Organizational Ethics Research Paper Example | Topics and Well Written Essays - 750 words

Organizational Ethics - Research Paper Example The argument is based on the idea that some auto insurance companies refuse to pay for the vehicle damages by looking for loopholes that would invalidate the cover the customers insured their vehicles against. ISAA is one of the leading auto insurance companies in the United States (ISAA, 2014). The organization has been able to develop and maintain competitive advantage on the grounds that it has developed mechanisms of adhering to its ethical codes for a long time. This has made customers develop trust in its operations. External social pressure has been found to play a critical role in shaping the ethical conduct of many organizations (Ferrell, 2012). For instance, ISAA has been on the lookout not to mess up with the social issues affecting its customers and the public in general. Societal expectations on the way organizations conduct their businesses have been under scrutiny in the last few decades because of the increase in the social responsibility concepts that members of the society expect from every organization. In fact, organizations that practice little or no social responsibility has been eliminated in the markets and replaced by those organizations that prioritize on the same. In regard to ISAA, the organization has developed a social ethics guide to ensure that it complies with the societal expectations. For instance, ISAA has devised a program for environmental sustainability (ISAA, 2014). This makes people to have good relationship with the organization. Ferrell, J. (2012) argued that such a move puts organizations ahead as far as competition is concerned. Employees are considered as the primary assets of any organization. For the organization to thrive in a highly competitive market, it is indispensable to have workforce that have good code of conduct. This is important because their services especially when conducting business with customers greatly determine the kind of picture that they paste on the