Our actions have far-reaching economic implications, from the global marketplace to the local village. This broad reach means that sound corporate governance, a strong relationship with our diverse work force, and responsible management of our supply chain are crucial to the economic success of all involved.

Board of Directors
   Our commitment to the highest standards in ethics and business conduct begins with our board of directors. It is
the responsibility of the directors to exercise their business judgment and to act in the best interests of shareowners
in overseeing the business and affairs of the corporation. Board oversight is provided in a number of areas, including the selection and evaluation of senior executive management, the review of business objectives and major strategies,
and corporate governance practices. A full description of our Corporate Governance Guidelines is available online at: http://investors.utc.com/governance.cfm.

Code of Ethics
   We created our fundamental ethics document, the Code of Ethics, in 1990 to govern the business conduct of the corporation and our employees worldwide. We operate under this single code, which we distribute in 28 languages. The Code of Ethics is available online at http://www.utc.com/responsibility/economic/ethics/english/coe_english.pdf.
   We demand adherence to U.S. and foreign laws, but our Code of Ethics contains broader ethical considerations. Specifically, the code promotes ethical behavior across our organization, addressing such critical areas as conflicts of interest, antitrust compliance, government procurement, product quality and safety, supplier and subcontractor relationships, and many other dimensions of corporate responsibility. For example, we have a long-standing policy that no improper payments will be made by or on behalf of the company.
   Our code is directed and supported by senior management as well as UTC’s board of directors. The code is the responsibility of management, who answer to shareowners, employees, customers, suppliers, competitors and the community.

Business Practices Officers
   In support of our ethical standards, we have a business practice organization consisting of 267 Business Practices Officers (BPOs), who are accountable to management for implementing the code worldwide. Each BPO works within the operating company to provide colleagues with perspectives on regional cultural differences, to reinforce the code through communication and training programs, and to report results of ethics- and compliance-related allegations.