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Ethical Code Ethics at RAFAEL The Way of Values RAFAEL's Ethical Code Ethics at RAFAEL We are proud to present RAFAEL’s updated Ethical Code, which was devised as part of "The Way of Values" program – a program formulating the values and ethics of the company. Table of Contents RAFAEL’s vision is to be a significant part of Israel's security; to be a global, innovative, growing and profitable company, which develops, produces and supports combat systems on the front lines of operational needs and technology. The Ethical Code serves as a declaration of the way in which we strive to realize our vision and the way RAFAEL will continue to succeed in an ethical and moral manner. RAFAEL, as a leading defense company, requires that its managers and employees choose a moral code of action that matches the core values that guide us: to contribute to the Introduction 03 resilience of the State of Israel, to choose excellence and professionalism as a way of life, to strive towards daring, creativity and innovation, and to support our employees and customers at all times. RAFAEL's values 06 The Ethical Code is intended to serve as a moral compass for appropriate behavior for employees and managers in all units and at all levels, and as a tool in decision-making and Ethical Code 14 choosing what is good and right, when encountering dilemmas in our daily activities. The Code defines our expectations of ourselves – managers and employees alike – and the behavior that we all adopt and aspire to carry out between ourselves and towards our customers, suppliers, and other stakeholders. We believe that an inspiring organizational culture, which encourages managers and employees to engage in value-driven behavior at the highest level, is a vital and essential component for an organization's success. RAFAEL’s strength is built on business successes, technological capabilities, our reputation as a company for which business and human ethics and integrity are a guiding light, and on the confidence that our customers have in us, our employees and our business partners. RAFAEL’s Board of Directors and Executives are committed to act in light of the Ethical Code, to implement the values and ethics , to strive for business and technological excellence and to meet objectives. Yo -Even Dr 2 CEO of Rafael Chairman of the Board of Directors 3 Our Vision Our Mission RAFAEL’s vision is to be a significant To be a leader in the development of advanced, groundbreaking systems in the defense field, at the forefront of technology in part of Israel's security; a global, Israel and worldwide; to continue to be a national center for innovative, growing and profitable defense research and development and a central part of Israel's capability to deter, defend and defeat. To be a leading, company which develops, produces inspirational force of attraction for outstanding personnel in all and supports combat systems on the of the company's fields of operation. front lines of operational needs and at the forefront of technology. Our Uniqueness A governmental defense company, the largest employer in the north of Israel. A leading, R&D-intensive national laboratory and business company in Israel and worldwide. 4 5 Commitment to the State of THE COMPANY Israel's Resilience VALUES THAT RAFAEL will continue to be committed to the security of the State of Israel and the Israel Defense Forces as a strategic customer. RAFAEL will always strive to maintain the State of Israel's clear military advantage in the region, and to foster GUIDE OUR the IDF's ability to deter and defeat its adversaries. At the same time, RAFAEL is also committed to Israel's social and economic resilience, to contribute to Israel's economy and to BEHAVIOR be a profitable company. RAFAEL will keep the main part of its activity in the north of Israel and will continue to be the largest employer in the north, aspiring to strengthen the economic and social resilience of the north of Israel. 6 7 “One Rafael” The Customer Comes First We will continue to grow as an organization that is fair to its We are committed to bringing significant value to our employees, that respects each employee, whoever and wherever customers. We will be a leader in the development and he/she is. We will serve as a professional home for our employees production of defense systems, solutions and products that and as a source of pride for them and their families. We will will help our customers in Israel and abroad to achieve cultivate the RAFAEL spirit, which reflects shared responsibility, technological and operational superiority and to fulfill their teamwork, uncompromising quality and professional ethics. own objectives. We will develop systems for them that will address the challenges of the future. We will foster ongoing relationships with our customers, based on fairness, integrity and professionalism; we will learn and understand their challenges, requirements and intentions, and provide them with continuous service for systems procured from RAFAEL. 8 9 Cooperation as a Force People at the Center Multiplier We believe that our employees are RAFAEL’s most valuable RAFAEL will promote and encourage partnerships and resource and that they are the main strength and leverage for the integration of capabilities and products between divisions organization's success. We are committed to creating for our and branches, with other companies, with academia, and employees a challenging and meaningful work environment that with our subsidiaries, and at the same time will continue to allows them to develop their capabilities over time, encourages cultivate the differences and uniqueness of each unit in the their differences, cultivates their sense of belonging to the company, as a vital basis for future breakthroughs. All this in company, and appreciates them for their performance and order to achieve excellent business results based on the successes. We are committed to providing them with the desire to maximize productivity in all fields – technological, knowledge, tools, conditions and leadership necessary to fulfill business and operational – and to increase customer their potential and success. satisfaction. This combination of activities will take place through management and leadership that creates shared objectives, reduces barriers, increases transparency and prioritizes projects that combine capabilities and systems from a variety of fields. 10 11 Excellence Daring and Innovation We will strive to be the best in every field and we will not settle We will aspire to successfully cope with every new challenge. for less. We will maximize the full potential inherent in our We will explore problems requiring a solution, we will be a employees and managers, and in our knowledge and leader in providing a valuable response, and we will sow the capabilities, in order to attain achievements and to cope with seeds of future success. future challenges. We will aspire to carry out every activity, with high quality and high standards, at cost and on time. We will strive to develop new knowledge; we will encourage personal skills, innovation, and creative, groundbreaking thinking. We will adopt changes that challenge our present level of success. We will learn from both our successes and our failures, and we will encourage leadership that is based on managerial courage and calculated risk-taking, based on the understanding that these will bring RAFAEL to new heights. 12 13 The Ethical Code for RAFAEL and The Core of its employees is based on the company's vision and values. the Code We aspire to continue to be a significant part of Israel's security; to be a global, innovative, growing and profitable company which develops, produces and supports defense systems on the front lines of operational needs and at the forefront of technology. As such, we must adopt ethical rules of behavior, adhere to high standards and insist on fairness, integrity, credibility, transparency, morality and scrupulousness inside and outside of the company. We must do so, in order to safeguard organizational quality and encourage our employees' identification with RAFAEL and their willingness to continue to belong to a leading, value-driven organization. Ethics interfaces with all activity at the organization – relationships between each employee and his colleagues, between managers and their employees, between the company's employees and its customers, suppliers and partners, and the company's responsibility towards its employees and their responsibility towards it. 14 15 Our Responsibility to The Managers' Commitment Our Customers We, the managers, recognize the fact that our behavior and conduct as The company's values reflect a customer-oriented approach that places managers has a great influence on the behavior of our employees and the customer first. The customer's choice of us and confidence in us are on their perception of the company as a fair and ethical company. the driving force for Rafael's existence and success. We see the customer Therefore, it is our responsibility to apply the ethical code to ourselves experience as a central objective, and we build long-term reciprocal and to conduct ourselves in a manner that serves as a good personal relationships with our customers. Accordingly, we: example, to develop and implement the company's values and ethical Aspire for our products and services to be of the highest quality and culture in our managerial activity, in the standards implemented, and in standards, while continuously improving the quality of performance, the routines of employees and teams. Our management principles are products and services. based on RAFAEL’s management and leadership model, on the company's values, and on the Ethical Code. Provide our customers with the relevant information for making informed decisions, and respect commitments and promises made We will speak professionally and openly, directly and respectfully to them by authorized representatives of RAFAEL.
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