Csr Aig Final

8/3/2019 Csr Aig Final

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American International Group

Submitted by -

Shruthi C. Jain (11)

Richa Mahule (14)

Aman Paliwal (17)

Neelima Singh (20)



Overview of the Company

American International Group, Inc. (AIG) is a leading internationalinsurance organization serving customers in more than 130countries.

AIG has operations in the following area: General Insurance, LifeInsurance and Retirement Service, Financial Services and AssetManagement.

Net Income: $2000 mn in 2011

Vision: To be the worlds first-choice provider of insurance andfinancial services. We will create unmatched value for ourcustomers, colleagues, business partners and shareholders, as wecontribute to the growth of sustainable, prosperous communities.



Governance Structure

At least two-third of the directors will be independent

Annual election of all directors

A majority voting by-law that requires director nominees who receive more votes against than forelection to tender their resignations

A mandatory director retirement age of 73

A lead independent director named

An executive session of the independent directors held at each regularly scheduled Board meeting atwhich the Lead Independent Director presides

General limits on the number of Boards on which a director and CEO may serve

Annual evaluations of the Board, each member of the Board and of each standing committee of theBoard

A commitment to the full, fair and transparent disclosure of executive compensation

CEO compensation subject to the approval or ratification of the Board



Corporate Governance

Corporate governance is there to - ± Ensure independent and effective functioning of AIGs Board of

Directors

± Foster transparency and clear communication with stakeholders

±

Promote high ethical standards and financial reporting integrity

Compliance with code of conduct ± Commitments to each other

± Commitments to shareholders

± Commitments in the marketplace ± Commitments as corporate citizens

Public Policy and Social Responsibility Committee



Triple Bottom Line Performance

GovernanceEnvironmental

Social

Environmental

Responsibility

Investing in our people

DiversityCorporate Giving

Disaster Response

& Preparedness

Sustainable

Investment

Access to Financial

Services



Environmental Responsibility

AIGs global corporate policy and programs on the environment and climatechange ± Established an Office of Environmental and Climate Change

AIG environmental insurance products that expedite and facilitate cleanup

of former industrial sites and other environmentally effected areas

AIG Global Real Estates leadership as an investor in and practitioner of sustainable building principles

New insurance policies and practices, such as EcoPractice, Advanced Energy

Solutions, and Lexington Insurance Companys EcoSurance Suite that focuson climate change solutions

Participated in several collaborative efforts to support climate changesolutions

Environmental Stewardship Be Green



Social Responsibility

AIG is investing in their employees through a competitivebenefits program as well as training and development

AIG is providing employee diversity training to increase

awareness of the benefits of a diverse working environment.They are also increasing the products that serve diversecommunities as well as the diversity of suppliers

AIG supports communities worldwide through corporate

giving programs that focus on entrepreneurship, innovation,diversity and empowerment

AIG is working with non profit organizations and governmentsworldwide to develop innovative disaster response and

preparedness programs



Governance Responsibility

AIG continues to expand its global reach of micro insurance andmicrofinance services, opening new doors for clients in emergingmarkets around the world ± Agreement with Bank Rakyat Indonesia to provide group policy

± Micro insurance program in Latin America to provide health and accidentinsurance

± Partnered with NGO to spread information and distribution sources of financial services programs

AIG Investments is building on its robust due diligence process tointegrate environmental, social and governance considerations into

investment analysis ± Sustainable Investment Steering Committee

± Strategies to support ESG investment integration : Awareness & Knowledge

Data & Tools

Client & Business Partners

Reporting

Leadership



Measurement Indicator

GLOBAL REPORTING INITIATIVE :Non profit organization

Economic, environmental and social sustainability

Works towards a sustainable global economy

Combine long term profitability with social justice and environmentalcare.

Sustainability covers the key areas of economic, environmental, social andgovernance performance.

Comprehensive sustainability reporting framework

Measure and report their sustainability performance

Reporting transparently and with accountability



Six Year Saga Of Alleged Fraud

The recent outcry over $165 million in post-bailoutbonus payments has put AIG on the hot seat.

"AIG has a culture of complicity. "You don't get intothese kinds of problems by having a good corporateculture," said Peter Morici, a professor at theUniversity of Maryland School of Business and theformer chief economist at the US International TradeCommission. "Clearly this company has had endemicproblems and it'd be best if we broke it up and sold itoff so others can run its parts."



Current Investigations:

The FBI, SEC, and the British Serious Fraud Office

are investigating the AIG Financial ProductsGroup for hiding its losses on investments related

to derivatives known as credit default swaps. It

sustained a loss of more than $11 billion in the

fourth quarter of 2008.



January 2009:

-A senior executive of AIG was found guilty in the2000 case involving AIG and General Re. ChristianMilton, who was AIG's vice president of reinsurance from 1982 to 2005, was convicted of conspiracy, securities fraud, mail fraud, andmaking false statements to the SEC in the case,which cost shareholders nearly $600 million.

Greenberg was not charged in the case, althoughprosecutors identified him as an "unindicted co-conspirator."



September 2008:

-Greenberg and three other former AIG executives paid$115 million to settle a case brought by a Louisianapension fund.

The Teachers' Retirement System of Louisiana allegedthat half of the $2.2 billion that AIG paid to C.V. Starr --a firm run by Greenberg that also underwrote someAIG business -- from 2000 to 2005 was a sham, a wayto artificially drive profits to the company. They alsoquestioned why some AIG executives were allowed toserve simultaneously as officers of Starr, while alsoprofiting from business between the two companies.



February 2006:

-AIG agreed to pay more than $1.6 billion -- thebiggest regulatory settlement by a singlecompany in U.S. history, according to Reuters -- tosettle claims related to the 2000 case involvingGeneral Re and AIG. The settlement was forimproper accounting, bid rigging and practicesinvolving workers' compensation funds. Then-New York Attorney General Eliot Spitzer said at

the time that AIG "finds itself in this positionsolely because some senior managers thought itwas acceptable to deceive the investing publicand regulators."



September 2003:

-AIG paid a $10 million civil penalty to settlefraud charges involving Plainfield, Ind.-basedphone distributor Brightpoint Inc.

The SEC charged AIG with fashioning andselling "purported insurance product that

Brightpoint used to report false andmisleading financial information to thepublic."



Future Plan of AIG

CorporateGovernance

&Compliance Sustainable

Investments

Access toFinancialServices

Environmental

Responsibility

Investing inPeople

Diversity

CorporateGiving

DisasterPreparedness



Challenges

To overcome the prejudice of public in the light of numerous scams.

Restore faith in the top executives

Sustainable Investments vs. Returns

Implementing the CSR plans on a global scale

Training organization in new code of conduct



Key Learning

In order to carry out effective CSR activities,objectives should be clearly stated to theemployees.

However, the top management should also sharethe same vision.

Post 2008, AIGs main objective has been to payits debt and have subsequently reduced CSRActivities.

Documents

Csr Aig Final