Human Resource

Assignment: The American Red Cross

Strayer University

Submitted to:

Dr. G. Stan Reeley

Ethics and Advocacy for HR Professionals – HRM 522

February 1, 2013

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

The American Red Cross was founded in 1881by Clara Barton and was established as the most well-known emergency relief organization devoted to the care of war victims, disaster victims, and suffering worldwide. Unfortunately, the ARC has been plagued recently with slow response to disastrous events and management of funds. These problems have caused several problems with ethical concerns such as employee commitment, investor loyalty, customer satisfaction and bottom line. The benefit of improving ethical conduct and the link between business ethics and financial performance has a major effect on its relationship with employees, investors, customers, and major parties.

According to a report on employee loyalty and work practices, companies viewed as highly ethical by their employees. 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.

The ethical culture of a company seems to matter to employees. The employee future is tied to the organization and employees who having a strong community involvement feel more loyal to their employee and feel positive about themselves. (Ferrell, Fraedrich, & Ferrell, 2011, p 19)

Ethical conduct results in shareholder loyalty and can contribute to the success and investors look at the bottom line for profits or the potential for increased stock prices and dividends. Therefore, gaining investors’ trust and confidence is vital to sustaining the financial stability of the firm. (Ferrell, Fraedrich, & Ferrell, 2011, p 20)

Customer...