40 LV= Annual Report 2012
Corporate Social Responsibility
Business ethics Processes are also in place to ensure we swiftly
As a leading financial mutual we take our take any necessary preventative action. We call this
responsibilities as an ethical company seriously. root cause analysis. It means we closely monitor all
Our approach to corporate social responsibility complaints enabling us to quickly identify if there is
is embedded in our culture and positive attitude a problem with our processes so we can put it right
towards everyone we deal with. going forward.
Supplier ethics Where regulation or guidance govern complaint
We recognise it is important to build successful and procedures, we have taken steps to ensure we
collaborative relationships with our suppliers and remain compliant. If we are unable to resolve
we expect them to support our ethical approach the matter satisfactorily, the complainant will
to business. We base our working practices with be advised to refer the matter to the Financial
them on our core values, and in return ask them Ombudsman Service.
to support our ethics. Consequently we ask all
our suppliers to act in accordance with our ethical Financial crime
supplier policy. This requires them, among other LV= takes a highly proactive approach to fighting
things, to comply with all laws and regulations, financial crime and in 2012 we achieved savings
not to exploit child labour and not to discriminate of £39 million as a result of our robust attitude.
against their workforce. In order to ensure this, a We also handled a number of fraud cases that
number of steps are taken. These include (but are have set market precedent in the high court and
not limited to) rigorous due diligence of potential in private and public prosecutions.
suppliers during the tender process and regular
business assurance audits with suppliers to Our goal is to create and deliver market-leading
monitor compliance. financial crime management. This will ultimately
enable us to offer lower premiums to customers as
Governance and responsible investment a result of the successful cancellation of fraudulent
We are committed to being a responsible policies and the tackling of fraudulent claims.
investor and active owner. This commitment is
shared by TAM who are responsible for managing HR matters
our investments. They follow governance and The success of LV= continues to be driven by
responsible investment principles and procedures committed people right across the business. We
based on the United Nations backed Principles believe that happy people make happy customers
for Responsible Investment (PRI), the UK and therefore we have created a culture of
Stewardship Code as well as best practice empowerment and support for our people.
corporate governance guidelines.
LV= continues to grow and during 2012 the HR
It is our joint belief that well-governed companies team handled 30,000 job applications with a
are likely to outperform in the long run and thousand new employees joining us during the year.
therefore TAM consider a holistic understanding
of risks and opportunities associated with As we grow, it is important to ensure that we
certain companies, sectors or themes, as part of maintain a sense of shared purpose and values
generating sustainable returns for their clients. so, every year, we conduct an independent survey
Their Governance and Responsible Investment (GRI) to find out how engaged our employees feel. This
team has worked alongside the firm’s investment allows all of our people to give us detailed feedback
professionals since 1998, facilitating integration about life at LV= across a broad range of topics.
of material environmental, social and governance
(ESG) analysis into the investment process. The In 2012 we were recognised as a UK High
GRI research and engagement primarily focuses Performing Organisation (HPO) by Towers Watson.
on equities and is being expanded to cover ESG Towers Watson reviews businesses across the
research to fixed income, where ESG risks and globe and publishes a list of those that it believes
opportunities can impact credit scores. have high-performance cultures, focused on
improving the return on talent investment and
Complaints policy delivering measurable business results.
We aim to provide an excellent standard of service
to our members and customers, but recognise We provide employees with information on issues
that there may be occasions where service falls relevant to their employment and our performance
below expectations. Our policy is to deal with any through meetings, regular magazines and an
complaints promptly, fairly and honestly. employee intranet. We also drive an upbeat