lockheed martin case

8/11/2019 Lockheed Martin Case

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LOCKHEED MARTIN CSR REPORT (2012)

ANALYSIS:

What are the conditions in political economy that allows Lockheed Martin to

accumulate wealth through death and torture?

Although Lockheed Martin is not directly involved in warfare in any part of the

world, and arguably the primary purpose of their products is defense and

peacekeeping, peace, as we know is the consequent of war. The sustainability report

does not mention any actions or plans to support peacekeeping forces. Lockheed

Martin could perhaps contribute a considerable sum to the United Nations

peacekeeping forces to maintain peace and order in countries and areas that have beendevastated by war. The sustainability report does not exhibit responsibility towards

the destruction that their products have caused as restitution.

How can Lockheed Martin be governed to prevent environmental and social damage?

The products and services provided by Lockheed Martin to its customers are

responsible for environmental damages in countries its clients conduct war in. The

weapons cause considerable environmental pollution and leave the areas they were

deployed non cultivable for a period of a few years. Lockheed Martin does not appear

to take steps to restore these areas to its cultivable habitat. Warfare also destroys

green cover of the land. Lockheed could engage in forestation activities on a wider

scale and attempt to replace the green cover. Lockheed Martin products cause societaldamages, devastating lives and economy of the countries its customers actively

engage in. Lockheed Martin could donate and provide services and actively engage in

reconstruction of the society and economy, to help the country get back on its feet.

Lockheed Martin units across the world utilize considerable amount of energy in

terms of fuels. Lockheed Martin sustainability report mentions effective use of fuel

sources to increase efficiency and reduce carbon emissions. What resources has

Lockheed Martin allocated to research on alternate fuel resources which may aid

conservation and reduce emission?

Lockheed Martin states that it was able to reduce power and energy consumption by

87%. However it appears to be a move motivated by saving money and in the process,

saving energy. This arrangement has resulted in annual savings on $1.25 million and

$200,000 in maintenance costs annually

Lockheed Martin products require raw materials such as various precious metals and

chemicals which are obtained from the environment. What steps is Lockheed Martin

taking to research artificially manufactured raw materials? What are taken by

Lockheed Martin to ensure that residues of precious metals and chemicals are

conserved or byproducts are reused for similar or other purposes?

The report does not throw light on how the emissions reductions help avert the

climate crisis and make it equitable for all the inhabitants. The sustainability report

does not provide a detail environmental analysis on the carbon emissions it currently

produces and the effects reduced emissions will have. The carbon emissions are stillconsiderably high. The sustainability report does not specify the benchmark that


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Lockheed Martin is considering to achieve in carbon emission reduction. Simply

reducing carbon emission that is already high is not convincing. Furthermore, the

report fails to mention any amount of Carbon emissions caused by its products.

Understandably, it is difficult to obtain the data given the circumstances; however

there should be metrics to define the carbon emission of the products.

While we see considerable savings in usage of water (close to 200 million gallons),the amount of waste in landfill is still considerable. Is Lockheed Martin using any

money to research how to reuse the waste for production or perhaps produce

renewable energy from it?

Can Lockheed Martin provide an explanation on its emphasis on employee training

and what role it play in its citizenship efforts?

The CSR places considerable emphasis on employee training about energy

conservation, waste reduction. This information is not valuable to stakeholders and

citizens. It appears to be a task undertaken by Lockheed Martin to increase the

proficiency of the company and achieve a benchmark in certification standards.

How can credence be laid to the verifications standards of Lockheed Martin?

The sustainability report does not provide benchmark reports compared with other

companies in the same industry such as Northrop Grumman or Skunk Works, an

official alias for Lockheed Martin's Advanced Development Programs (ADP). It

would provide a better picture of Lockheed Martins accomplishments in terms of

waste landfill or carbon emission reductions.

The sustainability report mentions situations where the companys actions have been

rewarded. The sustainability report should provide information on the tasks that did

not have desired effects and further plans to implement sustainable activities in order

to provide a clearer version of Lockheed Martins visions and expectations. The

sustainability report proposes to use Lockheed Martins corporate power to create achange rather than oppose and challenge the corporate power that is at the root of the

problems that they try to address. Answering these questions and undertaking a

different role in citizenship can go a long way in making its sustainability efforts,

which are already good, better.

Suggested Improvements

In future sustainability reports, Lockheed Martin needs to provide a benchmark report

which includes comparison with other companies with similar scope, goals, business

function and sustainability standards to assure the credibility of the overall report.Moreover, various external standards over time and by region, as well as in major

industry sectors have to be addressed to add reliability to the report.

In order to improve openness and honesty of future sustainability report, Lockheed

Martin has to balance the report with positives and negatives. The previous report

tended to highlight the good news and ignore the bad. The sustainability report which

convinces stakeholders is the report which comes clean, provides a balanced picture

and tells both the good and the bad news.

Lockheed Martin has to cut to the chase and to tell stakeholders about the material

issues specific to the company performance to improve the relevance and materiality

of future reports. Not only the carbon emissions should be fully disclosed, but alsopossible implications on environments, climate change and mitigation measures taken


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should be specified in sustainability report. Seeking environmental advocates input

and feedback is also necessary for Lockheed Martin to prove the credibility of its

report. Furthermore, the products and services provided by Lockheed Martin are

responsible for environmental damages in countries its clients conduct war in, and

efforts as well as donations to affected areas, restoration of natural elements should

also be mentioned in further report.

Except for internal audit, external assurance is also essential for Lockheed Martin to

guarantee the trustworthiness of its report. The company can engage an independent

third party to verify aspects of the report, and publishes its methodology, conclusions

and recommendations in its next years sustainability report. It would provide a better

picture of Lockheed Martins accomplishments and increase transparency of

sustainability report by adding an external audit to its report.

lockheed martin case

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