Corporate Responsibility

Allstate’s promise to help customers live a good life includes our commitment to protect their personal information.

Introduction

In today’s world of hyper-connectivity and big data, customer privacy and data security has been thrust into the collective conscience of the business community. While information technology enables instantaneous communications, it has also prompted a need for new and innovative approaches to security, to keep pace with the rapidly evolving cyber threat landscape. As Allstate works to develop additional remote connectivity solutions and foster an integrated digital enterprise, we continue to dedicate resources to ensure these enhancements are secure, practical and beneficial for our customers.

We recognize how the quality of Allstate’s security program impacts our company’s reputation and our customers’ trust in us. We sell a promise to help our customers live a good life even in times of uncertainty. Customers experience the integrity and value of this promise, in part, through our ability to protect the information they share. By carefully and responsibly handling their information, we can advance our reputation among consumers, driving strong business relationships and creating shared value.

Policies

Allstate has strict customer privacy requirements as stated in our privacy policy (for Allstate insurance companies):

• We do not sell our customers’ personal or medical information to anyone.
• We do not share our customers’ information with non-affiliate companies that could use it to contact our customers’ about their own products and services, unless permitted pursuant to a joint marketing agreement.
• We require persons or organizations that represent or assist us in servicing our customers’ policy and claims to keep their information confidential.
• We require our employees to protect our customers’ personal information and keep it confidential.

Please see our privacy statement for more on how Allstate protects our customers’ personal information.

In addition to our privacy statement, Allstate has implemented the following policies:

• Our Enterprise Information Security Policy. This internal, proprietary policy covers the entire company.
• Our Information Technology (IT) Usage Policy. This policy governs our operations and helps ensure that customer data is not shared or altered inappropriately. Our Information Security Council (ISC), which includes our chief information security officer, technology officers and other select business officers, reviews this policy.

Risk Assessment

Allstate’s risk-based approach to developing a holistic information security strategy leverages the National Institute of Standards and Technology (NIST) Cybersecurity Framework, with support from other standards and best practices.

Governance

Cybersecurity risk oversight is provided by the audit, and risk and return committees quarterly, and the full Board as requested. Our chief information security officer regularly communicates key metrics and information to the Allstate Board of Directors. In addition, the CEO and senior executives at Allstate regularly receive reports on the status of ongoing cybersecurity initiatives. Allstate Information Security (AIS) owns and manages our standards and policies. A dedicated team within AIS monitors cybersecurity risks and conducts regular reviews. The chief information security officer works closely with the chief privacy officer and the privacy team. Finally, we collaborate with government agencies and other industry resources and information sharing groups to keep our leaders informed regarding cybersecurity trends and best practices.

Training

Investing in a strong, integrated digital enterprise system with appropriate security controls is just one way we protect our customers’ data. We understand it comes down to people. Training our employees to maximize the value of these controls is a critical and complementary part of our cybersecurity management.

Annual Compliance Confirmation
Each year, we educate our employees on the privacy and cybersecurity protocols outlined in our policies. Participants must agree to comply with these protocols. We communicate with employees throughout the year and refresh their knowledge of Allstate’s enterprise security standards and practices.

We periodically update and review the content of this course to ensure it reflects current and emerging trends in cybersecurity, as well as new security installments, tools or standards. The training also revisits recurring problems in cybersecurity, such as phishing and ransomware, and provides clear guidance on how to mitigate these risks.

Supply Chain Data Security

Allstate emphasizes the importance of customer privacy and data security with vendors through our Procurement standards and practices. See Sustainable Procurement for more information.

Allstate is a force for good. By forming strong relationships in the communities where we work and live we initiate a cycle of positive feedback, a cycle of shared value.

Introduction

At Allstate, we recognize the important role the communities we serve play in our success. They provide us with talent—our most valuable asset. Consequently, we see engagement with them vital to the success of our company. By engaging with and supporting local programs, we contribute to economic prosperity. Through a variety of initiatives, we empower our employees, agency owners and financial specialists to be advocates within their communities in ways that reflect their creativity and unique interests.

Millennials have a heightened interest in, and awareness of, corporate social responsibility. Demonstrating Allstate’s commitment to corporate citizenship through employee volunteerism and community involvement will continue to play an important role in attracting our future workforce.

Allstate and The Allstate Foundation work in partnership on our current focus areas, each with a corresponding program:

• Youth empowerment (Good Starts Young)
• Domestic violence (The Allstate Foundation Purple Purse)
• Volunteering (Helping Hands Program)
• Support for nonprofit leaders (Greater Good)

Giving

The 2015 Allstate Giving Campaign raised $6.48 million from Allstate employees, agency owners and agency staff contributions, up from $6.2 million the prior year. Participation in the campaign rose from 50 percent in 2014 to 53 percent. For every dollar donated by Allstaters, the company matches with a 15 cent donation. Similarly, the company matches donations to United Way with five cents for every dollar. Administrative costs of the Giving Campaign were covered by Allstate.

Volunteering

Our employees bring out the good by contributing time and talent to a variety of organizations through the Allstate Helping Hands Corporate Volunteer Program. From painting, serving meals, applying our expertise through skills-based volunteering and sharing our leadership lens through our officer nonprofit board placements, Allstate uses our human capital to help make communities stronger. In 2015, our 112 Helping Hands Committees cumulatively donated 230,000 hours of service, a 15 percent increase over 2014. To show our support for the involvement of our employees, agency owners and financial specialists and augment their impact, we also provide grants to the organizations they volunteer for.

Through our Good Work. Good Life. Good Hands.® program, we identify community service elements that are important to Allstate employees and promote their values and interests in:

• Efforts in environmental sustainability
• Community involvement programs: Helping Hands, Bring Out the Good Month and the Purple Purse walk
• National campaigns: Allstate Foundation Purple Purse and Good Starts Young

Allstate Bring Out the Good Month

In 2015, Allstate held its inaugural Bring Out the Good Month, expanding on our traditional Week of Service. The month was a great success with:

• 7,737 Allstate volunteers participating
• More than 372 hands-on, community-based projects
• 14,833 volunteer hours
• A total donation of $350,000 in volunteer time, plus $75,000 in grants to local charitable organizations

Allstaters donate time and talent year-round and extend their services far beyond Bring Out the Good Month.

Supporting Nonprofit Leaders

The Allstate Foundation’s Greater Good Nonprofit Leaders Program, a collaboration with Northwestern University’s Kellogg School of Management, is designed to develop high-potential leaders at mid-sized nonprofit organizations. The program, launched in 2014, lasts for one year and includes one-on-one executive coaching and four academic sessions. Allstate covers all program costs, including the cost of travel for the participants. In 2015, Greater Good participants:

• Utilized 175 hours of executive coaching
• Completed 1,872 hours of academic instruction
• Increased by 50% over 2014 levels with a total of sixteen participants

Click here to learn more about the Greater Good Nonprofit Leaders Program.

The Ripple Effect: One Leader’s Experience with The Allstate Foundation’s Greater Good Nonprofit Leaders Program

Joe Mutuc was a nine-year top performer and Director of Career Services with Cara (The Cara Program) when he learned about Allstate’s Greater Good Nonprofit Leaders Program. As a driven, successful leader at a medium-sized nonprofit, he was an ideal candidate for the program.

During the Greater Good program, Joe strengthened his skills as a values-based leader. He also honed a variety of other skills: sharpening business acumen, understanding financial statements and tailoring communications to different stakeholder audiences. By increasing his skills in these areas, Joe became better equipped to lead critical conversations and engage in strategic planning at Cara. He believes the Greater Good experience positioned him well for the promotion he received shortly after completing the program.

Through one-on-one coaching, Joe learned that business solutions arise more quickly when he took the time to work through challenges with his colleagues. The coaching inspired him to help secure mentors for his team members. In Joe’s words, “mentorship is a gift that keeps on giving. I have grown so much during my time at Cara, and I want to be able to pay it forward. I look forward to sharing and applying knowledge gained from the Greater Good program with my organization.”

Cara builds hope and self-esteem by helping people affected by poverty attain and retain jobs. The organization produces hundreds of jobs each year. Visit their website to learn more about Cara.

Strengthening Nonprofit Boards

Through our Allstate Officer Nonprofit Board Program, we help our officers engage with the boards of nonprofits whose missions advance our strategic social impact areas. By participating in this program, our officers have the opportunity to expand their network, gain valuable leadership experience and give back to the community. In 2015, 70 of our officers served on the boards of 83 organizations. This represents a 35 percent increase over 2014 active involvement, and we expect the program will continue to see strong growth.

Youth Empowerment

Through our Good Starts Young program, we inspire the next generation of leaders to reach their full potential, take part in causes greater than themselves and help make the world a better place. Participating youth receive the tools and resources needed to build character, discover their inner voice and develop social and emotional skills.

As part of Good Starts Young, Allstate and The Allstate Foundation are national co-title sponsors of WE, a nonprofit organization that offers programs to broaden students’ understanding of social issues and help them determine how to take action. One of WE’s programs, WE Schools, provides schools and youth-serving organizations with a yearlong educational program with free service-learning lesson plans, curriculum, activities and campaigns. The program empowers youth with the tools they need to address pressing issues in their communities and across the globe.

Through our youth empowerment efforts:

• 1 million youth participated in WE schools, completing 2.6 million hours of service and raising $3.8 million during the 2015-2016 school year.

• More than 1 million students have completed “JA Economics for Success,” a financial literacy curriculum supported by The Allstate Foundation that helps middle school students grasp the basics of smart money management and minimization of financial risk.

Empowering Survivors of Domestic Violence

Research shows 25 percent of women have been subjected to domestic violence at some point during their life. In many cases, survivors of domestic violence do not have the financial means to escape their circumstances. In fact, financial factors are the strongest indicators of a woman’s ability to leave an abusive relationship.

Allstate breaks this cycle with The Allstate Foundation Purple Purse campaign. Purple Purse empowers domestic violence survivors by improving their financial literacy and asset building skills, increasing their chances of successfully escaping their abusive partners. By assisting survivors, Allstate creates shared value: We enable survivors to escape from their harmful circumstances, which gives them the opportunity to invest in the insurance products and services they need to live a good life.

As a leading insurance company, Allstate possesses the expertise and scale necessary to make a positive and tangible impact on the domestic violence crisis in America. Purple Purse addresses domestic violence through education, partnerships, grants, academic collaborations and state-level coalitions.

Providing Free Financial Management Curriculum for Survivors of Domestic Violence
The Allstate Foundation’s Moving Ahead Through Financial Management curriculum, developed in partnership with the National Network to End Domestic Violence (NNEDV), provides survivors with a wide range of educational materials on money management and personal finance. The curriculum was tested and validated by the Rutgers University’s School of Social Work and is made available online at no cost.

Training Domestic Violence Counselors
In 2015, Allstate and NNEDV hosted the 11th annual Financial Empowerment Symposium. This symposium promotes best practices and provides curriculum training to domestic violence advocates. To date, our “train-the-trainer” program has educated 8,000 advocates from more than 1,800 organizations from all 50 states.

Supporting State and Regional Domestic Violence Coalitions and Services
The Moving Ahead Financial Empowerment Grant Program provides grants to state-level coalitions with a focus on ending domestic violence through economic empowerment of survivors. Similarly, The Allstate Foundation Regional Domestic Violence Grants offer funding for local financial empowerment services. In order for a state coalition or region to receive a grant, they must address one of Purple Purse’s four focus areas: financial literacy; microloans and Individual Development Accounts; job readiness and job training; or microenterprise.

Raising Funds for Domestic Violence Organizations
In 2014, The Allstate Foundation led a fundraising effort for domestic violence organizations through its inaugural Purple Purse Challenge. Hosted on CrowdRise with fundraising incentives provided by The Allstate Foundation, our Challenge raised nearly $2.5 million for 136 community partners. In 2015, we raised $3.1 million and added more than 25 new community partners.

Since launching in 2011, Purple Purse has achieved enormous success. The campaign has invested over $50 million to end domestic violence and provided assistance to nearly 800,000 women. In 2015 alone, the Purple Purse campaign:

• Raised $558,000, a 25% increase over 2014
• Served more than 197,000 survivors
• Involved 5,900 agency owners, a 268% increase from 2014
• Involved 4,830 employees, a 7% increase from 2014
• Saw a 407% rise in campaign participants

At Allstate, we demonstrate environmental and social leadership in our purchasing decisions to ensure our stakeholders are in good hands.

Introduction

Due to our size and global purchasing activity, we recognize our procurement practices have far-ranging impacts. This offers Allstate the opportunity to leverage our influence and positively impact our value chain. We are proud of our business practices, and our work in sustainable procurement is just one of the many ways we demonstrate our commitment to sustainability and corporate responsibility. We will continue to hold ourselves and our suppliers accountable for how we impact our stakeholders.

Sustainably managing our supply chain mitigates risk. By understanding how suppliers are managing topics such as emissions, waste, compliance or cybersecurity we, in turn, can better articulate Allstate’s expectations of them. By actively managing these risks, we increase the confidence of stakeholders who depend on Allstate’s performance.

Another way Allstate brings out the good is through our supplier diversity program. Identifying and doing business with diverse suppliers contributes to an inclusive economy and broadens our pool of potential suppliers.

Supplier Impacts

We manage environmental and social impacts in our supply chain through a combination of agreements, surveys, scorecards, policies (such as our Supplier Code of Conduct) and resource reduction programs. We are in the process of developing key performance indicators (KPIs) and targets to more effectively monitor the impact of our sourcing efforts.

Cybersecurity
As business deepens its reliance on information technology, customer privacy and data security is increasingly important. To mitigate the risks of an information security breach arising from a supplier relationship, we include mandatory on-boarding and off-boarding processes in our supplier contracts. Through these processes, we train suppliers to recognize behaviors that increase risk, familiarize them with Allstate’s corporate values and evaluate security protocols of every supplier with access to sensitive data.

Resource Reduction and Sustainability Road Map for Suppliers
This year our sourcing and procurement team prioritized our most important sustainable procurement initiatives through a rigorous analysis of Allstate’s resource use. As a result of this assessment, we focused our responsible purchasing program on computer equipment, furniture, leased properties, paper products, professional services, software, utilities and our corporate vehicle fleet. For each resource, we identified key performance indicators (KPIs) to include in the supplier scorecard and created Sustainable Procurement Playbooks that provide detailed rationale behind assessing material impacts and how suppliers should respond to the KPIs. We distributed the Playbooks to Allstate’s commodity managers in each spend category, who then used the tools to help suppliers provide required information for each KPI.

Allstate recognizes minority, women and veteran enterprises as those that are at least 51 percent owned and operated by minorities, veterans or women. Minority suppliers include: LGBTQ, African-American, Hispanic-American, Native American and Asian- and Pacific Islander–American (Asian-Indian included).

Supplier Diversity

Allstate is committed to achieving its long-term goal to have 9 percent of the company’s total procurement spend with diverse businesses. In 2015, we achieved 8.83 percent diverse spending for a total of $461.7 million. To be eligible for our Supplier Diversity Program, a company must provide certification as a minority-, woman-, veteran- or LGBT-owned business by one of the following councils:
 
• The National Gay and Lesbian Chamber of Commerce (NGLCC)
• The National Minority Supplier Development Council (NMSDC)
• U.S. Pan Asian American Chamber of Commerce Education Foundation (USPAACC)
• The Women’s Business Enterprise National Council (WBENC)
• The Department of Veterans Affairs (VA) Center for Veterans Enterprise Vendor Information Pages (VIP) database

We evaluate progress by measuring our targeted spend in the first five categories listed below. We also measure our inclusive spend in all 13 categories identified by the Small Business Administration (SBA) as diverse and of special interest in meeting statutory obligations. These include:
 
• Minority/Women-Owned Business Enterprises (M/WBEs)
• Minority-Owned Business Enterprises (MBEs)
• Women-Owned Business Enterprises (WBEs)
• Disabled Business Enterprises (DIS)
• Disabled Veterans Business Enterprises (DVETs)
• Disadvantaged Business Enterprises (DBEs)
• Historically Black Colleges or Universities (HBCUs)
• Historically Underutilized Business Zone (HUB Zone)
• Small Business Administration 8(a) Program (SBA8(a))
• Small Disadvantaged Business Enterprises (SDBs)
• Veteran-Owned Business Enterprises (VETs)
• Small Business Enterprises (SBEs)
• Lesbian, Gay, Bisexual, Transgender, Questioning – Owned Business Enterprises (LGBTQs)*

* Additionally, Allstate includes businesses certified by the National Gay and Lesbian Chamber of Commerce (NGLCC) as owned by a member of the LGBTQ community.

Supplier Diversity

Year
2013
2014
2015
Year Supplier diversity spend 2013 $430.6 million 2014 $439.6 million 2015 $461.7 million
Year Diverse supplier spending as a percent of purchasing spend 2013 8.3% 2014 8.2% 2015 8.8%

Building Ties with Diverse Groups Through Memberships
Allstate works with select organizations to conduct national benchmarking, connect with diverse suppliers and identify successful practices in supplier diversity. Allstate is a member of the following organizations:

• The National Minority Supplier Development Council
• Women’s Business Enterprise National Council
• National Veteran-Owned Business Association
• National Gay and Lesbian Chamber of Commerce
• United States Hispanic Chamber of Commerce
• United States Pan Asian Chamber of Commerce

Industry Recognition
A number of external organizations recognized our supply chain diversity efforts in 2015. We received the following awards:

• Top 35 Best Companies for Supplier Diversity 2015 – Black Enterprise Magazine
• 2016 Corporate 101: America’s Most Admired Corporations – Minority Business News USA
• Buyer of the Year – Cynthia Moore, Sourcing & Procurement Solutions – ChicagoMSDC
• WE 100 Corporations of the Year – Women’s Enterprise USA Magazine
• 2015 America’s Top Corporations – Silver – Women’s Business Enterprise National Council

Training the Next Generation of Diverse Suppliers
Every year we host the Allstate Supplier Diversity Exchange. This event gives diverse suppliers and start-up companies the opportunity to network with Allstate and our major suppliers. The program creates a mutually beneficial relationship: Allstate helps support businesses in underserved areas and participating companies become better positioned to win contracts.

We also select diverse businesses to participate in our mentorship program. Throughout 2014 and 2015, we selected 11 suppliers to participate in this program where they received training, resources and networking opportunities.

Read more about Allstate’s 2015 Supplier Diversity Exchange and supplier diversity programs.

Allstate is proud to protect people against life’s uncertainties and we strive to ensure those with limited means have the same opportunity to benefit from being in our good hands.

Introduction

Financial inclusion lies at the intersection of business and social value. We initiate a cycle of positive feedback and shared value by working to build a financially inclusive business. In cultivating this approach to financial inclusion, we challenge ourselves to create innovative products and services to meet our customers’ needs and outperform our competition.

Financial inclusion is a license to operate in the insurance industry; legal and reputational considerations are an important part of our management of this material topic. The insurance industry is regulated to ensure that insurance product prices are risk-based.

Our efforts in financial inclusion focus on:
 
• Offering fair prices;
• Providing economic empowerment to survivors of domestic violence and;
• Investing in affordable housing.

Offering Fair Prices

Allstate agency owners and financial specialists value and build personal relationships with each of their customers. They work with customers to achieve the best insurance solutions for their needs at the right price for them. Allstate’s pricing has been and continues to be determined by risk and costs. Insurance prices are risk-based so that lower-risk drivers pay less than higher-risk drivers. We use information such as driving safety record, driving characteristics and type of vehicle to provide our customers with accurate and competitive prices. We regularly update our pricing to ensure our customers benefit from the most advanced approaches. As a result, our prices are highly competitive and fair, providing our customers with the best value.

Empowering Survivors of Domestic Violence

One unique way we address financial inclusion is through our work with survivors of domestic violence. When we give survivors the tools and access they need for a healthy financial life, we empower them to participate more fully in the economy. This financial engagement ultimately provides value to Allstate.

Many survivors of domestic violence lack the financial literacy and assets to escape their circumstances. Allstate helps to break this cycle with The Allstate Foundation Purple Purse campaign. Purple Purse empowers domestic violence survivors by improving their financial literacy and asset building skills, increasing their chances of successfully escaping their abusive partner. To read more about the work of The Allstate Foundation Purple Purse, see Community Presence.

Investing in Affordable Housing

Impact Community Capital (ICC) was founded in order to create a bridge between low-income communities in need of investment and insurance companies with a need to entrust their policyholders’ capital in impactful and profitable investments. Since its inception, the sum of ICC’s socially responsible investments in underserved communities has grown to more than $1 billion. The ICC invests in affordable housing, healthcare and economic development.

Since 2000, Allstate has helped ICC increase its ability to finance affordable housing by investing in securitized loans packaged by its Impact Community Impact Loan (Impact CIL) affiliate. Impact CIL purchases mortgage loans on newly constructed or rehabilitated affordable multifamily housing properties, most of which are eligible for Low Income Housing Tax Credits (LIHTC). When the mortgage pool reaches an optimal size, the loans are securitized. Under the Community Impact Loan Program, Impact CIL has provided more than $800 million of financing on project loans containing more than 33,000 low-income housing units.