Question

Analysis of this case?

Selling expensive insurance policies

Ahmad works for a life insurance company as a sales representative. He has been working in that company for more than five years. He has got good communication and presentation skills. He has attended several workshops on sales and marketing to enhance his skills. The company is happy with its performance and gives a good salary and commission on the policies he sells.

Ahmad has several plans to sell. One of the insurance products is a plan that is a combination of savings and insurance. Ahmad is convinced and focused more to sell that plan because the company also appreciates and encourages more to its sales representatives by giving handsome commission on its sales. The product promises to protect the family in case of premature death as well as a good return on an investment after retirement.

The language used in the agreement paper is hard to understand. Usually, clients do trust in Ahmad and do not read the agreement thoroughly. Ahmad knows the facts very well. The product is expensive and provides a little protection in case of premature death. Another disadvantage of having that product is a low return on an investment after its maturity. The company pushes its sales because it is more profitable. Ahmad has other cheaper products to sell that can give more benefits to his clients including greater protection and return but the commission on sales by the company is too low.

Ahmad cannot earn more if he sells products considering consumers’ benefits. His family will suffer if he thinks good for others and the management frowns on cheaper policies being sold.

Answer 1

If we look at this case it consists of various stakeholders as a company, employee, customer, customers families, regulatory authority, and anyone who is affected in any way by this. If we analyze this case from all prospects then it is a case of ethics and business ethics. If we define Ethics, it's nothing but morale. Business ethics can be said as a set of rules and policies than an organization needs to follow or set of rules and principles that govern business and it's sustainable development. Ethics is a very vast subject and covering each and every aspect is not possible for any business.if we look into this case from all perspective then it is as :

For the company:

From the company's point of view, it is completely unethical. The company must always come up with a product that is customer-oriented not company oriented and this is the key for any business to run profitably in the long term. Today or tomorrow the truth will come out and then it will not only tarnish the company's image but the people can also sue it for fraud as they are hiding things.

From Ahmad point of view:

For Ahmad, it is a two-sided affair, on one hand, he has to earn and look after his family, and secondly, he also had to look for his customer's benefit as they trust him. If we analyze the case form Ahmad's point of view then he got to sell the product of the company no matters what and if he won't others will for sure. In this case, he should inform the customer form his side and pitch for the product which will earn him profit as he is an employee who works for an organization from where there is regular pressure on him to sell and meet his targets.

For customer:

If we look at this perspective then surely this is a segment which is at loss. But instead of trusting anyone, they should themselves inquire into the policy look into the terms and conditions, and then purchase it.in today's world self instinct and self-trust is more important than others.

This case is a perfect example of doing unethical business ethically and prooving everything has two faces. To run a business one has to move by maintaining balance.it has laid down rules and regulations and following it .