5/31/2012

Ethics Issue Paper

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Ethics Statement

While working for Allstate Insurance Company in the Accounting Department for over 18 years, I have gone through some Strategic and Social Challenges. The Code of Ethics Policy applies to every Allstate employee including the Chief Executive Officer, Chief Financial Office, Controller, other senior financial and executive officers, and to Allstate’s outside directors, and references in this Code to ‘you,’ ‘we,’ and ‘employees’ are intended to include them.

While interviewing my department manager, Eric Mell he shared some very valuable information that was very interesting to me. Allstate’s Code of Ethics; “Allstate is committed to operating its business with honesty, integrity and the highest level of ethical conduct. These values are absolute. We must treat every customer, fellow employee, and member of the public accordingly. (Interview, May 00)”

Independent judgment is critical to the performance of your job. To maintain independence, you should avoid any other employment, business dealings or other relationships or activities that could impair independent thinking and judgment.

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I believe the purpose of the ethics statement is to demonstrate how Allstate is committed to provide a work environment that is safe and free from discrimination and harassment that may effect an employee’s terms or conditions of employment. Allstate has many valuable assets, including its people, property, information, and reputation. It is the company’s duty as well as the employee’s to preserve and protect these assets, and to use them only in ways, which promote the best interests of the Company.

In today’s rapidly changing environment, Allstate’s Code of Ethics has changed to keep up with today and tomorrow’s business requirements. Allstate is in the business that is built on trust. Any violations of the trust would affect their image and their ability to do business. Allstate’s ethical standard reflects each individual and corporate commitment of how our long-term success and our ability to succeed in the marketplace as a great company is determined by how each leader and employee conducts relationships. Allstate encourages employees to volunteer in the community demonstrating that Allstate and its employees are valued citizens of the community.

We as employees are expected to act honestly and deal fairly and ethically in all of the Company’s business relationships, whether with its customers, suppliers, competitors or other employees. Allstate’s reputation for honesty and integrity must never be subject to question. As one of Allstate’s core values, integrity must be part of all business goals and activities, such as developing new customer relationships, creating shareholder value, and enhancing employee relationships.

If no one observed the ethical guidelines this would be a violations of our Code of Ethics, which could result in discipline up to and including termination of employment or referral for criminal prosecution. Allstate will seek prosecutions of criminal acts perpetrated against the company by any officer, employee, or other person. Compliance with this Code and all applicable laws and regulations, both foreign and domestic, is required of all individuals covered by the Code. This is very important to our corporate image and strategies. The Company maintains a number of policies that are designed to assist employees in complying with applicable law in the conduct of Allstate’s business.

In addition, if the company has no Code of Ethics policy, this could result in lawsuit toward the company and eventually, cause the company’s downfall.

Each year Allstate e-mails each employee a copy of the Code of Ethics, called the Annual Compliance Confirmation. This includes Conflict of Interest, Integrity, Asset Protection and General Provisions. As employees, we must read and sign off under each category stating that we are in compliance with the company’s Code of Ethics. Failure to complete the Annual Compliance Confirmation may result in disciplinary action up to and including termination. One way I feel this could improve is to send one section at a time, this will give the employee the opportunity to take their time and read without feeling rushed into agreement.

REFERENCES

Interview with Eric Mell on May 11, 00

The Allstate Insurance Intranet Web Site http//hr/hr_policy_guide/CodeEthics.htm



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