THE ETHICAL DECISION MAKING

ETHICAL DECISION
MAKING
[COMPANY NAME] | [Company address]
A CASE OF AIA SINGAPORE
STUDENT DETAILS
2020

ETHICAL DECISION MAKING 1 | P a g e
Table of Contents
1. Introduction...............................................................................................................2
2. Company Introduction: AIA Singapore.....................................................................2
3. Stakeholders of the Organisation.............................................................................3
4. Ethical Business Practices at AIA Singapore...........................................................5
5. Analysis of the ethical practices and shareholders expectations............................7
6. Recommendations for improving Business practices............................................10
7. Conclusion..............................................................................................................11
8. Reference...............................................................................................................13

ETHICAL DECISION MAKING 2 | P a g e
1. Introduction
The insurance sector is focused on providing individuals protection from uncertain
future events. The sector provides risk management to society in the form of
insurance contracts. Life-insurance companies offer the individuals with the risk
cover for their life, in form of medical expenses or a death benefit in terms of lump-
sum amount to the beneficiary mentioned in the contract, and depending upon the
premium amount that the individual has decided while signing the contract.
Singapore has experienced new entrants within the industry and growing
successfully in the past few years1.
Singapore is a limited market for the world insurance industry, as it accompanies for
only 0.34% of the world’s insurance market as in 20182. Due to which the new
entrants within the Singapore insurance sector easily get success by effectively
catering the needs of the Singapore market. The insurance sector deals with
providing the risk management to the individuals, therefore, it is required that the
activities conducted within the industry are ethical and the needs and requirements
of the company’s stakeholders are effectively analysed and fulfilled. So that the
company can expand its business within the industry and can improve business
performance. The report is focused on analysing the ethical business practices at
AIA Singapore and analysing whether the activities meet the expectations of the
stakeholder or not.
1Anastassia Evlanova, ‘Why is Singapore's Insurance Industry So Competitive?’ [2019]
<https://www.valuechampion.sg/why-singapores-insurance-industry-so-competitive> accessed 24
January 2020.
2 Swiss Re Institute, ‘World insurance: the great pivot east continues’ [2019] <
https://www.swissre.com/dam/jcr:b8010432-3697-4a97-ad8b-6cb6c0aece33/sigma3_2019_en.pdf >
accessed 24 January 2020

ETHICAL DECISION MAKING 3 | P a g e
2. Company Introduction: AIA Singapore
AIA Singapore Private Ltd. founded in Asia and is providing the insurance products
and services in 18 markets across the Asia Pacific. AIA Singapore established in
1931, is focused on providing its customers within Singapore with the risk protection
of Life and provides, medical protection, accident and health insurance, life
insurance policies and savings plan. AIA focus on providing its customer with
financial support so they can focus on their future planning and lead a healthy and
active life. AIA Singapore aims to provide the population of Singapore with quality
financial advice and with suitable products and operate ethically3.
3. Stakeholders of the Organisation
The stakeholders are an important part of the business, as the stakeholders
including the members of the business organisation who are either directly or
indirectly linked with the business organisation and the business performance are
influenced by their interest. To be a successful business entity it is required that the
organisation pay attention to its stakeholders and ensure their satisfaction4. The key
stakeholder of AIA Singapore includes the insured persons, the government of the
nation and the employees of the organisation.
Employees working within the organisation plays an important role in the
performance of the organisation. The interest of the employees is required to be
effectively analysed, as a satisfied employee will contribute towards the development
of the organisation. The employee working within the organisation expects that the
organisation performs well within the industry so that they can feel proud while
3 AIA, ‘About AIA Singapore’ [2019] <https://www.aia.com.sg/en/about-aia.html> accessed 20 January
2020.
4 Migle Matuleviciene and Jurgita Stravinskiene, ‘The Importance of Stakeholders for Corporate
Reputation’ (2015) 26 (1) IEEE, 75-83.