An ethical culture: Own it, Live it, Lead it.

• Author: Evers-Manly, Sandra
• Position: Ethics Corner

* Anyone involved in ethics and compliance within the defense industry should know that to be truly effective, a corporate ethics program requires more than a "check the box" approach. The challenge is to develop a vibrant program that resonates with employees in a manner that causes them to take true ownership of ethics within their area of responsibility.

Over the years we, along with peer companies, and often in collaboration with the National Defense Industrial Association and the Defense Industry Initiative (DII), have shared best practices within industry in the interests of men and women in uniform.

Northrop Grumman has always endeavored to meet the requirements of applicable laws, but it has resolved to take the culture beyond that by making its ethics program more robust, proactive and holistic. In 2007, it decided to establish a direct reporting relationship to both the CEO and the board of directors. This led to the formation of an office of corporate responsibility, which not only oversees the traditional ethics and compliance functions, but also diversity and inclusion, Equal Employment Opportunity compliance, workplace accommodations, an employee assistance program, corporate citizenship and the Northrop Grumman Foundation.

This new structure helps ensure that the heart of our program is about establishing the right culture and good corporate citizenship. The right culture not only fosters ethical behavior, it also extends beyond traditional ethics and compliance. This more holistic integration has greatly contributed to the continued success of the current program.

Openly sharing best practices among all defense contractors has allowed the company to discover and apply new ways to strengthen programs and otherwise achieve effectiveness. Two key takeaways from our membership in DII are the importance of values-based ethics programs and the concept of "tone at the top." The leadership team strives to put ethics at the forefront whether speaking to employees, industry and government leaders, or making decisions about what is best for the company.

As important as "tone at the top" is critically important, but so too is the challenge of reaching out to all employees, to include knowing and understanding the "mood in the middle" and the "buzz at the bottom." The ethics program is greatly enhanced by the business conduct officer network of 120 dedicated employees, who closely monitor the "middle mood" and "bottom buzz." We also...