Business Ethics Essay example

1152 Words Sep 21st, 2012 5 Pages
Determine the impact of this event on ARC’s “benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line). A survey conducted by NBES indicated that 79 percent of employees agree that ethics is important in continuing to work for their employer while approximately 20 percent of employees are not concerned about the ethical environment of the organization. According to Ferrell & Faedrich (2010), a commitment by the organization to goodwill and respect for its employees usually increases the employees’ loyalty to the organization. The misconduct by executives, slow responses to disasters, money mismanagement, and donation mismanagement issues caused a division between the organization …show more content…
Stakeholder orientation helps an organization to understand and address stakeholder demands. This orientation requires that an organization generate data about the stakeholder groups and assess the organization’s effect of the groups. The primary stakeholders at American Red Cross are the customers, donors, employees, and the government. Social responsibility is defined as an organization’s obligation to maximize its positive impact on stakeholders and to minimize the negative impact (Ferrell, Ferrell, & Fraedrich, 2010, p. 38). After the September 11 attacks, the ARC was widely criticized for its slow response and mismanagement of donations. After hurricanes Katrina and Rita, ARC was criticized again for its response and unsatisfactory coordination with FEMA. Articles in New York Times summarized donation mismanagement and improper diversion of supplies. Red Cross faces the challenge of marketing itself as a prominent, ethical, and transparent nonprofit organization. In order to overcome the challenges, ARC must first carefully choose partnerships with private corporations that will continue to encourage blood donations. They must also overcome frivolous lawsuits that might damage its reputation and focus on marketing the positive impacts the organization has on society. In 2004, ARC joined a marketing partnership with the independent film studio Lionsgate to co-market

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