Running head: “THE AMERICAN RED CROSS (ARC)”
The American Red Cross (ARC)
Professor Jack Huddleston
Ethics and Advocacy for HR Pro-HRM 522
April 28, 2013
Determine the impact of this event on ARC’s “benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line).
The American Red Cross (ARC) considered the country’s foremost emergency responder, offers humanitarian care, aid and education to victims and communities throughout the world. In 1965, during the International Conference of the Red Cross in Vienna, members codified the American Red Cross Code of Business Ethics and Conduct which states “all employees and volunteers are required to comply with applicable federal, state and local laws and regulations and with American Red Cross corporate policies and regulations.” The organization expects commitment to the integrity of the program.
Both September 11 terrorist attacks and Hurricane Katrina incidents had a negative impact on ARC’s benefits of business ethics. Due to the lack of commitment and inappropriate conduct by the employees and volunteers damaged the reputation of the organization. The employees and volunteers were suspected of unethical practices such as lying, stealing funds and other donations meant for relief efforts. The investors lost confidence in ARC because of its mismanagement of funds and donations. With the ARC’s careless and unethical business practices, investors started to become hesitant to contribute to the organization for fear that contributions would not be used for what it is intended for. Other organizations started to get contributions from investors that were once donating to ARC because of the lack of trust in the organization (Ferrell, Fraedrich, and Ferrell, 2011). Customer satisfaction was low because of poor communication and coordination which led to inadequate and delayed responses. The September 11 and Hurricane...