Homeserve Case Study

841 Words2 Pages

Most companies’ primary goal is to maximise profit in order to remain competitive in the market. The concern usually arises in the measures and approaches companies take to achieve that goal and how it will benefit in the short-term and long-term process. (Eccles, 2011)

From 2005 to 2011, HomeServe’s employees were rewarded for selling products and getting more and more customers. (Brignall, 2011a) Two insurance policies were miss-sold to almost 70,000 customers, targeting elderly and vulnerable people, who were given insufficient information on the products being sold to them and the policies turned out to be unsuitable for them. Customers’ complaints were also disregarded for up to six weeks amounting to 48,000 complaints unresolved. Thus, …show more content…

(Nagpal, 2013) Indeed, it is a HomeServe’s customer service staff member who brought up some of the issues to the FCA, like the lack of complaints being handled correctly. (Brignall, 2011a)
III.1.2. Corporate social responsibility and stakeholders

After the whole scandal, we now want to improve HomeServe’s image and reputation, so we considered the benefit of incorporating Corporate Social Responsibility (CSR) in our approach, as we try to make HomeServe a brand that cares about its community.
Studies show that the more a company engages in stakeholders’ relationship, the more it gets mindful of other external factors and how to use them as an advantage, for instance getting involved in social and environmental issues. (Falck, 2007) On this note, we noticed HomeServe is currently putting forward an interest to help and support vulnerable people of the community, to start participating in charitable work and care for the environment by reducing carbon emissions per worker. (HomeServe Annual Report, …show more content…

(MacFarlane’s, 2014) As a result, HomeServe faces 9% increase in profit and 11% increase in customer numbers since 2015. HomeServe continues a constant focus on customer’s satisfaction. Indeed, HomeServe also aims to adopt a complaints’ office IT system in order for complaints to be addressed and resolved quickly. For instance, it upgraded its digital interaction and recruited 444 engineers in 2015 and now there are over 700 engineers. (HomeServe,

Open Document