Operating with the principles of good governance is not an option at Unum — it's ingrained in our culture. From our board of directors, which works through several standing committees to engage management on a host of governance issues, to our front-line employees, we're committed to operating our business with integrity and transparency.
Our Code of ConductIt all starts with our Code of Conduct, a road map that guides our actions and decisions as employees and, more importantly, ensures that ethics are embedded in every facet of our work environment. In the code, we outline how employees should follow sound business practices, comply with regulations and accountability guidelines and keep confidential information private.
Supplier diversityWe promote fair business practices through our procurement and supplier diversity programs and seek to do business with those who share our values of integrity, quality and efficiency. We are also a corporate member of the National Minority Development Council, and a member of several regional councils. Through these memberships, we strive to increase the business we conduct with minority- and women-owned businesses.
Ensuring complianceUnum has strong internal controls to ensure we comply with national and state regulatory oversight in the U.S. and U.K. In our U.S. businesses, which are primarily regulated by each state, we:
- Meet with regulatory agencies regularly and respond promptly to any requests for information;
- Review our product information to ensure it accurately represents what we offer;
- Continually evaluate the effectiveness of our compliance programs through compliance officers and through regular reviews of businesses and claims practices; and
- Work with trade associations and industry groups to develop standards for regulation of the insurance industry.
In the U.K., we make sure our products and the information describing them are designed and written to meet customer needs. This is consistent with the Treating Customers Fairly initiative of the Financial Services Authority, which requires companies to adopt policies and practices that clearly outline product offerings and benefits for customers.
Managing riskAt Unum, managing risk is everyone's responsibility, so it's no surprise that risk management is second nature to us. While day-to-day risk management efforts are led by our chief risk officer and key leaders in our business, through a number of committees and built-in business processes, people from throughout Unum are engaged in:
- Managing insurance and operational risks within each of our businesses;
- Reviewing the health of our investment portfolio and making decisions consistent with the direction of our company;
- Monitoring and planning how to best use our capital to ensure we have the resources to operate effectively and take advantage of opportunities as they arise; and
- Identifying other risks to our company.
In addition, our business continuity program prepares Unum to continue operations if events such as natural disasters, operational incidents, health crises or terrorist attacks impact our normal business operations. Regular exercises make sure that our reactions will be timely and effective.