Stewardship. To me, this word means “guidance,” “direction” and “accountability”— being entrusted with something of great and enduring value. When used in the context of ethics and governance, these are the principles that serve as the foundation of our company. It is my belief that these principles have never been more important than in today’s complex, changing, global business environment.

Today, for example, with respect to policies and practices, employee training is not enough; the challenge is employee education. We must move from engaging the head to embracing the heart. This is crucial to successfully managing a global workforce with a common language of governance. This report will look at many aspects of what we mean by stewardship, including:

INTEGRITY — There should be no doubt about the integrity of our business practices. We believe that ethics needs to be fundamental to everything we do — that we should treat the company’s name as if it were our own. This stewardship starts with me and includes all of our employees and the Board of Directors. We have vehicles in place to enable employees not only to report concerns — anonymously if they wish — but to seek advice before they make difficult decisions. We are now taking our program to the next level, to move from ethics training to ethics education.

ENVIRONMENTAL, HEALTH & SAFETY — We need to prevent and protect, to create a safe and healthy work environment and to respect the environment around us. We strive for an injury-free workplace and to be an environmentally good neighbor, and our team has worked very hard on this.

VALUING DIVERSITY — We must be inclusive to retain and attract the best talent, to generate innovative solutions for our customers, and to effectively engage all of our stakeholders. We realize that to get inclusiveness right, it needs to be natural and intuitive, a matter not just of the head but also the heart; they must be linked.

CORPORATE CITIZENSHIP — This means being part of the fabric of the communities in which we live and work. It is about community investment. For us, it especially means encouraging students to stick with math and pursue careers in science and engineering. We have assumed a leadership position in this area — through the Business-Higher Education Forum (BHEF), where I am honored to serve as co-chair of BHEF’s Science, Technology, Engineering and Mathematics Initiative; and through Raytheon’s MathMovesU initiative, which strives to generate excitement in math in middle school.

On behalf of the 80,000 employees of Raytheon, I want to thank you for your interest in our company. Raytheon was founded in 1922. While much has changed since then, we are still guided by a strong sense of who we are, whom we serve, and what we have the potential to become. We appreciate your confidence in us as we continue this journey.