FAQs

What is the geographic scope of Prudential’s CR Reporting?

		Close
Prudential plc is a leading international financial services group, providing retail financial services and fund management in its chosen markets: the UK, the US, Asia and continental Europe. Prudential has been writing life insurance in the UK for over 160 years. Today, Prudential has over 25 million customers worldwide and over £340 billion (as at 31st December 2010) of funds under management. Our CR Report outlines our strategy and reviews activities across Prudential plc. It covers our four directly managed businesses: Prudential UK and Europe, M&G, Jackson and Prudential Corporation Asia.

How long have you had a CR programme?

		Close
Prudential has always had a focus on the topics and issues involved and has, since its foundation, always sought to exemplify best practice when dealing with all our stakeholders. At Prudential we firmly believe responsibility should be managed on the ground. It is our people running the businesses who are closest to, and therefore best understand, our customers and local stakeholders. However, we are also very aware of the need for good governance, which is why global priorities, policies and standards are set, and monitored, by the Group.

What is the CR governance process of Prudential’s CR strategy?

		Close
CR is a philosophy that is firmly embedded in Prudential’s operations around the world as an integral part of the way we do business. It is led from the top of our organisation, with Harvey McGrath, Chairman Prudential plc, as Board sponsor. The Board discusses the Group’s CR performance and strategy at least once a year and also reviews and approves the Group CR Report. Below the Board, the Responsibility Committee comprises senior representatives from relevant Group functions and each of our core businesses. This committee is responsible for monitoring the Group’s CR activities and for raising issues that need to be addressed. The Group corporate responsibility team is responsible for: collating data and information for internal and external reporting; publishing the annual CR report; overseeing CR risk and issues management processes: and conducting research to ensure our activities remain aligned with issues relevant to our business.

What proportion of revenues does Prudential devote to Community Investment?

		Close
Prudential is committed to supporting the communities where it is an employer. In 2010 the Group spent £7.5 million in support of the community. Within this, direct donations to charitable organisations amounted to £5.7 million.

Why is financial literacy a core part of your Group CR programme?

		Close
The issue of low levels of confidence in long-term savings and how we react to this issue will affect confidence in our brand as well as our profitability. One way of restoring this lack of confidence is to increase levels of financial literacy to enable consumers to make confident choices about their financial future and better understand the options that are available to them. We are focussing on an area where we can lend our experience and expertise, as well as giving cash. We know from our charity partners (such as Citizens Advice) that there is a demand for financial education – it is a relatively new service and much of our investment is dedicated to helping to determine the most effective teaching methods.

What other CR programmes do you have in place?

		Close
For more information go to our online CR report 2010 www.prudential.co.uk/prudential-plc/cr/

Will Corporate Responsibility policies be included in the internal audit/risk management framework?

		Close
Our corporate responsibility policy features within the Group's Governance Manual. Business Unit CEOs are required to certify annually that they have either adhered to the requirements of this manual or that they have been granted exemptions by the policy owners. The Group's decentralised structure means that Group Head Office doesn't mandate any specific actions that must be taken by business unit CEOs to evidence policy sign-off, beyond the above. However, Group Internal Audit reviews compliance with all components of the manual, including corporate responsibility. Please note, the Group Governance Manual is not a public document.

As one of the UK’s leading insurers, does M&G have an ethical investing policy?

		Close
M&G expects well managed businesses, as a matter of course, to take account of wider social and environmental issues in taking their businesses forward and find it helpful if they publish the guidelines they adopt in dealing with them. We look for a well reasoned and practical approach and recognise that this can vary according to each company's circumstances. If we were to consider that a company was running significant risks by failing to manage CR issues properly, we would certainly discuss the issues with the company's management and our conclusions on this point would contribute to the overall investment judgement on the company's management. We have raised CR issues with investee companies on many occasions, being sensitive to reputational issues and those likely to have a material impact on future profitability.