Assignment 3: the American Red Cross (Arc)”

Better Essays
Assignment 3: The American Red Cross (ARC)”
October 28, 2012
HRM 522 Ethics & Advocacy For HR Pro

Determine the impact of this event on ARC’s “benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line). Business ethics includes the principles and standards that guide behavior in the world of business. The ethical behavior of a company is being judged and determined by its stakeholders. They may not always be right but their judgment affects the company’s reputation in society. There are several benefits of business ethics. Ethics contribute to (Ferrell, Fraedrich, & Ferrell, 2011, pp. 18-21): * Employee commitment – comes from employees who believe their future is tied to that of their organization and their willingness to make personal sacrifices for the organization. * Investor loyalty – ethical conduct results in shareholder loyalty and can contribute to success that supports even broader social causes and concerns. * Customer satisfaction – one of the most important factor in a successful business strategy; a company must continue to develop, alter, and adapt products to keep pace with customers’ changing desires and preferences and it must seek to develop long-term relationships with customers and stakeholders. * Profits – must have adequate financial performance in order to nurture and develop an ethical culture. Because of the actions of the American Red Cross following 9/11 and Hurricane Katrina, their benefits of business effects were damaged. Employee commitment wavered because of the actions of the organization. Because of the lack of monitoring some employees or volunteers were doing unethical and fraudulent things (i.e., mishandling funds). This misconduct severely damaged the reputation of the American Red Cross. Investor loyalty was diminished because the American Red Cross was not following their own bylaws and was mismanaging funds donated to the organization.



References: American Red Cross. (2012). Retrieved October 28, 2012. www.redcross.org Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Business ethics: Ethical decision making and cases: 2011 custom edition (8 ed.). Mason, OH: South-Western Cengage Learning. Governance. (2011). Retrieved October 28, 2012, from American Red Cross: http://www.redcross.org/portal/site/en/menuitem.d8aaecf214c576bf971e4cfe43181aa 0/?vgnextoid=d18859f392ce8110VgnVCM10000030f3870aRCRD&vgnextfmt=defa ult

You May Also Find These Documents Helpful

  • Better Essays

    1. Determine the impact of this event on ARC’s “benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line). This event has had a major impact on the American Red Cross Association’s business ethics. Often times, employees join organizations because they believe that they share some of the same values as the organization. When business ethics are comprised in an organization it tremendously affects employee commitment and their overall performance. A lack of ethics in an organization sends…

    • 955 Words
    • 4 Pages
    Better Essays
  • Better Essays

    The American Red Cross

    • 1548 Words
    • 7 Pages

    Determine the impact of this event on ARC’s “benefit of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line).…

    • 1548 Words
    • 7 Pages
    Better Essays
  • Better Essays

    Business Ethics

    • 1142 Words
    • 5 Pages

    Determine the impact of this event on ARC’s “benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line).…

    • 1142 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Determine the impact of this event on ARC’s “benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line).…

    • 1457 Words
    • 6 Pages
    Better Essays
  • Better Essays

    Ethics and Compliance

    • 1462 Words
    • 6 Pages

    In this paper we will as a team: Assess the role of ethics and compliance in your organization’s financial environment. Describe procedures your organization has in place to ensure ethical behavior. Explain how financial markets work in the United States. Identify processes the organization uses to comply with SEC regulations. Evaluate your organization’s financial performance during the past 2 years, using financial ratios. Calculate the ratios for each year: Current, Debt, Return on equity Discuss the trend for each ratio and what it tells you about the organization’s financial health.…

    • 1462 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Ethical Paper

    • 723 Words
    • 3 Pages

    Ethics are developed at all stages within a company from the first time you hire an employee up until the company releases an IPO and goes public. The first step to ethical behavior occurs when you are conducting a strategic plan. The company has to realize the role of ethics and social responsibility to implement a positive plan. Ethics have a lot to do with the company’s vision and how they perceive themselves within the marketplace. There are three questions that every company should ask when they are integrating ethics into their business; what do we stand for? What is our purpose, and what values do we have? The…

    • 723 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The Arc

    • 680 Words
    • 3 Pages

    Determine the impact of this event on ARC’s “benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line).…

    • 680 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Task 310.2.1-05

    • 675 Words
    • 3 Pages

    Business ethics can be defined as “written and unwritten codes of principles and values that govern decisions and actions within a company.” (Love to Know, n.d.) Behaving ethically is extremely important for businesses in order to cultivate an image of responsibility and grow a loyal customer base. Companies have a moral obligation to help the communities from which they profit to grow and prosper.…

    • 675 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Ethics Paper Wk.2

    • 673 Words
    • 3 Pages

    Business Ethics is a form of ethics, which examines the ethical principles, and moral problems that occur in a business. Ethics plays an extremely vital role in business today due because of policies, procedures, and practices. Policies are in place to administer order and structure in an organization. Employees oftentimes undermine these rules and regulations due to acquiring a little or no respect for his or her supervisors and the management team.…

    • 673 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.…

    • 1754 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Fieser, J. & Moseley, A. (2012). Introduction to business ethics. San Diego, CA: Bridgepoint Education, Inc. Retrieved from Ashford.edu.…

    • 3181 Words
    • 13 Pages
    Powerful Essays
  • Better Essays

    Determine the impact of this event on ARC’s “benefit of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line).…

    • 3194 Words
    • 10 Pages
    Better Essays
  • Satisfactory Essays

    Ethical Behavior Quiz

    • 5293 Words
    • 22 Pages

    | Employee commitment comes from employees who believe their future is tied to that of the organization and their willingness to make personal sacrifices for the organization.…

    • 5293 Words
    • 22 Pages
    Satisfactory Essays
  • Good Essays

    MGT/498 ETHICS

    • 1056 Words
    • 4 Pages

    To increase the importance of strong ethical significance, this paper will clarify the principle character of ethics, sustainability, and social responsibility in relative to an organizations strategy. Furthermore, consideration will be given to the assortment of shareholders that control a business stratagem. Lastly, classification will be given to a company that practiced unethical behavior, social responsibility, and sustainability in their daily functions.…

    • 1056 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Determine the impact of this event on ARC’s “benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line).…

    • 1340 Words
    • 6 Pages
    Better Essays