Sustainability Practices of WealthWise Insurance Assessment Answer
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.