Safety First
Raytheon’s safety programs are driven by a strong commitment from top-level management. Safety practices are a core component of every business and throughout the entire organization. Leaders and employees at all levels are actively involved in the programs and are held accountable for fulfilling their safety responsibilities.

We have made significant progress toward our goal of an injury-free workplace by implementing world-class safety programs and processes. Since 1997, we have reduced our Occupational Safety and Health Administration (OSHA) recordable injury rate by 78 percent and our lost workday injury rate by 74 percent. For 2006, our OSHA recordable injury rate was 0.79 per 100 employees, and our lost workday injury rate was 0.19 per 100 employees. These metrics are among the best we have ever achieved, but we are still not satisfied. In 2006, we had 591 preventable injuries, 144 of them serious enough to keep an employee out of work the next day.

Safety Risk Assessments: The most common injuries are ergonomic-related, slips and trips, and hand lacerations. In 2007, we will use additional tools to assess risk and reduce injuries, including a Web-based process to assess job hazards across the company.

Ergonomics: Ergonomic injuries include those caused by pushing, pulling, lifting, lowering, carrying or engaging in repetitive motion. Since roughly one-third of our injuries are ergonomic-related, reducing these injuries will continue to be a major focus during 2007. An internal team has developed online tools and surveys for assessing ergonomic risks associated with workstations, and we will roll out the assessment program at all major locations.

Asset Protection Program: Raytheon has a comprehensive program to protect company equipment, infrastructure, buildings — and the employees who work in them — from fire, natural disaster, business interruption and other losses. The program includes proactive processes and regular facility inspections by third-party loss control engineers and by internal company experts. Raytheon’s asset protection program has enabled us to maintain a “Highly Protected Risk Status” with our property insurers for many years.

Ensuring Environmental and Safety Compliance: Our global responsibility is to ensure full compliance with all environmental, health and safety laws and regulations, as well as internal Raytheon standards. In 2006, federal, state and local regulatory agencies conducted 107 environmental and safety inspections of Raytheon operating locations. Seven notices of violations (NOVs) were issued — four related to environmental management and three related to safety issues. Two of the safety NOVs resulted in fines totaling $16,200. Corrective actions have been completed. For all NOVs, we performed thorough root-cause analyses and shared “lessons learned” across the company to prevent recurrence.