General Dynamics Ethics Program

Running Head: General Dynamics Ethics Program

General Dynamics Ethics Program

General Dynamics Ethics Program

Abstract

General Dynamics Corporation is ranked 291 amongst the World's Fortune 500 Companies. General Dynamics maintains the highest ethical standards in business practices and employee relations. Its formal ethics program started in 1986 and applies to all employees. The ethics policies of General Dynamics clearly state the company's expectations of all employees' when conducting business with customers, suppliers, or each other. They practice and reinforce the ethical principles of integrity, honesty, respect, and the prohibition against retaliation for any person who raises in good faith an ethics or compliance issue. The core business ethics principles of General Dynamics is to use assets wisely; offer a fair deal; deliver on promises and earn a fair return. The company strives to detect unethical conduct early. The ethics program includes a 24-hour-a-day, seven-day- a-week, confidential Business Ethics Helpline. Recovery and crisis management are a fundamental part of the ethics network if and when the time arises. General Dynamics is prepared to stay out in front of possible ethical dilemmas and portray their ethical vision and goals from all levels within the organization.

Background

The Chief Executive Officer is Mr. Jay Johnson and they employ over 90,000 personnel. General Dynamics is headquartered out of Falls Church, Virginia (Fortune 500, 2011). General Dynamics is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and mission-critical information systems and technology and operates under four business units (General Dynamics, 2011).

The Aerospace group, comprises Gulfstream Aerospace and Jet Aviation, has a global reputation for superior aircraft design, quality, safety and reliability. They provide high-quality business-jet outfitting and refurbishing, and award-winning aircraft-support services.

The Combat Systems group is a world leader in producing, supporting, and sustaining land and expeditionary combat systems for the U.S. military and its allies; developing new wheeled and tracked combat systems, ordnance, armament and advanced technical products to meet emerging customer requirements. They produce high-performance weapons and armament, defensive armor, countermeasures, and aerospace composites and off-road wheeled and track vehicles (General Dynamics, 2011).

The Information Systems and Technology group provides technologies, products and services that support a wide range of digital communications, cyberspace, C4ISR, information-sharing and enterprise technology needs. The company delivers advanced network-systems integration, IT services, enterprise solutions, systems engineering, simulation and training, wireless and professional services (General Dynamics, 2011).

The Marine Systems group designs, builds and supports submarines and a variety of surface ships for the U.S. Navy and commercial customers. With more than a century of experience specializing in engineering, construction, and support of surface combatants for the U.S. Navy, Bath Iron Works is the lead designer and builder of the Arleigh Burke class of AEGIS destroyers and the multi-mission Zumwalt-class destroyer. In addition, over the past century, Electric Boat has set the standard for design, construction and lifecycle support of the U.S. Navy's ballistic missile and attack submarines (General Dynamics, 2011).

Mission Statement

General Dynamics Corporation maintains the highest ethical standards in business practices and employee relations. Its formal ethics program started in 1986 and applies to all employees. General Dynamics focuses on creating shareholder value while delivering superior products and services to military, other government and commercial customers. The company emphasizes excellence in program management and continual improvement in all of its operations (General Dynamics, 2011).

Ethics Code of Conduct

Ethical codes of conduct are generally short, specific and easy to understand. They lay out specific do's and don'ts about particular problem areas, stating clearly and simply what counts as unacceptable conduct. Codes talk about conflict of interest, proprietary information, gifts and entertainment, record keeping, securities regulations, inside information and the like. Basically, the codes prescribe two types of activities. The first are clearly illegal--violating securities regulations, cheating on government contracts, and the like. The second are legal, but either unethical or able to influence someone's judgment so that they might compromise their responsibilities. Ethical codes of conduct usually limit themselves to the most important and most obvious areas where employees will face ethical dilemmas. They don't try to cover everything since it's impossible to imagine every conceivable problem.

General Dynamic's code of ethics is the bedrock of General Dynamic's culture. The ethics program provides multiple resources to help employees "do the right thing." These resources are contained principally in a handbook called Standards of Business Ethics and Conduct or, as it is more commonly known, the "Blue Book."

The Blue Book clearly states the expectation that all employees will conduct business in accordance with General Dynamic's laws, policies, values and business-ethics principles. It contains rules and guidance on how employees are to conduct business. Whether dealing with customers, suppliers or each other. It reminds employees to sustain General Dynamic's ethical business reputation by adhering to the principles of integrity, honesty and respect. The Blue Book strictly prohibits retaliation against anyone who raises an ethics or compliance issue in good faith. Furthermore, the Blue Book states that they expect the suppliers, vendors, contractors and joint venture partners to develop ethics and compliance programs that are consistent with the values in all material respects.

The ethics program also contains additional codes of ethics and ethical requirements for the financial professionals as well as the Board