Introduction

Welcome to the ninth annual BAE Systems
Corporate Responsibility (CR) Report.

CR is an integral part of BAE Systems’ Total Performance approach. Total Performance is about every aspect of the way we do business: Customer Focus, Financial Performance, Programme Execution and Responsible Behaviour.

To reflect this, we aim to increasingly integrate our reporting of financial and CR performance in the Annual Report.

This report covers the Company’s CR activities in the 2009 calendar year. It focuses on our strategy and performance in key areas of responsible business conduct, safety, environmental sustainability, workplace and community. The report also includes case studies from our businesses around the world that demonstrate our approach in practice.

Assurance

Independent assurance of this report is provided by Deloitte LLP (see assurance statement) on the following basis:

Limited assurance of the CR Report compilation process;
Limited assurance of selected group level business conduct, safety, and diversity performance data;
Reasonable assurance of selected group level business conduct performance data; and
Reasonable assurance of our statement on business conduct made under the heading ‘Responsible Business Conduct’ section, excluding the table headed ‘Dismissals for reasons relating to unethical behaviour’ which has been subject to limited assurance.

Scope and data

The data and performance measures in this report cover the period January – December 2009 with the exception of environment data which covers the period January – December 2008. Qualitative information and quantitative data for the report are provided by individuals across our business. Quantitative data is recorded on centralised systems, and content and data are reviewed at head office.

Unless otherwise explained, the data in this report cover the Company’s major operations globally, excluding those acquired or divested during the year.