1. P W C A S S I G N M E N T
I N T E R V I E W R O U N D 2
S u b m i t t e d t o M r . S a m i r K a r n i k

2. As a defense firm, our main priority is supporting
national security. To achieve secure borders, it's
essential that our employees, clients, and investors
feel confident in our work. Thus, we must reinvent
ourselves and adopt a work approach that instills
trust.
In order to do that Interstellar must take a proactive
approach in striving for innovative solutions beyond
just addressing the problem at hand via:
1. Becoming purposeful brand which supports
accountability & builds trusts among stakeholders
2. Achieving global leadership in sustainable
businesses (net zero, reduce plastics, raising
livelihoods of value chain)
3. A growth focused and purposed led organization
and culture.
4. Contributing towards a fairer and more socially
inclusive world.
Sustainability
Inclusive
Growth
Innovation
Trust
Accountability
Interstellar’s
Compass
Interstellar Missile and Defense Company
Interstellar must adhere to the value compass every time
it faces challenges and re-align its acitivites to become a
more sustainable & growth-focused business

3. HOW WOULD YOU GO ABOUT REPOSITIONING THE
BUSINESS THROUGH A CLEAR, BOLD AND AUTHENTIC
PURPOSE TO MITIGATE REPUTATION RISKS AND
ENCOURAGE INVESTOR CONFIDENCE?
Question 1

4. Mitigating
reputation risks
by information
exchange on
concerns and
pain points from
society
Repositioning Business by building a narrative of intrinsic accountability and strengthening inclusivity within their ESG strategies &
operating models. In the case of defense & missile companies, the CSO can highlight vision of the company like
“ The future of defenses begins with motivating the innovators of tomorrow and honoring defenders of the past"
Environment Social Governance
Convergence
ESG-coherent &
purpose-led approach
Operational Model
• Investing in R&D by promising transitioning to
energy-efficient systems & renewable
energy by 2030
• Implementing sustainable business practices,
reducing waste, promoting recycling.
• Promoting Fly Zero Initiative led by experts
& academicians to enable zero carbon
aviation
• Supporting local communities by developing
educational and skilling programs as well as
providing jobs
• Encouraging and promoting the rights and
well-being of underrepresented groups, or
monitor diversity at all levels of
management.
• Company executives/Senior leadership must
choose to take a strategist corporate
persona for the organization which is
committed to Net Zero Targets
• Setting “tone from the top” by adhering to
stringent rule & regulations for defense
industry and its supply chain
Risk Assessment &
Mitigations Planning
Reduction in socio-
ecological challenges
Understanding current GHG emissions
and forecast, set aspirational targets
and pulling-out actionable strategies to
achieve the target
Ensuring that diversity is high up on the
agenda and empowers teams & individuals
into taking actions at a local level
Organization should ensure full-
transparency by undertaking timely risk
assessment of unethical & unethical
practices
Immediate Actions
Long-term Actions
Sources: ESG and aerospace and defence : A chance to rethink strategy PWC
https://www.strategyand.pwc.com/de/en/functions/esg-strategy/cso2022/strategyand-chief-sustainability-officer.pd
https://www.raytheonmissilesanddefense.com/who-we-are/community-involvement f
Encouraging investor
confidence by
providing
information on ESG
related risks &
mitigation &
overview on carbon
intensity

5. Some practices that Interstellar can adopt:

6. • Problem: Raytheon, which faced backlash from human
rights groups over the company's production of cluster
bombs. Cluster bombs are indiscriminate weapons
that pose a risk to civilians and have been banned by
many countries.
• Solutions: In response, Raytheon implemented several
measures to address the concerns, including investing
in research and development of new technologies, and
engaging in dialogue with stakeholders.
• Problem: BAE Systems is another example, which
faced backlash from human rights groups over the
company's arms sales to countries with poor human
rights records.
• Solutions: In response, BAE Systems implemented
several measures to address the concerns, including
implementing sustainable business practices,
investing in research and development of new
technologies, and engaging in dialogue with
stakeholders.
• Problem: Lockheed Martin, which faced backlash from environmental groups and local communities over the
company's production of depleted uranium munitions.
• These munitions contain depleted uranium, which is a by product of the uranium enrichment process and has been
linked to health and environmental risks.
• Solutions: In response, Lockheed Martin implemented several measures to address the concerns, including
implementing sustainable business practices, investing in research and development of new technologies, and
engaging in dialogue with stakeholders
Case Studies of Defense & Missile Companies
Raytheon Missiles & Defence Company BAE Systems (Defence company)
Lockhead Martin Missilies

7. WHAT STEPS WOULD YOU TAKE TO DEFINE AND ARTICULATE
THE COMPANY'S PURPOSE AND SUBSEQUENTLY CRAFT A
STRATEGY AROUND IT TO RESPOND TO
STAKEHOLDER CONCERNS?
Question 2

8. W H AT C A N A C S O D O ? ( 1 / 2 )
Developing and implementing robust sustainability policies and goals that align with the
company's overall business strategy. This can demonstrate to investors that the company is taking a
proactive approach to addressing environmental and social issues.
Communicating the company's sustainability efforts to stakeholders, including investors. This can
include publishing annual sustainability reports, providing updates on the company's progress
towards sustainability goals, and highlighting any notable achievements or certifications.
Demonstrating a commitment to transparency and accountability. This can include providing
regular updates on the company's sustainability performance and engaging with investors to
answer questions and address concerns.
Implementing sustainability-related risk management and mitigation strategies. This can
include identifying and addressing potential environmental, social and governance (ESG) risks, and
ensuring that the company is in compliance with relevant laws and regulations.
A CSO can concentrate on multiple practices and strategies for enhancing the company’s image for its internal & external
stakeholders and respond to their concerns:

9. W H AT C A N A C S O D O ? ( 1 / 2 )
Building and maintaining partnerships with other organizations to promote
sustainability. This can demonstrate the company's commitment to sustainability and its
willingness to collaborate with other organizations to address environmental and social
issues.
Incorporating sustainability considerations into decision-making and investment
opportunities. This can demonstrate the company's commitment to long-term value
creation and responsible business practices.
Being proactive and open about addressing any negative impacts or challenges that
the company may have on the environment, communities and people.

10. 1. Conducting Needs Assessment of internal
and external stakeholders via customer
surveys and in employee townhalls
2. Discuss variety of issues, including
environmental issues, worker rights, equal
pay and working conditions
3. Monitoring regulations to understand
what information is required and by
whom.
1. Establishing control and processes for
collecting and analyzing the data that is
needed both to make decisions internally
and to report externally.
2. Bring together finance and sustainability
teams to create a holistic picture across
business.
3. Develop high-quality scenario planning ,
which will identify gaps in information
gathering
4. Upskilling employees across business and
board members.
5. Synchronize internal and external
communications, back by data
• Formalizing a reporting strategy that is
linked to the business strategy
• Putting the right governance in place so
the board can oversee the company’s
progress
• Resourcing the reporting teams so they
can cover financial and sustainability
information on an equal footing.
• Being brave and talking openly about
where to go next—and about the
challenges and the risks.
• Determining what’s needed for
reasonable assurance, which might include
independent assurance.
• Looking at incentive structures to set the
right targets, over sensible time frames.
Step1:
Finding out what matters to the stakeholders
Step 2:
Getting the right data for effective reporting
Step 3:
Narrating the right and full story`1
Crafting a Strategy for articulating company’s purpose & building trust