Companies are realising that corporate responsibility can boost their public perception and attract potential employees. Lucy Quinton examines how the protection industry is getting involved
Firms are demanding more from employees than ever before but tides are beginning to turn as companies start to think about giving back to their workers and the wider community.
There are many different guises of corporate responsibility which can be referred to as 'corporate citizenship' or 'responsible business'.
While this caring attitude is growing in popularity with many people, it is also open to criticism by cynics who suggest it is nothing more than corporate window-dressing. But while some may mock, it is clear the protection market has not been weighed down by this criticism, but has taken this emerging trend as an opportunity to redress the balance of inequality that has long existed in businesses.
Firms are becoming more outward-looking and are thinking more about their surrounding communities. John Hutson, head of public relations at Unum, says: "We believe we should make a positive contribution to the communities where we are based and many employees live."
Peter Le Beau, managing director of Le Beau Visage, agrees with Hutson, adding this is in sharp contrast to the 'greed is good' era of the 80s. He expects responsible business to increase as companies become wealthier.
There are a number of ways corporate responsibility can be undertaken. Examples include donations, active participation in local organisations and by volunteering challenges. Companies could also look internally at the welfare of employees.
A quick trawl through insurance providers' websites shows firms are taking this matter increasingly seriously. While many companies are tackling wider issues in the community and employees' welfare, their websites also show they include customer relations as an area where a demonstration of corporate responsibility is essential.
Moral obligations
In Aegon's 2007 chairman's letter, Donald Shepard, chairman of the executive board, says companies operating in today's global environment are no longer just measured by their ability to capture opportunities and remain competitive but how they fulfil their larger responsibilities.
He says: "In recent years, corporate responsibility has gained increasing importance, reflecting both the core values companies adhere to and how companies conduct their operations in their various markets. Consequently, a company's financial performance is evaluated in the context of its commitment and response to any number of social, economic and environmental issues."
While it is common practice to look to the wider community, companies are learning they need to look after their employees' wellbeing too. As the emphasis on wellness grows, a 'fit note' attitude is replacing the 'sick note' culture of recent years. A number of initiatives such as PruProtect and PruHealth's wellness packages are becoming increasingly popular.
According to Pam Whelan, corporate sales manager at Denplan: "There is a growing demand to safeguard the wellness of employees by implanting a range of 'stay well' benefits as opposed to 'get well' packages. Dentistry is emerging as a priority." She puts this down to employees placing greater emphasis on dentistry than ever before. "From a 'nice to have' option, a dental option has become a 'must have', with figures suggesting employees prioritise dental care alongside private medical insurance and pension plans," she adds.
Dale Tranter, research product developer at Sesame, says corporate citizenship means more than just paying out a sum of money on the occurrence of an insured event. He suggests advisers should also "give some weight to these additional services in a close decision between two product providers for a particular client's recommendation".
According to Le Beau, added value initiatives such as Red Arc and roadtohealth are also ways of providing more than a cheque to policyholders.
It is becoming increasingly common for corporate packages to also provide a number of charity days to individuals every year. Unum is one firm that does this. "Traditionally our teams have tackled projects for charities and schools to undertake a garden make-over, provide new special facilities or decorate premises. This can be used as an effective team-building opportunity and a developmental exercise for someone who may not normally be a manager," Hutson says.
Community care
Other opportunities include offering business skills volunteering where a firm's expertise can constructively be used to aid the voluntary sector. One example is for IT professionals to give computer training and build websites and for designers to produce artwork for brochures and annual reports.
There is likely to be an increase in the number of firms seeking to apply corporate responsibility. Hutson says: "It will become part of the way a company operates and what will be expected of them by employees, customers and business partners. Some businesses will only partner with others that have ethical and social responsibility policies in place."
Firms should demonstrate corporate responsibility as an end in itself, according to Tranter. However, from a marketing perspective, he adds that firms behaving irresponsibly generate adverse press, which in turn attracts the attention of the Financial Services Authority. "If a firm is doing good things on the corporate responsibility side, such as supporting charities and donating a share of profits to good causes, it can have positive PR applications," Tranter says.
Positive perception
Overall, the protection industry can expect to reap rewards through engaging in corporate responsibility. As Le Beau says: "The industry has a poor image so at its most cynical this may improve the way it is perceived, but in reality, it is important for all companies to be good corporate citizens and given the areas the protection industry works in, it has real opportunity to make a difference to people's lives".
Industry figures have suggested it is advisable to invest time, rather than just money, when implementing corporate responsibility. Le Beau says engaging in this area changes people's lives and "in a business where we have not treated people in the right way, this is important". He adds it should not be seen as merely a box to be ticked or an area where money should just be thrown. "It is about a company's values."
Through giving something back to the wider community, businesses will gain from a boost in employee morale through community goodwill and enhancements to the company's reputation.
Potential employees will look not only at the salary a firm can offer them but also what other benefits are available. Through incorporating corporate responsibility, firms will increase their chances of attracting and retaining higher calibre candidates.
A lot can be gained from firms engaging in corporate responsibility. However, it should not be left to the firms alone to invest time in this area. Instead it should be a collective force that together adds momentum and credence against the critics who slight it. For an industry constantly under media scrutiny, it will not do the protection market any harm to be perceived as active in this arena.
