American Red Cross Impact

1271 Words6 Pages
Impact of Event on American Red Cross’s Benefits of Business Ethics of Employee Commitment, Investor Loyalty, Customer Satisfaction, and Bottom Line The impact these of this events had on employee commitment is questionable and unethical because there was some misconduct with employees in regards to embezzlement and discrimination in the disbursing of the funds. . American Red Cross used the money that was donated from the September 11, 2011 terrorist attack against the United States (9/11) and Hurricane Katrina to increase the organizations ability to prepare for and respond to future catastrophes instead of giving it to support the recovery efforts of the two natural disasters. (Ferrell, Fraedrich, & Ferrell, 2011). An investors loyalty…show more content…
It establishes a fundamental systems and processes for presenting and detecting misconduct, for investigating and disciplining, and for recovery and continuous improvement (Ferrell, Fraedrich, & Ferrell, 2011). The corporate governance did not protect the stakeholders because there was embezzlements from some employees and greed from the executive leadership. There was a lot of turnover at the executive level which made the organization weaken and may not able to carry out its mission. Not having this process in place to detect when there was some unethical acts being taking place has caused a lot of turmoil for this no-profit agency. There was not process in place to follow for recovery for when a mistake was discovered or a problem was reported. The funds were not distributed for the natural disaster that they were earmarked for which has caused some uncertainty for future donations from the public and private donations. This system is supposed to be part of the corporate culture and should have established integrity for all the stakeholders. However; the American Red Cross did not have this in place which has caused turmoil within the organization and has caused them to be running a deficit and has had to downsize. A code of code of ethics should be developed for the American Red Cross. Writing such a code will make you and your organization think…show more content…
Assess the corporate culture which is to provide relief to the victims of disasters and to prepare for and respond to emergencies. Identify the stakeholder groups by hiring an executive group and board of directors that are going to support the culture and abide by the vision statement. The executive board and board of directors need to address the ethical issues and challenges and prepare a plan to correct these current and a plan to prevent them from happening in the future. Identify the resources and determine the urgency needs to be a priority to help improve stakeholder perspective. They need to access the past performance issues and challenges and correct then by communicating with all the federal and local government agencies. A more organized plan to better accomplish the disaster response goals and to communicate this plan to all the stakeholders. There needs to some accountability to all the stakeholders for their actions and close monitoring must be carried out to ensure that the unethical acts are being addressed immediately. At the end of the day, being ethical and socially responsible in a business can practically have many benefits like, increase in efficiency of daily operations, increase in commitment among the employees, increasing investors willingness to invest more in the business, increased financial performance and improving trust of customers in
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