Executive John Smith, Smith Insurance Company, A Big Company That Faces Increasing Demand For Insurance

Executive John Smith, Smith Insurance Company, A Big Company That Faces Increasing Demand For Insurance

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Question 2. Assuming that being led by its CEO John Smith, Smith Insurance Company is a big company that faces increasing demand for insurance. Over the past 3 years, the competitors are almost equal in their performance to Smith’s insurance, yet not their involvement in social responsibility.
(a) Suggest the best approach of the following approaches for John to use in order to better position the company against the competitors. Justify your answer with advantages of the approach and a relevant example
• Obstructionist stance
• Defensive stance
• Accommodative stance
• Proactive stance
Answer:
(a) Corporate social responsibility (CSR) is management’s obligations to make decisions and take actions to contribute the welfare and interests of society, not just for the profits of the organisation.
• Proactive stance
In organizational behaviour and industrial psychology, proactivity means anticipatory behaviour, taking control of situations and initiating actions to make changes. A proactive stance, as opposed to a reactive one, involves acting in advance of a future situation rather than simply responding to a situation that has already happened. Proactivity is about initiating change within the organization.
Proactive stance is the best approach that can strongly affect Smith Insurance Company. When managers in Smith Insurance Company actively promote the interests of shareholders and various stakeholders by using organisational resources, the needs of shareholders and stakeholders will also be met and they would be satisfied. So the company can be good corporate citizen which fully considers the corporate social responsibilities to benefit the society.
Hence the proactive stance is the best approach for John to use to better pos...


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...of the company as well.
Furthermore, the benefits of Air New Zealand’s social responsible practices have very strong effects on the communities. The benefits of the social responsible practices of Air New Zealand could make the communities have some good things and wide benefits make the communities understand the company considers its corporate social responsibilities to benefit the communities and society without only taking account on the maximum of the profits of the company. The reputation of Air New Zealand and the image of the company will be also improved. The considering of its corporate social responsibilities to benefit the society and the communities is also a type of sustainability. This indicates that the company can recognize the importance of the business sustainable development to be a good corporate citizen in the communities and in the society.

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