Demonstrating social responsibility and integrity
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1 Demonstrating social responsibility and integrity Aetna Corporate Responsibility (10/06)
2 Corporate Responsibility Executive Summary Here at Aetna, we believe that being a leader in health care means not only meeting business expectations but also exercising ethical business principles and social responsibility in everything we do. Responsibility and integrity are woven into our corporate fabric and demonstrated through our commitment to philanthropy, sound corporate governance policies, diversity enhancement, and achieving public policy solutions. The Aetna Mission Aetna is dedicated to helping people achieve health and financial security by providing easy access to safe, cost-effective, high-quality health care while protecting their finances against health-related risks. Building on our 153-year heritage, Aetna is a leader who cooperates with doctors and hospitals, employers, patients, public officials and others to build a stronger, more effective health care system. Our Values At Aetna, we put the people who use our services at the center of everything we do, and we live by a core set of values: n Integrity n Quality Service and Value n Excellence and Accountability n Employee Engagement Community Involvement The Aetna Foundation is the independent charitable and philanthropic arm of Aetna. Founded in 1972, the Foundation helps build healthy communities by promoting volunteerism, forming partnerships and funding initiatives that improve the quality of life where our employees and customers live and work. In 2005, Aetna and the Aetna Foundation contributed $19 million in grants and sponsorships. The Foundation s giving focuses on health, particularly reducing racial and ethnic disparities in health care and supporting diversity and volunteerism. Diversity at Aetna Diversity is a core business value, and an integral part of Aetna s culture. n Through recruitment, education and development, we continue to strengthen Aetna s workplace diversity to mirror the customers we serve. n To enhance our employee diversity, we have established employee networks to provide a forum for networking and developing career-building skills. n We are diversifying our supplier base, purchasing more than $250 million in goods and services from certified women-owned and minority-owned business enterprises in the past five years. n We are bringing our health and related benefits to some of the fastest growing segments of our populations the African American, Latino and Asian markets. Public Policy Leadership Aetna is committed to improving the overall health care system in America by playing a leadership role in advancing public policy solutions. n We support an individual coverage requirement as a viable, commonsense solution to the problem of the uninsured. n Through our multidimensional approach, we are targeting health care disparities with prevention, intervention and education initiatives. n Our pay-for-performance initiatives tackle health care quality issues by making quality outcomes and evidence-based medicine key to provider compensation. n We have pioneered initiatives giving consumers a transparent view of both cost and quality. Corporate Governance Aetna s reputation, one of the company s most valuable assets, relies on sound corporate governance policies, publicly available on our website. We share documents Aetna s Code of Conduct and Aetna s Corporate Governing Guidelines with our key stakeholders. In doing so, we help ensure our commitment to excellence, integrity and accountability. 2
3 Aetna Community Involvement Nothing speaks to our commitment to responsible leadership more visibly and resolutely than the activities of our independent charitable and philanthropic arm, the Aetna Foundation. Founded in 1972, the Foundation seeks to help build healthy communities by funding initiatives that improve the quality of life where our employees and customers work and live. 3
4 Grants, Partnerships and Sponsorships Providing $19 million in grants and sponsorships in 2005 alone, Aetna and the Aetna Foundation have a distinguished history of partnering with nonprofit organizations. Addressing Disparities in Health Care Since 2001, Aetna and the Aetna Foundation have committed $10 million to help address racial and ethnic disparities in health care, including $4 million in Building Community Momentum The result of an Aetna Foundation-hosted summit, the Hartford Health Disparities Collaborative supports initiatives that address racial and ethnic health disparities. Expanding Minorities in Nursing We have awarded nearly $200,000 since 2002 to the National Coalition of Ethnic Minority Nurse Associations. Increasing Diversity of Health Professionals A $2 million, five-year commitment is endowing the Aetna Health Professions Partnership Initiative at the University of Connecticut. Focusing on Children With a $225,000 grant from the Aetna Foundation, the Children s Defense Fund is addressing child health disparities. Addressing Obesity We supported New Jersey s Mayors Wellness Campaign with a founding grant of $200,000. Supporting Strong Latino Communities Since 1997, we have awarded more than $400,000 to Hispanics in Philanthropy to support the Funders Collaborative for Strong Latino Communities initiative, which promotes a vibrant Latino nonprofit sector. Creating Full Opportunities for the Disabled We have partnered with Habitat for Humanity, awarding more than $100,000 since 2004 to support building homes for families that include a disabled member. In 2005, Aetna continued its support for the Connecticut Institute for the Blind s Assistive Technology Marketplace. Aetna also joined the Connecticut Department of Labor in sponsoring the 2005 Gift of Opportunity Symposium. 4
5 National Quality of Care Grants Program In 2005, Aetna and the Aetna Foundation awarded $2.25 million to 14 nonprofit organizations to address racial and ethnic health disparities, and support end-of-life care. Regional Grants Program Through the 2005 Regional Grants Program, the Aetna Foundation awarded 95 grants, totaling $2.6 million, to address disparities in health, as follows: n Enhancing cultural competency training and education for health care professionals. n Combating the growing incidence of Type 2 diabetes through prevention. n Improving oral health for children. n Addressing depression through screening, education and outreach. Diversity Funding We celebrate and promote diversity through a variety of initiatives, including: African American History Calendar For the past 25 years, Aetna has recognized the outstanding contributions of African Americans through an educational calendar printed and distributed to schools, businesses and nonprofits. An online version of our 2006 calendar, Celebrating Life: Empowering a Lifetime of Healthful Outcomes, can be viewed at aahcalendar. Aetna Voice of Conscience Award Created in 1993 in memory of tennis superstar, humanitarian and Aetna Board of Directors member Arthur R. Ashe, Jr., the Aetna Voice of Conscience Award is presented annually to both a national figure and an Aetna employee whose commitments to advancing human rights, opportunity and dignity speak to Ashe s legacy. In 2005, Aetna recognized Rosalynn Carter, former First Lady and founder of The Carter Center, for her efforts on behalf of the mentally ill. Diversity-Related Grants Aetna awarded $250,000 to the Charles H. Wright Museum of African American History in Detroit. Volunteerism: A Culture of Caring Aetna strives to be a leading corporate citizen, improving the quality of life in communities where we live and work. This commitment has created Aetna s culture of caring a tradition of volunteerism that is part of our core values. For example: n The 35 Aetna Volunteer Councils (AVCs) are composed of hundreds of employees, who develop and deploy local employee volunteers to help improve the quality of life in their communities. n In August 2005, the Points of Light Foundation honored Aetna s culture of caring with an award for Excellence in Workplace Volunteering. n Since 2003, Aetna and its employees have contributed more than $26 million to local communities through matching employees charitable donations and grants. Employees also have logged more than 700,000 hours of community service over the past three years. 5
6 Diversity at Aetna At Aetna, diversity is a core business value and is an integral part of our culture. Valuing diversity helps to ensure we have an engaged, innovative workforce that is doing the right things for the right reasons. We recognize the impact and importance of diversity in all aspects of our business. Whether it is providing products and services to meet a wide variety of consumer need, fostering relationship with women and minority business owners and suppliers, or attracting a diverse employee population, we have successfully incorporated an inclusive mindset into all that we do. Diversity Priorities at Aetna: n Recognizing diversity as an organizational initiative in increasing our business opportunities and partnerships with multicultural markets, suppliers, consumers and the communities we serve. n Building a diverse workforce focusing on recruitment, development, retaining and advancement of talent at all levels of the organization. n Creating an inclusive workplace that fosters full employee engagement, so our people do their best work in providing quality service and value. n Providing enterprise-wide and department-specific diversity education integrated into executive, supervisory and employee learning, as well as enhancing cultural competency for Sales, Patient Management and Customer Service areas. n Partnering with Racial and Ethnic Disparities in Health Care Task Force, which works to reduce disparities in health care by providing tailored support for our members and leveraging the Aetna Foundation s research funding. 6
7 We recognize the impact and importance of diversity in all aspects of our business. Workplace Diversity Reflecting the changing face of America, Aetna seeks to build a workforce that mirrors the customers we serve. Of approximately 30,000 employees, 75 percent are women and 28 percent are people of color. Women represent 61 percent of management, while people of color represent 14 percent. Recruitment We have a staffing strategy to improve the representation of women and people of color at all levels of the organization. Employees are provided with a number of opportunities to learn more about its impact, including: n Web-based training that raises employee awareness of diversity. n Cultural competency training program for Aetna s health care professionals to increase awareness and improve the way we assist members. n Diversity in Action lecture series to help employees think about diversity in new and different ways. Our Leadership Development Program initiatives focus on identifying emerging talent among people of color. Our Diverse Discoveries program, for example, provides training for mid-level and senior-level women and people of color at Aetna. We have received wide recognition related to diversity, for example: n Best Companies for Diversity, Black Enterprise magazine, 2006 n Top 50 Employers for Minorities, Fortune magazine, 2005 n Top 50 Employers for Women, Fortune magazine, 2005 n Ronald A. Williams, Aetna CEO and president, named in Black Enterprise s 75 Most Powerful African Americans in Corporate America, 2005 Employee Diversity Programs Aetna values and respects the strengths and differences among employees and recognizes that customers, suppliers, strategic partners and communities are increasingly diverse and multicultural. Our Employee Networks allow employees to share their culture; give back to the communities; network with senior management; and attain career building skills. Aetna Employee networks include: n Aetna African American Employee Network n Aetna Hispanic Network n Aetna Network of Gay, Lesbian, Bisexual and Transgender Employees n Aetna Women s Network n Aetna Working Mother s Network n Asian American Employee Network 7
8 Supplier Diversity At Aetna, we take every opportunity to be inclusive in our sourcing activities. Therefore, we continue to be proactive in reaching out to minority- and women-owned suppliers. Achievements: n We purchased more than $250 million in goods and services from certified women-owned and minority-owned business enterprises. n Our supplier diversity goal for 2006 is to achieve 10 percent of our controllable spending with minority- and womenowned business throughout the country. n We built an accessible website for potential suppliers supplers.html. n We use our online, self-registration tool to provide prospective MWBEs with an opportunity to push their service offerings to us. We require at least one diverse supplier solicitation for all RFPs. n Aetna s senior leadership monitors quarterly progress on diversity goals. n We partnered with BusinessLinc, which connects small, minority- and womenowned businesses with mentors. Emerging Markets Over the last 20 years, the evolution of the U.S. marketplace has required Aetna to enhance its business strategies. We have created and implemented strategies that concentrate on bringing our health and related benefits to some of the fastest growing segments of our population the African American, Latino and Asian markets. As part of this business strategy, we have an Emerging Markets team to facilitate the following components: n Drive incremental business through multicultural relationships. n Provide consulting services to develop appropriate infrastructure n Enhance market presence within targeted business communities. To that end, we are focusing our efforts on better addressing the needs of a multicultural marketplace by supporting community events, educating employers, and working with brokers and providers to support our business objectives. 8
9 Public Policy Leadership Even as we focus on delivering value in an ever-changing marketplace, Aetna is committed to improving the overall health care system in America. In recent years, we have sought to shed light on important health care issues facing the nation. Aetna is committed to bringing together different perspectives and competing points of view in order to hasten workable solutions to challenging problems affecting access, quality and the affordability of care. Our Office of Public Policy analyzes critical health policy issues and works with senior executives to craft solutionsoriented approaches. We were the first national health insurer to advocate an individual coverage requirement as a common-sense solution for solving the problem of the uninsured. We collect racial and ethnic data, on a voluntary basis, in order to target medical management programs to those most in need. Our commitment to identify and advance innovative policy solutions has distinguished us in many areas, including end-of-life care, genetic testing, and consumer-directed care. Improving America s health care system is a massive undertaking it is a challenge that Aetna is addressing through public policy leadership. 9
10 Aetna believes price and quality transparency is vital to accelerating consumerism trends. Solving the Problem of the Uninsured Through an Individual Coverage Requirement Aetna is proud to be the first national health plan to endorse an individual coverage requirement as a viable, common-sense solution to the problem of the uninsured. Research has shown that the uninsured receive less care, utilize fewer preventive services and often fail to adhere to treatments all resulting in a less healthy population. In turn, the cost of health insurance for everyone increases. Aetna supports the concept of an individual coverage requirement, ensuring that all Americans possess a basic level of health insurance. We believe a policy requiring those who can afford health insurance to purchase it, however, must be paired with efforts to help those who cannot. Such an approach is the best way to achieve universal coverage while preserving consumer choice and the employer-based health care system. We also believe: n Public subsidies for low-income Americans should take the form of advanceable, refundable tax credits or vouchers to help finance the purchase of private health insurance. Overcoming Health Care Disparities Health care disparities are immensely complex, but our targeted investments are slowly bridging the gap. Numerous studies have shown that racial and ethnic minorities receive lower quality care than non-minorities. To meet the needs of an increasingly diverse population, Aetna has taken a multidimensional approach to addressing health care disparities. We have launched a variety of prevention, intervention and education initiatives: n The voluntary provision of selfidentified race, ethnicity and language preference data by our members. As of June 2006, more than 3.6 million members provided this information. n Culturally appropriate disease management initiatives targeted to members with diabetes. n Cultural competency training for our employees and clinical staff. n Aetna s Moms-to-Babies Maternity Management Program, which helps prevent preterm labor for African American women. n Any required basic benefits plan should include coverage for preventive care and medically necessary treatments, but not be burdened by excessive and costly mandates. 10
11 Paying for Performance Aetna is facilitating high-quality, high-value health care through pay-for-performance initiatives. Preventable medical errors and deaths, inconsistent application of evidence-based treatment protocols, and racial, ethnic and geographical disparities in health care are well documented. Billions of dollars are spent each year on improper treatment and the entire system is strained by the indirect financial and human costs of poor quality care. Aetna addresses these quality problems by: n Supporting pay-for-performance initiatives, which represent a fundamental shift in provider compensation from paying for the volume of services rendered to paying for quality, outcomes and care consistent with medical evidence. n Operating regional pay-for-performance initiatives across the country and developing a second generation of national programs that are clinically important, credible to physicians, transparent to all stakeholders, consistent across health plans, and useful to consumers. Improving Price and Quality Transparency Aetna has taken the lead in fostering greater price and quality transparency an effort that is empowering health care consumers. Aetna believes price and quality transparency is vital to accelerating consumerism trends. Consumers today need access to extensive health information, from treatment options to costs. Therefore, we: n Launched an initiative in the greater Cincinnati area that gives our members online access to medical rates. n Announced in June 2006 the rollout of a new price and quality transparency tool in additional markets. n Provide clinical information, such as adverse events and hospital re-admit rates, for more than 14,800 specialist physicians. n Encouraging high-quality, high-value care by rewarding health care providers for achieving measures of effectiveness and efficiency. Did you know? We were the first national health insurer to advocate an individual coverage requirement as a commonsense solution for solving the problem of the uninsured. 11
12 Corporate Governance Aetna s reputation is one of the company s most valuable assets. We have earned this reputation over the course of 153 years by delivering quality products and services, and by adhering to the highest standards of business conduct. These standards include sound corporate governance policies to address the interests of our constituents. An important principle of good governance is transparency. Therefore, we make our key corporate governance policies and practices publicly available on our website. The site, which can be accessed from the home page of contains key information about our corporate governance in one simple, clear and easy-to-navigate location. Those policies provide a framework for governance of the company consistent with shareholder and other constituent interests, and with the principles behind the 2002 Sarbanes-Oxley Act and the New York Stock Exchange s corporate governance rules. We believe that sharing our corporate governance principles with all of our key stakeholders will help ensure that our commitment to excellence, integrity and accountability is apparent to all. Documents available on our website include: n Aetna s corporate governance guidelines n Charters of the board committees n Standards for director independence n Aetna s Code of Conduct n Articles of incorporation and by-laws n Background on the board and committee members who serve the company Aetna is the brand name used for products and services provided by one or more of the Aetna group of subsidiary companies (10/06) 2006 Aetna Inc.
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