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This report analyzes the socially responsible investing (SRI) liabilities and assets of General Dynamics, focusing on its historical controversies, including military-related legal disputes, labor issues, and environmental violations. Key points include litigation with the U.S. government and fines for pollutant discharge. On a positive note, General Dynamics has made strides in recent years by adopting anti-discrimination policies, reporting greenhouse gas emissions, and supporting educational and civic organizations. Recommendations suggest that SRI considerations may decrease the company's value.
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SRI Report: General Dynamics SRI Liabilities: • Military is a traditionally SRI screened industry • Cost overruns resulting in litigation with US gov in 1990, 1991, 2004 • Labor disputes 1983, 1988, 1994, 2000, 2001 • Age discrimination cases for retiree health benefits 1996, 2004 • Fined in 1992, 1998, 2007, 2008 for discharge of pollutants (2007 = $441,500 by US Occupational Health and Safety for “repeat” “willful” violations) SRI Assets: • Better adherence to arms control rules in recent years • 2005 adopted policy prohibiting discrimination based on sexual orientation • Report all GHG emissions across the company • Supports organizations with educational, social, civic or arts focus • Awards: • Governor’s Award for carbon emission reductions • Environmental Excellence Award in Savannah • Waste Reduction Awards Program in California Sources: http://phx.corporate-ir.net/phoenix.zhtml?c=85778&p=irol-corporate_sustainability4_commserv http://www.corpwatch.org/article.php?list=type&type=12 Recommendation: SRI record decreases value of General Dynamics