BAE Systems, the U.K.'s largest defense contractor, has established trading relationships with countries with known or suspected human rights abuses, according to a report by non-profit Action on Armed Violence.
Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weeklyBAE said it will neither confirm nor deny who it sells to, but noted in a statement to CNBC that it plays"a key role in enabling legitimate governments to defend their nation and protect their people," and that it rigorously upholds ethical standards.
The report said that companies such as BAE Systems were failing to appropriately screen the countries and regimes with which they have trading relationships. "Our industry is amongst the most highly regulated of any sector and we comply fully with all relevant export control laws and regulations in the countries in which we operate," a spokesperson said in a statement.However, Overton said the government was failing to do due diligence on company contracts, which he said showed"hypocrisy" in U.K.'s aim to be an"exporter of democracy.