Pressroom > DII Welcomes New Report by GAO

September 22, 2009

WASHINGTON, DC — The Defense Industry Initiative on Business Ethics and Conduct (DII) today welcomed a new report by the Government Accountability Office that examines the ethics programs run by major U.S. defense companies.

“Today’s report validates the dedicated work that DII companies have done to put robust ethics programs in place, even before required to do so by the federal government,” said Richard J. Bednar, the DII Coordinator.

The GAO Report finds that a majority of large U.S. defense firms had ethics programs in place before the revised Federal Acquisition Regulations went into effect last year. “All 57 contractors responded to GAO’s survey, and 55 reported having ethics programs that include” the internal controls and practices now required for compliance with the FAR, the GAO reports. “Nearly all contractors report having an ethics awareness program, compliance program, or both,” the report adds.

DII, made up of about 90 of the nation’s top defense companies, cooperated extensively with GAO researchers and provided key data on ethics programs and procedures for GAO’s statutorily required report.

“The DII member companies realize that having an effective ethics program in place is not only the right thing to do, but it’s smart business. We need to sustain the effective ethics and compliance programs already in place, and encourage more defense companies to do the same,” Bednar said.

DII companies have long been committed to going above and beyond the letter of the law. In 1986, the nation’s top defense companies established the DII to ensure a culture of ethical conduct within every company that provides technology, construction, supplies and services to the men and women of the United States Armed Forces. DII members routinely:

  • Provide ethics training to their own members, and on request, to other defense industry contractors and subcontractors.
  • Share best ethical practices with other members of the DII organization and Department of Defense representatives at an annual forum and at meetings throughout the year.
  • Require all DII firms to establish and adhere to a written Code of Business Ethics and Conduct ‐‐and did so years before required to by law.
  • Encourage the reporting of violations of their written codes of conduct, without fear of retaliation, as now required by the FAR.
  • Establish, operate and promote internal “Helplines” or “Hotlines” that make it convenient for employees to anonymously report alleged wrongdoing.
  • Help train hundreds of thousands of defense employees how to comply with contracting laws at home and abroad and, equally importantly, how to conduct themselves with integrity in all business situations.

DII members pledge to act honestly in all business dealings, protect taxpayer resources and provide high quality products and services for the U.S. military.

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