AXA Insurance: Ethical Business Practices and Stakeholder Expectations

This report discusses the ethical business practices of AXA Insurance and how they meet the expectations of their stakeholders. It identifies the key stakeholders of AXA and their main business expectations, as well as the current ethical practices of the company. Recommendations for better ethical practices are also provided.

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Introduction
It is important for an organization to work for its values moral standards, company norms. It
helps the company to take steps and make a decision in an ethical way. Business Ethics
includes those ethics which deals with the factors of the company’s environment and
corporate issues and helps to run a business with fulfilling the expectations of the
stakeholders (Moshiri & Cardon, 2018). A stakeholder is an individual or
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an organization that develops an interest in the results of the work process in the
organization. Basically, the stakeholder is a small group or people who depend on the
organization in order to fulfil their own objectives and goals, also the organization depends
on them in turn (Jones, 2017).
A successful organization has definite vision and objectives and focuses primarily on its
values and fulfils the prospects of its stakeholders (Kordon, 2012).
AXA insurance has its ethical values. The company focusing on directing its business as
indicated by the most elevated standards of genuineness and decency. This responsibility
for watching the most extreme moral principles is intended to guarantee consistency with
laws and guidelines in the different areas where the company works to earn the trust of its
stakeholders. The company’s stakeholders involve its employees, business partners,
investors, and suppliers (AXA, 2018).
This report will identify the three stakeholders of AXA and their main business expectations,
also the company's current ethical business practices. This report will also include some
recommendation to run a business in a better ethical way with the fulfilment of the
expectations of its stakeholders.
AXA and its Stakeholders
Engagement of stakeholders of the company and fulfilling their expectation is an important
part of AXA’s overall strategies, which helps the company to sustain its employees for the
long term (AXA group, 2018). Engagement of its key stakeholders helps to improve
understanding and leads to operating business in a better way. To meet the expectations of
stakeholders, ethical values help to take the right decision on right time. AXA group willingly
get involved with its stakeholders and whoever has an interest in engaging in the company.
These stakeholders help the company to develop a social environment and ecological
impact of its business (AXA Ethics, 2018).
AXA defined its stakeholder as an individual or a group which affects the company’s
performance target with which they operate (AXA Group, 2018). AXA group conduct survey
once in a year to all 160000 AXA employees and also conducts materiality analyses
between stakeholders to identify the corporate risks and social risks. The company also
created an Advisory panel website for its stakeholders to share expectations and support
AXA to form the strategies (AXA, 2018). When it comes to Ethical values AXA willingly follow
its ethical value and company norms. The company has a Group compliance and Ethics
code that applies to all its stakeholders and subsidiaries. It is necessary for board member
and other employees in AXA to certify their compliance with the code at least once in a year
(AXA Ethics, 2018).
Stakeholders and their business success expectation
AXA is a leading brand across the world. It is a result of the contribution made by its key
stakeholders. According to AXA UK, its key stakeholder involve its investors, shareholders,
business partners’ employee, and suppliers and secondary stakeholders are government,
organization and another community group.
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The company conducts engagement events for its stakeholders. AXA respects its
stakeholder views and decisions. Here are three key stakeholders for AXA which contribute
to its success.
 Customers
 Shareholders
 Employees
Shareholders
Shareholders are the owners of the company; they expect to invest their money in AXA so
as to drive it to achieve their objectives (Haldane, 2015). There are two types of
shareholders of AXA, institutional shareholders and individual shareholder.
Institutional shareholders are those organizations who bought shares in AXA and expect to
realize returns or profit from their investment. Example of such organizations is SBJ group
and Helix UK (Newsletter, 2018).
Individual shareholders are those individuals who bought shares of AXA with the
expectations of making profits. The founders are the important shareholders subsequently
they contributed the start up capital and expect to earn the profit. Company’s shareholder is
expected to choose who will be the board of director of the company. Shareholders have all
the rights to give an opinion and also expected to give voting on various points regarding
future strategies (Weiss, 2014).
Employees
AXA UK defines its staff and also who all are the workers in the company as key
stakeholders, as they are gives their inputs to daily business operations and hence regulate
the result of the company. Employee includes professionals, directors and company’s
presidents (Rudolph, 2017). There are various rights and powers that staff have in the
company and expects to have their rights respected. The staff and board members are
expected to determine the strategic direction of the company and make sure that it is
implemented or not also manage the framework. Overall levels AXA’s employee have the
right and responsibility to make the decision to meet the daily targets, also share opinion an
new idea to accomplish the strategies.
Customer
Customers are the buyers of the products and services of the company. AXA’s customer
includes individuals, organization, and governments. The customers want AXA to fulfil their
desires and provide better service and wide coverage area in a way which creates value for
their money. Customers have a greater influence on the achievements of the company than
other stakeholders. Customers are very important key stakeholder which first affects a
company’s performance (insider, 2018). It is important to conduct a survey between
customers and carry out research to know the customer’s taste before making a decision
about any products. AXA’s employee also wants to have opportunity to make more profit.
Current business Ethics of AXA
Business ethics are the ethical values that go about as rules for the manner in which a
business behaves and its exchanges (CFI, 2018). AXA has a long
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history of better Ethical business practices and strong professional behaviour. The company
introduces new Compliance and Ethical code to establish a better work environment. This
new compliance code if to share a better understanding of what is expected from each
member of the staff. New code and company’s commitment guides employee performance
and better standards of ethics. There is no conflict between good performance and high
standards of Ethics, compliance, and governance they follow each other. The company
expects from the whole staff to follow the rules and regulations of new compliance and ethics
code (AXA Ethics, 2018).
All the board members, employee, and senior members, trainee and whoever has the share
as per the company norms, and tied agents have to follow the rules this code involves. The
company organized a scheme “blowing the whistle”. Whistle blowing is basically an act to
raising the concern for illegal behaviour without any fear (Pohjanoksa, 2019).
The company encourages its staff members to report against any unethical or illegal
behaviour and raises the concern to their leaders. Apart from all these, the company also
has conflicts of interest, bribery and corruption, money laundering, insider trading,
discrimination policies, and company take necessary action for such incidents (AXA Ethics,
2018).
Overall AXA group creates an ethical work environment and take required action for any
illegal behaviour and also encourages its employees and partners to share the values and
behaves ethically. AXA creates an ethical work environment for its key stakeholders and
meets the expectations of stakeholders (AXA Insurance, 2018).
Analysing the Ethical values to meet the expectation of key stakeholder
The company encourages its employees to report any suspicious activity, inappropriate and
illegal behaviour. If anyone has a concern regarding this they can raise it directly to the
company. The company running a program to blow the whistle against wrong behaviour, and
raise the issue to [e-mail]. This program managed by Head of special
investigation. AXA provides a stress-free environment to its employee and makes them
comfortable to raise the concern whatever they have without fearing retaliation. The
company also takes action against retaliation. If anyone of their employees has any kind of
question and concern they can talk to their manager, HR and compliance team. For its
customer, AXA’s has special values these values are:
 Customer First
 Integrity
 Courage
 One AXA (AXA Ethics, 2018)
Customer first: According to this value AXA put customer satisfaction is on priority while
taking any decision and action. This helps the company to meet the requirements of the
customers today, antedate their requirements tomorrow, and provide the best service,
product, and advice forever (AXA Ethics, 2018).
Integrity: integrity is the core value of the AXA group. This value means AXA deliver its
service with sincerity, respect, honesty, and commitment. It is all about doing the right thing,
and gain the trust of the customers and partners (AXA Ethics, 2018).
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Courage: Courage value means that everyone at AXA should have the right and courage to
share opinion to change and revolutionize and give better options for doing business (AXA
Ethics, 2018).
One AXA: find collective success through establishing collaboration and diversity, innovative
ideas great decision and can only be accomplished with the support, intelligence, and
energy of others (AXA Ethics, 2018).
Apart from these values the company also takes responsibility to protect customer’s
important personal data alludes to any information identifying with a person who is, or can be
recognized either from that information alone or from that information related to other data.
Sensitive information comprises of data which is private in nature and, whenever leaked
unnecessarily, may prompt discrimination. AXA manage confidential information of its
customer, employees, investors, shareholders and also suppliers. Confidential information
involves all personal information that might be material to use against competitors, harmful
for the company and for customers if it is leaked and disclosed.
Conclusion
It is concluded that Stakeholders are who has an interest as per the company law and
regulations are the stakeholders of the company. They can be its employee, shareholders,
suppliers, investors or government. Customer is the most important stakeholders of any
company. Every company needs to sustain its customer’s contribution to the successes of
any organization. Other key stakeholders are the employee, suppliers, and shareholders, a
company always needs to encourage and motivates to share their opinion to make business
practices better and contribute to the success of the company. AXA conducts proper ethical
rules and regulations. The company provided an ethical code to all the employee and many
schemes and prevention policies. Its employee has all the right to share opinion for any
concern and issues of the company. This only makes AXA world’s leading brand. However,
there are some improvement areas to create better ethical practices. There is some
recommendation to manage the environment, social and ethical challenges in AXA’s
business transaction is to be the number one insurance provider and becoming more aware
for its ethical values and give direction with respect to handling them.
Recommendation for better Ethical practices
“Evaluation of the proper business values and policies and practices regarding potentially
controversial problems such as insider trading, conflict of interest, money laundering,
discrimination” (Bianca, 2018). Ethical values are important for a business in order to
achieve the success and sustain for long, as poor ethical values can exploit the company’s
culture and work environment lower the retention and sour stakeholders relationship with the
stakeholder (Clegg, 2007). An unethical practice increase odds of incurring penalties and
creates litigation into the environment. However, AXA properly running a business on its
ethical value and conducts new compliance and ethical code but it is important that everyone
follows that. Here are several recommendations that AXA should follow to run its business
and meet the expectation of its stakeholders.
 Develop ethical standards
 Ensure leaders and board directors exhibit the ethical and compliance code
 Should be diligent about implementing policies
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 Praise positive behaviour
 Promote community involvement
Develop Ethical Standards: the very first step, AXA needs to take is to recognize the
expectations of all the stakeholders and make sure that which behaviour is a not acceptable,
also new policy are acceptable by all the employees or not. However, AXA created new
Compliance and ethical code but it is important that the policies are well explained and
should not be complex also can be understood by everyone. These codes should be
provided in the employee handbook and outline proper business conducts. This handbook
has to eliminate any confusion and uncertainty about the company’s ethical practices and
values and has to keep all the employee of the company on the same page. So that it can
eliminate litigation.
Ensure leaders exhibit proper behaviour: AXA introduced an Ethical code but it is
important to make sure that each person of staff following the rules or not and all rules are
the same for everyone or not. This will brings equality to the company’s environment.
Behaviour often drops down from top to bottom into the organization. It is crucial that all the
leaders act honestly and set an example for the other employee. If the board members
demonstrate unethical behaviour and will not follow the code’s rules why would other
employee act with moral conviction? Therefore if board members and seniors will behave
ethically and take code seriously the rest staff will have a positive role model.
Be diligent about enforcing policies: Being realistic, it is not possible to uphold every
single ethical expectation every time, and rule can be broken unescapably. It is more
important to encourage the employee to differentiate ethical and illegal behaviour and do not
tolerate any such behaviour and raise the voice and show that something wrong is
happening (Mclaverty & Mckee, 2016). Holding staffs accountable has to prevent the
continuation of any unpleasant behaviour and nip them before it gets out of control.
Praise positive behaviour: It is important to stamp out unethical practices, and it is also
important to praise company employee, investors and partners for compliance and ethical
code. The company has to make it a point to acknowledge individuals who live up to
expectations. By doing this the company can serve reinforcement which can help to achieve
long term benefits.
Promote stakeholders involvement: The Company can engage its employee and
organized events for its investors and suppliers. It is most important thing that how AXA
involve them while taking decision for serious concern of the company. AXA also has to
support financially to its investor give them opportunity to make profit and grow.
These recommendations for best Ethical practices are important for every business and the
top trend of every business to expand the business. By implement these recommendation to
Ethical practices at the workplace AXA can create positive culture and environment, meet
the stakeholders expectations develop brand reputation and leads to achieve the success.
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Referencing must be completed before submission
All sources must be referenced in the body of your answer as well as in your reference list. See
the 530 Specimen coursework assignment and answer for examples of how to reference
correctly in text and in your reference list.
References
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