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Midwest Family Mutual Insurance Co.- Achieving Green Success Through Telecommuting and Technology

Midwest Family Mutual Insurance Co.- Achieving Green Success Through Telecommuting and Technology

Encouraging employees to work from home is a beneficial initiative for every corporation that implements the strategy. The requirement for office space is eliminated consequently reducing the operational cost. Most corporations that leverage technological tools that enable for collaboration of employees and the accomplishment of business objectives will certainly reduce the overall overhead cost (Ipsen, van Veldhoven, Kirchner, & Hansen, 2021); thus, power consumption expenses will be on the individual employees’ homes. Also, the subordinate staff’s importance and roles will be dissolved.  However, some businesses, such as restaurants, do not allow for the flexibility of working remotely, and they can’t enjoy such benefits.

Working from home can be detrimental as it may influence the staff morale and lead to reduced productivity such that encouragement by other members is absent. There is a lot of freedom for employees as they work from home, and some employees cannot work efficiently without adequate supervision. The work-life environment is blurred; hence, it may be difficult for some people to decide when to stop working, leading to overworking. However, at home, there are possible distractions such as mundane house chores or family members that will certainly reduce the concentration on a specific task.

The rules and procedures involved in accomplishing a task are inherently set by Midwest Family Mutual Insurance Company to reduce the cost of running the corporation. Employees’ welfare and well-being are not considered as it is their duty and job functions that they are obligated to accomplish (Michaelson, Pratt, Grant, & Dunn, 2014). It is good practice for Midwest Family Mutual to have a hybrid working environment as a concern to its employees. Some employees are satisfied and motivated with the flexibility of working remotely, and the firm is pleased with the opportunity to save by incorporating a cost-effective working structure.

References

Ipsen, C., van Veldhoven, M., Kirchner, K., & Hansen, J. P. (2021). Six key advantages and disadvantages of working from home in Europe during COVID-19. International Journal of Environmental Research and Public Health, 1826.

Michaelson, C., Pratt, M., Grant, A. M., & Dunn, C. P. (2014). Meaningful work: Connecting business ethics and organization studies. Journal of business ethics, 77-90.

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Question 


CASE STUDY 13-2 Midwest Family Mutual Goes Green
Midwest Family Mutual Insurance Co., an insurance company with $120 million in written premiums in 2014, considers itself “environmentally green.” Through various initiatives, it has reduced its annual energy, natural gas, and paper consumption by 63%, 76%, and 65%, respectively. Ron Boyd, the carrier’s CEO, attributes most of the improvements in energy usage to the creation of a virtual work-from-home environment as a result of implementing a series of electronic processes and applications. These include imaging and workflow technology, networking technology, and a Voice over IP (VoIP) network. In 2006, when these savings were reported, all but two of Midwest Family Mutual’s 65 employees worked from home. In addition to the energy savings that the company has directly experienced, Boyd estimated that in 2008, the company’s telecommuting policy resulted in fuel savings of at least 25,000 gallons.

Midwest Family Mutual Insurance Co.- Achieving Green Success Through Telecommuting and Technology

Although green computing was a commendable goal in itself, Midwest Family Mutual’s bottom line also has benefited from the company’s socially responsible approach. Over a five-year period, Midwest Family Mutual was able to shave its expense ratio to 25.9% from 33.5%. Its Web site states, “Being green environmentally and operationally CAN [emphasis in original] equate to being green financially.”

Green computing grew out of Midwest Family Mutual’s IT successes, according to Boyd. As the company started realizing savings from the electronic processes it implemented, management started thinking about telecommuting arrangements that allowed its employees to work from home. Boyd adds, “It became obvious that many of our jobs could be done wherever a high-speed connection existed…. VoIP completed the technology requirements for all [employees] to work from home.”

Boyd summarizes that the company “became green as a side benefit of saving resources and cost.” The company continued its green policy with its decision to sell its 24,000-square-foot office building in Minnetonka, Minnesota. However, to provide more centralized regional service to agents in the new states in which it was recently licensed (i.e., Arizona, Nevada, Utah, Colorado, Idaho, Washington, and Oregon), the company built a new home domicile in Chariton, Iowa, in 2012.

Discussion Questions

Do you think the economic benefits that Midwest Family Mutual realized due to green computing are unusual? Do you believe that most companies could see similar types of monetary gains? Explain.
What are some possible disadvantages that the employees of Midwest Family Mutual might be experiencing as a result of its virtual work-from-home office environment?
Apply the normative theories of business ethics to this situation

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