Leadership And Social Responsibilities

pages Pages: 4word Words: 890

Question :

New Zealand National College

Code: 601

Assessment task:

1)  Examine the Youi case and identify two social implications and two ethical implications of their Fair trading act breach in New Zealand. Comment on the leadership influence that might have influenced this ethical breach with the organisation’s staff. (LO4)

2) Youi Insurance operates in Australia and South Africa in addition to New Zealand. Comment on how this case in New Zealand may influence their business operations in other two countries. Comment on the benefits and shortcomings of a globalised operation like Youi. How should a multinational organisation like Youi position itself in order to safeguard itself in a scenario like in the case? (LO6)

3) Conduct a thorough research on the Principles of Treaty of Waitangi. Recommend Youi management three strategies that may help them structure their Corporate Social Responsibility (CSR) strategy in line with the treaty principles. (LO5)

4) Report is presented in a professional standard and the oral presentation reflects extensive presentation skills.

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Answer :

Executive summary:

The leadership and social responsibility is the most important component of the business operations that help in enhancing efficient workforce and performance. The paper focuses on the study of leadership and management, the importance of leaders in business setting. The following points that the paper meets are the influence of leadership in Youi operations in countries like Australia, New Zealand and South Africa while analyzing the treaty of Waitangi and Maori settlement. The paper ends with proposed recommendations in regards to the Youi insurance and concludes with the understanding of leadership and social responsibility.  


Leadership and social responsibility is an aspect of every business organization that focuses on the leadership skills a, talents, experiences, within the organizational premise. The leaders are an important part in regards to the functions and performance that ensure effective and efficient work conditions and employee performance while fulfilling organizational targeted goals and objectives (Shao, Feng & Hu, 2016). The paper focuses on demonstrating the leadership functions and importance of leadership management an d social responsibility in relation to Youi insurance through the effective study of secondary sources like journals, articles, journal articles,. The report helps in the understanding of leadership theories that are used as tools within the business settings that will help in evaluating the effectiveness with the use of tools and theories and understanding of social, economic and ethical values. 

Examine the Youi case and identify two social implications and two ethical implications of their Fair trading act breach in New Zealand. Comment on the leadership influence that might have influenced this ethical breach with the organisation’s staff. 

Fair trade:

Fair trade can be referred to as the social movement that aims at developing the existing trade practices in the developing countries that will foster trade growth and conditions resulting in social, ethical and environmental standards.  The fair-trade deals with particular products that are exported and imported under appropriate trading structure where profit stands above all. 

Social implications 

An implication refers to something or some scenario that is suggested, or that happens indirectly. When a person is guilty of its fault, he or she is left opens several discussions in regards to his causes of being guilty resulting in diverse judgements. Implication generally have different segments sometimes as effects or consequences that may occur in the future to the individual (Nita, Solomon & Mihoreanu, 2016). From the case scenario, it is observed that Youi has been fined of $320,000 as the Youi has been found deceiving sales methods when it tried to sell policies to multiple people in regards to extracting quotes. The insurer Youi was charged with the fine of approximately $9 million in regards to fifteen Fair Trading Act breaches, established by the Commerce Commission. The social implications of something in regards to Youi inaction refers to the implications of a social interaction and how social factors have been affecting the Youi trading breach in New Zealand.  In addition, it is important to note how social factors and implications affect people.  As examined, social implications can either benefit of harm the company. Youi’s penalty was exempted as it pleaded guilty to the charges and tried to resolve the problems that has been charged against Youi. However, Youi had to pay a large amount of money to the Insurance Council of New Zealand of dollar 100,000 that is charged as fine for breaching its code of conduct. In addition, due to such charges against Youi has created a bad image of the company by the media. The social implications could refer to the increase in the revenue for being associated with several other agencies in facilitating its business and that will help in paying taxes.  Social implications are most of the time hard to predict and can affect individual’s status in society due to the varied and distinct social perspectives caused due to the judgments about the individual’s action (Kolk, 2016). Such actions are monitored and spread through media reaching out to the wide audience in the society who often without knowing the whole scenario poses judgements. 

Social implication of Fair Trades:

Fair trade has been influencing several socio-economic, cultural and environmental aspects. The market relations need to be fostered as it has direct impact on the trading procedure affecting the revenue, import, price, social development, and sustainable trading fair means. The society have been contributing in developing the livelihood of the farmers and the workers involved in the fair-trading practices and networks and establish appropriate price in relation to the product quality and quantity. Social implications can also be referred to the sustainable commercial contribution in the fair-trading process and foster the relationship and acts between the partnerships that help in attaining development gaols and fix prices accordingly to gain profits. The social aspects of fair trade are incomplete without cooperation and effective cooperation through the implementation of effective marketing strategies while improving and diversifying the livelihood and sustainability

Ethical implications

Kantian ethics is considered as a deontological ethical theory established by the well known German philosopher Immanuel Kant. The theory has been introduced through the enlightenment of rationalism that refers to good thoughts and good will. According to the theory, the individual action only is favourable if its duty is considered as good and justified under the law. As observed, Kant produced the categorical imperative in multiple ways. Kant has established the famous principle of universal-ability that states that the action is allowed to work on and be permissible or applied  only if it has the ability to be socially and morally accepted without a contradiction occurring. 

Ethical Implications of Law

The concept of ethics states that every individual are equal in the eyes of the law. Often, Ethical law are established by the authorities that help in ignoring personal bias in reference to their job and individual’s performance. Citizen jury members need to ethically perform their duties, responsibilities and obligation (Chell et al. 2016). However, in regards to the study of secondary sources, it found that stress and confusion develops when an ethical decision is not followed or constantly consistent in the eyes law. For instance, Youi has been found guilty of his faults and of misleading people for benefits a profit is considered against violating the law. The ethical decision is to put a barrier to such unlawful acts and put a stoppage to violence. According to the ethical implications of the law, Youi can be convicted and punished for such unlawful act.

Ethical Implications of Honesty

It is important to be honest against a person’s ill act that affects the law and the other people involved and ethically a good person is always honest. However, honest needs not be applicable for all individual. With Youi he was honest and accepted his faults and was guilty of his acts of misleading and deceiving. Therefore, honesty can be considered as a clear-cut value. An honest person under ethical implications can be charged with less fin and punishments as honesty is appreciated under the ethical implications of law. 

Risk of similar unethical practices:

There are several risks and consequences in relation to such ethical practices that increase the occurrence of risks, bankruptcy that tends to deteriorate the image of the members and the company and decrease the availability of customers and sales opportunities, creates occurrence of misconduct and fights among the employee and the members internally resulting in employee turnover. Due to such risks there are issues and decrease in employee recruitments. Such risks results in not fulfilling and delivering the promises while mis-presenting and misleading the goals and deceiving people (Dawid, Harting & van, 2017). It is important to assess the company policies and analyze the unethical acts that the members like Youi that decreases trust among the members within the insurance team, resulting in misleading the members of the society through which the insurance policy are conducted and are appealed resulting in significant risk. 

The leadership influence may encompass impact of remuneration structure:

The remuneration structure is set according to the current status and performance of the employee and organizational structure that helps in providing appropriate balance of fixed and variable rewards. The rewards often include both short-term and long-term incentives, offers, bonus and related based on performance-related analysis and examination in relation to individual’s work performance. Leadership influence helps in mending and affecting individual’s emotions, opinions, ideas, or behaviours. Leaders are important in regards to the management and control of the employee structure and performance (Bird & Mendenhall, 2016).   One of the important qualities of a leader's ability is to ensure that the power is maintained equally and the organizational policies are maintained by every employee analysing the workforce and performance. Influence helps in guiding the policies and fulfilling the guidelines while confirming socialization, obedience, and persuasion among the members of the insurance company. It is important for the leader in boosting confidence among the members. Therefore, for the leaders it is important to regularly gain knowledge and should be honest and genuine in regards to his work and duties. In regards to the leadership influence, behavioural theories of leadership are of great help. Behavioural theories refer to the study of specific behaviours of a leader and helps in understanding the moods and temperament of the leader (Yuliarini & Ismail, 2016). Leaders help in increasing of the payment structure of it employees post the examination of individual; employee performance as the leaders generally have positive impact on the remuneration structure that acts as benefits in relation to the employees. Leadership influence therefore stands as an integral part in the management of any business company. As observed, leaders act on its workers and employees have direct or indirect influence that affects the employees and derive outcomes.

Remuneration structure

Figure1: Remuneration structure

(source: Yuliarini & Ismail, 2016)

Benefits and shortcomings of a globalized operation

Youi Insurance operates in Australia and South Africa and also New Zealand, therefore its business operations are globally assessed and evaluated while strategizing global economic output and expansion. However, there are several benefits and shortcomings of a globalised operation like Youi. 

In relation to Youi insurance, it can said that cooperation and communication is a major benefit as it has been using online and network sources in meeting the client’s needs and reach out to them for their operations. With the multi-cultural preferences and social doctrines, Youi would not be able to gain equal profit and market well in different places. With Youi insurance and its team network sourcing has been benefiting them over years. The focus of the company is to develop the New Zealand, Australia and South African business and provide maximum support and service to their customers (Contractor et al. 2015). They have been able to satisfy and understand the issues with the help of the reviews and posted on Youi Wall. Through the feedback analysis it has been examined that ninety one percent of the customers were satisfied. The Youi are enforcing management process in operating locally and establish wider insurance market that will enable the Youi in providing distinguished and modified product and reduce price competition. Therefore, it will help the Youi in gaining brand name and expand its brand liability across globe. The Youi insurance need to make sure that their services are under warrantee. The customers need to be given warrantee and guarantee in regards to the services so that they can be altered. In order to maintain the brand liability, the company needs to inquire about the services and facilities provided to the clients in accordance to the recall policy that will trigger the existing policy, services, product liability and limit the brand value loss. The liability can be addressed through the understanding of the annual growth, investment, and assess the insurance liability policies like product and service liability, employment liability and public liability

However one of the major obstacles of the company is that customers were unable to receive invoices for the unsolicited insurance pattern and were not given sufficient information and brief of the associated insurance policy and often were under no obligation in regards to the payment of the policies as insurance policy were mostly unsolicited resulting in frustration and stress among customers how have cancelled policies and faced difficulties in receiving their refunds (Shao, Feng & Hu, 2016).

The Youi insurance can cater to localise it brand expansion rather than spending millions on global front through localization strategies after examining the existing marketing structure and demands and interest of the clients. The localization of brand ill help in assessing the social and cultural differences of both the target markets and clients and enhance the brand value. This method will help in saving a lot of money compared to that of the global marketing approach and help in gaining maximum profit. Localization of brand will also help the maintain strong bonding and communication with the local markets and clients.  This well help th Youi insurance in adapting to the services within the particular geographical locale and reduce local sensitiveness.

With the proper and effective application of marketing strategies and localization of brand the company can excel and expands its services in the other two countries besides New Zealand. In expanding its operation both globally and locally the company can expand its services to a wider geographical locale, enhance efficiency and gain maximum profit. Besides, the Youi insurance can cater to new markets and modify its existing services in relation to the needs and expectations of the clients and customers and get rid of conventional modes of practices and reduce macro-economic and operational risks by collaborating with wider consumers and clients and arrangements of more number of shareholders and investors who would help in limiting the perceived risks through effective decision making-process and create its own territory. 

The ways in which the Youi company will Safeguard itself:

Multinational companies like Youi can safeguard itself by managing its employee and performance structure through effective training and development. The company needs to empower its workers and members. The Youi needs to handle and control its global payroll, recruitment, appointment, and consult the human resource for effective management and requirements. It is important for the company to safeguard itself of the competitive risks and threats and accept every challenge that comes its way. Therefore, training is significant in making the members and workers understand of the global and local risk posed by physical and social factors and establish dynamic business entity. The human resource management need to generate outsourcing solution and assess the problems so that the company can implement immediate actions when the risk might probe in and affect the performance and services. Besides, the members need to have knowledge about the social, economic and cultural atmosphere and address employee related compliance risks. 

Conduct a thorough research on the Principles of Treaty of Waitangi. Recommend Youi management three strategies that may help them structure their Corporate Social Responsibility (CSR) strategy in line with the treaty principles.  

The Treaty of Waitangi refers to the partnership sets and conducts duty on the partners that need to act reasonably and with good faith. The freedom of the Crown to govern the remedy past breaches. Māori need to gain Rangatiratanga over in regards to their resources and Taonga in order to have full custody an d privilege over citizenship. The Principles of the Treaty of Waitangi in reference to Maori settlement helps in reconciling the distinct Māori language and English language sections of the Treaty of Waitangi (Klein, Davis & Kridli, 2015). The principles tend to help with the application of the Treaty in a broader contemporary context. However, the principles of the Treaty of Waitangi are often followed in the recent New Zealand politics.

The principles follow:

The Kawanatanga principle or the Principle of government that states the right to crown that helps in establishing new laws in relation to constitutional system. The principle helps in promising and fulfilling Maori interest and help in protections of the crown. The principle states that the government has every right to make laws and govern the relevant principality and laws (Stevens, 2016).

The Rangatiratanga Principles is also referred to as the principle of self-management that helps in providing guarantees to iwi Maori control and help in retaining the Taonga and resources while provide necessary strategy in preserving the resources and restore the iwi management. The principle looks forward toward the protection of the cultural and social elements of Taonga and the crown policy in relation to Rangatiranga (Summerfield, 2015).

The Principle Of equality assures legal equality under the law and principles that enable equal standards that exist between Maori and other settlers of New Zealand. Every individual are considered equal under the law. In addition, human rights are governed, formulated and followed under the international law that is added under the treaty of equality (Moon, 2015).

The principle of cooperation is regarded as the crown that helps in introducing unity among people and ensures that there is cooperation among every citizen. The treaty of cooperation tries to enhance community and individual development through the distinctive cultural and social unity that will foster good faith cooperation, will and balance.  

The principle of redress ensures that every process is accorded with the resolution of grievances that emerges from the treaty. The process involves indulgence of courts and Waitangi tribunal. The principle ensures that there is no injustice occurring within the settlement. The crown states engagement in the process that helps in redressing that will expect reconciliation. 

Recommended strategies:

Treaty of Waitangi has been referred and applied in significant corners of New Zealand Government policy. Policy and principles needs to be governed under the Māori population and emphasize on the settlement of Maori in relation to historical grievances, property rights, and Crown’s regulations and protection to Māori. 

  • The Kawanatanga principle looks forwards in marinating the protection of crown. The English-language and Māori-language sections need to be regulated and analyzed under of the Treaty of Waitangi that will ensure that every settlers are given equal rights and standard under the law that will help in generating equal outcomes and opportunities and provide necessary guidance towards education. 

  • Under the principle of equality, the government can help the Maori identify their roles and responsibilities and importance of marinating equity and unity among every citizen resulting in self-management (Bird & Mendenhall, 2016)

  • The government needs to formulate effective approaches towards to the treaty issues under the socio cultural arena and have open conversation and communication with the Maori settlers about the social policies and principles that will foster relationships between both and resolve the existing issues in relation to the Treaty of Waitangi and help the local Maori iwi (Black, 2013)

The Youi needs to understand and closely study the Treaty of Waitangi and implement its principles in maintaining an effective agreement among the clients or the customers and the company under common set of agreements similar to that of British settlers and Maori people. With the understanding of the treaty and is principles the Youi can gain its prominence and understand its social responsibility and help in identifying the issues and grievances and find remedies and solutions for fostering social and economic development. Most importantly it will help in bridging the breaches caused due to several discrepancies and underline new responsibilities and duties that will help the members towards performing better and reconstruct the foundation. Settlements following the treaty will reduce the breaches and impacts and foster mutual relationship among the clients and the company. 


From the above study it is understood that leadership and the role of leader is important in fulfilling the aims of people, organizations, management. It is the leader who fosters social relationship and enhances communication and productivity within the work premise and customers as leaders are important element of scalability and management. Management and leadership helps in widening ten business concepts and analysis in regards to the whole operation. Leadership has been serving people towards higher accomplishments and motivates the employees towards improving their performance. In addition, the paper focuses on how the treaty of Waitangi and its principles help in establishing strategies for development and growth among Maoris. The Treaty of Waitangi helps in establishing the agreement between the representatives of the British Crown and Maori. The Treaty tries to enable the British settlers and the Māori to cooperate and collectively live together in New Zealand while following a favorable set of laws or agreements for the growth and development. 


The Youi insurance company needs to strategize in expanding its operations globally in addition to Australia, New Zealand, South Africa and implement the targeted strategies that will modify and bring positive changes the way insurance policies will be bought and sold. The insurance team needs to split or divide the premium amount that includes expense ratio, mortality changes and investment. The company needs to involve professionals who will assess the overall performance and analyze the solutions and the cause of risks and problems . 

Insurers needs to require the disclosure of the internal rate and guarantee the customers with maximum profits and make them aware of the new policy schemes and return policies. The company can pay favorable amount to the policy holders and make the policy holders aware of the exact status after the deduction cost. They need to establish stronger connection through effective communication that will help the insurance team in making the clients understand and aware of the current policies and establish a query and a problem solving team who will be able to assess the doubts and problems in regards to the insurance policy.