Reference no: EM132301937

Midwest Family Mutual Insurance Company based in Plymouth, MN is very pleased to self-declare our Company environmentally “Green”. In the past 5 years, the Company has reduced its annual electricity consumption by 155,000 KWH or 63% and natural gas consumption by 5,700 therms or 76%. Paper usage is down by 65% with the implementation of extensive electronic notification processes. Beginning in 2003, a number of electronic processes have been implemented at Midwest Family. The most effective energy dependency change is our “Work from Home” office environment. After installing imaging and electronic workflow developed by CGI (a leading provider of Information Technology and business process services), Citrix technology, and Voice Over Internet Protocol (VOIP) from 3COM, the Company began testing processes with employees working from home. By September 2006, all employees except two worked from their homes. Due to this reduced commuting, employees burn 25,000 fewer gallons of fuel per year. In April 2007, a 24,000 sq. ft. office building in Minnetonka was sold in favor of much more modest and energy efficient rental headquarters in Plymouth, MN. This occupancy change resulted in the electricity and natural gas savings. Midwest Family’s Landlord is the Atria Corporate Center in Plymouth, MN. In 2007, the Atria Corporate Center, managed by Cushman & Wakefield of MN, joined approximately 3200 buildings nationwide that have earned the ENERGY STAR, with a performance rating of 94 (out of 100). The award is the EPA’s national symbol for protecting the environment through superior energy performance. Earning this award means that the building is using at least 35% less energy than average buildings while still providing quality service and comfort to occupants. As a result of this change, employee satisfaction is high and family life is improved. Many of our employees report less personal stress working from the “at home” environment. As one employee stated “I now have a window seat, control the heating and cooling, and my bathroom is always clean.” Other employees have related the comfort of seeing their kids on and off the school bus daily. Commuting time is traded for family time. Fuel and auto “wear and tear” expense has been reduced or eliminated. Employees also feel good about being part of an environmentally responsible organization. The final leg of the Company’s journey towards becoming a “Green” Company was the outsourcing of policy printing and production to our business partner, CGI. CGI has helped the Company execute numerous electronic methods of policy notification to customers, agents, mortgage companies and other interested parties that have dramatically cut paper and postage consumption. Coupled with growth in the last 5 years, paper usage has been reduced by 65%. Less paper consumed means more trees left standing. As a result, Midwest Family is self-declaring the Company “Green”. To the best of the Company’s knowledge, Midwest Family is the first Insurance Company in the nation to declare operational “Green” status. The Company is very proud of this accomplishment and the positive impact upon the environment in which employees live and work. The Company can also report that being “Green” has a positive impact on another form of “Green” for the Company…financial “Green”. In the past 5 years, the Company has decreased its expense ratio from 33.5% to 25.9% of every premium dollar. This expense ratio competes favorably with other insurance companies in the nation. Lowering expenses equates to more benefits out of each premium dollar going to Policyholders. Being “Green” environmentally and operationally CAN equate to being “Green” financially. Midwest Family Mutual is a multi-line Property and Casualty Insurance Company headquartered in Plymouth, MN. The Company provides various Commercial and Personal Lines insurance products through approximately 500 Independent Insurance Agents in the States of Illinois, Iowa, Minnesota, Nebraska, North Dakota, South Dakota and Wisconsin. In the past 5 years, revenue for the Company has grown by 62% and policy surplus reserves have grown by 100%. The Company has been in business since 1891.

Answer the following questions(Write your own answer, Do not copy form course hero):

1. Do you think that the economic benefits that Midwest Family Mutual realized as a result of green computing are unusual?

2. Do you think most companies can see similar types of economic gains? Explain. Apply the normative theories of business ethics to this situation.