Assignment 1: The American Red Cross (ARC)

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Assignment 1 “The American Red Cross (ARC)” 1. Determine the impact of this even on ARC’s “benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line). “Business ethics relates to rules, standards, and moral principles regarding what is right or wrong in specific situations. Business ethics comprises values, and standards that guide behavior in the world of business.” (Ferrell and Fraedrich 2011 page 7). Creating dependable leaders should always be a part of business education, but it seems over time it has become more of incident by result than by vital content. Business leaders must embrace ethical standards and those standards need to be communicated through the business, most importantly…show more content…
Employment assurance wavered due to the negligence of the organization failing to adhere to policy and procedures which resulted in employees and volunteers practicing deceitful and unethical things. Investor loyalty was severely damaged by inside personnel stealing donated funds and financial misconduct of company records. Customer fulfillment was depleted based on the untimely actions of the American Red Cross along with the consumer fraud, and the organization attempting to deceive the donor’s for their own personal gain. Today’s business world needs leaders who can make ethical decision while making sure the action can have a lasting effect on the organization as a…show more content…
Determine and discuss the role that ARC’s corporate governance failed to provide formalized responsibility to their stakeholders. Corporate governance is defined as to remove the opportunity for employees to make unethical decisions; most companies have developed formal systems of accountability, oversight, and control. (Ferrell, Fraedrich, & Ferrell 2011, p. 42). The American Red Cross demonstrated no accountability for the mismanagement of funds, no oversight on the employees who were hired to handle cash donations along with having personal access to company records and donors personal information. Due to lack of no organization executives had to resign due to stealing company money, and were still able to earn millions of dollars including bonuses, and large severance
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