Management Perspectives on Medibank Health Insurance

This case study report aims to provide an insight into Medibank Health Insurance and its management perspectives. It includes a brief introduction of the company, rationale for research methodology, appropriate research strategies, critical analysis of role of ethics and ethical practice, and the role and legitimacy of management and influence by politics and social environment.

Running head: MANAGEMENT PERSPECTIVES
Management Perspectives
Name of the Student:
Name of the University:
Author Note:

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Executive Summary:
The case study report aims at explaining the management perspectives in the context of a case
study on Medibank Health Insurance. The case study report commences with the brief
introduction of the company followed by a rationale for research methodology and appropriate
strategies. There is also a critical examination of ethical practice and the role of ethics within the
chosen organization. The case study report also puts forward a discussion on the role and the
legitimacy of management function and its influence by social and political environment.

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Table of Contents
Introduction:....................................................................................................................................3
Rationale for Research Methodology..............................................................................................3
Appropriate Research Strategies......................................................................................................6
Critical Analysis of Role of Ethics and Ethical Practice in MediBank Heath Insurance................6
Role and Legitimacy of Management and Influence by Politics and Social Environment...........10
Conclusion:....................................................................................................................................12
References:....................................................................................................................................13

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Introduction:
The case study report aims at providing an insight into Medibank Health Insurance found
in the year 1976 and known for insuring over 3.8 million Australians (medibank.com.au, 2018).
It represented a telehealth service supplier with over 600 clinicians interacting over 2.5 million
times in a year with consumers over either phone, web and face to face. The government of
Australia privatized the Medibank in the year 2014 that presently operates as listed company on
ASX. It now has over 2700 employees and generates annual revenue of AUD$ 6.37 billion. The
case study will demonstrate understanding of the organizational theory including organizational
ethics and ethical practice.
Rationale for Research Methodology
While formulating the rationale for the research methodology it is necessary to consider
the methods that would help in understanding and answering the research questions. As the case
study demonstrate understanding of organizational theory related to ethics and ethical practice of
the organization so a deductive approach is followed. A deductive approach represents the
development of hypothesis based on the existing theories and practice (Sekaran & Bougie,
2016). It is followed by designing of research strategy for testing the hypothesis.
The existing theories of organizational ethics are as follows:
Utilitarian or Rule Based Ethical Theory: This theory had its formulation in the
eighteenth century by Jeremy Bentham refined later by John Stuart Mill. This theory looks
beyond the self-interest for impartially considering the interest of all individuals affected by
action. The emphasis of the theory lies in determining the consequences of a particular action on

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stakeholders. The stakeholders represent parties affected by outcome of action (Mulgan, 2014).
This theory puts forward that the trade off exists in the aspects of decision-making. Therefore,
Utilitarian theory remains mostly concerned with decision-making that maximizes the net
benefits and minimizes the overall harm caused to the stakeholders. It holds similarity with the
cost benefit analysis of the decision making process.
Ethical Theory Based on Virtue: The ancient Greek philosophers, Aristotle and Plato,
put the virtue theory forward. In this theory, the exercising of judgment do not take place through
set of rules but due to the possession of the virtues or the dispositions that enables the making of
choices and holding the desires of something instead of the aspects that will provide a means for
achieving the goal. Virtue based ethics emphasizes qualities that ensures defining the appropriate
behavior and action that needs to be taken (Crossan, Mazutis & Seijts, 2013). Unlike other
standard theories, virtue theory does not establish criteria for evaluation of the potential decisions
instead the emphasis is more on the internal characteristics of the individual with whom one can
enter into relationship of trust.
Ethical Theory Based on Rights: The right based theory of ethics dates back to
seventeenth century. The modernized rights theory however remains associated with the
Immanuel Kant, a philosopher belonging to the eighteenth century. The theory puts forward that
certain entitlements of individuals such as right of privacy and freedom of speech must be
respected (Broad, 2014). This theory establishes the duty of the individual as moral agents
towards others who possess specific rights. It depends on the moral principles referred as
categorical imperative that emphasizes on the universality of the moral actions.
Alternative theories of ethics are as follows:

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Pluralism: Here the theories reject the single standard of the right conduct put forward
by utilitarianism (Graham et al., 2013). According to this, morality remains defined by more than
a single standard that is not consistent.
Theories of Social Justice: These theories reject the refusal of utilitarianism for
considering who remained harmed or benefited. The theories put forward suggestions that
sacrificing happiness for ensuring just distribution (Mason, 2018). The theories differ in showing
concern about what the larger institutions and government should do instead of what the doings
of the individuals.
The basic principles of the ethical practice should include (Elwyn, Tilburt & Montori,
2013):
 Consent that are informed
 No compulsion for participation of the individuals
 Generating respect for individual autonomy
 Avoiding causing any harm
 Maintenance of confidentiality and anonymity
 Undertake special care for research with the vulnerable groups
Appropriate Research Strategies
The report puts forward a case study so that the research strategies focus on the in-depth
investigation of a single organization. For a case study, research information is derived from
varied sources and through varied types of data related to, survey, observations analysis of

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documents and interviews. Data in this particular case is qualitative. Nevertheless a case study
research allows for multifaceted and a composite investigation of the problem or the issue.
In this case, the strategies lies in testing the hypothesis derived from the rationale for
research methodology. This is as follows:
Hypothesis:
H0: The ethics and principles of the healthcare organization do not align with existing
theories of ethics.
H1: The ethics and principles of the organizations aligns with the existing ethics
The report mentions existing theories of organizational ethics and ethical culture. The
strategies adopted involves investigation through secondary research and interviews that helps in
establishing whether the ethical policies or code of conduct of Medibank Health Insurance’
aligns with the existing ethical theory or they do not align with it.
Critical Analysis of Role of Ethics and Ethical Practice in MediBank Heath Insurance
According to Jayasundara (2014), being ethical does not hold the same impact as
following the law. A law is formed by integrating the ethical standards and is pledged by most
citizens. Like feelings, laws can follow a deviation from what seems ethical. The concept of
ethics and morality holds a close relation. Ethics represents the philosophy of morality and
primarily deals with the right and the wrong behavior. Therefore, ethics describes and refers to
standards of right and wrong that prescribes what the human beings happens to do in terms of the
benefits to the rights and the society and obligations. In other words, ethics represents a system
of governing human behavior.

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In this regard, it can be said that Medibank Health Insurance complies to not only legal
obligations but also acts responsibly and ethically. The Code of Conduct followed by the
organization not only puts forward the practical principles but also ensures the minimum
standards of conduct and behavior expected while undertaking an interaction within Medibank as
well as the external parties(medibank.com.au, 2017). The code of conduct of Medibank Health
Insurance set obligations in context of:
 Health, wellbeing and Safety
 Law, policy and standards
 Trust, transparency and accountability
 Anti bribery and Gifts
 Conflict of the interest
 Protection of the assets
 Confidentiality and Privacy
 Responsibility towards shareholders and the financial community
The code of ethics therefore ensures the minimum expectations from the conduct and the
behavior. As organization, Medibank Health Insurance, remains committed to being compliant
with the legal obligations but also act in an ethical and responsible manner (medibank.com.au,
2018). The firm integrates each of the code of ethics within its operation.
Prainsack and Buyx (2014) however stated that development of a good ethical healthcare
policy is quite a challenge in best of times. In most of the developed societies healthcare remains
organized with the structurally complicated systems that are politically charged. Although the
mixing of the private and public providers and funders can prove to be advantageous in context

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of improving patient care and innovation in the medical treatment but the presence of the
imperfect market not only makes decision making challenging but diminishes effectiveness
thereby lowering the ethical standards and practice. The factors such as the ageing population
and trend towards the personalization of the medicine lead to the steady rise in the demand and
cost of the healthcare across all the healthcare system across the world. The move calls for the
need of following an ethical standard through fair rationing across all countries.
In this regard, it is said that Medibank Health Insurance tries to foster relationships based
on the trust and the mutual respect. The organization also remains transparent and accountable in
dealing with the customers, colleagues and the stakeholders (medibank.com.au, 2017). The
organization ensures safety, well being and health with the objective of preventing illness and
injury. The Medibank Health Insurance remains committed to maintaining and supporting a
productive and healthy workplace and thereby promoting the psychological and physical well
being of every individual. Thus, the organization sets the ethical standards where individuals
needs to abide by the following ethical standards. This involves:
 Employees must ensure dealings with one another and the customers, clients,
suppliers and the other members of the public are not only free from harassment
and bullying but victimization and discrimination.
 Employees should follow conduct and behavior that remains in accordance with
the expectations of the organization in terms of alcohol use, tobacco and drugs in
the workplace.
 Employees should perform in a manner and in accordance where the health,
safety and the wellbeing procedures and policies that remains applicable to the
role

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 The staffs should ensure safe behaviors and take reasonable care for their own
safety and health and that of the others.
 Should report all kinds of hazards and incidents within the work place and ensure
safety of the others.
The Medibank Health Insurance conducts its activities not only ethically but also with
integrity. Thus, the organization fosters relationship based on the respect and trust and holds
accountability and transparency in the dealings with the customers, colleagues and the
stakeholders (medibankhealth.com.au, 2018). The organization ensures trust, accountability and
transparency by ensuring the following ethical standards and practices for its employees. This
involves:
 It involves acting honestly in the best interest and the good faith of the
organization
 It involves displaying professionalism, skill, diligence and care in the duties
undertaken
 It involves coming to work in proper attire
 It involves treating the customers, colleagues, other members and suppliers with
respect and courtesy
 It involves respecting the individual differences and diversity
 It is necessary to pay respect to Medibank’s property and that of the others
 It involves complying with lawful and reasonable instructions either put forward
by a leader o an authorized person
 Avoiding all sort of false representations in connection with employment

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 It ensures that the employees do not take an undue advantage of the position or
use any information for the personal gain or that seems detrimental to the
Medibank or the customers.
 Employees should provide information about services put forward by the
company provided they are trained and authorized by the organization
 It is also necessary to use the social media responsibly and ethically and remain
fair with the dealings of the competitors.
 It also ensures that the employees does not engage in either an anti-competitive
conduct or behavior and should not discuss and exchange marketing or pricing
information with the competitors.
Role and Legitimacy of Management and Influence by Politics and Social Environment
The Board ensures an overall guidance for Medibank Health Insurance along with
overseeing the management (medibank.com.au, 2018). The Board monitors the financial
positioning and operational performance of the organization and oversees the business strategies
and approved strategic goals. However, in performing the role, the board remains committed in
ensuring appropriate corporate governance practice. The chief executive officer holds the
responsibility of managing the daily operations of Medibank. He is association with the
executive leadership team manages the company based on the approved corporate plan,
corporate policies and strategies and risk appetite set by Board.
The key management functions include:
 Succession planning and review resulting in the appointment of the newer
executive directors

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 Overseeing the recruitment of the senior executives
 Determining the strategy, budget, corporate plan and the performance targets
 Overseeing the business performance
 Evaluation of the growth options for expansion into the Healthcare Service
business
 Monitoring of the full and half yearly financial results
 Reviewing and updating the framework for strategic risk and ensuring the
alignment with standards put forward by Australian Prudential Regulation
Authority (APRA).
 Over sighting the crucial projects that included an embedding project and an IT
project
 Enhancing customer engagement, proposition and experience
 Over sighting major litigation and matters related to regulatory compliance
The challenges include:
The challenges put forward by the political and social environment included
inappropriate utilization and attendance, unplanned re-submission within hospitals, risk factors
related to lifestyle, chronic disease and a rising number of complex patients with numerous
morbidities. These pressures remain compounded by the community expectations that the
government continuously provides through an equitable access of the health service
(medibank.com.au, 2018). Medibank Healthcare with a wide range of innovative service ensures
healthcare alternatives and helps in reducing the demand for the related healthcare service

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Conclusion:
On a concluding note, it can be said that Medibank Health Insurance puts forward a wide
range of insurance services to the business, government and public across not only Australia but
also New Zealand. The organization has a dedicated team of the health professionals who
delivers over three million healthcare interactions in a year. Besides, the governance framework
of Medibank Health Insurance represents a culture based on the ethical behavior designed in
accordance with key values of the company. These values not only guide the employees but also
the business partners, customers, governments and the wider community.

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References:
Broad, C. D. (2014). Five types of ethical theory. Routledge.
Crossan, M., Mazutis, D., & Seijts, G. (2013). In search of virtue: The role of virtues, values and
character strengths in ethical decision making. Journal of Business Ethics, 113(4), 567-
581.
Elwyn, G., Tilburt, J., & Montori, V. (2013). The ethical imperative for shared decision-
making. European Journal for Person Centered Healthcare, 1(1), 129-131.
Graham, J., Haidt, J., Koleva, S., Motyl, M., Iyer, R., Wojcik, S. P., & Ditto, P. H. (2013). Moral
foundations theory: The pragmatic validity of moral pluralism. In Advances in
experimental social psychology (Vol. 47, pp. 55-130). Academic Press.
Jayasundara, C. (2014). Ethical Issues Surrounding the use of Information In Health
Care. Malaysian Journal of Library & Information Science, 9(1), pp.69-80.
Mason, D. (2018). Social justice and political change: Public opinion in capitalist and post-
communist states. Routledge.
medibank.com.au. (2017). Medibank Code of Conduct [Ebook]. Retrieved from
https://www.medibank.com.au/content/dam/medibank/About-Us/pdfs/Corporate
%20governance/Medibank%20Code%20of%20Conduct.pdf
medibank.com.au. (2018). Retrieved from https://www.medibank.com.au/about/corporate-
responsibility/community-fund/

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medibank.com.au. (2018). Retrieved from
https://www.medibank.com.au/content/dam/medibank/About-Us/pdfs/Medibank
%20CGS17_FINAL.pdf
medibank.com.au. (2018). Retrieved from
https://www.medibank.com.au/client/documents/pdfs/mpl_annual_report_2013.pdf
medibank.com.au. 2018. Retrieved from https://www.medibank.com.au/
medibankhealth.com.au. (2018). Retrieved from
https://www.medibankhealth.com.au/files/editor_upload/File/documents/
mhs5271_Gov_brochure_A
Mulgan, T. (2014). Understanding utilitarianism. Routledge.
Prainsack, B., & Buyx, A. (2014). Ethics of Healthcare Policy and the Concept of
Solidarity. Healthcare Policy And The Equality Gap, 650-654.
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach.
John Wiley & Sons.