OPINION: Why doing good is good for business

“We have an unfair advantage – we care!” proclaim the giant red letters splashed across the wall at my gym. The slogan is also prominently displayed on staff uniforms.

This has got me thinking. Are businesses obligated to go beyond providing contractual service and care? And does transcending traditional contractual obligations translate to strategic advantage in business?

Insurance is fundamentally about risk and responsibility sharing among large groups. Of course, even when adhering strictly to contractual obligations, insurance almost always creates positive social dividends by selling a core product that has intrinsic social value.

For decades post-World War II, this focus created businesses that produced much-needed goods and services, and powered economic growth around the world. Insurers’ ethical duties to customers were to fulfil their obligations in utmost good faith, and make decisions with integrity, fairness, transparency, and honesty.