The American Red Cross

The American Red Cross (ARC)

Hisayuki Ebihara

Dr. Jeffrey Weaver

HRM522

1.15.2014

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

According to Ferrell, Fraedrich, and Ferrell (2011), business ethics includes the principles, values, and standards that guide behavior in the world of business. The company, organization, and employee’s ethical behavior are being judged and determined by their stakeholders. However, even if the company watching only the complexion of stakeholder can keep the outside good, the internal business ethics is apt to become negligent. In fact, stakeholders may not always be right their indications, opinions, and ways of thinking, but their judgment and voice affect the company’s reputation in society strongly. Ethical successful companies act according to four principles. First, in their relationships with employees, customers, investors, and vendors, ethical and successful companies emphasize mutual benefits. Second, employees assume responsibility for the actions of company. Third, such companies have a sense of business purpose or company visions that employee’ value and use in their work. Then, finally, they emphasized fairness (Gerhart, Hollenbeck, Noe, & Wright, 2011). A social responsibility must be able to play a role in the organization, which these four principles is thorough and is protected. In addition, compliance with ethical behavior and principles are expected of all organizations. In addition, through Ferrell, Fraedrich, and Ferrell’s opinions, there are several benefits of business ethics, such as employee commitment, investor loyalty, customer satisfaction, and bottom line. First, 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. Second, ethical conduct results in...