the whats, whys and hows of an effective ethics … · 2020-07-16 · © 2018 lockheed martin...
TRANSCRIPT
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
ETHICS SUPPLIER MENTORING PROGRAM WEBINAR SERIES
THE WHATS, WHYS AND HOWS OF AN EFFECTIVE ETHICS PROGRAM
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 2
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 #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 3
WEBINAR AGENDA
What is an ethics program?
Why do you need one?
How can you get started?
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 4
WHAT IS AN ETHICS PROGRAM?
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 5
WHERE CULTURE MEETS COMPLIANCE
Employees empowered to follow laws and policies,
and speak up when some-thing doesn’t feel right.
‘Speak-Up’ Culture
Legal Compliance
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 6
COMPLIANCE AREAS
An effective ethics program can reinforce
compliance with any law, regulation or policy.
Bribery & Corruption
Conflicts of Interest
Financial Records
Trade Controls
Sensitive Information
HR & Labor Policies
Employee Safety & Health
Counterfeit Parts
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 7
ETHICS & COMPLIANCE PROGRAM STANDARDS
Growing list of program standards relatively
consistent in expectations.
• US Federal Acquisition Regulation (FAR)
• US Federal Sentencing Guidelines for Organizations (FSGO)
• Resource Guide to the US Foreign Corrupt Practices Act (FCPA)
• UK Ministry of Justice Guidance - The Bribery Act 2010
Government Regulations & Guidance
• Defense Industry Initiative on Business Ethics & Conduct (DII)
• International Forum on Business Ethical Conduct for the Aerospace and Defence Industry (IFBEC)
Industry Standards
• International Chamber of Commerce (ICC)
• Organization for Economic Cooperation and Development (OECD)
• Transparency International
International Best Practices
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 8
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 #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 9
COMPANY VALUES
Key principles that describe your culture and guide your decisions
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 10
PROGRAM STRUCTURE & OVERSIGHT
People (or person) in charge of your ethics program – and their reporting structure
Board of Directors
President, Chairman & CEO
SVP of Internal Audit, Ethics & Sustainability
Corporate Ethics Directors
Corporate Ethics Staff
Business Area Ethics Directors
Business Area Ethics Officers
Internal Audit Director
Enterprise Risk & Sustainability
Director
EVP & CFOBusiness Area
EVPs
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 11
RISK ASSESSMENT
Continuous process of identifying and mitigating key
ethics and compliance risks
Identify Risks
Prioritize Risks
Mitigate Risks
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 12
MEET BOB
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 13
POLICIES & PROCEDURES
Standards for mitigating key ethics and compliance risks
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 14
CODE OF CONDUCT
Summary of expectations for employee behavior
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 15
TRAINING
Education about specific compliance topics and
strategies for addressing ethical dilemmas
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 16
COMMUNICATIONS
Ethics and compliance messaging outside training
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 17
LEADERSHIP COMMITMENT
Alignment of management’s words and actions with
company values
Email from Bob’s boss:I don’t care what you
have to do. JUST GET IT DONE!
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 18
INQUIRY & REPORTING MECHANISMS
Avenues for employees to ask a question or report
potential misconduct
Bob: Hi, is this Ethics? I’d like some guidance on
an issue I’m having. Can I remain anonymous?
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 19
INVESTIGATIONS & DISCLOSURES
Company’s response to allegations of misconduct
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 20
DISCIPLINE & INCENTIVES
Negative consequences for misconduct and rewards
for ethical behavior
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 21
PROGRAM ASSESSMENT
Regular audits and/or monitoring of ethics
program effectiveness
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 22
WHY DOES YOUR COMPANY NEED A FORMAL ETHICS PROGRAM?
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 23
LOCKHEED MARTIN PERSPECTIVE
Ethics programs reduce risk to your business and ours –
and to the missions we serve.
Reputational
Legal
Financial
Many elements of an effective ethics program are required by law or regulation and can reduce penalties in event of misconduct.
Allegations of misconduct can damage the reputation of a single company or the
entire industry.
An effective ethics program can help identify and address issues before they affect quality, cost or schedule.
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 24
FAR 52.203-13 CONTRACTOR CODE OF BUSINESS ETHICS & CONDUCT
If you are currently working on a qualifying
contract or would like to be eligible for one, you’ll need
an ethics program.
Are you a U.S. government contractor or subcontractor?
YES
Do you have subcontract(s) of >$5.5 million
and POP >120 days?
Ask your lawyer about
FAR Clause 52.203-13.
NO
You may still be required to have some elements of an ethics program.
YES NO
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 25
U.S. FEDERAL SENTENCING GUIDELINES FOR ORGANIZATIONS
If misconduct does occur, having an effective ethics program can reduce fines
by up to 90%.
Effective Compliance & Ethics Program(Chapter 8, Part B, Section 2)
Establish policies, procedures, and controls
Exercise effective compliance and ethics oversight
Exercise due diligence to avoid delegation of authority to unethical individuals
Communicate and educate employees on compliance and ethics programs
Monitor and audit compliance and ethics programs for effectiveness
Ensure consistent enforcement and discipline of violations
Respond appropriately to incidents and take steps to prevent future incidents
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 26
HOW CAN YOU START DEVELOPING YOUR ETHICS PROGRAM TODAY?
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 27
LOCKHEED MARTIN ETHICS SUPPLIER MENTORING PROGRAM
Use our online self-serve resources, work 1-on-1 with
a Lockheed Martin Ethics Officer – or both!
DEVELOP YOUR ETHICS PROGRAM
By using free, self-serve resources provided by LM and DII
With guidance and resources provided by Ethics Officer
DECIDE WHERE TO FOCUS YOUR EFFORTS
By discussing with your company’s leadership
Based on recommendations from Ethics Officer
ASSESS YOUR EXISTING ETHICS PROGRAM
By using Supplier Self-Assessment Tool
With the help of experienced Ethics Officer
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 28
ADVANTAGES OF ONE-ON-ONE MENTORING
1-on-1 mentoring has many advantages, in addition to
personalized expert guidance
Clear focus and path
Set time frame
Additional resources
Special recognition
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 29
ETHICS SUPPLIER MENTORING PROGRAM ALUMNI
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 30
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 #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 31
UPCOMING LIVE WEBINARS
To register for upcoming LM or DII webinars, visit
our website
WEBINAR NOTES DATE/TIME
Setting up an Effective Ethics Program
featuring LM Supplier
Oct 16@ 1-2pm ET
Developing Policies, Procedures and a Code of Conduct to Mitigate Risk
Oct 30 @ 12-1pm ET
Training and Communicating on Ethics; Assessing Your Ethics Program
Nov 13 @ 1-2pm ET
Establishing Ways to Contact Ethics and Addressing Issues Raised
featuring LM Supplier
Nov 27 @ 11am-12pm ET
DII Hosted Webinar: Remote Workforce: Connecting and Engaging
Hosted by LM Corporate Ethics Director Blair Marks
Dec 12 @ 2-3pm ET
www.lockheedmartin.com > Suppliers > Ethics
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© 2018 LOCKHEED MARTIN CORPORATION. ALL RIGHTS RESERVED.PIRA #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 32
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+ ethics and compliance 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 #: CHQ201803006
Ethics Supplier Mentoring Program Live Webinar Series 33
THANK YOU!
SETTING UP AN EFFECTIVE ETHICS PROGRAM
NEX
T W
EBIN
AR
Tuesday, Oct 16 @ 1-2pm ET
www.lockheedmartin.com/en-us/suppliers/ethics.html
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