Franklin Resources, Inc
Franklin Resources, Inc.
<GAIN FROM OUR PERSPECTIVE>

Corporate Citizenship

At Franklin Templeton Investments, we believe that Corporate Citizenship is a critical link between integrity and performance—how we do the right things the right way in order to deliver value to our stockholders, clients, employees, and our communities. Citizenship is embedded in our corporate values and is an important element of how we achieve success in working with all of our key stakeholders. Please explore the topics below to learn more about our approach to Corporate Citizenship. 

  • Message from the Chairman

    Message from the Chairman

    Message from the Chairman

  • Being Accountable

    Being Accountable

    Being Accountable

  • Serving Our Clients

    Serving Our Clients

  • Being an Employer of Choice

    Being an Employer of Choice

    Being an Employer of Choice

  • Managing Our Environmental Impact

    Managing Our Environmental Impact

    Managing Our Environmental Impact

  • Supporting Our Communities

    Supporting Our Communities

    Supporting Our Communities

Message from the Chairman

Benjamin Franklin's ideas of frugality and prudence when it came to saving and investing inspired the name of our firm back in 1947, and his valuable wisdom has continued to shape other aspects of the culture here at Franklin Templeton Investments, including our commitment to Corporate Citizenship.

Often credited with popularizing the saying "Do well by doing good," Ben Franklin's spirit of civic engagement and citizenship has left a legacy around the world and also has helped shape society's modern notion of Corporate Citizenship.

At Franklin Templeton Investments, we believe that being a good corporate citizen is good business. Strong economies and societies around the world help fuel the growth of our business, while integrity, trust and responsibility are essential to our continued success as a premier global investment management organization.

Our diverse clients across the globe must be certain that we uphold the highest standards of governance and are acting responsibly not only in how we manage their investments, but also in how we value our employees, support our communities, and limit our impact on the environment. We understand that our actions in these areas are investments in the long term sustainability of our business.

Franklin Templeton Investments was founded over 60 years ago and we have always taken a long-term perspective, both in our investing and in how we run our business. This approach is embedded in our Corporate Values, and tightly integrated within our corporate culture.

Please explore this site to learn more about Franklin Templeton's Corporate Citizenship efforts and let us know what you think. We invite you to send your feedback to CorporateCitizenship@frk.com.

Sincerely,

Gregory E. Johnson
Chairman, CEO and President
Franklin Templeton Investments


Franklin Templeton's success is built upon our reputation for excellence and integrity in all aspects of our business. It is essential that our stockholders, clients, mutual fund shareholders, and business partners have confidence in our governance, ethics and compliance practices.

Corporate Governance

Throughout the company's history we have recognized the importance of building and maintaining a culture of integrity. We take Corporate Governance seriously and are dedicated to operating the company according to the highest principles of accountability, honesty, integrity and ethics.

The Board of Directors of Franklin has adopted comprehensive corporate governance policies and processes designed to safeguard our business and protect the interests of our stockholders. Our Board of Directors is comprised of a diverse group of distinguished leaders.

The Corporate Governance Guidelines and committee charters adopted by our Board of Directors reflect regulatory requirements, New York Stock Exchange listing standards and applicable law. We are committed to ensuring a culture of compliance with our corporate governance standards and requirements. Learn more about the Franklin Resources Board of Directors and our commitment to Corporate Governance.

Code of Ethics and Business Conduct

Our Code of Ethics and Business Conduct is a roadmap for how we expect all Franklin Templeton employees to work with integrity and respect the trust that fund shareholders and company stockholders have placed in us. The code demands that all officers, directors and employees conduct themselves in a lawful, honest and ethical manner. It summarizes the values, principles and practices that guide how we conduct our business. Learn more about our Code of Ethics and Business Conduct.

The company provides a Compliance and Ethics Hotline for reporting legal or ethical violations and complaints regarding accounting, internal accounting controls or auditing matters. The hotline is maintained by an independent third-party company to ensure confidentiality and the firm has a policy in place to protect those who report any misconduct (commonly known as "whistleblower protection").

In addition, the company has a corporate Ombudsman to whom all employees may convey concerns about business matters that they believe might involve matters of ethics or questionable practices.

Compliance

The culture of compliance at Franklin Templeton starts from the top, with support from senior management and oversight by the firm’s Chief Compliance Officer. Franklin Templeton's Global Compliance Group is responsible for ensuring that the firm has the appropriate processes and procedures in place to comply with the extensive and complex, overlapping and frequently changing rules and regulatory requirements applicable to the firm and the funds we manage around the world. The team works with business unit management to make sure that each business unit's compliance program has strong controls and is operating effectively.

Maintaining and developing a culture of compliance in a highly regulated and varied global environment is a complex task. The growth within Global Compliance has mirrored the company's growth in countries around the world to ensure that local regulatory requirements are met. Less developed regulations in some markets have provided the firm with the opportunity to play a crucial role in working with local regulators to explore global best practices that can potentially influence and improve the development of future regulations in such markets.

Compliance Education and Training

The objective of Compliance Education at Franklin Templeton is to provide employees across the globe with learning opportunities and obligations that will enable them to act in the most ethical manner. It is intended to support their ability and enhance their understanding of various subject matters so that they can act in compliance with the Franklin Templeton standards of honesty and integrity, and with a strong commitment to adhering to our internal practices and policies.

A cross-functional group of Compliance and Training experts within Franklin Templeton form the Compliance Education Team. This team works with compliance entities globally to ensure that Franklin Templeton Investments' regulatory training requirements are met each year. These regulatory requirements may be specific to an employee’s job duties, their access to certain system applications, or to the country in which they reside, or they may describe common standards and expectations that apply to all employees.

Enterprise Risk Management

Risk management is a critical element of Franklin Templeton's everyday business activities and takes place at all levels of our organization. In order to ensure, however, that risks are viewed and managed appropriately across the global enterprise, Franklin Templeton has an Enterprise Risk Management Committee that consists of the direct reports to the CEO and their risk representatives. This committee is responsible for facilitating the identification, assessment, monitoring and reporting of key risks across the company.

The Enterprise Risk Management Committee is supported by dedicated risk management staff responsible for maintaining enterprise risk management policies, procedures and standards; conducting a formal enterprise-wide risk assessment process and annual risk forum with company wide risk representatives to validate and update the key risks; ensuring frequent reviews by the committee of the identified key risks, controls and monitoring programs; and reporting key risk measures, metrics and trends. In addition, the Chair of the Enterprise Risk Management Committees meets quarterly with Franklin Templeton’s Audit Committee and annually with its Board of Directors to discuss Enterprise Risk Management processes, findings and trends.

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We believe that the investments we make on behalf of our clients are helping to create opportunities for economic growth around the world, and our ability to succeed is dependent upon serving our clients and delivering strong results. To do this, we combine our disciplined investment approach with global reach and a fundamental belief that if you take care of your clients, they will take care of you.

Investment Expertise

We offer our clients a valuable perspective, shaped by over 60 years of experience. We are a leader in global investing, with on-the-ground research capabilities around the world, and a strong global service platform. Franklin Templeton Investments offers more than 200 investment strategies under the Franklin, Templeton, Mutual Series, Bissett, Fiduciary Trust and Darby Overseas brand names globally.

Our independent investment platforms offer time-tested expertise, with distinct investment focuses from tax-free income to core equity to global investing. In our experience, a long-term approach is best because investment decisions are made based on a company's fundamentals and long-term growth potential, rather than on daily news and "noise." We pride ourselves on being disciplined investors. We want to be known for adhering to our investment goals and staying true to our investment approach—regardless of market trends. Learn more about the Franklin Templeton Story.

Comprehensive Investment Risk Management

Managing risk is a fundamental part of our approach to investing, and has been since our firm was founded in 1947. Our integrated, disciplined approach seeks to look at risk from every angle and at every phase of the investment life cycle. Learn more about Investment Risk Management at Franklin Templeton.

Customer Service

We want our clients to feel confident that we manage their money with the highest levels of care and integrity in the industry. Quality service is an essential component of the value we offer clients. Our philosophy of service is very simple: we strive to understand what our clients need, and we work to make it easy for them to do business with us.

As our business has grown, we’ve continued to build an integrated global service platform that can adapt quickly and cohesively. With Transfer Agent operations located on three continents, our aim is to process globally and service locally to provide consistently high levels of service to our customers around the world.

High quality, shared information about the customer is the basis for a seamless service experience. Whether the customer touch point is a visit from a wholesaler, an online service, or a call to a phone representative in our Transfer Agent, we strive to add value at every step for our customers.

Privacy

When shareholders invest, they are entrusting us to protect their sensitive information while we help them achieve their financial goals. We place a high priority on maintaining information security to protect our customers and their investments.

To ensure that our shareholders understand our commitment to their privacy, our Privacy Notice is sent to all new shareholders and annually to existing shareholders. This document outlines our approach to safeguarding our shareholders' confidential information including how our Transfer Agent manages "non-public personal" information, our disclosure policy, and employee confidentiality and system security.

Environmental, Social and Governance Issues

Environmental, social and governance (ESG) issues have become increasingly important to companies worldwide as they seek to balance organizational goals with the expectations of their stakeholders in an increasingly complex operating environment. When companies manage those stakeholder relationships effectively, they often can be more successful at managing risk and capturing opportunities—placing them in a better position for long-term success.

Franklin Templeton investment management teams perform extensive bottom-up investment analysis, employing rigorous and comprehensive processes to assess both the risk and return potential of the investments they consider. The depth of our research provides us with comprehensive insights into the many factors that affect the value of an investment, which may include ESG issues. Consistent with their status as independent investment platforms, each investment manager determines the extent to which various research inputs are included and weighted in their investment decisions.

Proxy Voting

With years of experience, Franklin Templeton's investment managers understand that their proxy voting decisions may affect the value of shareholdings. Each investment manager is committed to fulfilling their fiduciary duty to vote proxies in the best interests of their fund shareholders. The proxy voting policies and procedures serve as a guideline for proxy voting decisions and detail the process by which such decisions are made. Both the proxy voting policies and voting records are publicly available to ensure transparency for fund shareholders. Learn more about Proxy Voting Policies and Voting Records.

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As a premier global investment management organization, we know that our business is dependent upon having a high performing, committed workforce. We focus on engaging our employees, cultivating their skills and talents, and retaining them as engaged members of our global team.

Diversity

With a workforce composed of talented individuals in over 30 countries on six continents and fund shareholders in more than 150 countries, we are diverse by nature. We view our specialized and disciplined investment approach and the depth and breadth of our global presence to be a competitive advantage. We offer a wide range of investment advisory services, supported by on-the-ground research capabilities, distribution channels and service centers around the globe.

Our efforts to embrace and appreciate different ideas and perspectives are embedded in how we operate our business. We leverage different perspectives for quality results. To provide superior service, we maintain regional customer support services and have local, in-country investment professionals. We build cultural awareness in our employees and leaders through training programs and have policies in place to promote an environment free of discrimination or harassment. Collaboration is a dominant mode of operation and tools are in place so colleagues can successfully interact and share ideas across the globe.

We value the unique skills, backgrounds and experiences of our workforce and strive to hire, develop and retain talented individuals who understand our clients around the world. Our respect for the individual guides how we work together, value differences and pursue common goals to support the success of our company.

Employee Engagement

We seek to engage our people in ways that help them find personal meaning in their work, provide positive interpersonal support, and ensure that they are operating in a productive work environment.

We recognize that motivation and engagement drivers are unique to each individual, so we offer a wide variety of ideas, options and programs. The creation of our Engagement Toolkit, Recognition Resource Center and Engagement Builder Series for Leaders are direct responses to feedback provided by employees around the globe.

Skills & Career Development

We believe that presenting employees with challenging opportunities for personal and career development and the chance to pursue innovative solutions are essential practices for motivating employees and moving both individual employees and the company forward. Using a vast library of learning resources, innovative learning technologies and skilled facilitation, our Organization Effectiveness program helps employees advance, develop and grow.

Total Rewards

In addition to the dynamic professional environment at Franklin Templeton, we strive to ensure that our employees have access to a competitive and valuable set of Total Rewards—the mix of both monetary and non-monetary rewards provided in recognition of their time, talents, efforts and results.

Our Total Rewards include:

  • Health, wellness and risk benefits to protect and restore health and wellness for employees and their families
  • Holiday and time-off benefits, and employee programs that support work-life integration
  • Ways to get involved in, and give back to, our communities
  • Retirement savings, stock purchase and other incentive programs to help employees plan for the future
  • Learning, development and career advancement opportunities
  • Performance management that helps employees set personal performance objectives that are aligned with corporate goals.
Learn more about working at Franklin Templeton Investments in the Careers section.

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As an investment management firm that has predominantly office based functions, we have limited direct impact on the environment. We do, however, seek to limit the effects of our operations on the environment, and we are increasingly seeing the influence of these issues within the investment world.

Environmental Policy Statement

The Franklin Resources Environmental Policy Statement sets forth our approach to managing our environmental impact. Download the Franklin Resources Environmental Policy Statement (PDF, 169k)

Carbon Disclosure Project

Franklin Templeton participates in the Carbon Disclosure Project, annually measuring and reporting on carbon emissions, as well as risks and opportunities for our business due to the effects of climate change. The firm's current response is publicly available on the Carbon Disclosure Project website includes comprehensive details on our approach to climate change.

Environmentally Conscious Building Features

Our General Services team strives to provide a safe, comfortable and efficient environment to enable employees to work productively. They accomplish this while also utilizing building features and technology that limit the impact on the environment.

We employ the following approaches in the facilities we operate:

Our real estate development and renovation projects seek to minimize energy consumption.

For example:

  • Buildings utilize sensors and/or timers on lights, low voltage and LED lighting, high efficiency bulbs/tubes and electronic ballasts to limit energy use.
  • Our equipment replacement process includes evaluation of new products and features that improve energy and water efficiency.
  • In our two new data centers in California we utilized a new more energy-efficient approach to data center design and also invested in building improvements to increase energy efficiency.
  • Franklin Templeton's buildings in Rancho Cordova and Stockton, California feature cool roof technology to reflect warming sunlight, which reduces the need for energy-intensive cooling.

We use environmental management systems to monitor air quality and energy usage.

For example:

  • Building management systems have off-peak settings that turn off/reduce lighting and HVAC outside of normal business hours.
  • Detailed energy usage data allows staff to audit buildings and make continuous improvements to reduce energy use.

We continually look for new ways to reduce the use of water in our daily operations.

For example:

  • Low flow water fixtures on plumbing systems and landscaping moisture sensors limit water use.
  • Our St. Petersburg, Florida site uses reclaimed water for all landscaping.
  • Our water management system in India utilizes three on-site water wells for landscape irrigation and includes our own water reclamation facility to recycle all water used at the site. In addition, water collection systems channel rain and irrigation runoff water back into the ground.

We recycle and encourage employees to extend recycling programs to offices, cafeterias and community activities.

For example:

  • The firm facilitates recycling at all owned facilities in the United States, and works with building landlords to promote their recycling options at all leased locations.
  • In addition to standard recyclable items, some Franklin Templeton sites also facilitate recycling of used batteries, eyeglasses, mobile phones, and other items that are donated to community nonprofit organizations.

We promote the use of sustainable materials and supplies.

For example:

  • Interior renovations incorporate sustainable design and products with green labels or certification, including low VOC, low emission, renewable/recycled content, and locally sourced materials in construction.
  • Cleaning processes incorporate green cleaning products and recycled content paper goods.

Environmentally Conscious Business Practices

Franklin Templeton also manages the firm's environmental impact by supporting sustainable business practices across the various functional areas of the company.

Sustainable business practices at Franklin Templeton include:

  • In addition to using recycled content paper whenever possible, our in-house Publishing Department uses soy-based inks and integrated computer-to-plate technology (reducing use of film and hard metals), recycles aluminum plates, keeps chemical logs to track use, and has eliminated or limited use of harmful chemicals wherever possible.
  • We encourage employees to limit the use of paper through use of copiers that print double-sided, scanners to send files electronically, email and online communications, and paperless technology solutions. In addition, a campaign by the Green Team reduced paper use by over 25% at Franklin Templeton’s corporate headquarters.
  • The firm also promotes paperless options for mutual fund shareholders by offering electronic delivery of statements, fund prospectuses, annual reports, proxies and tax documents. Learn more or enroll. (U.S. Residents)
  • Franklin encourages employees to consider videoconferencing and teleconferencing as alternatives to travel.
  • Franklin Templeton contracts with a global vendor to provide environmentally responsible e-waste recycling for decommissioned computer equipment, phones, and other electronic equipment. The vendor has a zero-landfill policy where materials are reused or further refined for eventual re-use in manufacturing.

Investments

As we see societies evolve to respond to climate change, there are widespread changes to regulations and industries that impact the global investment community. From carbon trading markets to new green products, certain industries and geographies are seeing real financial costs and opportunities emerge. These issues are playing out in financial markets around the world, and can impact the risk and return profile of an investment.

Our investment professionals employ a bottom up approach and use fundamental analysis to assess all risk factors associated with each investment opportunity, which can include issues related to climate change and controlling environmental impact. This fundamental analysis allows our investment professionals to identify both risks and opportunities that are emerging due to climate change.

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At Franklin Templeton Investments, we believe we have a responsibility to make our communities stronger and more vibrant places to live, work and do business. Through direct contributions and the efforts of our dedicated employee volunteers, we work with over 300 nonprofit organizations and schools around the world each year.

Employee Volunteerism

Through Involved, Franklin Templeton's global employee volunteer program, employees share their time and talent to address critical needs in our local communities around the world - from park restoration to tutoring, from serving meals to building low income housing. Each month, Involved Site Councils and dedicated volunteer Project Leaders coordinate a variety of community involvement activities at our global offices, conducting well over 200 projects per year.

If you represent a nonprofit organization located near one of our offices and have volunteer opportunities that may be of interest to our employees, please email the details to involved@frk.com for consideration. We apologize, but due to the volume of emails received, we may only be able to respond to requests that appear to be a good fit with our volunteer program.

Involved Impact Days

Each June, Franklin Templeton sponsors Involved Impact Days, a month of service to encourage employees around the world to get out into their communities and volunteer. Started in 2007, each year Impact Days has grown as more offices and employees across the globe are inspired to join this fun and rewarding event.

In June 2012, 27 Franklin Templeton offices organized 78 projects that engaged over 2,100 volunteers in community service. Projects included organizing item collection drives in Buenos Aires, Miami, New York, Rancho Cordova, Toronto; fundraising for worthy causes in Edinburgh, Frankfurt, London, Luxembourg, and Melbourne; supporting children’s programs in Hyderabad, Mumbai, Poznan, San Mateo and Singapore; teaching financial education in St. Petersburg; and many more!

Franklin Templeton Corporate Giving

Thinking globally and acting locally, Franklin Templeton Investments has established key areas of focus for our charitable donations—areas that fall at the intersection of our business and core competencies, employee interest, and the needs of our communities. Our focus areas are: Financial Literacy & Entrepreneurship and Communities Supporting Schools.

Franklin Templeton's corporate giving program conducts two funding cycles per year (February and August) to support programs located in communities that have a significant Franklin Templeton Investments presence, and within the following issue areas:

Financial Literacy & Entrepreneurship

The ability to understand and manage one's finances is essential to achieving financial stability and prosperity. To address this issue, we support programs that empower youth and adults with the knowledge and skills to achieve economic independence and control their financial future.

Specifically, we fund programs that teach basic financial literacy skills, including understanding personal finances, budgeting, building assets and investment. In addition, we support programs that teach the fundamentals of entrepreneurship, including establishing and operating a business.

Communities Supporting Schools

Schools have the important role of educating the next generation, but all too often must do so with limited resources. To address this issue, we support programs that engage our communities and enlist new resources to strengthen schools by providing students with positive role models and the essential skills to thrive in the workforce.

Specifically, we fund programs that facilitate effective school-community partnerships and work to engage community members in active roles within our schools. This includes school-based mentoring, tutoring, and classroom volunteering, as well as programs that enable college students and recent graduates to become active contributors to the public education system. In addition, we support programs that help teachers and students understand the skills required to succeed in the workforce.

In order to maximize our resources and drive greater impact, we proactively seek out strategic nonprofit relationships within our focus areas and do not accept unsolicited proposals. If you believe your program may fit Franklin Templeton's charitable donation priorities, you may submit a brief letter of inquiry to giving@frk.com. Please describe your program and how it fits within the focus areas described above (maximum 2 pages) and we will keep your information on file for consideration. We apologize, but due to the volume received, we are only able to respond to inquiries that have strong potential to fit our strategy.

Employee Matching Gifts

In addition to the corporate giving grants above, employees who support community nonprofits through donations or fundraising efforts may request matching donations from Franklin Templeton. This program allows our employees to direct critical funding to the nonprofit organizations and accredited schools they support personally.

Event Sponsorship

We undertake a limited number of event sponsorships by invitation only; unsolicited event sponsorship requests will not be funded. We apologize, but due to the volume received, unsolicited requests will not receive a response.