Examine the Youi case and identify two social implications and two ethical implications of their Fair trading act breach in New Zealand. Comment on the leadership influence that might have influenced this ethical breach with the organisation’s staff.
“Youi employees were using controversial practices of selling as well as debiting thousands of dollars from the customer who believe they were only asking for the quotes (DuBrin, 2015).” “The sale agents usually employed the same hard sell method to confuse the customers and sell them the insurance policies without their knowledge when the customers asked for quotes (Vanderhoof & Altman, 2013).” “This practice is unethical and if the trend if not handled could influence on practices of other business organization (Bell, 2011).
“On the part of the customer, they would lose trust on the services offered by the organization since the information they rely is not genuine. Many customers would probably never get the insurance services from this company again since those customer involved were ambushed into handling over payment details when they were only seeking a quote(Theorell, Emdad, Arnetx & Weingarten, 2001).” Moreover, having their bank account as well as credit cards charged for the policies they did not know about is very wrong and this is not a good business practice.
“The controversial the practices of selling the insurance to the clients are unethical for what they did. The sales agent are always under pressure of selling for the company and they are also eager to get their commission but they did it at the expense of the customer who suffered in return. According to cultural relativism approach, it can be used to explain such behavior (Crews, 2009).” “It highlights that the idea which individuals belief as well as their activities is understood based on that person own culture. In this regard may be the culture of this company is to close the sales at all the expenses to be ahead of the competitors in this way these individual remuneration depended on every situation to sell, but the technique they used to sell these policies were unethical(DuBrin, 2015).”
“Based on the Friedman doctrine it highlights that there is only one social responsibility of the business to use their resources as well as engage in the activities that are designed to increase on the profit (Theorell, Emdad, Arnetx & Weingarten, 2001).” This is an ethical implication where these individuals used bad techniques to sell to the customer who wanted only quotes. Another ethical implication could be the target driven remuneration structure in the comment of the leadership behavior especially for the employees who had unethical conducts. The company should come up with a package structure that is favorable to the employees so that they do not use such technique for selling all in the name of closing the sale at the expense of the customers.
Comment on Leadership influence
“I believe there can be no leadership without the influence. Influence essentially is how leaders lead. The management use influence since only a small fraction of the managerial work could be accomplished through control as well as use of the authority (Fairbrust & Connaughton, 2014).” The aim of the leaders and the managers is to accomplish the goals of the organization and this is achieved through plans, processes and measurement. For an individual to become an effective influencer there is need to have both substance as well as style. Without presence of solid foundation of the credibility, even an adept leader would likely fall. Looking on the other side, those individual who have credibility could struggle with influence in case they do not understand the interpersonal dynamics at the play. Many benefits could be associated with code of conduct in the workplace that set the behavior expectation of the workers. It will guide the employees and they would likely no breach of conduct or perhaps any malpractices such as the one exhibited in Youi insurance company (Fairbrust & Connaughton, 2014).” A good leader would influence other to act in accordance to the set guidelines and this would be accomplished through their guidance, advice as well as acting in control and utmost authority. Influence of leadership on ethical breach being with self-awareness (Fairbrust & Connaughton, 2014).” “The manager applies various approach of every situation in order to understand the nature inclined in a given situation especially if there was a breach. The leader should identify the gaps to understand the natural orientation as well as appropriate style in order to influence on those around them.”
Unethical staff behavior
“Unethical behavior of staff in the workplace could be regarded as any action, which does not confirm with the standards of conduct that were establish by the organization. Unethical behavior could occur in the relationship among the employees, especially when an employee goes about their own business on how they use the resources of the company (DuBrin, 2015).” The unethical practices could even break the law in some of the situations. In the case of Youi, the employees’ behavior was unethical especially when they debited a lot of money from the customer who were only looking for the quotes. (Bell, 2011).” These clients were forced to hand over the payment details when they were provided with the quotes of the policies.” This act was very unethical for the sales agent for the things lying to the customer and it was against the ethics code of conduct for the company. The individuals who were involved in this act were sacked and they company suffered many damages in order to refund the customer who were affected in the issue (Draf, 2014). “The case was a discrepancy between the organization code of ethics and the company actual practices, which led to lack of commitment of the employees. Both the employer and the staff showed be aware that inappropriate conduct could have a serious consequence both socially as well as legally.” There is need to train them adequately in regards to the applied ethics, but it is all up to the employers to consider on the best practices of organizational ethics.
Youi Insurance operates in Australia and South Africa in addition to New Zealand. Comment on how this case in New Zealand may influence their business operations in other two countries.
Comment on the benefits and shortcomings of a globalised operation like Youi.
How should a multinational organisation like Youi position itself in order to safeguard itself in a scenario like in the case?
How this case in New Zealand may influence their business operations in other two countries.
“The case of the New Zealand may have difference response to different countries. Every country have their own laws on consumer protection act. Australia and South African have different cultural influence on the acceptance of the practices. Depending on the culture of a given country you can determine the business growth or perhaps major losses if the structure of the organization is centralized from one place where the parent company has the major say in every decision. Moreover, the protection act is different in these countries and the practice, which these employees did of selling the product, may be not a big issue in some country (Vanderhoof & Altman, 2013).” “The benefit of the globalised operation of a country like Youi there could be an interlinked global presence and the cumulative effect of the overall brand has been achieved (Philips, Cummins & Allen, 1998).” “This company has global presence hence a competitive advantage over the other competitors. This has been clearly demonstrated when the company has been writing of the new insurance policies especially in the disaster struck areas even though their competitors are not doing the same(Vanderhoof & Altman, 2013).” “The company has been bucking on the trend of its competitors and enforcing on an insurance freeze in some parts of the country, which has affected by the earthquake in November and the aftershocks (Nahavandi, 2016).” “The company has continued to write on the new home insurance policies for all the properties from the North Canterbury to Wellingtons, as long as they have come from the quakes unscathed(Vanderhoof & Altman, 2013).” Moreover, the company has allowed the existing customers from these regions to increase the sum insured despite whether their homes have been damaged.
Benefits and shortcomings of a globalised operation like Youi.
“On the shortcoming because of the tarnishing of the image of the company in New Zealand there could be a unified brand liability, which will occur. Many customers who sought services from the company could deviate their services to other companies since they fear they could be victim of the same circumstances (Crews, 2009).” “The recommendation that I could give in order to safeguard from a similar scenario could be localizing of the branding in every country where the company is operating. The benefits of this is that the company will increase local knowledge of their brand identities as well as increase on the business revenue in return (DuBrin, 2015).” The company will get to understand the local consumer preferences and other local specific requirements and through this they could adapt strategies, which best satisfy the needs of the consumer wants and the needs.
Recommendations for Youi to safeguard itself in a scenario like in the case?
The issues, which has contributed majorly on such event occurring to this company, has been the remuneration of the workers. The sales agents has been wanted to meet the target, which are set in order to earn commission. The best way to deal with such problems could be the creation of opportunities for the customer to appeal against the decisions (Draf, 2014). Moreover, the company should implement on the policies, which guide on the issue of the remuneration of the employees and provide them with the best packages. Another recommendation to safe guard on such a scenario could be implementation of code of ethics guidelines, which govern the whole organization and set mechanism to monitor ethical practices are observed and they are always implemented.”
Conduct a thorough research on the Principles of Treaty of Waitangi. Recommend Youi management three strategies that may help them structure their Corporate Social Responsibility (CSR) strategy in line with the treaty principles.
Principles of Treaty of Waitangi
“The treaty of Waitangi has been regarded as part of the fabric of the New Zealand society and it is important for the constitutional significance (Orange, 2015).” The development process of the policy as well as legislation and the final product shows the respect for the principles of the treaty. The principles are the following:
- The Kawanatanga Principle – The Principle of Government,
- The Rangatiratanga Principle – The Principle of Self-Management
- The Principle of Equality
- The Principle of Cooperation
- The Principle of Redress
The Kawanatanga Principle – The Principle of Government
This treaty gave the expression to the right for the crown to make laws as well as obligation in order to govern based on the process of constitution (Palmer, 2015).” The sovereignty was qualified by promise to accord Maori interest. The principle gives the government the right to govern and make the laws.”
The Rangatiratanga Principle – The Principle of Self-Management
“This principle guarantees the kiwi Maori control as well enjoyment of those resources and taonga what they wish to retain (Orange, 2015).” “The perseveration of the base of resource, the restoration of the kiwi self-managements well as the active protection of taonga, both the material and the cultural are all necessary aspects for the crown policy for recognising rangatiranga.”
The principle of Equality
“This principle guarantees the legal equality between the Maori and the other citizens of New Zealand (Orange, 2015).” This therefore means that all the New Zealand citizens are essentially equal before the law. Moreover, there is also social importance in the implicit assurance that the Maori with all the New Zealand citizen of any origin could enjoy the social rights equally. The special measures, which are aimed to attain the equal enjoyment of the social benefits, are allowed by the international law.”
Principle of cooperation
“The treaty has been regarded by the crown in the formation of fair basis for two individuals in one country. Both duality as well as unity are important (Ludbrook, 2014).” “Duality means the distinctive cultural development and unity means common purpose and the community. These aspects are all governed by the requirements of cooperation that is the obligation, which is placed between the parties by the treaty (Orange, 2015).” Cooperation can occur in case there is consultation on the major issues of concern and if there is good faith, balance and common sense by all parties.
The principle of Redress
“The crown has accepted the responsibility of providing a process for the purpose of resolution of all the grievances, which arise from the treaty (Ludbrook, 2014).” The process could involve the courts, negotiation or the Waitangi tribunal. The provision of this principle should take account of the practical impact as well as the need in order to avoid the creation of fresh injustice.
Recommendation of Youi management strategies to structure of Corporate Social Responsibility (CSR) strategy and treaty principles.
- “Using the above principles the recommendation I would give the management of the company are the following: one of the strategy to use would be the equality principle. Equality arises when it comes to ensuring of the same treatment to all the workers as well as the stakeholder (Palmer, 2015).” “The company should aim at providing the same treatment to the employees and this could be achieved through a structured remuneration, which is aimed to encourage them to work hard in their work through using the required techniques (Ludbrook, 2014).”
- “The second strategy to use would be through cooperation. The company could partners with iwis in order to enable them to develop the insurance services. Working through this means will enable the company to accomplish a lot since they will develop services, which fits the need and the preference of the consumers (Draf, 2014).”
- “The last strategy would be Redress principle. The company could create opportunities for the customer to appeal against the decisions. In the case of New Zealand, there are many workers whose were charged as well as ambushed to handling payment for services they did not subscribe(Palmer, 2015).” These cases are genuine one if there would be a tribunal to deal with issues for the customers it would be a good practice since they will tend to gain trust to the company.
The report has presented the big issue facing Youi company on how the sales agent are providing ambushing and selling and debiting the customers a lot of money for services they did not agree. This case is an example of controversial practices happening in many industries. It has showed the implication brought on breaching of the trade fair act in New Zealand, how this case has influenced on the business operations, the benefits as well as shortcoming of globalized operation. Moreover, the report has provided recommendation on strategy Youi could use to implement on their corporate social responsibility.
Having good communication could help solve problems the organization is facing. When organizing as well as operating value added business disagreement may arise on how to solve the problems they are facing. Employees having good communication skills could help solve the problems facing the organization or perhaps help the customers on their needs. Moreover, they should have proper procedure in place for the management of the business need and reduce on the incidence of errors. Correction of the errors is a waste of time.
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