Corporate Governance
Good stewardship begins with good governance. The Board of Directors and the company look for opportunities to continually improve governance practices and benchmark against the best. The Board is committed to being a leader in corporate governance. It believes that a commitment to good governance enhances shareholder value and goes beyond simply complying with legal requirements. It means adhering to the highest standards of ethics and integrity. Raytheon’s Board of Directors oversees stewardship and corporate governance primarily through the following committees: the Public Affairs Committee, the Audit Committee, the Governance and Nominating Committee, and the Management Development and Compensation Committee.

The Public Affairs Committee reviews policies and practices of the company and monitors compliance in the areas of legal and social responsibility, including environmental protection, health and safety, employment practices, charitable contributions, government relations, community and university relations, product quality, crisis management and emergency preparedness, in addition to monitoring ethics and regulatory compliance, litigation and enforcement actions.

The Audit Committee assists the Board with overseeing the company’s compliance with legal and regulatory requirements. In particular, the Audit Committee monitors the integrity of the company’s financial statements and disclosures. The Audit Committee receives regular reports regarding concerns that are communicated to the company with respect to accounting, internal control or auditing matters. The Audit Committee also reviews potential Code of Conduct issues related to financial misconduct and financial controls, as well as certain conflict of interest issues.

The Governance and Nominating Committee monitors the corporate governance landscape and recommends best practices. The committee periodically reviews the company’s governance principles and recommends revisions as appropriate. It also has primary responsibility for communications with shareholders regarding corporate governance matters, including shareholder nominations of director candidates and the process for shareholders and others to communicate directly with the Board’s independent lead director through the company’s website.

The Management Development and Compensation Committee (MDCC) oversees compensation plans and programs, including the company’s equity compensation plans, which are designed to attract, retain, motivate and reward executive leadership of a caliber and level of experience necessary to achieve the overall business objectives of the company. The MDCC approves the corporate objectives used in establishing compensation, and reviews and recommends to the Board for approval the actual compensation for the chief executive officer and the four other most highly compensated executive officers as reported in the company’s proxy statement. The MDCC also reviews and approves compensation for other officers and key employees, as well as director compensation. It receives periodic assessments from the chief executive officer regarding succession planning for senior management positions.

Ethics
Stewardship is about making good decisions, and decisions at Raytheon are governed by an ethics program with a long-standing history of excellence. Exemplary ethical behavior is critical to the stewardship of our company’s reputation, as well as the stewardship of the relationships we have with a multitude of stakeholders. Ethics awareness is actively encouraged through a variety of educational initiatives with our Board, our employees, our suppliers and our customers.

Global Health Resources
Stewardship of our most important resource — our people — includes caring for their health through a number of health and wellness initiatives. We define health broadly as an optimal state of well-being that balances the mental, physical, emotional, spiritual and social aspects of life. Our stewardship in this area involves monitoring the health trends of our employee population and offering a variety of programs and services to improve their health and prevent disease. We also strive to help employees find a more effective balance between their work and personal lives.

Environmental, Health & Safety
In the area of Environmental, Health & Safety (EHS), good stewardship means protection and prevention. We seek to be a good steward by protecting the environment from pollution and waste emissions, striving to exceed regulatory compliance standards, and creating our own goals for reduced solid and hazardous waste. In addition, we are dedicated to becoming an injury-free workplace by preventing injuries and protecting the health and safety of our employees.

Energy
Using energy efficiently and reducing our energy consumption are critical aspects of our stewardship of natural resources. We are committed to being good stewards of energy by tracking energy data, devising energy-reduction strategies and sharing best practices with other enterprises. Our energy stewardship has evolved in recent years into an award-winning program of continuous improvement in savings, benchmarking and awareness.

Supply Chain Diversity
Our stewardship of diversity has led us to commit to developing opportunities for minority- and women-owned businesses in our supply chain. In addition to including these businesses in our supply chain, Raytheon engages in formal and informal mentoring and developing relationships with our diversity suppliers.

Diversity
Diversity at Raytheon goes far beyond our award-winning hiring initiatives and communications campaigns. It is the centerpiece of our stewardship of the workplace culture. Diversity is a vital part of our ability to remain competitive. With a diverse workforce at every level of the company, we can solve problems more creatively, adapt to changing markets with greater agility, and better understand and serve our diverse customer base. At Raytheon, diversity is about inclusiveness, providing an atmosphere where everyone feels valued and empowered to perform at peak level, regardless of age, race, gender, sexual orientation, family history or physical condition.

Corporate Giving
Enriching the communities in which we live and work is the goal of our corporate giving program. At both the local level and nationwide, our grantmaking is governed by our corporate values, community needs and employee interests. We focus on education and disaster relief and our community relations programs support the needs of local neighborhoods. And because we feel a strong sense of stewardship for the future of our industry, we have invested heavily in programs that encourage students to consider careers in math and science. Our current efforts reach out to students in middle schools and universities.