Business Ethics

Business Ethics

In business ethics, proper image management is essential because it aims in building, maintaining and recovering any business losses. Loss of business results to organizations closing down due to lack of assistance from insurance companies. Under the insurance plan, victims should be protected from their loss of property, and life. If the insurance companies do not provide any assistance, the business will encounter losses in the end. Those companies that fail to fulfill the needs of the victim may experience a considerable damage in management efforts.

According to Eaton and Truester (2007), insurance companies did not compensate Hurricane Katrina victims thus led to many suffering from losses. Instead, insurance companies increased the coverage cost, dribbled out compensation and low-belled repair costs. Lack of aid may hinder their reputation because of failing to fulfill the requirements of the victims. After subsidies to the lawsuits, the profits of the insurance companies significantly suffer, thus causing the company to file a case for bankruptcy. Insurance companies should fulfill the needs of their customers through the provision of necessary aid (Eaton & Truester, 2007).

Poor image management leads to diverse effects in any insurance company. Poor services such as financial loss, low quality services and failure to meet essential needs of people lead to poor management. For instance, those on top of management may end up losing their positions, or sacked out thus become jobless. It is essential for managers or those in authority to understand the needs of the people together with their own domain in order to run business efficiently (Ecker, Heslin & Backman, 2001). There is need for better plan, guidelines and proper resource allocation thus fulfilling the needs of victims in the entire process. Poor management in insurance company can only result to business failure, and it creates bad implications towards an organization.

References

Eaton, L. & Truester, J. B. (2007). Insurance woes for Hurricane Katrina victims. The New York Times. Retrieved from http://www.nytimes.com/2007/09/02/business/worldbusiness/02iht-orleans.4.7353442.html

Ecker, J., Heslin, C. & Backman, J. (2001). Image Management: Image and Etiquette Tips for

The Business professional. New York, NY: Professional Image Management.