Horace Mann - 1792 Exchange

Rating Overview

Horace Mann is Medium Risk.

Horace Mann Educators Corporation is Medium Risk. The company often yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. The company implements race and identity-based policies that replace merit, excellence, and integrity with preferential treatment and outcomes. The company occasionally embraces corporate initiatives that redirect its central focus from business goals to partisan policies and divisive issues at times. This approach fails to safeguard free exercise, free speech, and free enterprise.

Rating Criteria

Corporate Weaponization Risk Levels
Criteria	Risk Level
Cancellations	Medium Risk
Discriminatory Philanthropy	Lower Risk
Employment Protection	High Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	High Risk
Funding	Lower Risk
Political Actions	Lower Risk

Corporate Governance and Public Policy ⓘ

Rating Criteria Detail

Criteria Risk Level Rationale

Corporate Weaponization

Criteria:

Has canceled customers, suppliers, or vendors due to their political views or religious beliefs OR corporately boycotts, divests, or sanctions regions, people groups, or industries.

Risk Level:

Medium

Rationale:

Horace Mann integrates ESG into its business practices. From its 2023 Quarterly Report: “Notwithstanding anything herein to the contrary, the earned PBRSUs of Employee Grantees who are Named Officers of the ESG Steering Committee (CEO, CFO, GC, CHRO, Chief Investment Officer, VP Investor Relations), as determined under subsection (a) above, are subject to a modifier ranging from -10% to +10% of the target number of PBRSUs granted, based on the achievement of ESG goals. (For clarity, PBRSUs earned under (a) above may be forfeited if target goals for ESG are not met during the Performance Period.) ESG goals shall be communicated separately to such Employee Grantees by the Compensation Committee. Attainment of ESG goals shall be determined by the Compensation Committee, in its sole discretion, at the end of the Performance Period” (1). The company integrates DEI into its supply chain. From its Vendor Code of Conduct: “Horace Mann expects its vendors to treat people with respect and dignity, encourage diversity, promote
equal opportunity, and foster an inclusive culture” (2). However, Horace Mann has not publicly canceled customers, suppliers, or vendors based on political views or religious beliefs (3)(4).

Criteria:

Charitable giving (including employee matching programs) policies or practices discriminate against charitable organizations based on views or religious beliefs.

Risk Level:

Lower

Rationale:

Horace Mann does not appear to discriminate against charitable organizations based on views or beliefs (1).

Criteria:

Employment policies fail to protect against viewpoint or other discrimination and/or are ideological in nature.

Risk Level:

High

Rationale:

Horace Mann requires its employees to take unconscious bias training (1)(2). Horace Mann does not provide viewpoint protections for its employees (3).

Corporate Governance and Public Policy

Criteria:

Uses corporate reputation to support causes, organizations, or policies hostile to freedom of expression.

Risk Level:

High

Rationale:

Horace Mann’s CEO, Marita Zuraitis, signed the CEO Action for Diversity & Inclusion pledge, which includes a commitment to promote DEI through bias education training in the workplace, strategize on DEI programs/initiatives with other signatories, and engage boards of directors when developing and evaluating DEI strategies (1)(2). The company is committed to net zero emissions by 2050 (3). Horace Mann supports DEI within its business practices. From its Diversity, Equity and Inclusion Strategy Statement: “Horace Mann is committed to embracing differences and integrating DEI into everything we do – from how we serve our
educator market to how we build our workforce, practices, and processes” (4). The company supports ESG within its business practices. From its Corporate Social
Responsibility Insights: “Incorporating ESG screens into our
investment analysis and decisionmaking process is designed to
minimize investment risks while
surfacing investment opportunities
that are consistent with Horace Mann’s values, such as ethical conduct” (5). Horace Mann was part of the 2023 Bloomberg Gender-Equality Index (6). The company vets potential asset managers to see if they are signatories of UN PRI (7).