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To meet business challenges, deliver superior solutions, and increase our competitive advantage, we need to fully leverage diversity at Raytheon. As such, building an inclusive culture is a strategic priority for our company. We seek to provide an environment where employees and business partners feel valued and empowered to perform at a peak level, regardless of the differences among us.

Diversity summits

An important step in Raytheon’s diversity and inclusion journey is ensuring that all leaders master skills and model behaviors reflecting respect and inclusion values. In 2011, regional Diversity Summits entitled “Leaders Make the Difference — Building Diversity Competencies” were held across the company to engage 800 middle managers in experiential learning focused on building critical diversity competencies. The interactive one-day events helped position participants as leaders in the creation of an inclusive and high performing organization.

Cultural competence — essential to diversity competency

We focus on building “cultural competence” to strengthen our relationships with customers, communities around the world, and in our workplaces. We view cultural competence as the understanding of the dynamics of cultural differences and the ability to reduce risk and maximize opportunities inherent in them. By being more culturally competent, we can increase our efficiency, effectiveness and capabilities in our growing international business and at home.

Our commitment to cultural competence is reinforced through efforts to recognize and respect human rights in all countries in which we do business, including working with suppliers and business partners to ensure flow-down of our principles in their activities on our behalf.

Diversity in our supply chain

Raytheon’s commitment to diversity and inclusion extends to our suppliers. Historically more than 50% of Raytheon’s supplier excellence award winners have been small businesses, and that trend continued in 2011. Many of these companies contributed to Raytheon’s technology innovation or enhancement under the Small Business Innovation Research Program and the Mentor Protégé Program or demonstrated commitment to continuous improvement by participating in Raytheon’s Six Sigma for Suppliers developmental assistance program. Small businesses were awarded $2 billion amounting to 34% of purchases of products and services in 2011. Additionally, as a percentage of total contracts awarded in the year, small, disadvantaged businesses received 6.9%; women-owned small businesses received 4.4%; veteran-owned small businesses received 5.8%; service disabled small businesses received 1.9%; and certified hub zone small businesses received 1.2%.

Employee resource groups

We team with Raytheon Employee Resource Groups (ERG) as strategic business partners to advance our diverse and inclusive culture. ERGs provide insights stemming from their members’ unique experiences that are invaluable to the promotion of an inclusive environment. They focus on career development, retention, recruitment and community outreach within their specific affinity groups and across the company and also serve as neutral forums for employee engagement and dialogue about diversity issues.

In 2011, a new ERG — Young Employee Success Network (YESNET) — was recognized to foster a supportive and inclusive workplace for early career employees. YESNET supports talent development and retention by providing professional and personal development activities to employees with five or fewer years of work experience. YESNET also creates a crucial link among employees to bridge gaps in a multigenerational workforce.

Raytheon’s Chief Diversity Officer, Hayward Bell, sits with Chairman and CEO William H. Swanson to discuss diversity and inclusion. Their discussion, which kicked off the company’s regional Diversity Summits on the theme of “Leaders Make the Difference,” encouraged attendees to help others understand why diversity is so important to what we do every day at Raytheon.