Conflicts of Interest

  1. I'm good friends with a supplier. We want to buy a boat together to charter it as well as use it ourselves. Is this a problem?
    1. It could be. Even if you can keep your financial arrangements from "spilling over" into your working relationship, you may not be able to keep others from suspecting a conflict. You should discuss any such arrangement with your management, your sector legal counsel or your BCO.
  2. Is it okay for me to go into business for myself, marketing a product I developed?
    1. There are several ways this could present a problem. If your product competes with a Northrop Grumman product; if it relates to any part of Northrop Grumman's business; or if your business interferes with your ability to get your Northrop Grumman work done, there is a potential problem. You may not conduct your personal business while you are at work, nor use any company equipment for your business. Similarly, you may not use your Northrop Grumman business relationships for personal or financial gain. You should consult your BCO or the Law department before proceeding. 
  3. My brother owns a small company that supplies Northrop Grumman. My department has nothing to do with his product. Should I tell someone at Northrop Grumman?
    1. You should discuss this with your manager to ensure that no conflict exists with your work at Northrop Grumman. You should also document this relationship on your Annual Certificate Regarding Interest in Suppliers and Adherence to Standards of Business Conduct (Form C-196).
  4. What does Northrop Grumman mean by "substantial financial interest" in a supplier or potential supplier?
    1. Generally, owning more than 5% of a publicly-traded stock, or owning any stock in a company which is not publicly traded, is considered a "substantial financial interest." If your interest in another company constitutes 10% or more of your net worth that is also considered to be a substantial financial interest.
  5. How do I keep my personal involvement in politics from appearing to be Northrop Grumman's?
    1. Don't use company time or resources for personal political activity. For example, don't use company letterhead to send a personal letter to a Member of Congress. Company resources, including phones, must not be used in support of a political campaign. Employee involvement in company-sponsored grass roots lobbying activities is strictly voluntary, and must comply with company and government rules for administration and charging.
  6. My son works for a Northrop Grumman supplier. Is this a conflict of interest?
    1. Probably not, unless you or your department could influence Northrop Grumman's contracts with this supplier. However, you should discuss this with your manager to ensure that no conflict exists and report it on your annual certificate Regarding Interest in Suppliers and Adherence to Standards of Business Conduct (Form C-196).

Questions to Ask Yourself