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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003
PART OF ETHICS SUPPLIER MENTORING PROGRAM WEBINAR SERIES
DEVELOPING POLICIES, PROCEDURES AND A CODE OF CONDUCT TO MITIGATE RISK
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 2
PRESENTERS
Senior Analyst, Corporate Ethics Office
Lauren SchultzSenior Manager,
Enterprise Risk Mgmt
Sasha SearsSenior Ethics Officer,
Missiles & Fire Control
Ellen Daly
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 3
DISCLAIMER
You are solely responsible for determining the content and scale of your program.
The information presented in this webinar is not all-encompassing on the vast topics of ethics and compliance.
The material is offered as support and guidance, and it does not supersede or in any way impact your contractual obligations under subcontracts or purchase orders received from LMC.
You are solely responsible for determining the content and scale of your ethics and business conduct program.
!
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 4
ELEMENTS OF AN EFFECTIVE ETHICS PROGRAM
Company Values Program Structure & Oversight
Leadership Commitment
Risk Assessment Policies & Procedures
Code of Conduct
Training Communications Program Assessment
Reporting Mechanisms
Investigations & Disclosures
Discipline & Incentives
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 5
WEBINAR AGENDA
Supplier Codes of Conduct
Code of Conduct
Policies & Procedures
Risk Assessment
Recap of Last
Webinar
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 6
RECAP OF LAST WEBINAR
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 7
RECAP OF LAST WEBINAR
Company values shape organizational culture, ethics program
Many ways to structure ethics program, even with team of one
Framework of ethics program should be documented
Leaders need to “walk the talk” for ethics program to be credible
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 8
RISK ASSESSMENT & MANAGEMENT
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 9
Training
Code of ConductPolicies &
Procedures
Communications
Risk Assessment
RISK ASSESSMENT – WHY?
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 10
RISK ASSESSMENT – WHAT?
Identify Risks
Prioritize Risks
Address Risks
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 11
RISK ASSESSMENT – HOW?
ST
EP
ON
E
Identify Risks
Customer expectations
Laws, regulations, standards
Current events (external)
Past performance
Management perspectives
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 12
RISK ASSESSMENT – HOW?
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 13
RISK ASSESSMENT – HOW?
ST
EP
TH
RE
E Address Risks
✓ Policies & procedures
✓ Training
✓ Communications
✓ Reporting mechanisms
✓ Decision-making tools
✓ Strategic planning
✓ Ongoing monitoring
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 14
POLICIES & PROCEDURES
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 15
POLICIES & PROCEDURES – WHAT?
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 16
POLICIES & PROCEDURES – WHY?
Communicate expectations
Facilitate compliance
Reduce riskDemonstrate
efforts
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 17
Contracting with the U.S. Government
Human Trafficking Prevention
IT Acceptable Use
Mandatory Disclosure
Confidential Information
Industrial Security Program
Information Security
Environmental, Health & Safety
Insider Information
Social Media
Government Relations
Records Retention
POLICIES & PROCEDURES – EXAMPLESCase Management Procedure
Non-Retaliation
Conflicts of Interest
Time Charging
Anti-Corruption / Business Courtesies
Use of 3rd Parties Operating Outside the U.S.
U.S. Export & Import Compliance
Anti-Trust and Fair Competition
Drug Free Workplace
Smoke Free Workplace
U.S. Equal Employment Opportunity/Affirmative Action
Non-Harassment
Workplace Violence Prevention
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 18
DEFENSE INDUSTRY INITIATIVE (DII) SMALL BUSINESS TOOLKIT
If you use just one resource, make it the DII Small Business Toolkit –it’s free and easy to use
Governance & Organization
Training & Engagement
• Sample compliance training PowerPoint
Policies & Procedures
• DII Model Supplier Code of Conduct
• Template Code of Conduct
• Template Policies on 30+ topics
Auditing, Monitoring & Mentoring
• Self-Auditing Your Ethics Program
• DII Model Code of Conduct Assessment
• DII Mentors (for DII signatories only)
www.dii.org > Featured Tools
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 19
POLICIES & PROCEDURES – HOW?
STEP ONEDownload DII
Template Policies
STEP THREEMake Policies Available
to Employees
STEP TWOCustomize Template
Content and Format
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 20
CODE OF CONDUCT
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 21
CODE OF CONDUCT – WHAT?
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA#: CHQ2018XXXXX
Ethics & Compliance Training for Consultants 22
CODE OF ETHICS & BUSINESS CONDUCT
• Based on core values
• Applies to all employees, Board of Directors, consultants, contractors, others acting on behalf of LMC
• Outlines expectations for key areas
• Links to relevant policies, other resources
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 23
CODE OF CONDUCT – POLLING QUESTION
Does your company have a code of conduct?
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 24
CODE OF CONDUCT – POLLING RESULT
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 25
CODE OF CONDUCT – WHY?
FAR 52.203-13:
“Contractor shall… have a written code of business ethics and conduct; make a copy of the code available to each
employee engaged in performance of
the contract.”
Legal Requirements
Purchase Orders:
LM “encourages all suppliers to
implement an effective ethics
program, including adopting a written code of conduct.”
Customer Expectations
Well-written code of conduct ensures
all internal and external
stakeholders are on the same page
about how the company will do
business.
Good Governance
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 26
CODE OF CONDUCT – HOW?
STEP ONEDownload DII Template
Code of Conduct
STEP THREEMake Code Available
to Employees
STEP TWOCustomize Template
Content and Format
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 27
SUPPLIER CODES OF CONDUCT
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 28
SUPPLIER CODES OF CONDUCT
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 29
SUPPLIER CODE OF CONDUCT – POLLING QUESTION
Does your company have a supplier code of conduct or written set of ethics and compliance expectations for
suppliers?
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 30
SUPPLIER CODE OF CONDUCT – POLLING RESULT
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 31
KEY TAKEAWAYS
Risk assessment helps determine focus of ethics program
Policies and procedures should address risk
Code summarizes company’s expectations of employees, including key policies and procedures
Setting expectations for suppliers via code or supplier code is best practice
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 32
SELF-SERVE RESOURCES
All ethics resources, including 1-on-1 mentoring
are completely free and voluntary.
Supplier Self-Assessment Tool
Info
grap
hic
Gu
ide
s
www.lockheedmartin.com > Suppliers > Ethics
…AND MORE!
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201710003Ethics Supplier Mentoring Program Live Webinar Series 33
THANK YOU!
TRAINING AND COMMUNICATING ON ETHICS, AND ASSESSING YOUR ETHICS PROGRAM
NEX
T W
EBIN
AR
Tuesday, June 12 @ 2-3pm ET
www.lockheedmartin.com/en-us/suppliers/ethics.html
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