2015 Corporate Responsibility Report

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Corporate Citizenship & STEM

Building partnerships for stronger communities aligns with our vision at Northrop Grumman to be a responsible corporate citizen. The Global Corporate Citizenship team consults with leaders at Northrop Grumman sites within regions, nationally and internationally, to implement community engagement initiatives that align with business goals. We provide financial, in-kind and volunteer resources in the focus areas of K-12 education, military and veterans, health and human services and the environment.

Investing in STEM Education: Fostering the Next Generation of Talent Northrop Grumman’s investment in STEM programs is part of our college readiness and access strategy to not only improve education but also to develop a pipeline of diverse talent to help ensure a future workforce for our nation and our company, specifically in the area of cybersecurity.

CyberPatriot CyberPatriot, a Northrop Grumman partnership with the Air Force Association, inspires students toward careers in cybersecurity. The program features the National Youth Cyber Defense Competition for middle and high school-aged students, cyber summer camps and an elementary school education program.

The CyberPatriot VII competition drew a record 2,175 teams, a 40 percent increase over 2014. There was representation from 50 states, the District of Columbia, Puerto Rico, Canada and U.S. Department of Defense Dependent Schools in both Europe and the Pacific. The CyberPatriot VII National Finals Competition featured 28 high school and middle school teams who competed to defend virtual networks and mobile devices from a professional aggressor team. We have extended our support to the Air Force Association to be the presenting sponsor through the CyberPatriot XI (2019) competition.

We launched the CyberPatriot Elementary School Education Initiative in the summer. This initiative includes several interactive modules in English and Spanish designed to excite K-3 students about computers and teach them basic practices for safe online usage. In addition to the foundation’s support to CyberPatriot, we contribute Northrop Grumman employee volunteers, expertise, resources and paid internships as well as scholarships to members of the winning teams.

2015 Corporate Citizenship & STEM Goals Performance Summary

GOAL Support initiatives that align with our business goals by providing financial, in-kind and volunteer resources, particularly in communities where our employees work and live.

PERFORMANCE Northrop Grumman, the Northrop Grumman Foundation and the employees of Northrop Grumman collectively donated more than $31.7 million. Employees donated more than 30,558 unpaid, volunteer hours.

GOAL Invest in science, technology, engineering, and math (STEM) programs to improve education.

PERFORMANCE We invested more than $17.4 million from Northrop Grumman contributions and the Northrop Grumman Foundation to fund STEM projects and programs globally that make a difference for students and their teachers while providing opportunities to engage our employees.

GOAL Continue our strong tradition and commitment to support programs that serve active-duty military and veterans and their families.

PERFORMANCE We donated $1.6 million to nonprofit agencies that provide services and programs to benefit military and veterans and their families.

GOAL Through our philanthropy and volunteerism, strengthen communities where our employees work and live by supporting health and human services programs that address critical needs and offer disaster relief.

PERFORMANCE We donated $1.4 million to nonprofit agencies that provide health and human services addressing basic human needs.

Participants from "Kids Blast Off to Space Camp" (front row from L to R) Silvia Choi, teacher, Sydney’s Arthur Phillip High School and students Deniz Altinok and Christina Kirshore. Back row, from Northrop Grumman Australia: Richard Farkashazy, Customer Solutions architect, and Ian Irving, chief executive, Northrop Grumman Australia.

Going Global: CyberCenturion Northrop Grumman employees partnered with Cyber Security Challenge U.K. to launch a successful pilot of CyberCenturion, the United Kingdom’s first team-based cybersecurity contest specifically designed to attract kids ages 12 to 18.

Eight teams competed in the 2015 National Finals Competition, each taking on the role of a cyber expert at a fictional video games company under attack by rival businesses. The CyberCenturions’ task was to protect sensitive customer data and valuable intellectual property against theft by malicious hackers. Northrop Grumman has renewed its commitment to run CyberCenturion in 2016.

In 2015, we hosted a two-day cybersecurity awareness and training session called "CyberArabia" for students at King Saud University in Riyadh. The event helped build interest and excitement in Saudi Arabia for this critical, in-demand career field.

Other cybersecurity outreach programs we fund include the University of Maryland Baltimore County (UMBC) Cyber Scholars program, the University of Maryland Advanced Cybersecurity Experience for Students program, and the Cybersecurity Research Consortium, which is partnered with bwTech@UMBC on the Cync incubator program and operates its own Cyber Academy.

VEX Other efforts to advance student interest in STEM include the 2015 VEX Robotics World Championship with the Northrop Grumman Foundation as the presenting sponsor. A total of 850 teams, culled from more than 12,000 teams worldwide, qualified to compete in five divisions for ages 8 to 18-plus. Overall, more than 8,000 students from 29 countries participated.

Manufacturing Day We celebrated Manufacturing Day at 20 Northrop Grumman sites across the country to draw attention to outstanding opportunities in manufacturing and to showcase the company’s capabilities. At 12 of our facilities, employees assisted STEM students from area high schools with a prosthetic hand assembly project. Traditional prosthetic hands can cost thousands of dollars, whereas the student-constructed devices cost $40 or less and can be made using advanced, additive manufacturing. The hands were donated to Enabling the Future, a nonprofit that specializes in providing prosthetics to children around the globe.

Investing in Teachers We provide funding for professional development programming for educators that enhance their understanding of STEM education and teaching techniques. Highlights include:
• The Northrop Grumman Foundation and the National Science Teachers Association launched the 2015-2016 Teacher Fellows in the Northrop Grumman Foundation Teachers Academy. Selected from targeted areas across the country, the 25 middle school teachers will participate in a year-long immersion to enhance teacher and classroom excellence in STEM including understanding the skills needed for a scientific workforce.
• Maureen Barrett, a science teacher at Harrington Middle School in Mt. Laurel, New Jersey, received the Northrop Grumman Foundation Excellence in Engineering Education Award. This award recognizes and rewards an outstanding K-12 public school science/technology teacher who has demonstrated excellence in engineering education.
• We completed our $1 million investment to the Virginia Initiative for Science Teaching and Achievement (VISTA) program to improve science teaching and student learning in elementary and secondary schools. VISTA was a statewide partnership among 80-plus Virginia school divisions, six state universities, the Virginia Department of Education and the U.S. Department of Education. Tens of thousands of elementary and secondary students were benefited by hundreds of teachers who were taught new areas of science instruction. VISTA achieved its objectives of building the state infrastructure to support effective science teaching and learning.

Investing in Programs to Support the Military, Veterans and their Families We funded 172 Northrop Grumman grants to nonprofit organizations that serve active-duty military, veterans and their families. Highlights include:
• Over the course of two weeks, 450 employees purchased T-shirts and raised $17,295 for the USO in honor of Military Appreciation Month.
• We supported Operation Homefront Back to School Brigade that provides backpacks with school supplies to military children.
• Employees donated $10,663 through an online toy drive to benefit Operation Homefront.
• We funded the USO/TAPS Good Grief Campout to allow 35 children with military parents to attend summer camp in San Diego.
• Employee volunteers in four locations built 400 bikes for Build-A-Bike for Military Families.
• We supported the Soldier On Hand Up program in Australia to help veterans transition to civilian life and gain employment.

Strengthening Communities by Investing in Health and Human Service Programs We partnered with 210 nonprofits that provide critical services in the health and human service focus area in the communities where we operate. These nonprofits include food banks, social services advocacy, homeless shelters and organizations set up to find cures for illnesses. During the summer, the Northrop Grumman Foundation supported the 2015 Special Olympics World Games and provided an additional matching opportunity for employees worldwide to support the games. More than 120 employees and their families attended the gymnastics competition at the University of California, Los Angeles as "Fans in the Stands."

Disaster Relief Our ongoing annual donation of $200,000 to the American Red Cross provides a reliable funding base for disaster relief services. The contribution offsets a range of expenses and helps ensure that the American Red Cross can quickly be on the scene of disasters. In addition, we provided AmeriCares with a $100,000 grant to become a global Annual Emergency Response Partner. Other key efforts to support disaster relief in 2015 included:
• Nepal Earthquake: Working with Give2Asia, we created a $250,000 matching gifts program for Nepal, through the Northrop Grumman Foundation, and matched personal contributions of up to $5,000 per employee. We processed more than 800 Nepal earthquake matching gifts for a total of $115,663.
• U.S. flooding: We activated the Emergency Contact Center to assist employees adversely impacted by flooding in Oklahoma and Texas.

Corporate Citizenship Environmental Highlights

Throughout Northrop Grumman, in 2015, we:
• Deployed employee-led green teams involved in recycling, employee engagement and volunteer projects.
• Launched a new partnership with Grades of Green, an environmental education program in schools, and continued our Keep America Beautiful partnership.
• Participated in America Recycles Day, which included electronic waste collection at our Falls Church, McLean and Herndon offices in Virginia.
• Had large Northrop Grumman volunteer turnouts in a community service event to clean parks in California (San Miguel Park, Washington Park in Sunnyvale and Guadalupe River in San Jose).
• Joined forces to clean up Ft. McHenry’s tidal basin in Maryland in support of National Public Lands Day and International Coastal Clean Up.

Northrop Grumman Volunteers: A Global Force for Good

'Commit to Serve' Volunteer Campaign In conjunction with National Volunteers week, we kicked off a campaign called Commit to Serve, which encouraged employees to volunteer in their communities and post photos using #volunteer1ng. As part of that effort, we gave a $10,000 grant to Global Giving based on employee involvement.

How Our Employees Give Our employees make a big difference in communities around the world. Here are some highlights of how they give their time, guidance, efforts and financial contributions:

Employees Charity Organization of Northrop Grumman (ECHO)
• Employees can give to IRS-approved nonprofit organizations of their choice through payroll contributions.
• ECHO provides support to communities through community outreach funds or directed giving to nonprofit organizations.
• Employees donated $2,183,153 through ECHO payroll contributions in 2015.

Volunteer1NG This company-sponsored website allows our employees to be matched with volunteer opportunities in their communities and tracks volunteer hours.
• Giving Time: Employees volunteered 30,558 hours in 2015, valued at $704,973 in community impact (based on independent value of volunteer time at $23.07/hour).
• Beating Cancer: Along with participation in local efforts, employees raised $187,903 for the American Cancer Society Relay for Life.
• Bowling For Life: More than 180 employees attended an event where 32 employees bowled to raise more than $15,000 for the American Cancer Society Beach Cities Relay for Life.
• Back to School: Between July and August, more than 100 employees contributed more than $8,000 to Northrop Grumman’s online back-to-school drive. This led to contributions of more than 4,000 school supplies to students across the U.S.

Recognizing and Supporting Our Volunteers We recognize the efforts of our employees through several vehicles including our Excellence in Volunteerism awards, community service grants and matching gifts:
• Excellence in Volunteerism: Each year, 10 employees or employee teams receive $5,000 grants for the organizations they serve.
• Community Service Grants: Employees who volunteer 40 hours or more in a calendar year (with a qualified nonprofit or public school) can apply for a $200 Community Service Grant. In 2015, 205 employees earned Community Service Grants.
• Northrop Grumman Foundation Matching Gifts for Education: Employees who donate to qualified education institutions are eligible to have the donation matched, dollar for dollar, from $50 up to $2,500. In 2015, 1,262 employees utilized the program totaling a match of $1,001,260 toward education.

Our Global Community Investment Includes Four Primary Categories

The symbols on this map indicate our four focus categories, with highlights noted. Collectively, the map illustrates our commitment at Northrop Grumman to build partnerships for stronger communities around the world.