Raytheon Company

870 Winter Street

Waltham, Massachusetts
02451-1449 USA
781.522.3000

www.raytheon.com

Corporate Responsibility Report 2008

Copyright © 2009 Raytheon Company. All rights reserved.

 Table of Contents

Raytheon received the The readers of Raytheon received EHS Today magazine Raytheon earned Raytheon earned
Aerospace Industries Careers & the the U.S. EPA/U.S. named Raytheon the Disability Rights the Colorado Gold
Association’s (AIA) disABLED magazine Department of one of America’s Legal Center’s 2008 Environmental Award
Worker Safety once again honored Energy 2009 ENERGY Safest Companies. Corporate Award for our efforts in
Excellence Award for Raytheon for its STAR Sustained The award recognizes for its commitment using recycled paper,
its outstanding safety commitment to Excellence Award, the Raytheon’s enterprise- to diversity and supporting land
program at Raytheon recruiting, hiring and highest honor given wide Environmental, meaningful employment conservation and
Missile Systems (RMS). promoting people to ENERGY STAR Health and Safety opportunities for people purchasing wind
Raytheon achieved with disabilities. partners. efforts, including with disabilities. generated power.
www.raytheon.com the lowest employee innovative campaigns
Keyword: Corporate Responsibility injury rates in the such as Safety
Missiles and Space Madness, Olympic
award category. Madness and Kids
We invite you to visit our
2 Vision, Strategy, Goals and Values website to learn more
‘R’ Cool.

5 Governance about Raytheon’s ongoing

sustainability initiatives
7 Ethics and discover how our
best practices are
9 Excellence in Engineering making an impact.
11 Diversity
13 Safety and Wellness
17 Energy and the Environment
21 Information Technology
23 Supporting Our Communities
24 Award Highlights

ON THE COVER:
Raytheon’s Sustainability initiative encompasses the company’s
efforts to develop and follow best practices in the areas of sustainability,
social responsibility and protection of the environment.
 A message from Raytheon’s
Chairman and CEO

“Corporate responsibility” means different things to different

people. At Raytheon, we look at corporate responsibility
through the lens of history, which offers a unique and
important perspective. After all, Raytheon was founded in
1922 and so we have generations of experience to draw upon
in the way we engage our stakeholders.

In all times, and especially in these series featuring dramatic vignettes All of these examples of corporate
times, it is not enough to define delivered to employee desktops; responsibility are discussed in
corporate responsibility in the context and in engineering excellence, as the pages that follow. We will
of financial performance, though this reflected in the pivotal role we also share with you examples
is obviously important. We try to think played in the successful intercept of the recognition our team has
about corporate responsibility more of a non-functioning satellite. received. While we are gratified
deeply, to go “above and beyond.” with this recognition, we know
Our commitment to corporate
That’s why the theme of our Corporate that today’s accomplishments
responsibility is manifest in our
Responsibility Report is, “Building on must be the foundation for our
focus on diversity competencies to
Our Commitment: Being Responsible progress tomorrow. This eagerness
promote an inclusive culture; in
in Everything We Do.” has energized our company since
the implementation of wonderful
its founding 87 years — and
We believe that corporate responsibility safety and wellness programs and
many generations — ago, and
manifests itself in our strong and a fierce determination to achieve
it continues to do so today.
consistent Vision, Strategy, Goals and our ultimate goal of an injury-free
Values; in our sound and workplace; in our commitment to The 73,000 members of the
contemporary corporate sustainability, including protection of Raytheon worldwide team want to
governance framework; the environment and conservation of thank you for your support as we
in our innovative ethics natural resources; in our proactive and continue our journey — and our
education initiatives collaborative efforts to prevent, detect best efforts — on behalf of all who
such as our popular and respond to cyber threats; and in depend on us.
EthicSpace mini- our multifaceted, highly innovative
As always, a proud member
approaches to help secure the technical
of the Raytheon team,
talent pipeline and encourage students
to develop and maintain an interest in
math and science.
Last, but certainly not least, corporate
responsibility is reflected in support
for our service members, drawing William H. Swanson
on our long tradition of respect and Chairman and
admiration for our men and women Chief Executive Officer
in uniform.
Vision, Strategy, Goals and Values
One Company. One Vision.

Raytheon’s Vision, Strategy, Goals and Values are the foundation of our company. They
focus and unify Raytheon’s 73,000 people across six businesses, a multitude of markets
and more than 350 locations around the world. They influence our product development,
inspire our employees and strengthen our relationships with customers, partners, share-
holders and communities. They provide our roadmap for direction and our benchmarks
for measuring performance.

VISION

To be the most admired defense and aerospace systems supplier

through world-class people and technology.

STRATEGY GOALS VALUES

Focus on key strategic pursuits, ■ Customer ■ People
Technology and Mission Assurance to • Be regarded as a customer-focused • Treat people with respect and dignity.
protect and grow our position in our company known for its technology and • Welcome diversity and diverse opinions.
four core defense markets: innovation. • Help our fellow employees improve
■ Sensing: Expand beyond traditional ■ Growth their skills.
RF/EO into adjacent markets; • Grow revenue faster than the • Recognize and reward accomplishment.
■ Effects: Expand beyond kinetic market. Build on good performance in ■ Integrity
energy-based weapons; improving cash flow. Execute well and
• Be honest, forthright and trustworthy.
■ C3I: Grow market presence through with predictability.
• Use straight talk; no hidden agendas.
increased footprint and expand ■ People
• Respect ethics, law and regulation.
knowledge management; • Retain and attract world-class talent
■ Commitment
■ Mission Support: Expand beyond while providing superior opportunities
for employee development. Treat all • Honor commitments to customers, share-
product support and engineering services
employees with respect. Leverage holders, the community and each other.
to include mission planning and training
capabilities. our diversity efforts as a competitive • Accept personal responsibility to meet
advantage, continuing Raytheon’s commitments; be accountable.
Leverage our domain knowledge in
these core defense markets, as well leadership in diversity. ■ Excellence
as in Mission Systems Integration, ■ Productivity • Improve performance continually.
Homeland Security and Information • Improve ROIC for Raytheon Company. • Stress quality, productivity, growth,
Operations/Information Assurance. Take Raytheon Six Sigma™ to the next best practices and measurement.
level, further engaging customers and • Always strive to be the best.
Expand international business by
partners. Deliver greater value and
broadening focus and expanding into
predictability through the Integrated
adjacent markets.
Product Development System (IPDS),
Continue to be a customer-focused Earned Value Management System
company based on performance, (EVMS) and Capability Maturity Model
relationships and solutions. Integration (CMMI®).

2 RAYTHEON COMPANY CORPORATE RESPONSIBILITY REPORT 2008

As you will see in the pages that follow, Corporate
Responsibility at Raytheon is a journey. It is a journey
guided by a sense of stewardship — by a Vision that is
compelling and Values that are clear — markers that
help us navigate a course that is true.

Our Vision is “to be the most admired defense and

aerospace systems supplier through world-class people
and technology.” Our Values define who we are and what
we stand for: People, Integrity, Commitment and Excellence.

Together with our Strategy and Goals, they provide us

with the confidence and direction needed to embrace
change, drive innovation, partner with stakeholders, and
achieve our mission of customer success.

These are the threads that run through the pages that
follow. The 73,000 people of Raytheon thank you for
taking the time to read about all that we achieved in
Corporate Responsibility, and all that we aspire to
achieve as we continue our journey together.

3
 In 2008, Raytheon adopted a number of governance enhancements to ensure the company
continues to embrace progressive practices in the area of corporate governance. In recognition
of its leadership on governance, Raytheon’s Board of Directors was named the 2008 “Board of
the Year” by the New England Chapter of the National Association of Corporate Directors.

4 RAYTHEON COMPANY CORPORATE RESPONSIBILITY REPORT 2008

Governance
Ensuring Independence, Accountability and Transparency

Sound corporate governance provides executive compensation program, on which a director may serve.
the structure for overseeing the provide further assurance that The limits adopted are five public
company’s business and operations, Raytheon directors and officers will company boards (including
and also establishes a strong identify with shareholder concerns Raytheon) for any director who
foundation for effective corporate and perspectives. does not serve as a current CEO
citizenship. Raytheon entered 2008 of a public company and three
with a contemporary governance TRANSPARENCY public company boards (including
framework emphasizing active Raytheon is committed to transparent Raytheon) for any director who
and independent Board oversight, reporting at every level. The company does currently serve as a CEO.
accountability to shareholders, highly has robust controls and processes This latter limitation applies to
transparent financial reports and emphasizing transparency to ensure our Chairman and CEO.
disclosures, and vigilant compliance that information required to be Third, the MDCC adopted a
with complex and changing regulatory disclosed is appropriately documented, formal policy to ensure that its
responsibilities. Building on this processed, summarized and reported in compensation consultant meets
strong foundation, in the past year a timely manner. Raytheon’s Disclosure robust independence requirements.
the company adopted a number of Committee assists senior management This policy requires the MDCC to
significant governance enhancements. in helping to ensure that the company’s assess annually the independence
disclosures are accurate and complete, of its compensation consultant. As
INDEPENDENCE and fairly report Raytheon’s financial part of this assessment, the MDCC
Under the company’s Governance condition and results of operations in reviews any services proposed
Principles, independent directors must all material respects. to be provided by the consultant
constitute a substantial majority of the to the company, and considers
Board. To be considered independent, RECENT GOVERNANCE whether the provision of such
directors must meet strict criteria ENHANCEMENTS non-MDCC services might impair
demonstrating that they are free of In the past year, the company adopted the consultant’s independence.
any relationship with the company a number of important governance Such non-MDCC services may be
that might pose a conflict of interest. enhancements. First, the Board provided only with the MDCC’s
In addition, each of the Board’s four amended the company’s Governance pre-approval.
committees that meet regularly — the Principles to add a Restatement Finally, to achieve greater
Audit Committee, the Governance Clawback Policy. This policy gives the transparency, we instituted a
and Nominating Committee, the Board the right to recover incentive new website disclosure of the
Management Development and compensation or stock awards made company’s so-called “soft money”
Compensation Committee (MDCC), to any elected officer, to the extent that contributions — direct corporate
and the Public Affairs Committee — such payments or awards were inflated contributions to political parties,
is exclusively independent. due to erroneous financial reporting state and local political candidates,
knowingly caused by the executive. and political organizations
ACCOUNTABILITY This policy is designed to maximize established under section 527
Raytheon has majority voting in the likelihood that the company will of the tax code.
uncontested director elections and be successful in seeking to recover
requires the entire Board to stand for incentive compensation attributable to In recognition of its leadership
election each year. The company has improperly inflated financial results. on governance, Raytheon’s Board
eliminated its “poison pill” barrier was named the 2008 “Board of the
Second, the Board amended the
to hostile takeover. And Raytheon’s Year” by the New England Chapter
company’s Governance Principles to
guidelines for stock ownership, of the National Association of
establish a formal policy limiting the
together with its pay-for-performance Corporate Directors.
number of public company boards

5
 Raytheon is committed to making ethics education an ongoing endeavor at every level of the
organization. As part of that commitment, the company developed a program entitled “Take 5 for
Ethical Leadership,” a series of seven brief learning modules that were delivered to users’ desktop
computers. Through its engaging and informative format, “Take 5 for Ethical Leadership” helps
reinforce the skills leaders use to promote a culture of integrity.

6 RAYTHEON COMPANY CORPORATE RESPONSIBILITY REPORT 2008

Ethics
Fundamental to Our Values

Raytheon’s Ethics and Compliance ■ Our library of online compliance In 2008, the office received more
program promotes a company modules provides job-related infor- than 3,000 contacts, up 33 percent
culture that aligns integrity with our mation on topics ranging from from 2007. Nearly 90 percent of
special mission as a leader in the conflicts of interest and workforce the contacts were requests for
defense industry. Ethical business diversity to the Foreign Corrupt advice. However, we also completed
conduct and scrupulous compliance Practices Act. In 2008, employees 301 investigations of alleged
are fundamental to our values and completed more than 153,000 online misconduct. In 74 percent of
continuously reinforced through the compliance courses. these cases, the misconduct alleged
program’s key elements of education, was substantiated, leading to 316
■ “Take 5” is a new ethical leader-
counseling and accountability. disciplinary actions up to and
ship program, started in 2008 and
including termination.
Our ethics program has a proud continuing in 2009. “Take 5” engages
history. In 1986, Raytheon became leaders with exercises and discussion
EMPLOYEE FEEDBACK
a charter member of the Defense of the skills employees look for when
Industry Initiative (DII), a major they describe ethical leadership. In our 2008 Employee Opinion
industry collaboration to promote Survey, 80 percent of the
Raytheon’s Ethics and Compliance
ethical business conduct. We remain a respondents found our ethics
education programs were featured
leader in DII and work continuously education useful in guiding their
as best practices in 2008 in both the
to live up to the highest standards conduct, up from 74 percent in
Federal Ethics Report and Ethikos
of integrity. Our compliance in this 2005 and 78 percent in 2007. A
magazine.
area is one of the most important broader measure, our Ethics Index,
benchmarks by which we measure was also up two points over 2007.
COUNSELING AND
our performance. INVESTIGATIONS Ethics and integrity are clearly
Employees who contact our ethics important to Raytheon employees.
2008 HIGHLIGHTS Our proactive Ethics and
office may do so confidentially,
We offer a variety of educational without fear of retaliation and with Compliance program continues to
experiences to help employees identify the assurance that the company will underscore that importance.
ethical issues and make appropriate review and respond to their concerns.
decisions:
■ Ethics reConnection was the 2008
version of our annual all-employee
OVER 3,000 TOTAL CONTACTS IN 2008
program of ethics awareness classes.
The program used realistic video • 90% Seeking Advice
vignettes to stimulate reflection and • 10% Alleged Misconduct
discussion on how to resolve a series
of ethical dilemmas.
■ Our EthicSpace mini-series reinforces
the classroom sessions by delivering
dramatic vignettes to employee
desktops several times a year. One
EthicSpace program was accessed
over 65,000 times.

7
 Raytheon engineers develop innovative solutions to some of the world’s most demanding
challenges across land, air, sea, space and cyberspace. Each year at the Excellence in Engineering
and Technology Awards, Raytheon recognizes individuals and teams whose innovations, processes
or products have a substantial impact on the success of our customers.

8 RAYTHEON COMPANY CORPORATE RESPONSIBILITY REPORT 2008

Excellence in Engineering
NoDoubt® Performance

Mission Assurance and NoDoubt TECHNOLOGY SOLUTIONS Active Protection System

performance, values essential to Raytheon’s success depends on Raytheon’s Active Protection System
Raytheon’s operational and financial technological innovation. Knowing (APS) ranked #8 among TIME®
success, are also integral to our this, we systematically cultivate a Magazine’s “50 Best Inventions of
citizenship commitment. Our mindset of openness to new ideas, 2008.” TIME described APS as “Star
Engineering, Technology and Mission flexible collaboration, and continual Wars for soldiers,” noting that by
Assurance team works aggressively at pursuit of new and better ways to do protecting soldiers from short-range
every organizational level to improve things. The result has been a stream attack, it also enables the Army
our products and processes. We drive of large and small breakthroughs that to develop vehicles requiring less
this approach with a broad range of have repeatedly enabled us to meet and armor. APS uses vertical launch
proprietary tools and internal and exceed our customers’ expectations. technology to intercept rocket-
external metrics, including: Recent examples include: propelled grenades or anti-tank
guided missiles coming from any
RAYTHEON SIX SIGMA (R6 ®
) Controlled Impact Rescue Tool direction — “hitting bullets with
Under the headline, “A Concrete bullets” through an innovative “pop
R6 is our disciplined, knowledge-
Smasher For Rescue Crews,” Popular and pitch” approach whereby the
based approach designed to increase
Science® described Raytheon’s interceptor launches (pops up)
productivity, grow the business,
Controlled Impact Rescue Tool vertically from the vehicle, pitches
enhance customer satisfaction and
(CIRT) as a fast way to reach victims over, then intercepts and destroys
build a company culture that embraces
in a collapsed building. CIRT’s the threat while blowing debris from
all of these goals. Currently, we have
innovative design uses shock waves the intercepted weapon downward
more than 1,050 trained R6 Experts
to pulverize concrete, enabling it to toward the ground. TIME’s Best
and approximately 47,400 qualified
shatter a concrete wall in 13 minutes, Inventions citation reflects our
R6 Specialists.
compared with more than 30 minutes commitment to delivering the very
for conventional methods. In situations best force protection technology
CAPABILITY MATURITY MODEL where every minute counts, this
INTEGRATION (CMMI®) to our men and women in uniform.
difference can save lives.
Raytheon continues to drive this
SM-3 Satellite Intercept
nationally recognized process
One example of Raytheon innovation
improvement measurement approach ET&MA
captured worldwide attention in
throughout the company. The CMMI Engineering,
February 2008 as we played a pivotal Technology and
model provides organizations with
role in the successful intercept of Mission Assurance
the essential elements of effective
a non-functioning satellite. The
processes, as established by the
company’s Standard Missile-3
Software Engineering Institute (SEI)
intercepted the target 153 miles over
for process maturity in hardware,
the Pacific Ocean. Our Sea-Based
systems and software engineering. In
X-band radar tracked the satellite
2008, Raytheon’s Integrated Defense
prior to the missile engagement
Systems business unit achieved The Raytheon Certified Architect
and performed the hit assessment Program (RCAP) focuses on
CMMI’s highest rating, Level 5, joining
afterward. Throughout the process, providing our customers with the
Raytheon Network Centric Systems,
Raytheon engineers worked closely expertise needed to support their
which reached the milestone the long-term transformational goals.
with our customers to ensure
previous year.
mission success.

9
 At Raytheon, diversity is both a core component and a catalyst to everything we do. It enables
people with diverse backgrounds, experiences and opinions to share their thoughts in a welcoming
and respectful environment. The results are innovative ideas that are as diverse and valuable as the
people who develop them. At the 2008 Raytheon Diversity Summit, employees took part in breakout
sessions where role playing, discussions and experiential learning activities provided opportunity to
further explore how to apply diversity competencies.

10 RAYTHEON COMPANY CORPORATE RESPONSIBILITY REPORT 2008

Diversity
Fostering an Inclusive Culture

Diversity at Raytheon is about ■ Demonstrates the ability to adapt SUPPLIER DIVERSITY

inclusiveness — providing an personal style to accommodate Raytheon’s commitment to diversity
atmosphere where everyone feels differences and inclusion also extends to our
valued and empowered to perform at suppliers. Small, minority-, women-
■ Demonstrates commitment to
a peak level, regardless of the many and veteran-owned businesses bring
improvement and continuous learning
ways people are different, including valuable perspective to the work
related to diversity and inclusion
but not limited to age, race, gender, we do and the solutions included
sexual orientation, family history
DIVERSITY LEADERSHIP in our products and services. They
or physical ability. We believe that enhance our supply chain and
promoting an inclusive culture helps Raytheon’s diversity initiatives are led
by the company’s Executive Diversity strengthen our mission of customer
us attract, develop and retain the satisfaction. In 2008, over 35 percent
best talent. Leadership Team, which reports
directly to our CEO, in partnership of Raytheon’s procurements were
We also believe that our inclusive with the Raytheon Diversity Council. from small businesses. In addition,
culture is a source of competitive Our progress has been substantial. Raytheon awarded over $470
advantage, because there is a direct In 1999, when we first surveyed million to small, disadvantaged
connection between diversity, employees about our commitment businesses; $274 million to
inclusiveness and innovation. Our to diversity, they ranked us in the 50th women-owned small businesses;
experience is that the most creative percentile of companies across a range $384 million to veteran-owned
teams are those that encourage and of industries. By 2005, we had climbed small businesses; and $120 million
tap into diverse perspectives and ideas. to the 84th percentile, and we reached to services-disabled, veteran-owned
By welcoming diversity, we generate the 96th percentile in the 2008 survey. small businesses.
exciting ideas and drive innovation. In addition, our 2008 scores were up
in all five areas of the Diversity Index:
DIVERSITY COMPETENCIES valuing diversity, seeking out diverse
To promote a more inclusive culture, opinions, working together, achieving
we guide our employees in developing diversity in hiring and thought, and
specific diversity competencies that we encouraging the free exchange of ideas.
hope will become “second nature.”
Our annual Diversity Summit is a
Each competency is defined by a set
pinnacle event that focuses business
of behaviors focused on respectful, The Raytheon Diversity Insignia
leaders on developing actionable
inclusive leadership and management reflects our commitment to diversity
diversity plans for which they agree to while providing a unifying device to
of people and teams. A person
be held accountable. At the same time, help the company leverage the efforts
exhibiting these competencies:
participants at all levels learn from each of our many employees.
■ Creates opportunities for all other and outside experts.
people to participate, contribute
and give feedback
■ Builds diverse teams and
organizations that value and include Diversity Wheel
The Diversity Wheel
diverse perspectives is used to symbolize
■ Proactively resolves diversity- the breadth of the
qualities that make
related conflict our culture vibrant
and distinctive.
■ Actively encourages different ideas
or viewpoints

11
 Employee safety is critically important to everything we do as a company. Raytheon’s safety
programs are driven by a strong commitment from top-level management, and safety practices are a
core component of every business. From devising innovative solutions to help prevent injuries
to providing the tools and training needed to keep workers informed, Raytheon is committed to
safety excellence.

12 RAYTHEON COMPANY CORPORATE RESPONSIBILITY REPORT 2008

Safety and Wellness
For a Healthy, Productive Workforce

Nowhere is the strength of have been expected if the baseline

Raytheon’s commitment to corporate injury rates had continued. The 2008
responsibility more evident than in injury rates are slightly higher than
our focus on ensuring our employees’ last year, but continue to demonstrate
safety and wellness. The immediate world-class performance. In 2008, OSHA RECORDABLE INJURY RATE
goal of our wide array of programs in our recordable injury rate increased
these areas is to protect our people and 3 percent from 0.77 to 0.79 (from 2.1
encourage them to make safe, healthy 564 injuries to 592 injuries) and our 1.8
choices. Ultimately, we seek to improve lost workday injury rate increased 1.6
the productivity of our workforce 4 percent from 0.22 to 0.23 (from 1.2
1.0 .93 .93
and the quality of life enjoyed by all 160 injuries to 173 injuries).
.79 .77 .79
members of the Raytheon community.
We are determined to continue to
Benchmark data, employee survey
improve our safety performance. We
responses and external recognition all
proactively identify and mitigate safety 99 00 01 02 03 04 05 06 07 08
suggest that we are succeeding.
risks in our workplace, using a series of
targeting strategies and analytical tools,
INJURY PREVENTION and are actively pursuing certification
In moving toward our ultimate goal under the OSHA Voluntary Protection
of an injury-free workplace, Raytheon LOST WORKDAY INJURY RATE
Program (VPP) for our major
tracks two Occupational Safety and locations. We believe that our own
Health Administration (OSHA) .46
risk mitigation and safety programs,
performance measures: recordable as enhanced by the rigor of VPP, will .41
injury rate and the lost workday further reduce employee injuries. .36
injury rate. The recordable injury rate
is the number of recordable injuries WORKERS’ COMPENSATION .26 .26
.24
.23
and illnesses per 100 employees. PROGRAM .21 .19 .22
The lost workday rate is the number Raytheon’s workers’ compensation
of recordable injuries and illnesses program has been an industry leader
involving days away from work per for many years, as demonstrated by 99 00 01 02 03 04 05 06 07 08
100 employees. an 86 percent reduction in the annual
As the accompanying charts show, costs incurred from 1988 to 2008.
Raytheon has made significant This dramatic reduction in costs is
progress by implementing best-in-class due to a number of factors, including:
safety programs and processes. Since world-class safety programs and
1999, we have reduced our OSHA processes which reduced injuries;
recordable injury rate by 62 percent initiatives to manage the length of
and our lost workday injury rate by employee absence; aggressive claims
50 percent. Since that time, over 7,100 management; and the transition to
fewer injuries took place than would self-insured and self-administered
operations in Massachusetts and Raytheon’s safety program includes
Rhode Island. the pursuit of OSHA VPP certification.
Management and employees proac-
tively work with OSHA to establish
and implement comprehensive safety
and health management systems at
various locations.

13
Safety and Wellness

HAZARD RISK ASSESSMENTS EMPLOYEE OPINION SURVEY One measure of the effectiveness
We completed more than 18,000 risk Our comprehensive employee of our audit program is our
assessments in 2008, far exceeding our survey helps us gauge the company’s compliance record with regulators.
goal of 14,000 assessments. In 2008, we commitment to safety. In 2008, 89 In 2008, federal, state and local
also set a goal to mitigate 90 percent percent of all survey respondents regulatory agencies conducted
of the risks we had identified in 2007. agreed that safety is a priority at 78 environmental and safety
Our teams made tremendous progress, Raytheon, an increase of 2 percent inspections of Raytheon operating
and by year-end, we had mitigated 91 from 2007. We are pleased with the locations. Six Notices of Violations
percent of those risks. We completed results, but we continue to strive for (NOVs) were issued, four related
over 1,700 Job Hazard Analyses using further improvement. to environmental management
our Web-based, enterprisewide Job and two related to safety issues.
Hazard Analysis process. In addition, SAFETY AWARDS Total fines for 2008 were $8,000
we partnered with Liberty Mutual to and related entirely to one
EHS Today® magazine named environmental NOV. Corrective
conduct Qualitative Risk Assessments Raytheon to its 2008 list of America’s
(QRA) of selected chemical processes. actions for all the NOVs have been
Safest Companies. The Aerospace completed. We perform a thorough
More than 2,400 QRAs were completed Industries Association (AIA) awarded
through year-end 2008. We continue to root-cause analysis for each NOV
Raytheon its 2008 Worker Safety and share “lessons learned” across
resolve risks identified in assessments, Excellence Award in the Missiles and
and we track mitigation measures to the company to prevent recurrence.
Space category.
completion with the oversight of
senior management and the Board MISSION:HEALTH
ENVIRONMENTAL, HEALTH
of Directors. AND SAFETY AUDITS In 2008, Raytheon introduced
Mission:Health — a health
Raytheon’s robust internal
OSHA VOLUNTARY engagement program created to
PROTECTION PROGRAM (VPP) Environmental, Health and Safety help employees “put their health
(EHS) audit program performs an
OSHA’s VPP uses rigorous criteria to on the radar.” The program was
average of 25 audits per year to assess
recognize worksites with exemplary designed to:
compliance with governmental and
safety programs. Of approximately company EHS requirements. Major ■ Improve the lives of our people
nine million worksites in the United operating locations are typically ■ Get employees and their families
States, only 2,000 have achieved audited every three to five years. Sites more involved in actively managing
VPP certification. Raytheon’s are assessed based on five established their health
comprehensive safety programs protocols: EHS Management Systems,
create a strong foundation for our Asset Protection, Industrial Hygiene, ■ Use data and consumer marketing
operating locations to achieve VPP Environmental and Safety. Locations tools in tandem to promote behavior
certification. In 2008, we achieved are prioritized for audits based upon change
VPP Star Certification at the Missile risk and the complexity of their ■ Work closely with our health plan
Systems operation in Louisville, operations. A corporate staff member partners to develop a coordinated,
Kentucky, and the Integrated Defense leads each audit team, which includes far-reaching effort to engage
Systems Seapower Capability Center members from multiple operating employees and family members
in Portsmouth, Rhode Island. We now locations. Audit results are reported
have five VPP Star-certified locations up through the business presidents Having healthy, productive
and three more that have been and to the CEO. employees is critical to business
recommended for certification. success, but employees and their
families need to be motivated to

14 RAYTHEON COMPANY CORPORATE RESPONSIBILITY REPORT 2008

increase healthy behaviors and use culture of health and well-being, and ■ Financial counseling services
support programs. Mission:Health promoting employee participation.
■ An enhanced eldercare program
helps provide both the motivation The first-year response was
that provides in-home assessment,
employees need and the appropriate overwhelming, with 26 sites applying
evaluation and recommendations
support. and all receiving either an award or an
for elder family members
honorable mention. Top honors went
Through the Mission:Health program
to the Network Centric Systems site in ■ A group legal plan offering access to
in 2008, employees and their
Fort Wayne, Indiana, winner of the a nationwide network of attorneys
dependents received targeted home
first Gold award. who can help with a variety of legal
mailings with appropriate prevention
matters
messages, on-site education and
RAYTHEON’S WORK/LIFE Estate planning for special-needs
prevention programs, health plan ■
PROGRAM
home mailings, disease management dependents
information, and access to a wealth of Mission:Health encompasses both
In these and other ways, Raytheon
easy-to-use online resources. Based physical and mental health. Raytheon
seeks to promote a high-achieving
on aggregated data provided by our offers a variety of customized
workforce that successfully
health plans, our focus for 2008-2009 programs and services to help ease
manages both personal and
is on cardiovascular disease and cancer, both everyday and out-of-the-ordinary
professional responsibilities.
specifically breast and colon cancer. stresses that can affect employee health
and productivity. The Work/Life
A healthy work environment Program includes:
encourages healthy employees. In 2008,
we launched the Healthy Worksite ■ A backup care program that provides
Awards program to acknowledge and child and adult care to employees
reward those Raytheon worksites that when their usual care arrangements
actively support and improve employee are unavailable
health. The program encourages site ■ Flexible work arrangements to
leadership in implementing Raytheon maximize work/life effectiveness
wellness initiatives, fostering a for employees

15
 READ MORE ABOUT
Sustainability in action at www.raytheon.com
Keyword: Sustainability

The unveiling of new solar panels at Raytheon Integrated Defense Systems’ Andover, Mass., facility
furthered the company’s commitment to utilizing energy sources that are cleaner, more efficient and
more environmentally sustainable. The panels generate enough clean electricity to power over 8,000
homes. By embracing solar energy, Raytheon is employing a solution that helps the planet and results
in substantial cost savings.

16 RAYTHEON COMPANY CORPORATE RESPONSIBILITY REPORT 2008

Energy and the Environment
Reducing Consumption and Waste

Raytheon is committed to Raytheon achieved its seven-year

sustainability, including protection greenhouse gas reduction goal one
of the environment and conservation year ahead of schedule. By the end of
of natural resources. We operate our 2008, the company had exceeded the
facilities, and engineer our processes original 33 percent goal by reducing its
and products, with the goal of emissions 38 percent, normalized by
maximizing efficiency and reducing revenue and adjusted for inflation.
GREENHOUSE GAS EMISSIONS
environmental impacts. The company is proud of this (THOUSANDS OF METRIC TONS/
$B REVENUE)
We apply waste minimization significant accomplishment. Our
strategies to eliminate, reuse and emissions dropped from 50,073 metric 50 49
recycle our wastes. We work tirelessly tons of carbon dioxide equivalent 44 43
39
to reduce energy consumption and (CO2e) emissions per billion dollars 36
31
greenhouse gas emissions. We strive of revenue in 2002 to 30,997 metric
to exceed regulatory compliance tons per billion dollars of revenue
standards and to integrate energy in 2008. This reduction equates to
efficiency and environmentally 275,000 metric tons of greenhouse
friendly processes into the daily gas emissions avoided cumulatively 02 03 04 05 06 07 08
practices of every Raytheon location. between 2002 and 2008, which is
equivalent to the emissions from the
CLIMATE CHANGE AND electricity use of 36,400 homes for a
ENERGY CONSUMPTION
GREENHOUSE GAS year. In 2008, Raytheon’s total U.S. (BILLIONS OF BTUs/$B REVENUE)
EMISSIONS greenhouse gas emissions were 610,018
Climate change and the effect metric tons of CO2 equivalents. 319 312
of greenhouse gas emissions are Raytheon is committed to further 283 273
important issues that have gained 254 242
reducing its carbon footprint and is 221
worldwide attention. Raytheon working with the EPA to set a new
recognizes these pressing issues long-term greenhouse gas emission
and is taking steps to reduce its reduction goal.
greenhouse gas emissions. In 2002,
Raytheon became a charter member
of the Climate Leaders program 02 03 04 05 06 07 08
created by the U.S. Environmental
Protection Agency (EPA). Climate Note: Revenue dollars are adjusted for inflation per
EPA guidelines
Leaders is a voluntary industry/
government initiative that requires
participating companies to set
long-term greenhouse gas emission
reduction goals, develop reduction
strategies and annually report on their
greenhouse gas emissions. Raytheon
set an aggressive long-term goal to
reduce greenhouse gas emissions by 33
percent from 2002 to 2009, normalized
by revenue and adjusted for inflation.

17
Energy and the Environment

ENERGY MANAGEMENT Department of Energy that offers a

AT RAYTHEON proven energy management strategy
Approximately 90 percent of that helps in measuring current
Raytheon’s greenhouse gas emissions energy performance, setting goals,
result from energy consumption. tracking savings and rewarding
Therefore, energy conservation and improvements. Raytheon received
improved energy efficiency are key a 2009 ENERGY STAR Award for
elements in Raytheon’s strategy to Sustained Excellence in Energy
Raytheon Energy
reduce greenhouse gas emissions. Management on March 31, 2009,
Citizen
By engaging in energy Raytheon has had a strong energy at a ceremony in Washington, D.C.
conservation efforts at program for many years and The award is the highest honor
both work and home, given to an ENERGY STAR partner.
30 percent of Raytheon continually seeks improvements.
Raytheon was recognized for its
employees qualified as
Since 2002, energy consumption per successful strategies and programs
2008 Energy Citizens.
dollar of revenue at Raytheon’s major to reduce energy consumption,
locations has declined over 30 percent. improve energy efficiency and cut
Energy consumption is continually greenhouse gas emissions. This
analyzed to identify reduction is the second consecutive year
opportunities, and Raytheon has Raytheon has received a Sustained
completed hundreds of energy Excellence Award, and the fifth
conservation and efficiency projects. time in nine years that Raytheon
Metrics on energy consumption are has been recognized under the
Raytheon Environmental,
Health & Safety pursues collected and reported to company ENERGY STAR program.
the highest standards leaders on a regular basis.
for the safe operation RENEWABLE ENERGY
of company facilities The company has invested millions
and the preservation of of dollars in its facility infrastructure During 2008, Raytheon explored
natural resources. These in order to save energy and, thereby, “greening” our energy portfolio
principles are integrated
reduce our greenhouse gas emissions. through renewable energy sources
into all aspects of
Raytheon’s business. The projects have included high- such as solar, wind, fuel cells and
efficiency lighting; variable speed geothermal heat pumps. Colorado
drives for motors, pumps and fans; and Indiana facilities purchased
premium-efficiency motors; and off-site green power in 2008, and
state-of-the-art automated energy the company is evaluating options
management and control systems. for on-site renewable energy
In 2008 alone, the company reduced projects in five other states. In June
its energy usage 9 percent, normalized of 2008, the Integrated Air Defense
Raytheon’s Sustainability for revenue, saving approximately Center in Andover, Mass., installed
initiative encompasses
all we do as an organi-
$3 million in energy costs. a 100 kilowatt photovoltaic
zation. In developing and rooftop system.
following best practices ENERGY STAR®
toward sustainability, PARTNERSHIP AND AWARDS
corporate responsibility
and the environment, we Raytheon has actively participated in
benefit our workplace, the ENERGY STAR program since
our communities and joining in 1999. ENERGY STAR is a
our world.
joint program of the EPA and U.S.

18 RAYTHEON COMPANY CORPORATE RESPONSIBILITY REPORT 2008

POLLUTION PREVENTION
In our companywide effort to prevent
pollution and preserve natural
resources, we continue to work toward
zero waste generation and the recycling
or reuse of waste that has not been
eliminated. Since 1998, Raytheon has
reduced the amount of hazardous
waste it generates by 87 percent per
billion dollars of revenue. In 2008
alone, we reduced hazardous waste
by 13 percent, to 39 tons per billion
dollars of revenue. We generated A recycled water system at Raytheon Space and Airborne Systems headquarters will
conserve 27 million gallons of potable water annually, enough to meet the needs of
approximately 990 tons of hazardous
160 families.
waste in total, of which 82 percent was
recycled or otherwise diverted from a
is involved in 44 active remediation HAZARDOUS WASTE GENERATION
landfill. (TONS PER $B REVENUE)
sites, with a future combined cost
estimate of $157 million (present 309
RECYCLING PROGRAMS
value of $105 million before recovery).
Raytheon has a long history of effective The 44 sites include 24 former and ten 251
recycling programs. During 2008, our current operating locations, as well as 214
operations collected more than 11,000 ten third-party landfill and recycling 168
tons of recyclable material, including locations. Nine of the 44 sites are
132
glass, wood, paper, scrap metal, classified as Federal Superfund sites 101
electronic scrap, plastics, cardboard (eight third-party landfill/recycling 83 80
and organic materials. Since 1998, locations and one former operating 56
45 39
Raytheon has reduced the volume location).
of solid waste generated per billion
98 99 00 01 02 03 04 05 06 07 08
dollars of revenue by 55 percent, with
a 10 percent reduction for the last year
alone. In 2008, we generated 19,160
tons of solid waste, of which 59 percent
SOLID WASTE GENERATION
was recycled. (TONS PER $B REVENUE)
1693

ENVIRONMENTALLY
RESPONSIBLE RESTORATION
1413

1408
1364

1305
1279
1227
1220

Raytheon invests significant resources

in the responsible cleanup of past
960
850

environmental contamination. An
761

established Remediation Leadership

Team of company professionals
continually evaluates remediation
technologies to limit the risks to
human health and the environment 98 99 00 01 02 03 04 05 06 07 08
and to reduce program costs. Raytheon

19
 RTN Secure Botnets Targeted E-Mails Web Surfing

Peer-to-Peer Networks Social Networks Identity Theft Raytheon-Branded Thumb Drives

Access from Home PDAs Public Wireless Hotspots Laptops

Customers worldwide depend on Raytheon solutions to protect their critical systems from breach,
fraud, theft and sabotage. This same level of security is equally important for our own systems,
which is why Raytheon created the RTN Secure companywide initiative. RTN Secure increases
employee awareness of threats, strengthens internal security controls, extends our leadership in
information protection, and maximizes opportunities for our Information Assurance business.

20 RAYTHEON COMPANY CORPORATE RESPONSIBILITY REPORT 2008

Information Technology
Responsibility Starts with Security

As a provider of critical systems and groundbreaking initiative allows a free GREEN IT

solutions for our customers, Raytheon flow of information on cyber threat
Raytheon’s Green IT strategy
is committed to the development activity between government and key
aggressively examines and modifies
and deployment of leading-edge defense contractors while protecting
IT practices to address energy,
technologies that are not only efficient the interests of all parties.
climate and environmental
and reliable, but also secure from the priorities. A key goal is to
Raytheon is also a founding member
full range of real and potential threats. continually improve the energy
of the Defense Security Information
In support of this commitment, since efficiency of computing operations,
Exchange chartered under the
2005 we have more than doubled our both in our data centers and
Department of Homeland Security’s
investment in information security throughout the workplace. Our
Critical Infrastructure Protection
capabilities and personnel. As a result, initial set of actionable Green IT
program. This highly successful
we have greatly enhanced our ability to projects resulted in more than
forum complements the strategic
prevent, detect and respond to cyber $11 million in savings for 2008.
collaboration of the DIB by facilitating
attacks, whether against customers or Key to this accomplishment was
the sharing of technical details and
against our own systems and facilities. our server virtualization initiative,
tactical information on cyber threats.
In the process, we have also assumed which enabled us to avoid the
a leading role in the expanding cyber
OPERATION HOMELINK cost of building a major new data
security partnership between the center despite a 25 percent growth
aerospace and defense industry and Raytheon is a primary supporter of
in capacity demand. Over the
the United States government. Operation Homelink, a nonprofit
longer term, Green IT is laying
organization that provides refurbished
a foundation for sustainable
CYBER SECURITY computers to the families of junior
technology practices that promise
COLLABORATION enlisted servicemen and women
to reduce Raytheon’s carbon
deployed in Afghanistan and Iraq.
Increasingly, industry and government footprint and help employees
During 2008, our IT organization
are experiencing and addressing make greener decisions both at
collected, prepared and delivered more
the same cyber threats on the same work and at home.
than 600 computers to Operation
cyber battlefield — which means
Homelink, including numerous
an attack seen by one company or
computers specially configured to meet
government agency is often seen by
the needs of amputees.
many. Rapid information-sharing
on threats and attacker tactics can be
crucial to effective cyber defense. By
quickly analyzing suspect computers, Raytheon Information Technology
reverse-engineering suspect files
and analyzing intelligence data, we
are increasingly able to predict and
prevent future attacks. Raytheon’s
expanding collaboration with industry
partners and the government is
designed to advance this capability
further. In 2008, we became one of the
initial members of the Department
of Defense’s Defense Industrial
Base (DIB) Cyber Task Force. This

21
 The MATHCOUNTS® national competition brings together students from every U.S. state and
territory. Raytheon has been a sponsor of MATHCOUNTS since 1995 and is proud to serve as title
sponsor for the organization’s 2009-2011 national competitions. We understand that through
programs like MATHCOUNTS, today’s students not only excel in math, they are inspired to become
tomorrow’s technologists.

22 RAYTHEON COMPANY CORPORATE RESPONSIBILITY REPORT 2008

Supporting Our Communities
Engage, Inspire and Honor

Raytheon’s community relations and ■ The FIRST Robotics competition which campaign; supporting the Run
charitable giving program focuses challenges young people to build for the Wall Veterans appreciation
on math and science education, a robot and discover how rewarding event in El Segundo, California;
support for our men and women in engineering can be. welcoming home troops in Dallas/
uniform, and good citizenship in the Fort Worth, Texas; and sponsoring
■ The Hall at Patriot Place presented by
communities where we live and work. the Armed Services YMCA
Raytheon™, which promotes math and
“Christmas You Missed” event for
science education through football.
MATH AND SCIENCE returning troops in San Diego,
Patriot Place is the official home
EDUCATION California. We also made grants to
of the New England Patriots® Hall
Raytheon believes that to inspire organizations such as the Marine
of Fame.
tomorrow’s technologists and Corps Scholarship Foundation;
innovators, we need to engage them ■ Key sponsorship of NASA Future the Congressional Medal of Honor
Forums, which bring together experts Foundation; and the Fisher House.
when they are young, support them
during the critical middle school years, from a variety of perspectives to
and continue to build on that support discuss how space exploration helps OTHER COMMUNITY
throughout their academic lives. to advance science, technology and INITIATIVES
the economy. At the local level, our corporate
From the engaging
■ The Sum of All Thrills™, opening in citizenship included a combination
www.mathmovesu.com website to
fall 2009 at Epcot® at the Walt of grants and employee
scholarships, sponsorships and other
Disney World® Resort. The math- volunteering around the world.
events, the company’s MathMovesU®
based interactive exhibit will engage Highlights included the company’s
program nurtures the interests and
children through a fun experience ongoing support of the American
ambitions of thousands of students,
and help instill a lifelong passion for Red Cross, the Walk for Hunger,
while strengthening our future
math, science and technology. Special Olympics, the Heart Walk
workforce.
and school supply drives.
In 2008, MathMovesU supported and ARMED SERVICES SUPPORT
participated in more than 100 events,
Raytheon’s support for service
including:
members draws on our long tradition
■ MATHCOUNTS, a math enrichment of respect and admiration for our men
and coaching program that promotes and women in uniform. In 2008, the
middle school mathematics company and its employees continued
achievement. Raytheon is the title to support all branches of the military
sponsor for the 2009-2011 National through the Fund in Support of Our
Competitions. Troops, a fund that benefits nonprofits
supporting the armed services.
■ Sponsorship of National Engineers
Week events including discussions Specific initiatives included
on NASCAR racing technology, coordinating enterprisewide package
designing hovercrafts and fuel collections for the “AnySoldier.com®”
cell vehicles and participating in
robotics demonstrations.

23
Customer Commitment.
Global Responsibility.
At Raytheon, stewardship means building on our
commitment to being responsible in everything we do.

Stewardship is the responsibility

of each and every employee,
working together to secure our The Human Rights Raytheon earned The Gould Education
Campaign (HRC) the #8 position on & Workforce
company’s future by creating Foundation® named DiversityBusiness. Development Award
Raytheon as one com™’s list of top was presented
a welcoming, inclusive of America’s “Best 50 organizations for to Raytheon in
environment where people do Places to Work,”
reflecting its perfect
multicultural business
opportunities.
recognition of
its MathMovesU
their best work. score on the HRC
Corporate Equality
initiative aimed at
helping middle school
Index. students become
Whether we are conserving energy and natural resources, more interested in
math and science.
ensuring a safe and healthy workplace, or working with our
customers, partners and communities to develop sustainable
practices, we strive to be good corporate citizens who
practice stewardship at every level.
It is our ongoing achievements, reflected in the many
awards and recognitions we receive, that speak best for
our commitment to building a culture of integrity. While
we take great pride in our accomplishments, each award
and accolade is also a reminder of our responsibility to
our customers and to the communities where we work
and live. With a history of innovation spanning 87 years,
we are committed to ensuring that our work today
will help prepare us for the missions of tomorrow.
William H. Swanson
was joined by
Commander Mark
Leavitt of the United
States Navy and his
family to officially
open the Family
Technology Center
at Shades of Green®
Raytheon is an equal opportunity employer. at the Walt Disney
Raytheon, , Customer Success is Our Mission, NoDoubt and MathMovesU are registered trademarks of Raytheon Company. Epcot and Walt Disney World are World® Resort.
registered trademarks of Disney Enterprises,Inc. TIME is a registered trademark of Time, Inc. Popular Science is a registered trademark of Bonnier Active Media, Inc. Capability
Maturity Model and CMMI are registered trademarks of Carnegie Mellon University. MATHCOUNTS is a registered trademark of the MATHCOUNTS Foundation. EHS Today
is a registered trademark of Penton Media, Inc. ENERGY STAR is a registered trademark of the U.S. Environmental Protection Agency. The Hall at Patriot Place is a trademark
of NPS LLC. New England Patriots is a registered trademark of New England Patriots LP. AnySolider.com is a registered trademark of Any Soldier, Inc. American Red Cross
is a registered trademark of The American National Red Cross. Human Rights Campaign Foundation is a registered trademark of the Human Rights Campaign Foundation.
Diversitybusiness.com is a trademark of Clarke Kenton Corporation.

24 RAYTHEON COMPANY CORPORATE RESPONSIBILITY REPORT 2008

 Table of Contents

Raytheon received the The readers of Raytheon received EHS Today magazine Raytheon earned Raytheon earned
Aerospace Industries Careers & the the U.S. EPA/U.S. named Raytheon the Disability Rights the Colorado Gold
Association’s (AIA) disABLED magazine Department of one of America’s Legal Center’s 2008 Environmental Award
Worker Safety once again honored Energy 2009 ENERGY Safest Companies. Corporate Award for our efforts in
Excellence Award for Raytheon for its STAR Sustained The award recognizes for its commitment using recycled paper,
its outstanding safety commitment to Excellence Award, the Raytheon’s enterprise- to diversity and supporting land
program at Raytheon recruiting, hiring and highest honor given wide Environmental, meaningful employment conservation and
Missile Systems (RMS). promoting people to ENERGY STAR Health and Safety opportunities for people purchasing wind
Raytheon achieved with disabilities. partners. efforts, including with disabilities. generated power.
www.raytheon.com the lowest employee innovative campaigns
Keyword: Corporate Responsibility injury rates in the such as Safety
Missiles and Space Madness, Olympic
award category. Madness and Kids
We invite you to visit our
2 Vision, Strategy, Goals and Values website to learn more
‘R’ Cool.

5 Governance about Raytheon’s ongoing

sustainability initiatives
7 Ethics and discover how our
best practices are
9 Excellence in Engineering making an impact.
11 Diversity
13 Safety and Wellness
17 Energy and the Environment
21 Information Technology
23 Supporting Our Communities
24 Award Highlights

ON THE COVER:
Raytheon’s Sustainability initiative encompasses the company’s
efforts to develop and follow best practices in the areas of sustainability,
social responsibility and protection of the environment.
 Raytheon Company
870 Winter Street
Waltham, Massachusetts
02451-1449 USA
781.522.3000

www.raytheon.com

Corporate Responsibility Report 2008

Copyright © 2009 Raytheon Company. All rights reserved.