Management Accounting of WealthWise Insurance - Case Study Example

1. Sustainability reporting holds an important aspect for business and the importance of it magnifies in case of public limited companies which work in the service sector like WealthWise Insurance. Sustainability is seen both as a challenge and an opportunity for the service sector. WealthWise Insurance have to understand and realize that government, society and individuals have an increase interest in identifying the contribution of the business towards environment, social and economic which they have to provide and have to look towards the betterment of all. This requires an increase role and effort on the part of the management to ensure that complete description regarding the different areas are provided so that the external agencies are satisfied. Before moving on it is important to understand what sustainability development means from the view point of service sector. Different definitions from different renowned authors and scholars have been provided in this direction but the best one fitting according to the criteria is development which helps to ensure that the present needs are met but doesn’t even compromise on the future generations and ensures that they are able to meet their needs (Deegan, 2002). This means that WealthWise Insurance have to keep in mind the longer perspective and based on it needs to take decision. This includes different parameters like the investment avenues, insurance solution or societal benefits which has to be looked at to ensure long term growth of the business. This is pure sense means that WealthWise Insurance have to ensure that true and correct picture is provided which helps to ensure that the resources which are used by the business doesn’t affect the future potential capability and not using it in a way which will affect future generations. Instead it requires that WealthWise Insurance provide complete and true picture of the scenario and brig forward to the people the different areas which has an effect on economic decision with respect to natural environment, social conditions and the overall use of resources of the society (Morhardt, 2009). The role of WealthWise Insurance is to ensure proper sustainable development strategies and bringing forward the actual issue in front of the common people. The increased pressure from government bodies to ensure that proper disclosure are provided which will ensure that correct information are provided by WealthWise Insurance. Along with it the increased role of consumer organization and non-governmental bodies have increased pressure on WealthWise Insurance to ensure transparency and clarity by highlighting the steps taken by the business with regard to sustainability development The risk for the business with identifying the issues of sustainable development increases due to the different challenges which the situation creates. The inability of the business to meet the requirements will result in risk pertaining to strategic, business and reputation for the entire enterprise. This makes it imperative that WealthWise Insurance looks towards furnishing complete and true picture regarding the manner in which different aspects of sustainability development has been looked at. Bringing incorrect information in this regard would thereby make WealthWise Insurance liable as it is his role to ensure that correct and true picture regarding the issue is provided to the general public and interested parties (Moradzadeh & Hamid, 2006). 2. The key performance indicator which WealthWise Insurance considers while evaluating the performance is the manner in which the company becomes socially and environmentally responsible and the contribution that the organization has been able to make in this direction. This will ensure maximum satisfaction and will help to evaluate the performance of the organization as it will ensure that the service sector is able to ensure that the different requirements of the customers are easily met. The importance of delivering quality services has increased as businesses faces stiff competition and with technological advancement it has become imperative that the sales man understand the requirements of the customer and try to deliver services and product which will multiply the satisfaction level of the customers. It is imperative that business looks towards finding out ways through which customer can be satisfied and this can be achieved by understanding the customer requirements better. The manner in which the customer base has decreased the importance of satisfying them has grown. Businesses have to ensure a mechanism through which customers are happier and are able to retain them for a longer period of time. This makes it wise to understand the customer requirements and ensure that through personal selling the business is able to meet their needs (Hale, 2003). This has ensured that WealthWise Insurance looks towards evaluating the performance based on the contribution towards the society. Another important aspect which is considered while looking towards achieving its mission is the manner in which the business is able to ensure their contribution towards charities and providing employment opportunities so that contribution towards the society can be made. This increases the role of people coming in contact with the customer so that relevant information pertaining to the customer can be provided for better future strategies based on which the required personnel can be chosen. This process thereby enables WealthWise Insurance to be able to achieve its objectives as it provides the required path based on which the performance will be evaluated. This will help the business to develop a framework through which the requirements of the customers are better understood (Anthony, 1998). This will help the business in dealing with the customer requirements in a better way ensure that the business is able to gain efficiency and ensure that they are able to deliver better services. It will transform in understanding the customer needs and will help the business to keep them with the business for a longer period of time. The different parameters which have been identified by WealthWise Insurance will thereby ensure that the service provider is able to look into the different fundamentals through which the business will be able to achieve its mission and objectives. This will thereby ensure that the different parameters which has a role in determining the manner in which the different contribution is made can be identified and based on it better mechanism can be developed to achieve those. 3. The other important areas which WealthWise Insurance can consider and incorporate in their process will ensure that better goals are achieved. This will also help to ensure that WealthWise Insurance will be able to develop a better framework through which the goals can be achieved in the most efficient manner. The importance of delivering quality services has increased as businesses faces stiff competition and with technological advancement it has become imperative that the sales man understand the requirements of the customer and try to deliver services and product which will multiply the satisfaction level of the customers. It is imperative that business looks towards finding out ways through which customer can be satisfied and this can be achieved by understanding the customer requirements better. The other area which WealthWise Insurance needs to work on developing the process also ensures that the sales person is able to highlight the benefit for the services so that proper supporting facility to render better services can be developed. It will help to build loyal customers as customers will be ready to purchase the same product or services again and again. In addtion to it WealthWise Insurance has looked towards ensuring that the problems that the customer faces are solved by providing solutions for the problems encountered by them. It will be beneficial in the long run as they will be able to handle if such problems arise again. A good work done at this level helps to keep customers with the company and also build goodwill as the customer realizes the company is always there to help them out (Fizel, 1999). Having personal selling will thereby have an impact on the manner the business is conducted and will be able to understand the manner in which the business needs to be conducted. This will ensure that WealthWise Insurance concentrates on the method through which services can be improved and will help to deal with the different issues that is being presented and will ensure that the overall business mission is achieved in a better way. This will also provide additional parameters which will help to find out the satisfaction level of customers and will thereby transform into an opportunity through which WealthWise Insurance will be able to provide better services. 4. Developing a process which will ensure sustainability and measuring the performance will help to multiply the importance of customer satisfaction and will increase the likelihood of achieving the objectives. The risk for WealthWise Insurance with identifying the issues of sustainable development increases due to the different challenges which the situation creates. The inability of WealthWise Insurance to meet the requirements will result in risk pertaining to strategic, business and reputation for the entire enterprise. This makes it imperative that WealthWise Insurance looks towards furnishing complete and true picture regarding the manner in which different aspects of sustainability development has been looked at. Bringing incorrect information in this regard would thereby make WealthWise Insurance liable as it is the role to ensure that correct and true picture regarding the issue is provided to the general public and interested parties. The fact that government has become strict and looks towards ensuring that WealthWise Insurance takes steps to reduce environmental harm requires that a framework is developed by WealthWise Insurance which aims at contributing towards the society. This could otherwise result in risk as additional cost will be imposed through fines on the business which would increase the cost of capital and would make it difficult for the business to continue their operations. This requires that WealthWise Insurance takes the sole responsibility of providing the correct information and looks towards disclosing all material facts as otherwise the accountant will be held responsible for the acts. WealthWise Insurance thereby has to act fair and ensure that all information pertaining to the situation is disclosed for better results (Gray, Owen and Adams, 2006). It should also be noted that WealthWise Insurance that abides with the sustainable development requirements are able to find better opportunities to innovate and modernize their overall development strategies. This is because of the fact that each group is able to provide their support which increases the financial viability of new developments. This is an area which WealthWise Insurance needs to understand and gauging by the different benefits that will accrue towards the organization has to ensure better sustainability. WealthWise Insurance has a role in ensuring that the organization they are looking after is abiding by the different legal requirements. Highlighting the sustainability development and ensuring clarity in brining forward the issues will ensure that the accountant has acted in fair interest. This will help to bring forward the actual situation and will act as a guide through which the business will be able to improve their operations (Bebbington, 1997) The role of WealthWise Insurance multiplies invariable due to the fact that it is the responsibility to ensure that through the actions the organization is able to demonstrate understanding and efficiency so that sustainable business practices can be implemented. This aspect includes both the financial and the non financial transactions so that the users of report are able to gauge the efficiency and the manner in which the organization was able to gain efficiency. This will promote their interest over long term growth and will have a bearing on the shareholders wealth as this will help to multiply their wealth and deal with the business challenges in an effective manner (Carol & Whelan, 2009). To ensure more parameters further use of different strategies through which the performance is measured based on removing the differences which exist between staff and the employees and ensuring that more and more people are hired based on the requirements so that better services can be provided and WealthWise Insurance is able to deliver quality services and match the requirements of the service sector. References Anthony, R. (1998). Management Control Function. 2nd Edition, Harvard Business School Press, Prentice Hall, UK Bebbington, J. (1997). Engagement, Education and Sustainability: A Review Essay on Environmental Accounting. Accounting, Auditing and Accountability, 10 (3), 365–381. Carol, A. & Whelan, G. (2009). Conceptualizing future change in corporate sustainability reporting. Accounting, auditing & accountability journal, 22(1), 118-143 Deegan, C. (2002). The Legitimising Effect of Social and Environmental Disclosures – A Theoretical Foundation. Accounting, Auditing and Accountability Journal, 15 (3), 282–311. Fizel, J. (1999). Does efficiency matters in managers. Journal of Management, 25 (4), pp. 567-585 Gray, R., Owen, D., and Adams, C. (2006). Accounting and Accountability: Changes and Challenges in Corporate Social and Environmental Reporting, Prentice-Hall, London Hale, J. (2003). Performance based management: What managers should do to get result. 2nd Edition, John Wiley & Sons Inc, UK Morhardt, J. (20090. Corporate social responsibility and sustainability reporting on the internet. Business strategy and the environment Moradzadeh, M. & Hamid, A. (2006). Corporate sustainability reporting. Monthly periodical of the accountant, 177, 17-25. Read More