General Dynamics Corporation | Interfaith Center on Corporate Responsibility

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<strong>Company:</strong>
<p>General Dynamics Corporation</p>
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<strong>Year:</strong>
<p>2026 </p>
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<strong>Issue Area:</strong>
<p>Corporate Governance </p>
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<strong>Focus Area:</strong>
<p>Independent Board Chairs </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h3>Lead Filer</h3>
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<div class=”views-field views-field-nothing”><span class=”field-content”> John Chevedden</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Chevedden Corporate Governance</span></div>
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<strong>Company:</strong>
<p>General Dynamics Corporation</p>
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<strong>Year:</strong>
<p>2025 </p>
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<strong>Issue Area:</strong>
<p>Human Rights & Worker Rights </p>
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<strong>Focus Area:</strong>
<p>Human Rights </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p class=”p1″><strong>Resolved: </strong>Shareholders request the Board of Directors publish a report, at reasonable cost and omitting proprietary information, with the results of a Human Rights Impact Assessment (HRIA), examining General Dynamics’ actual and potential human rights impacts associated with high-risk products and services, including those in conflict-affected areas and/or those violating international law.</p>
<p class=”p1″><strong>Whereas</strong>: General Dynamics (GD) is exposed to significant actual and potential human rights risks. The use of its defense products and services may violate the rights to life, liberty, personal security, and privacy. The UN Guiding Principles on Business and Human Rights (UNGPs) constitute the global authoritative framework outlining human rights responsibilities of states and businesses, and expectations are heightened for companies with business activities in conflict-affected and high-risk areas.1 Companies’ human rights responsibilities are independent of the state’s export licensing determinations, as reiterated in a recent United Nations note.2</p>
<p class=”p1″>GD’s Human Rights policy is not aligned with the UNGPs, and investors lack evidence it is effectively implemented across business functions. Disclosure of HRIAs and remedies is absent. Insufficient human rights monitoring exposes GD and its investors to legal, financial, and reputational risks.</p>
<p class=”p4″>GD sells products and provides services to authoritarian regimes, such as Saudi Arabia.3 A recent US government report highlights the US’ failure to monitor whether its weapons or services have been used by the Saudi-led coalition to attack civilians.4 A GD component was linked to a 2018 school bus bombing, which killed dozens of children in Yemen and has been recognized as a war crime.5 The Company faces increasing legal risk, as a group of Yemeni nationals sued GD and peer defense contractors in 2023 for their complicity in war crimes in Yemen.6</p>
<p class=”p5″>GD also supplies artillery munitions and bombs to Israel, which have been reportedly used in attacks on Palestinian civilians in Gaza, that may constitute war crimes, and, according to the International Court of Justice, may plausibly amount to genocide.7 Although, in June 2024, UN experts called on companies to immediately end arms transfers to Israel, even if approved by State export licensing, or risk complicity in violations of human rights and international humanitarian law, GD continues to sell weapons to Israel.8</p>
<p class=”p1″>Furthermore, GD has $28 billion in contracts for work on nuclear weapons,9 which are prohibited under international law.10</p>
<p class=”p2″>Failure to meet its human rights responsibilities exposes GD to divestment risk. Most recently, Norges Bank decided to exclude GD from its Government Pension Fund Global, the world’s largest sovereign wealth fund, since the company produces “key components to nuclear weapons.”11</p>
<p class=”p4″>New guidance from the American Bar Association explains how an HRIA can reduce risks, including divestment, export bans, and civil liability.12 An HRIA can mitigate GD’s continuity risks, as increased federal oversight on customer end-use may limit or cancel existing or future contracts.</p>
<p class=”p1″>1 https://www.ohchr.org/documents/publications/guidingprinciplesbusinesshr_en.pdf</p>
<p class=”p2″>2  https://www.ohchr.org/sites/default/files/2022-08/BHR-Arms-sector-info-note.pdf</p>
<p class=”p3″>3 https://www.reuters.com/article/us-generaldynamics-canada-saudi/general-dynamics-canada-wins-saudi-deal-worth- up-to-13-billion-idUSBREA1D1EF20140214; https://www.gdarabia.com/experience/</p>
<p class=”p2″>4 https://www.gao.gov/assets/gao-22-105988.pdf</p>
<p class=”p2″>5 https://www.hrw.org/news/2018/09/02/yemen-coalition-bus-bombing-apparent-war-crime#</p>
<p class=”p4″>6</p>
<p class=”p5″>https://static1.squarespace.com/static/608276df0e35bd790e38eff3/t/6400d4b8127ec80e81e1837d/1677776057913/STA MPED+Complaint+%281%29.pdf</p>
<p class=”p2″>7 https://www.wsws.org/en/articles/2023/11/09/htsr-n09.html; https://www.cnn.com/gaza-israel-big-bombs/index.html; https://afsc.org/gaza-genocide-companies; https://www.icj-cij.org/sites/default/files/case-related/192/192-20240126-ord- 01-00-en.pdf</p>
<p class=”p2″>8 https://www.ohchr.org/en/press-releases/2024/06/states-and-companies-must-end-arms-transfers-israel-immediately-or- risk; https://www.dsca.mil/sites/default/files/mas/Press%20Release%20-%20Israel%2024-10%20CN.pdf; https://www.dsca.mil/sites/default/files/mas/Press%20Release%20-%20Israel%2024-39%20CN.pdf</p>
<p class=”p1″>9</p>
<p class=”p2″>https://assets.nationbuilder.com/ican/pages/4079/attachments/original/1718371132/Spending_Report_2024_Singles_Digi tal.pdf?1718371132</p>
<p class=”p3″>10 https://treaties.un.org/doc/Treaties/2017/07/20170707%2003-42%20PM/Ch_XXVI_9.pdf</p>
<p class=”p4″>11 https://www.nbim.no/en/the-fund/news-list/2024/decisions-on-exclusion3/; https://fingfx.thomsonreuters.com/gfx/rngs/GULF-QATAR-QIA/010041PS3P9/index.html</p>
<p class=”p3″>12 https://www.americanbar.org/content/dam/aba/administrative/human_rights/justice-defenders/chr-due-diligence- guidance-2022.pdf</p>

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<h3>Lead Filer</h3>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Gloria Oehl</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Franciscan Sisters of Allegany, NY</span></div>
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<strong>Company:</strong>
<p>General Dynamics Corporation</p>
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<strong>Year:</strong>
<p>2025 </p>
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<strong>Issue Area:</strong>
<p>Lobbying & Political Contributions </p>
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<strong>Focus Area:</strong>
<p>Lobbying </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p><strong>Resolved,</strong> shareholders request the preparation of a report, updated annually, disclosing:</p>
<p>1. Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications</p>
<p>2. Payments by General Dynamics used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, in each case including the amount of the payment and the recipient.</p>
<p>3. General Dynamics’ membership in and payments to any tax-exempt organization that writes and endorses model legislation.</p>
<p>4. Description of management’s and the Board’-s decision-making process and oversight for making payments described in sections 2 and 3 above.</p>
<p>For purposes of this proposal, a “grassroots lobbying communication” is a communication directed to the general public that (a) refers to specific legislation or regulation, (b) reflects a view on the legislation or regulation and (c) encourages the recipient of the communication to take action with respect to the legislation or regulation. “Indirect lobbying” is lobbying engaged in by a trade association or other organization of which General Dynamics is a member. </p>
<p>Both “direct and indirect lobbying” and “grassroots lobbying communications” include efforts at the local, state and federal levels. </p>
<p>The report shall be presented to the Audit Committee and posted on General Dynamics’ website. </p>
<p><strong>Supporting Statement </strong></p>
<p>Full disclosure of General Dynamics’ lobbying activities and expenditures is needed to assess whether its lobbying is consistent with its expressed goals and in shareholders’ best interests. General Dynamics spent over $155 million from 20 IO – 2023 on federal lobbying. This does not include state lobbying, where General Dynamics also lobbies but disclosure is uneven or absent. General Dynamics’ federal lobbying in every quarter for 2023 over research and development tax credits has attracted attention. 1 </p>
<p>Companies can give unlimited amounts to third party groups that spend millions on lobbying and undisclosed grassroots activity.2 Unlike many of its peers, General Dynamics fails to disclose its memberships in or payments to trade associations and social welfare groups, or the amounts used for lobbying, to shareholders. General Dynamics belongs to the Business Roundtable, which has spent over $405 million on lobbying since 1998, and also to the Aerospace Industries Association, National Defense Industrial Association and Telecommunications Industry Association. </p>
<p>General Dynamics’ lack of disclosure presents reputational risks when its lobbying contradicts company public positions. For example, General Dynamics recognizes the importance of addressing climate change, yet the Business Roundtable filed an amicus brief opposing the Securities and Exchange Commission climate risk disclosure rules.3 And while General Dynamics has drawn attention for lobbying for tax breaks,4 the Business Roundtable has lobbied against a new minimum corporate tax. 5 </p>
<p>Reputational damage stemming from these misalignments could harm shareowner value. Improved General Dynamics lobbying disclosure will protect the reputation of General Dynamics and preserve shareholder value. </p>
<p>1 https ://www.defensenews.com/ congress/2 024/0 3/04/tax -credit-sought-by-defense-industry-stuck-in-senate-Ii m bo/. </p>
<p>2 https ://thei ntercept.com/20 19 /0 8/06/business-group-spend i ng-on-1 ob by i ng-in-wash i ngton-is-at-1 east-dou b le-whats-pub I iclyreported/. </p>
<p>3 https :/ /www.eenews.net/arti cl es/investors-question-bus iness-roundtab I es-c Ii mate-rule-battle/. </p>
<p>4 https ://www.defensenews.com/ congress/2 023/07 /26/warren-s lams-defense-contractors-over-tax -I ob by ing/. </p>
<p>5 https:/ /www.washingtonpost.com/business/2023/08/ 14/biden-corporate-tax/.</p>

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Resolution Details

Company:

General Dynamics Corporation

Year:

2023

Issue Area:

Human Rights & Worker Rights

Focus Area:

Human Rights Due Diligence

Status:

Vote

Vote Percentage:

25.10%

Resolution Text

RESOLVED: Shareholders request the Board of Directors publish a report, at reasonable cost and omitting proprietary information, with the results of a Human Rights Impact Assessment, examining General Dynamics’ actual and potential human rights impacts associated with high-risk products and services, including those in conflict-affected areas and/or those violating international law.

WHEREAS: General Dynamics (GD) is exposed to significant actual and potential human rights risks. The use of its defense products and services may violate the rights to life, liberty, personal security, and privacy.

The UN Guiding Principles on Business and Human Rights (UNGPs) constitute the global authoritative framework outlining human rights responsibilities of states and businesses, and expectations are heightened for companies with business activities in conflict-affected and high-risk areas.1 Companies’ human rights responsibilities are independent of the state’s export licensing determinations, as reiterated in a recent United Nations note.2 GD’s Human Rights policy is not aligned with the UNGPs, and investors lack evidence it is effectively implemented across business functions. Disclosure on human rights impact assessments and remedy is absent. An Amnesty International report found that GD is not meeting its human rights responsibilities.3

Insufficient human rights monitoring exposes GD and its investors to legal, financial, and reputational risks. A GD component was linked to a 2018 school bus bombing in Yemen, carried out by Saudi Arabia, which killed dozens of children and has been recognized as a war crime.4 The company supplied weapons and munitions to Israel, which were reportedly used in attacks on Palestinian civilians that constitute human rights violations and war crimes.5 Furthermore, GD has $20.5 billion in nuclear weapons contracts,6 which are illegal under international law.7

GD sells its products to authoritarian regimes through exports from countries such as Canada. In 2014, Canada awarded GD a $13 billion fourteen-year contract to provide Saudi Arabia with military vehicles,8 which has been heavily criticized for Canada’s “flawed analysis of arm exports” and violation of the Arms Trade Treaty.9 When Trudeau hinted at canceling the deal in 2018, GD warned “billions of dollars of liability” associated with cancellation of its contract.10

Failure to meet its human rights responsibilities exposes GD to divestment risk, as investments increase in Environmental, Social, and Governance funds, which may control one-third of global assets by 2025.11 The Company additionally faces increasing regulatory and continuity risk as limits and bans to countries with poor human rights records are increasing, and expanded governmental oversight on customer end-use may limit or cancel existing or future contracts.12 Additionally, exporting countries’ human rights impacts determinations vary and may change over time. New guidance from the American Bar Association explains how a company’s human rights risk assessment can reduce risks, including divestment, export bans, and civil liability.13

1 https://www.ohchr.org/documents/publications/guidingprinciplesbusinesshr_en.pdf
2 https://www.ohchr.org/sites/default/files/2022-08/BHR-Arms-sector-info-note.pdf
3 https://www.amnesty.org/en/documents/act30/0893/2019/en/
4 https://www.hrw.org/news/2018/09/02/yemen-coalition-bus-bombing-apparent-war-crime#
5 https://investigate.afsc.org/company/general-dynamics
6 https://www.dontbankonthebomb.com/general-dynamics/#easy-footnote-bottom-4-738
7 https://treaties.un.org/doc/Treaties/2017/07/20170707%2003-42%20PM/Ch_XXVI_9.pdf
8 https://www.reuters.com/article/us-generaldynamics-canada-saudi/general-dynamics-canada-wins-saudideal-worth-up-to-13-billion-idUSBREA1D1EF20140214; https://www.cbc.ca/news/politics/generaldynamics-canada-wins-10b-deal-with-saudi-arabia-1.2537934
9 https://ploughshares.ca/wp-content/uploads/2021/08/NoCredibleEvidence_EN.pdf
10 https://www.reuters.com/article/us-saudi-khashoggi-canada/general-dynamics-warns-canada-cancelingsaudi-deal-would-cost-billions-idUSKBN1OG28B
11 https://www.bloomberg.com/company/press/esg-may-surpass-41-trillion-assets-in-2022-but-not-withoutchallenges-finds-bloomberg-intelligence/; https://www.bloomberg.com/opinion/articles/2022-03-25/industrial-strength-defense-stocks-search-for-their-place-in-the-esg-universe-l16s9bcq; https://weaponfreefunds.org/
12 https://www.congress.gov/117/bills/hr7900/BILLS-117hr7900pcs.pdf; https://www.aa.com.tr/en/europe/eu-parliament-calls-for-ban-on-arms-sale-to-saudi-uae/2142020; https://www.nytimes.com/2022/09/07/us/politics/biden-aid-yemen-saudi-arabia.html
13 https://www.americanbar.org/content/dam/aba/administrative/human_rights/justice-defenders/chr-due-diligence-guidance-2022.pdf

Separate Chair & CEO

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