • National Association of Asian American Professionals.
  • National Association of Environmental Management.
  • National Association of Women Business Owners.
  • National Center for American Indian Enterprise Development.
  • National Minority Supplier Development Council.
  • National Society of Black Engineers.
  • ORC Health, Safety and Environmental Strategies.
  • Out and Equal Workplace Summit.
  • Small Business Innovation Research and Small Business Technology Transfer programs.
  • Society of Hispanic Professional Engineers.
  • Society of Women Engineers.
  • South Asian Bar Association.
  • U.S. Hispanic Chamber of Commerce.
  • U.S. Business Leadership Network.
  • Women of Color in Technology.

Transparency and Disclosure

The Dow Jones Sustainability North America Index, a highly regarded standard for corporate sustainability, recognized Northrop Grumman as one of the top companies for environmental, social and governance performance.

We received an “A-” performance rating from the CDP Climate Change Program, maintaining for the fifth year our leadership position for the company’s strong performance in awareness, disclosure and management of climate change and greenhouse gas emissions.

For the second year Northrop Grumman received a “green” rating for disclosing GHG emissions, establishing a GHG emissions target and disclosing climate change risks on the Federal Supplier Greenhouse Gas Management Scorecard published by the Council on Environmental Quality.