RESPONSIBLE BUSINESS PRACTICES

Our responsible business practices touch every aspect of our business and provide a solid footing for all of our actions. They extend from our governance, risk management and investment approach to the way we manage customer information and the investment products we offer.

CORPORATE GOVERNANCE

Integrity, respect and responsibility are not just guiding principles at Lincoln Financial; they unify and inspire us to help people to take charge of their lives.

Ethics and Code of Conduct

  • Communicating our expectations

    We reiterate the tenets of our Code of Conduct in our day-to-day internal communications, along with our expectation that our employees and agents will behave in accordance with the shared values and principles set forth. We have also designed support systems to make it easy for employees to “do the right thing” every time. Lincoln Financial’s Enterprise Compliance group is focused on empowering employees with the information and tools they need to promote a culture of integrity at Lincoln Financial.

  • Online access to policies

    Our employees have access to all of our policies, including our Code of Conduct, through our intranet. Other policies include Lincoln Financial’s Conflict of Interest Policy, Political Contribution Policy, and policies related to improper payments and the Foreign Corrupt Practices Act.

  • Annual compliance risk assessment

    Each year, a corporate compliance risk assessment is conducted to help prioritize risk areas for the year. Matters related to bribery, antifraud, collusion, anti-kickback regulations, unfair practices, conflicts of interest and corruption are evaluated as part of this risk assessment.

  • Ethics Helpline with live agents

    An Ethics Helpline is available to employees and is staffed with live agents who answer employee questions and help them navigate difficult situations in a confidential manner.

  • Mandatory Code of Conduct training

    Lincoln Financial’s legal department also provides all 9,000+ employees and affiliates with mandatory training throughout the year on the Code of Conduct and related policies. The training covers topics including anti-money laundering, anti-fraud, privacy, insider trading, the Code of Conduct and ethics, and conflicts of interest. Many of our employees also receive role-based training from other departments such as Human Resources and Information Security.

  • Ongoing compliance monitoring

    To ensure colleagues are acting in accordance with internal guidelines, Lincoln Financial regularly collects information regarding compliance with the Code of Conduct and our policies. This information is analyzed and the matters raised are investigated and resolved through the Office of the General Counsel. The legal department meets quarterly with senior management to review significant issues or trends relating to compliance with the Code and our policies. Based on this analysis, we determine whether our policies or training should be revised. The Lincoln National Corporation board of directors (the “Board”) also participates in the oversight of the Code of Conduct. The Audit Committee receives quarterly reports on compliance matters, and the Governance Committee approves changes to the Code.

Board Independence

2016 CORPORATE SOCIAL

RESPONSIBILITY IN ACTION*

Listed on the Dow Jones

Sustainability Index North America in 2016

Paid $7.3 billion
in interest and benefits

helping people achieve financial security

Listed on the FTSE4Good Index for

11 consecutive years

* All data as of Dec. 31, 2016.

SUSTAINABILITY GOVERNANCE

The Corporate Governance Committee provides oversight of the company’s sustainability and corporate social responsibility (CSR) strategy. Lincoln Financial’s efforts focus on promoting sustainable communities and business practices in the areas of philanthropy, volunteerism and environmental impact. The Office of Corporate Responsibility is responsible for developing and implementing the company’s sustainability strategy, which includes the following:

Issue identification

We regularly gather information on sustainability issues from a broad range of industry sources and stakeholders.

Through the use of a structured, consistent process, we evaluate and prioritize identified risks and opportunities across sustainability issues.

Risk and opportunity assessment

Risk and opportunity

management

We work together with business units and functional areas to determine priorities, address issues and integrate strategies that make good business sense.

Lincoln Financial tracks and reports both internally and externally on key indicators related to our social and environmental impacts. This includes responding to specific information requests and third-party questionnaires.

Stakeholder communication

The Sustainability Advisory Group, a cross-functional team comprised of business unit executives, meets quarterly with our CSR team to consider developments in the market and societal trends, and the potential impact, risk and opportunity of identified issues for the company.

Governance and management

Our sustainability management system 

MANAGING RISK

Lincoln honored for sophistication and innovation in risk management

Lincoln Financial received the 2016 “Insurance Risk Management Team of the Year” award for our best-in-class market risk management program that utilizes hedging strategies to mitigate risk and volatility from variable annuity products. Lincoln Financial was chosen by the EQDerivatives Editorial Board for our work in developing a sophisticated in-house risk management computing infrastructure, trading strategies and risk metrics to efficiently manage and anticipate various market conditions.

Identifying and managing potential climate change risks

Preparing for physical asset risks

Managing risk in our products

Socially responsible investment options

PRIVACY AND DATA SECURITY

Lincoln Financial Group is committed to keeping the personal information collected about our potential, current and former customers confidential and secure.

Lincoln is subject to both federal and state legislation and regulation governing the protection of the nonpublic personal financial and health information we receive about our consumers and customers. Proper handling of confidential information, including nonpublic personal information, which consists of medical, financial and employment information, and strategic business and financial information, is important to Lincoln. We have adopted policies and procedures that we believe are reasonably designed to comply with all applicable federal and state privacy legislation and regulations governing the protection of our customer nonpublic personal information.

Protecting customer privacy

  • Security governance

    The Chief Information Security Officer is in charge of security for Lincoln Financial. We also have a dedicated Privacy team that reports to the company’s Chief Privacy Officer. The Information Security and Privacy teams each report up to an executive officer.

  • Employee training

    We recognize that our employees play a key role in keeping information secure. Information security training is required for all employees and contractors annually. Additional privacy training is mandated annually for all employees.

  • Records management

    The company has a business records retention program that mandates specific retention and destruction time frames for all records according to record type and use. Retention and destruction polices are reviewed annually and updated as needed to ensure compliance with said laws and regulations.

  • Annual audits

    Multiple internal audits of the company’s information risk management practices are conducted each year, including an annual holistic audit covering the company’s information security processes. In addition, four external audits are conducted annually that cover (to varying degrees) the company’s information security practices surrounding various specific Lincoln products and systems. Information security policies and standards are reviewed annually and updated as necessary to appropriately manage information risk consistent with industry standards.

© 2017 Lincoln Financial Group

2016 Corporate Social Responsibility Report

  • Communicating our expectations

  • Online access to policies

  • Annual compliance risk assessment

  • Ethics Helpline with live agents

  • Mandatory Code of Conduct training

  • Ongoing compliance monitoring

Our sustainability management system 

Board Independence

Board Independence

2016 CORPORATE SOCIAL RESPONSIBILITY IN ACTION

Listed on the FTSE4Good Index for

11 consecutive years

Listed on the Dow Jones

Sustainability Index North America in 2016

Paid $7.3 billion
in interest and benefits

helping people achieve financial security

Issue identification

We regularly gather information on sustainability issues from a broad range of industry sources and stakeholders.

Risk and opportunity assessment

Through the use of a structured, consistent process, we evaluate and prioritize identified risks and opportunities across sustainability issues.

Risk and opportunity management

We work together with business units and functional areas to determine priorities, address issues and integrate strategies
that make good business sense.

Stakeholder communication

Lincoln Financial tracks and reports both internally and externally on key indicators related to our social and environmental impacts. This includes responding to specific information requests and
third-party questionnaires.

Governance and management

The Sustainability Advisory Group, a cross-functional team comprised of business unit executives, meets quarterly with our CSR team to consider developments in the market and societal trends, and the potential impact, risk and opportunity
of identified issues for the company.

  • Communicating our expectations

    We reiterate the tenets of our Code of Conduct in our day-to-day internal communications, along with our expectation that our employees and agents will behave in accordance with the shared values and principles set forth. We have also designed support systems to make it easy for employees to “do the right thing” every time. Lincoln Financial’s Enterprise Compliance group is focused on empowering employees with the information and tools they need to promote a culture of integrity at Lincoln Financial.

  • Online access to policies

    Our employees have access to all of our policies, including our Code of Conduct, through our intranet. Other policies include Lincoln Financial’s Conflict of Interest Policy, Political Contribution Policy, and policies related to improper payments and the Foreign Corrupt Practices Act.

  • Annual compliance risk assessment

    Each year, a corporate compliance risk assessment is conducted to help prioritize risk areas for the year. Matters related to bribery, antifraud, collusion, anti-kickback regulations, unfair practices, conflicts of interest and corruption are evaluated as part of this risk assessment.

  • Ethics Helpline with live agents

    An Ethics Helpline is available to employees and is staffed with live agents who answer employee questions and help them navigate difficult situations in a confidential manner.

  • Mandatory Code of Conduct training

    Lincoln Financial’s legal department also provides all 9,000+ employees and affiliates with mandatory training throughout the year on the Code of Conduct and related policies. The training covers topics including anti-money laundering, anti-fraud, privacy, insider trading, the Code of Conduct and ethics, and conflicts of interest. Many of our employees also receive role-based training from other departments such as Human Resources and Information Security.

  • Ongoing compliance monitoring

    To ensure colleagues are acting in accordance with internal guidelines, Lincoln Financial regularly collects information regarding compliance with the Code of Conduct and our policies. This information is analyzed and the matters raised are investigated and resolved through the Office of the General Counsel. The legal department meets quarterly with senior management to review significant issues or trends relating to compliance with the Code and our policies. Based on this analysis, we determine whether our policies or training should be revised. The Lincoln National Corporation board of directors (the “Board”) also participates in the oversight of the Code of Conduct. The Audit Committee receives quarterly reports on compliance matters, and the Governance Committee approves changes to the Code.

Through the use of a structured, consistent process, we evaluate and prioritize identified risks
and opportunities across
sustainability issues.

We work together with business units and functional areas to determine priorities, address issues and integrate strategies that make
good business sense.

Lincoln Financial tracks and reports both internally and externally on key indicators related to our social and environmental impacts. This includes responding to
specific information
requests and third-party questionnaires.

The Sustainability Advisory Group, a cross-functional team comprised of business unit executives, meets quarterly with our CSR team to consider developments in the market and societal trends,
and the potential impact,
risk and opportunity
of identified issues
for the company.