PHI 445 Personal & Organizational Ethics
Dr. Stephen Law
April 15th, 2013
A merger occurs when two or more organizations decide to join forces and become one organization. One or more organizations must dissolve for this to happen. Sometimes all involved organizations dissolve and take on a completely new name. Sometimes one organization survives, and keeps their name, while the dissolved organization(s) must fall into the surviving organization's business structure. In the for-profit sector, this latter situation would be considered an "acquisition". However, in non-profit organizations (NPOs), there are no owners. Therefore, since the ownership of another organization cannot be acquired, legally it would be considered a merger.
There are two types of mergers: horizontal and vertical. A horizontal merger is one that occurs when two or more organizations with similar goals, missions or interests merge together to create one organization. A vertical merger is one that occurs when two or more organizations with different missions come together. Usually, the services they offer can work together in some complimentary way. Horizontal mergers are more common in the non-profit sector.
The overall goal of a merger in the non-profit sector is to create synergy. This means that as a whole, the merged organizations will work more efficiently or with greater quality than the sum of its part did separately. Other goals for mergers may include strengthening services, pooling resources, reducing duplication, lowering costs, and establishing a larger geographical presence. Under the right circumstances, a merger could be very beneficial to a non-profit organization, and to the individuals they serve.
The American Lung Association (ALA) is a nonprofit organization that promotes healthy lungs and healthy air. The ALA was founded in 1904 as a nonprofit organization advocating the study and prevention of Tuberculosis. They offer free counseling for individuals who want to quit smoking. They advocate for clean air laws. They are involved in searching for cures for lung diseases. It took them 50 years, but “by 1954, tuberculosis was largely controlled in the U.S.” (lung.org) American Lung Association changed their name in 1973. The ALA was largely responsible for monumental events such as banning smoking on airplanes, and even laws such as The Clean Air Act. ALA’s mission statement is “To save lives by improving lung health and preventing lung disease.” (lung.org) The majority of ALA is funded by donations from individuals and businesses. They also receive government grants for research. The ALAs value statement is:
“The National Headquarters is committed to the responsible use of American Lung Association assets in furtherance of its mission. We are committed to adhering to high standards of ethical conduct in all of our operations. This includes a commitment to provide accurate and complete information, to exercise care and act in good faith, to comply with all laws, regulations and organizational policies, and to promote ethical behavior. The American Lung Association’s culture is built on our commitment to our mission. We acknowledge our individual responsibility to ensure the American Lung Association’s success by practicing and promoting the following values. These values reflect a shared view of how we wish to operate and be perceived by others.” (lung.org)
The problems surrounding nonprofit organizations that I am going to explore are remaining transparent, acquiring donors, and hiring the right people. The business that I selected is Apple Inc. I chose Apple because I believe it is a strong company and will continue to generate profit and produce remarkable products for consumers. A large amount of their recognition can be contributed to their continuous releases of innovative...