Dear Raytheon Stakeholders,

Raytheon’s commitment to corporate responsibility is stronger than ever. We may be in a challenging environment, but this is no time for shortcuts or to change course. Our commitments to our shareholders, our customers, our employees, our communities and future generations are more lasting than that. They are steadfast and deep.

As you will see in this 2011 Raytheon Corporate Responsibility Report, if anything, our commitments have only grown during the past year.

One area where we grew was internationally. The continued success of Raytheon’s international strategy provided 29 percent of our 2011 bookings and has us doing business in 81 countries. Thus, we enhanced our international governance and compliance program to maintain our contemporary governance platform. We are a leading supporter of the International Forum on Business and Ethical Conduct – an international aerospace and defense industry initiative promoting ethical business behavior. We are focusing on building “cultural competence” to strengthen our relationships with customers and communities around the world. We are also ensuring that our health and wellness programs reach employees in all of our global locations.

Our award-winning sustainability efforts continue to progress and be a source of pride. We now have 15 sustainability goals in our Environmental, Health and Safety, Operations, Supply Chain, Engineering and Information Technology functions for completion by year-end 2015. In 2011, we strengthened our sustainability governance structure to better coordinate and align our efforts throughout the company.

Raytheon finished 2011 with our safest year in company history. Yet we have set our sights even higher with a commitment to have all of our major U.S. sites participating in the Occupational Safety and Health Administration (OSHA) Voluntary Protection Program (VPP) by 2013. Already, more than half of our employees work at a site having achieved OSHA VPP “Star” status, the highest level of OSHA certification.

In the area of science, technology, engineering and mathematics (STEM) education, Raytheon’s MathMovesU® programs have now touched the lives of more than 3 million students, teachers and parents. The impact of our MathMovesU programs, partnerships, scholarships, grants and giving, and international reach was reinforced by our employee volunteers, who doubled their logged volunteer hours in 2011 over the previous year with activities that included mentoring and tutoring, science fairs and math team coaching, and school visits.

We can never thank our service members, veterans and their families enough, which is why Raytheon’s armed services support remains a central focus. Our partnership with the Wounded Warrior Project (WWP) enabled them to exceed all their goals in 2011. WWP added five transition training academies, graduated 647 students and achieved a 100 percent CompTIA certification test pass rate – outstanding results that directly benefit our veterans and wounded warriors. In addition, we continued our support of Operation Homelink’s mission to provide computers to families of junior enlisted servicemen and women, so they can stay connected while loved ones are deployed.

All of our corporate responsibility efforts are guided by Raytheon’s Vision, Strategy, Goals and Values. They are consistent and proven, and serve to align our 71,000 employees in all that they do for our stakeholders. Time after time, I am continually impressed by how passionate our employees are about corporate responsibility. They want to make a difference, which is one of the many reasons why I am so proud to be a member of the Raytheon team for 40 years.

Respectfully,

William H. Swanson
Chairman and Chief Executive Officer