Corporate governance

Corporate governance

How we manage our business to deliver on our strategy

The Board promotes a common culture and identity through the Operational Framework. It sets out the way we do business and what it means to be part of the Group. It is the Group’s framework for a sound system of internal controls. All employees are required to comply with the Operational Framework in their business conduct.

Objectives and implementation

BAE Systems is a large global business with responsibilities to its shareholders, customers, partners, employees and the communities in which it operates. Its strategy is to deliver sustainable growth in shareholder value.

In support of the Group’s strategy, the Board promotes a common corporate culture and identity as set out in the Operational Framework. This is based on principles of good governance, a set of definitions, values, policies and processes that guide our work and behaviour, and a clear system of delegated authority. The Operational Framework is mandatory across all wholly and majority-owned businesses and describes the Group’s approach to its organisation, culture (including its vision, values and ethical principles of business conduct), governance framework, core business processes and delegated authorities.

Operational line leaders ensure that detailed controls (both operational and financial) are defined and implemented within their businesses in accordance with the Operational Framework. They are required to confirm twice-yearly through the Operational Assurance Statement process that their businesses are in compliance with the Operational Framework. This is a mandated policy under the Operational Framework and a key performance indicator relating to mandated policies and processes.

For further information visit our 2016 report and accounts.