Northrop Grumman

Falls Church, Virginia
Capital Goods

Corporate Bias Rating

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Risk Level:

Rating - Danger
High Risk

Summary:

Northrop Grumman scored a 100 out of 100 on the 2023-2024 Corporate Equality Index (CEI) from the Human Rights Campaign (HRC), a political stakeholder group. By complying with the HRC’s controversial demands, Northrop Grumman increases the risk of dividing employees, alienating customers and harming shareholders. The company provides a benefits package for employees which covers transgender medical procedures for covered employees and dependents, including children. It also uses sex and gender ideology criteria in employee recruitment, vendor selection, marketing, and philanthropic support. Northrop Grumman forces employees to undergo multiple ideological trainings and uses its reputation, corporate funds, and political influence to support controversial sex and gender ideologies, organizations, and legislation. The company’s Chairman, CEO and President Kathy J. Warden signed Catalyst's Champions for Change pledge, indicating its support of DEI in its leadership composition through the establishment of gender and racial targets. Northrop Grumman is a signatory of the Gender & Diversity KPI Alliance, appearing to prioritize diversity over merit in its business structure through the establishment of gender and racial targets for its leadership composition and its support of DEI in its hiring and promotions. In 2021, 99% of all the company’s current employees completed required DE&I training, which included content on “understanding and remediating unconscious bias”. Northrop Grumman supports the Equality Act, a controversial bill. CEO Kathy Warden is a member of the Business Roundtable and signed its 2019 Statement on the Purpose of Corporation, which promotes stakeholder capitalism over traditional obligations to shareholders and customers. The company’s CEO, Kathy Warden, signed the CEO Action for Diversity & Inclusion pledge, which includes a commitment to promote DEI through bias education training in the workplace. Northrop Grumman is a Platinum corporate sponsor of the HRC, a Silver sponsor of Out & Equal, and a corporate partner of the NGLCC. The company pledged $2 million to the Black Lives Matter organization and related causes. Northrop Grumman is a member of the MCCA, indicating its focus on recruiting, retaining, and promoting employees based on race. For these reasons, Northrop Grumman receives a High Risk rating.

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Board Bias

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CEO of Northrop Grumman

Kathy Warden

Kathy Warden

Summary:

Headquartered in Falls Church, Virginia, Northrop Grumman is a member of the Fortune 250 operating in the Capital Goods industry. Kathy Warden and Kathy Warden serve as CEO/President and Chairman, respectively, leading the company’s C-suite executive team and the board of directors. Amongst these teams, the collective leadership is responsible for $177,100 to Republican causes and $95,523 to Democratic causes. Under their tenure, Northrop Grumman currently holds a 'High Risk' risk rating.

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Political Contributions of Leadership:

$177,100

$95,523

Republican

Democrat

Shareholder Proposals

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Date
ESG Category
Proponent
Summary of ResolutionMgmt RecTotal Vote % in Favor
5/15/24GovernanceJohn CheveddenIndependent Board ChairmanAgainst24.81%
5/15/24SocialThe School Sisters of Notre Dame Cooperative Investment FundReport describing the alignment of the company's political activities with its Human Rights PolicyAgainst7.03%
5/17/23GovernanceJohn CheveddenIndependent board ChairAgainst38.80%
5/17/23SocialThe School Sisters of Notre Dame Cooperative Investment FundEvaluation and Issue a Report Describing the Alignment of the Company’s Political Activities with Its Human Rights PolicyAgainst19.70%
5/18/22GovernanceJohn CheveddenSpecial Meetings - Reduce Ownership Req. to 10%Against50.39%
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