Ethics in Insurance

The Following Post was sent by Toni Forrester.
As a special investigator of suspected fraudulent automobile claims for an nsurance carrier, it is my responsibility to conduct my investigations with honesty and integrity in order to uphold the values developed by my employer as well as myself. It would be very easy to be underhanded and deceitful to find ways to not pay claims. However, my employer has established a comprehensive list of business practices that promote fair and balanced investigations to resolve concerns with the claims being reported. Ultimately, these investigations, if conducted inappropriately, could lead to costly litigation. Therefore, it is always best to treat our policyholders with the utmost respect and always be aware that they are not only our customer, but also an individual. By doing so, this will ensure our company will continue to survive, grow and be a leader in the insurance industry.

Money Management Seminar!!!

We at Bethany University SIFE are pleased to announce that we will be holding a money management seminar on Monday, March 24 at seven o’clock in the evening. It will be held at The Sky Park Classroom at 361 Kings Village Rd, Scotts Valley, CA, 95066 and will be free of charge. The keynote speaker for the seminar will be Cherry Roberts of Woodland Financial Wellness and she will be focusing on the topic of debt management. This event is open to the public and people of all ages and demographics are encouraged to attend.

Ethical Business Practices Cultivate Win-Win Relationship

It is possible to profitably build a business around a universally accepted and fundamental ethical concept: seek to build win-win relationships between your trading partners. An efficient and just market is one that rewards firms that create value for its customers and trade based on trust, respect and integrity. Firms that expect to sustain a competitive advantage need to forge business relationships with vendors and customers. Vendors become reliable and trustworthy suppliers of quality goods and services necessary for a firm to create value for its customers. And customers expect their suppliers to deliver on their promises. When both suppliers and customers gain from a business exchange, they both win. Therefore, firms should strive to build mutually beneficial relationships with their trading partners--win-win: Firms purchase needed products or services at prices that fit their budget and suppliers sell products and services at a profit that enables them to sustain and grow their business. This is not only good business practice, it also fulfills the ethical goal of treating our neighbors with the same respect we have for ourselves.

Black Ball Transport

The following post was written by David Booth, who is Senior Vice President, Finance and Administration for Black Ball Transport:

Black Ball Transport, Inc. has operated the M.V. Coho vehicle and passenger ferry between Port Angeles, Washington and Victoria, British Columbia continuously since 1959, transporting over 20 million passengers and 5 million vehicles.

Company management strives to conduct all its business relationships in a fair and ethical manner, based on the belief that doing so is good not only for its own sake, but that it is also a good business practice that furthers the long-term viability of the company.

Whether dealing with employees, customers, vendors or regulatory authorities, we look to achieve the proper balance between maintaining profitability and providing a fair deal (and of course complying with all applicable laws). In practice, this means that we will steadfastly guard our interests, but we will not cut corners if it would compromise the safety of our employees or customers, or if it would degrade our product and the customer experience. We will also do our best to be reasonable and meet someone halfway in the event of a dispute. Finally, it means we will be as open and transparent in our communications as possible.

We at Black Ball Transport, Inc. enjoy what we do, and look forward to serving the public for many years to come.

Ethics dissemination - response from Skip Vaccarello

This is an excerpt from Cyril Rayan's blog. Cyril Rayan is an author of a book called, "From Vision to Reality." He is also the CEO of the companies Mindbrook and Resiligence. We have links on the side to some of his websites.

Ethics starts at the top of an organization. Standards and values need to be articulated by the CEO and his/her management team. And they must personally be lived out. Any hint of hypocrisy on the part of the CEO and any unethical deeds of top management left unpunished serve to destroy whatever values were articulated. In Collins’ book Built to Last, he identified a number of common factors among those firms which had sustained success. One of those factors was a set of values that were not just identified, but constantly reinforced. Interestingly, Collins says that the actual values are not important. What is important is that those values became part of the fabric of the organization.

All forms of corporate communications (Web, annual reports, management meetings) are opportunities to communicate values. A way to see if a company is living out its values is to see how it makes important decisions. Is the decision put through the filter of the company’s values? Another way to see how closely a company is adhering to its values is how it deals with a crisis (e.g., slow down in business, loss of a major contract, an ethical breach, a product recall, etc.) Problems happen. How the company deals with it is the true test of its values. So the first step in making sure middle managers act ethically (i.e., adhere to the company values) is that top management articulates and lives out those values themselves. Second, values and ethics must become part of the hiring criteria. They should a screen through hiring decisions are made. Third, top management must hold middle managers accountable for enforcing those vales. They become part of performance reviews, decisions, and the actions middle managers take when their subordinates violate a corporate value. Middle managers will “get it” when top management and their peers live out those values day to day. Only then, will it become part of the corporate culture.

I have personally identified the following ethical principles in presentations on ethics I have done:

• Ethics starts at the top
• Ethical Companies care about relationships – encouragement, forgiveness, and servant-leadership
• Integrity is the chief value in ethical organizations.
• Ethical companies foster “open” communications
• Ethics are an essential ingredient in every important decision.
• Ethical companies and ethical people are guided by core values.

Here are some practical considerations:

• Value ethics and integrity
• Practice servant-leadership
• Even if you are not the owner, act like the owner
• Encourage open communication
• Assume everyone knows everyone else’s salary
• Assume every vendor knows the terms of every other vendor
• Truly care about people and relationships
• Help your employees lead balanced lives
• Strive for win-win negotiations
• Don’t be afraid to walk away from a deal you don’t feel “right” about
• Keep your promises
• Make integrity your highest value
• Never lie and do not tolerate lying
• Never exaggerate claims
• Make sure your products do what you say they will do
• Promote accountability
• Join a small group to help keep you accountable
• Expect excellence, but be willing to forgive Codify ethics in your organization
• Encourage community volunteer involvement

Contributing to the Blog

If you would like to become a contributor to the blog please email us at bethanysife@gmail.com so that we can add you as an author to the blog!

Bethany University SIFE

The Bethany University SIFE team has decided to create a blog that will allow business leaders and entrepreneurs to openly the discuss the role ethics and integrity play in the vision and mission of their respective companies. Please feel free to voice your opinions, ideas, and perspectives on these topics!