BAE-annual-report-2014

Strategic Report
OUR BUSINESS IS ENABLED BY OUR OUTSTANDING RESOURCES…
OUR PEOPLE
P45
OUR TECHNOLOGY AND ENGINEERING
OUR PROJECT MANAGEMENT
OUR SUPPLY CHAIN
P46
We:
– have 83,400 employees 1
worldwide
– have a talented and diverse
workforce
– invest in education and training,
including apprentice and
graduate opportunities for the
next generation of highly-skilled
engineers, and the continuous
professional development of
our existing workforce
We:
– focus on technology innovation
and engineering excellence
– invest in next-generation
research and technology
programmes to improve the
manufacturing and service
of products, generating
substantial intellectual property
– spent £1,343m (2013 £1,037m)
in 2014 on R&D, of which
£137m (2013 £157m)
was funded by the Group
...SUPPORTED BY STRONG GOVERNANCE PROCESSES,…
OPERATIONAL FRAMEWORK
P58
Our Operational Framework
sets out how business is done
across BAE Systems. It is based
on principles of good
governance, and details the
values, policies and processes
that are mandated, and how the
Board delegates authority to the
executive team.
RISK MANAGEMENT
P48
We have robust procedures
for risk management and
internal control to identify,
analyse, evaluate and mitigate
both financial and non-financial
risks.
...RESPONSIBLE TRADING PRINCIPLES...
1.
We understand and support
our customers’ national security
and other requirements.
2.
We work to BAE Systems’ values
(Trusted, Innovative and Bold) in
all that we do.
We:
– have comprehensive project
management skills and
processes
– have a Lifecycle Management
process that promotes the
application of best practice
programme execution
CODE OF CONDUCT
P44
We operate to high standards of
ethical business conduct as a
responsible and trusted partner.
3.
We assess carefully our
products and services with
the objective that neither
BAE Systems nor our
customers are exposed to
significant reputational risk.
...AND A FOCUS ON THE WIDER IMPACTS OF OUR BUSINESS.
SAFETY
P45
We continue to embed a ‘safety
first’ approach by providing
training and tools for employees.
We apply robust standards of
product safety as it is critical
that the Group’s products
perform as designed.
1. Including share of equity accounted investments.
DIVERSITY AND INCLUSION
P45
We are committed to creating
an inclusive workplace where a
diverse range of talented people
can work together.
ENVIRONMENT
P47
We focus on minimising the
impact on the environment of
our operations and products, and
using resources more efficiently.
We:
– choose suppliers who share our
values and meet our standards
– manage supplier performance,
risks and opportunities
– operate sustainable
procurement, focusing on
reducing the environmental
impact of the products and
services we buy
– support suppliers by sharing
best practice
4.
We are as open as
practicable about the
nature of our business.
COMMUNITY INVESTMENT
We are committed to investing
in the communities in which
we operate.
P46
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
BAE Systems
Annual Report 2014
13