Professor Afraa Al Bahrani
Ethics and Advocacy for HR Professionals-HRM522
January 27, 2013
Determine the impact of this event on ARC’s “benefit of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line).
The American Red Cross is classified as a not-for-profit charitable organization whose mission is dedicated to providing services to those in need. It plays important roles in society by placing public service above profit. They use a network of donors, volunteers and employees around the world to relieve suffering by servicing five areas: disaster relief, blood donations, providing support for American military families, providing health and safety services and giving support through international humanitarian services. Although they exist as a not-for-profit enterprise, business ethics are still essential to the success of any organization. The American Red Cross has received the highest ethical performance from its employees and volunteers because they give a responsible to the society (American Red Cross, 2011).
In September of 2011 terrorists attacked the World Trade Center and The Pentagon. Almost 3,000 people die and more than 6,000 were injured and in need of help. The American Red Cross raised more than 500 million dollars in response to the 9/11 attacks. There was a problem because they only distributed 154 million dollars in aid. The question than became where the money went. The American Red Cross claimed the money that was donated went into a big pool of money that was distributed by the company’s corporate governance (The Socialist Worker, 2005). In addition, The American Red Cross urged people to donate blood even though the blood was not needed at that time and a good amount of it was destroyed. In the end, The American Red Cross was criticized by donors and the government for not distributing the donated money directly to the 9/11
References: 1. The American Red Cross, http://www.redcross.org/what-we-do Webarchive, homepage, 2011 2. The Socialist Worker, http://socialistworker.org/2005-2/562/562_04_RedCross.shtml Webarchive, 2005 Congressional Research Service, 2, 2010 4 Business Society, and Government 4, 2012 American Red Cross as a disaster relief organization, Webarchive, 11 Nov. 2012 6 CBSNews. CBS Interactive, http://www.cbsnews.com/8301-18563_162-516700.html&gt. Webarchive. 11 Nov. 2012 7 Contribute The People and Ideas of Giving. Webarchive. http://www.contributemedia.com/trends_details.php?id=107. 2009