High ethical standards and behaviours, supported by good governance, are fundamental to our continued success.

We have set out three common behaviours that we expect of all employees. These will help us to make sure we maintain high ethical standards, build trust and help secure the long-term success of our business.

These are:

Win right – securing business fair and square

Focus with firm resolve – decide what needs to be done, then focus relentlessly on delivery

Communicate – simply, consistently and often

In January 2013 we appointed Lord Gold to lead a review of our process and procedures regarding compliance and business ethics. He is reporting his recommendations to the Board Ethics Committee and the Executive Leadership Team. As a result of an interim report the Group has started to implement initial recommendations through a holistic ethics and compliance improvement programme.

We continue to actively participate in ethical initiatives of the European and US aerospace and defence business sectors. We are a signatory to the “Common Industry Standards drawn up by the Aerospace, Defence and Security (ASD) Group.

We are also a Steering Committee member of the International Forum on Business Ethical Conduct (IFBEC). This organisation includes leading US and European companies in the aerospace and defence sectors. The forum aims to promote responsible and ethical business behaviours through the Global Principles of Business Ethics.

We have a Global Code of Conduct that applies to all employees of Rolls-Royce, its subsidiaries and controlled joint ventures, wherever they are located. This is made available in 21 languages.

All employees are asked to certify they have received, read, understood, and will comply with the Code.

The Code sets out our ethical principles that underpin our values and the way we do business. It also provides guidance on how to apply these principles in everything we do. To help guide employees it contains examples of ethical dilemmas, links to relevant company policies and contacts for further support.

Our TRUST model provides guidance on the approach that everyone can follow to help them to make the right decision if faced with an ethical dilemma. Key policies and guidance to support the Code are available to all employees.

Breaches of the Code are not acceptable and will result in the company taking action. This may include disciplinary action up to and including dismissal.

We support our employees in understanding their responsibilities under our Global Code of Conduct.

All employees receive a briefing upon receiving the Code, followed by a series of training courses delivered locally by their manager.

These sessions are intended to help employees to understand the Code, how it might be applied in everyday situations, and what actions to take.

We are committed to having an environment where anyone can ask questions or raise concerns about business ethics without fear of retaliation.

Our Global Code of Conduct advises anyone who has a question or concern to speak to their manager, a subject matter expert or Local Ethics Officer in the first instance. Employees can also contact the Rolls-Royce Ethics Line.

The Rolls-Royce Ethics Line is an independently managed, confidential online and telephone service available 24 hours a day, 7 days a week in multiple languages, which employees can use to ask a question or raise a concern about business ethics at Rolls-Royce. This service is also available for use by third parties, such as our customers, suppliers and members of the community. All questions and concerns are registered by the independent organisation, then passed to the Rolls-Royce Ethics team for a response, and if appropriate, an investigation.

The Code states that retaliation against anyone who raises a concern in good faith is not acceptable and could result in disciplinary action.

The Rolls-Royce Ethics team report on matters raised through the Ethics Line to the Ethics Committee.