Social Responsibility Strategy for Cigna Healthcare
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SOCIAL RESPONSIBILITY STRATEGY FOR CIGNA HEALTHCARE
By Farah Shekari
Introduction
Social responsibility is the inclusion of the public interest into corporate decision-making. The idea is that a corporation will regulate itself and hold itself accountable and act only in the best interest of its stakeholders (not stockholders) by being completely aware of the effects of its corporate decision-making on the community surrounding it. Social responsibility is not necessary legally imposed and everything that is Legal is not necessary ethical. The company I have chosen to improve their strategy is Cigna Healthcare; I intend to implement the triple bottom line strategies “People, Planet and Profit” to address environmental, ethical, and sustainability considerations. I will also be explaining the benefits vs. risks of corporate social responsibility for stakeholders and developing the best practices for Cigna.
Environmental Considerations and Recommendations
Environmental considerations are a major factor in todays life for every individual as well as for Cignas business practice. Cigna could implement a virtual filing and storage system, have employees telecommute to work, and encourage waste reduction in the workplace.
By using virtual filing and storing system, Cigna can potentially save on money and printing paper document for storing in the file room storage. This is a practice that is environmentally friendly and will save money in the long run. There will be reduced costs for printers, ink, and paper with a virtual system. It might have an initial cost for updating computer systems in order to have the storage capacity to potentially have large documents to be saved in the shared drive for employees to have access to it in different locations, but in the long run, it is a strategy that will be cost effective for the company as well as being environmental friendly.
The above system will also enable the next recommendation, which is to have as many employees as possible working from home. In teams with little to no interaction with external customers, employees can be set up to have an office at home. This will cut down commutes. According to Hodges, “The average passenger car in the United States produces just under one pound of carbon dioxide per mile traveled” (Hodges, 2010). Therefore, a 38-mile daily commute contributes 38 pounds of carbon dioxide. The annual contribution would be 9500 pounds of carbon dioxide. It would take 204 mature trees to absorb that much carbon dioxide each year per car (Colorado Trees).
According to above studies, employees that work at home are more productive during the hours worked compared to employees in the office. Reduced commutes will also reduce pollution released into air.
The company can also implement green management, which consists of the 4Rs: reduce, reuse, recycle, and recover. This waste reduction technique is also environmentally friendly and cost effective. The company can educate employees about recycling and other waste reduction strategies. Though it might take time for the majority of the employees to change their behavior, but they likely will over time with encouragement and incentives.
Ethical/ Legal Leadership Considerations and Recommendations
Ethical leadership considerations are another important factor. When Cigna acts with integrity, it will build a strong reputation that allows it to grow in business as well as among its employees. Cigna should keep an open-door policy, encourage ethical behavior in the workplace, and have a no retaliation policy.
According to Cignas president Bill Atwell, the company is “closely watched and examined by regulators and business leaders who review their record and commitment to the culture of ethics and compliance”( Bill Atwell, personal communication).
It has to ensure no misstep, as there is no room for error since smallest mistake will result in lost business opportunities and customers, which can damage its reputation in marketplace. By educating and having an open-door policy for employees at any level with senior management, Cigna can ensure and maintain the position it has as a trusted industry leader with strong customer loyalty. Cigna should recommit to doing the right thing every single day, which can be done fostering the culture of not being afraid to speak up. Employees at any level should feel safe and have the tools to be able to report any unethical or non-compliant conduct anonymously if they chose to. If an employee observes potential violations of the law, that employee should be encouraged and empowered to speak up. This can be as simple as talking to a manager, compliance officer or human resources representative.
The company should also enforce a no retaliation