Labor & Human Rights Supply Chain: Market Research Aerospace & Defense Sustainability Report
p. *Authors: Chad Vermillion, Jeffrey Behrens, Amy Sims*
p. The Aerospace & Defense industry is dependent on large contracts to deliver high end products such as airplanes, fighter jets, tanks and other high value end item products. Since the main driver of this industry is high cost, highly regulated items, most of the companies in this industry follow guidelines set by their customers, as well as the prescribed laws in places governing how they must operate and conduct business.
p. The aerospace industry is comprised of two major sectors: The commercial aerospace sector and the defense aerospace sectors. The commercial aerospace sector consists of compa- nies that produce large commercial aircraft, regional aircraft, light aircraft (such as helicopters and business jets), aircraft engines, parts and auxiliary equipment, and commercial satellites The defense aerospace sector is comprised of companies that produce aircraft, engines, parts, equip- ment, weapons systems, and military satellites. Major companies in the sector include Lockheed Martin, Northrop Grumman, Raytheon, Boeing, General Dynamics, and BAE Systems.
p. In terms of Labor and environmental sustainability many organizations in this industry are not primarily driven by the impacts in these areas. Due to the high monetary sum of most sales,the customers tend to be focused on governments or other corporations, and not to individual consumers. Because this industry is not dependent on consumer sales, the risk generated by nega- tive aspects in these arenas do not have the negative impact that would be seen in other consumer based industries.
p. When evaluating the supply chain in this industry the main focus appears to be focused on regulatory adherence. While there does appear to be somewhat of an upward trend of involve- ment for most of the companies in the Aerospace & Defense industry they seem to have a higher focus on human rights versus sustainability & the environment (minus those areas dictated by law). This being said, the public information available on enforcement and company established guidelines are not well defined or
p. The following information highlights key areas where information was available in an ef- fort to provide clarity on the strengths and/or possible gaps in policy as it allies to the supply chain for human rights and environmental sustainability. A time bases overview of these areas should provide a glide path for industry as a whole and the individual company efforts.
p. While at the time of this writing, no current evidence is available, a future review of this industry is recommended based on the current fiscal constraints. The impact of these funding restrictions could have a large effect on the resources available to support human rights and environmental sustainability in this industry.
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