CSR AND ETHICS IN AKELIUS INSURANCE PUBLIC LTD

The company decided to go through with this investment fund due to the fact that the EU parliament is expected to approve a proposition that 20 percent of the total energy consumption will come from renewable energies and that bio-gas shall be 10 percent of the fuel used in transportation year 2020. Hence, long range investments for companies which invest in renewable energy will be guaranteed through legislation. New clean energy is the choice for the future and therefore a strong growth within this sector is anticipated. Companies which manage to develop energy saving technology or use existing technology more effectively will be among the most profitable companies.

The fund invests in companies involved in research, development and marketing of:

* New technology for producing energy;

* Energy produced through alternative sources;

* Systems for increased energy effectiveness;

* Systems for reduction of Carbon Dioxide emissions.

The fund also invests in companies which in one way or another support the reduction of the effects of global warming.

As far as being socially responsible towards employees, management in Akelius Insurance has the following policies:

* Ensures fair and prompt payment with the use of an efficient payroll system.

* Prioritizes employee health and safety by offering them a comprehensive medical scheme.

* Supports local employment when possible, since there are departments such as customer service and back-office which require Swedish-speaking staff.

* Offers employee performance reviews at the end of each year through which the employees present their work and evaluate their colleagues and managers' performance.

* Uses living wage as a starting point for employee compensation. Every year there is at least a minimum wage increase which corresponds to the current level of inflation, plus a bonus according to each employee's yearly contribution in the company's operation.

* Supports employees to balance work, family, and personal development commitments. A sufficient number of days can be taken by the employees as vacation, sick-leave or maternity leave when needed. Also, the company tries to both respect both local and Swedish holidays. In addition to this, the employees can arrange the hours they work daily around a flexi-hour system. They can begin work any time between 7-9 am and can finish work any time between 4-6 pm, given that they complete 8 working hours daily.

* Practices open book management. Solvency ratio and profit after tax figures are presented to the staff at the end of every quarter during breakfast meetings.

* Gathers and promptly respond to employee complaints with the use of a specially formulated electronic mailbox, which the employees can use both as a suggestion and a complaint box.

Regarding being socially responsible towards its shareholders Akelius Insurance is currently:

* Implements fiscal policies, financial management systems, and accounting controls

* Reports to shareholders on financial and non-financial success

* Does not share inside information inappropriately

Looking ahead:

Social responsibility on the part of businesses is not a new phenomenon. The modern vision of CSR, however, is a more systematic and integrated program to assess the environmental and social impact of the business and to manage it in a strategic manner. Globalization of business has heightened the necessity for companies to improve their awareness of the effects of their increasingly complex and diverse operations in a wide variety of geographical regions.

A sound CSR performance is an indicator of good corporate governance and an essential element in an attractive investment profile for the company.

Here are some guidelines about what Akelius Insurance could do in order to make a satisfactory account of its activities in the field of social responsibility.

Regarding Customers:

* Market truthfully without perpetuating negative advertising images

* Commit to customer satisfaction

* Monitor quality, safety and environmental impacts of services

* Gather and promptly respond to customer complaints

Regarding the Environment:

* Comply with environmental law and regulations

* Incorporate environmental values into purchasing decisions

* Appoint one staff member with environmental responsibilities

Regarding the Community:

* Make an explicit community commitment

? Business basics: Meet community demands for cost-effective services

? Philanthropy: Meet community needs without apparent business benefit

? Commercial Initiatives: Partner with community-based organizations that support business success

* Donate 1% of pre-tax profits

* Have a board and management team that understands community interests

* Gather and promptly respond to community complaints

Cost of proposed activities and payback period.

Calculating the cost of the above proposed activities may in some cases be feasible, e.g. in calculating the amount which is to be donated from pre-tax profits on a yearly basis. Nonetheless, most of them have indirect costs or no costs at all but are most likely to incur turnover.

Businesses that are socially responsible focus on the long term success of the enterprise. People that only take a short-term view at the business while making business decisions have a tendency to frequently distort the true cost of doing business both for companies and for the society. It is necessary for managers to make decision regarding social responsibility, with the broader perspective of time as well as consideration of the groups affected. Such an approach would require that managers forgo short-term gain in favor of long-term benefits. Often times, feedback from socially responsible acts are not immediate. Payback is profitable and most likely gradual.

Social Responsibility should be viewed in the company as part of its culture. The overall philosophy and commitment to social responsibility should be articulated in the mission statement, employee handbook, marketing sales material and other communication with employees, customers, investors and the media.

By providing sustainable jobs and fair wages for their employees and solid returns for their owners and investors and by treating customers and the community with respect and true consideration, Akelius Insurance will generate loyalty. In addition to what sounds like sound financial policy, loyalty exceeds providing quality services. Addressing the needs and concerns of individuals, groups and the community demonstrates more than a desire for profits. It demonstrates a commitment to the well-being and development of persons, and not sacrificing this in the pursuit for monetary gain.