AXA Insurance: Ethical Business Practices and Stakeholder Expectations

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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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530Coursework assignment 3 answer template
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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530Coursework assignment 3 answer template
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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