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Sustainability Practices of WealthWise Insurance Assessment Answer

Task details:


WealthWise Insurance has recently set up an internal information system to improve social and environmental practices within the company. The company has its head office in Brisbane and offices in all

capital cities and every regional city with a population of more than 50 000 people. One of the underlying principles of the company is to be socially and environmentally responsible. This principle has been in place for many years, dating back to the firm’s founder, Jeannette Dai, who felt that she would like to contribute to society rather than simply maximising profits. The company is a major contributor to charities, particularly those that focus on the homeless and the poor. It actively promotes environmental management in all of the company operations. It sponsors a program that provides scholarships to disadvantaged students to allow them to attend university, and it is proud to offer employment in the company to long-term unemployed and the poor. Each year it publishes sustainability report that summarises its achievements across each area of performance. Over time these activities have become a marketing strength of WealthWise. The social and environmental stance taken by the company has attracted many customers to the company. Listed on the AustraliaSecurities Exchange in 2001, the company has also become a preferred investment of ethical and green investment funds. The mission statement of WealthWise states that it will aim to: support employees in achieving their personal and career goals act in a socially responsible way when dealing with insurance clients and the general community promote a better social and physical environment for the world. However, the current chief executive officer, Sylvia Trott, thinks that the firm has become complacent and is resting on its past achievements. She is concerned that the firm has built up a reputation for good social and environmental practices but is not walking the talk. There is some level of discontent among employees about the way that management treats staff, and this is impacting on employee satisfaction. There have also been negative reports in the media of its treatment of businesses in Phuket and Langkawi that were damaged in the December 2004 tsunami. The reports claim that the company has tried to minimise the amounts paid to these businesses by strictly applying clauses in the insurance contracts that cover earthquake damage but not flood damage. In 2004, the company’s profit rose by 15 per cent to $173 million, on an asset base of $1 235 million. This is the third consecutive year of increased profits. Earnings per share were 62 cents, and the market value was $5.40 per share. The board is concerned that WealthWise     makes a loss on its insurance business, while its investments yield a strong return and are the main reason for the increase in profitability. Its investment portfolio includes shares in BHP Billiton, Qantas, Telstra and     Jam s Hardie Industries.The board adopts a sustainability approach to viewing its performance and uses the following key performance indicators to assess company performance.

Financial indicators:


gross insurance premiums return on investment

Economic indicators:

policy, practices and spending on local suppliers procedures for hiring local staff development projects primarily for public benefit

Social indicators:

employee satisfaction ratings

percentage of women in the top three tiers of management number of indigenous employees

customers’ ethical



This report approaches the sustainability practices of WealthWise Insurance and its influence on organisational performance. The mission statement of WealthWise Insurance stresses the importance of both achievements of professional goals as well as a socially responsible business practice and wellbeing of the society and environment.

Sustainable business practices and business performance

According to Lundgren et al. (2019), sustainable business practice is the demonstration of alignment with the sustainable development goals of the UN and also a responsible practice to ensure the mitigation of impact on society and environment from the operational practices of the business. However, recent developments suggest that the profitability goals of the company are getting entangled with their social and environmental betterment goals and also their internal management practice has adversely impacted the employee satisfaction. Therefore, WealthWise Insurance needs to consider a performance measurement system which supports the sustainability approach while supporting the business goals of the company. 

Recommendation for improving sustainability

Following are the suggestions or proposal for a balanced performance measurement system for the company:

  • Financial indicators of the firm can be assessed based on the annual or quarterly profit and earnings from insurance premiums and these are basic financial performance assessments for an insurance company such as WealthWise Insurance. However, WealthWise Insurance also needs to ensure the company is providing the deserved benefits to their policyholders and need to ensure to receive financial gain there is no recurrence of the 2004 insurance payment debacle. Therefore, the financial performance indicators need to be focused on profit-making while aligned with the sustainability objectives of the company. 
  • In terms of economic performance indicators, WealthWise Insurance needs to ensure that the projects being developed with primary objectives to help the local communities. While benefiting from the local communities, the company needs to ensure that the well being of the communities is a priority and this will also ensure the attainment of the sustainability goals of the company. 
  • In terms of social indicators, WealthWise Insurance would be required to focus on the enhancement of employee satisfaction ratings. Sharma et al. (2016) state that the enhancement of employee satisfaction is a decider of employee performance as employee satisfaction enhances employee engagement. This as a result also addresses the social responsibilities of the company as well. Furthermore, employment of women in the top management is another measurement that can be undertaken by the company as while it will diversify the company and improve performance, the social responsibilities will also be addressed with this initiative as well. Ethical training to drive ethical stance of the sales staff as well as the hiring of local indigenous groups of people are also likely to enhance the performance of the company while addressing the social sustainability objectives through the creation of a balance between profitability focus and sustainability (Harrison et al. 2019).
  • According to Persson et al. (2018) in the contemporary business world environmental responsibility and focus towards such sustainable practice is becoming a norm. This is due to the fact that businesses adversely impact the surrounding environment due to their operational practices and ethically they are bound to mitigate the impacts. Therefore, WealthWise Insurance will ensure that the papers used by the company will be sent for recycling rather than disposing them in order to reuse the resources. This initiative, as a result, will also reduce the costs related to the stationaries of the company as well and will benefit the company. Furthermore, electricity usage and petrol use will be controlled in order to reduce the carbon footprint of the company. While these initiatives will ensure environmental sustainability, they will financially benefit the company improving the cost-performance aspect of the company.


The above methods are some of the proposed solutions for the performance measurement system to ensure there is a balance between the sustainability focus and the company's business goals. 

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