Dr. Siri Haveni
Human Resource Management
Ethics and Advocacy for HR Pro
January 20, 2014
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 was founded by Clara Barton in 1881. Barton, a civil war nurse, was credited with establishing the early works of what is currently known as the American Red Cross. The mission of the American Red Cross is to give relief to victims of disasters and to help citizens to prepare, prevent and respond to emergencies. This organization was built on the premise that most of its support …show more content…
Organizational capabilities involve the combination, coordination and deployment of organizational competences, which are directed towards the strategic purpose of the organization (Keelson, 2013). Organizational capabilities can also be described as an organizational ability to perform a coordinated task, utilizing organizational resources, for the purpose of achieving a particular end result (Keelson, 2013). Three components of the stakeholder’s orientation are: 1) gathering data about the stakeholders, 2) that the information gathered be distributed throughout the company by the employees, 3) the reaction of the company to adhere to the rules of the stakeholders and what is being done to inform all of the expectations to exceed or abide by what is expected. The American Red Cross has an obligation to fulfill its role as a non-profit charitable organization to the stakeholders. Any negative activity or behavior of the organization has a direct reflection on the stakeholders. Starting with those chosen to lead the American Red Cross. Beginning with the time period of 1999, the Red Cross has had seven acting or permanently appointed director to leave office without completing their full terms. Each left due to some sort of misconduct on their parts. The American Red Cross was becoming an agency known for hiring and …show more content…
Beginning in the year 1999, with the resignation of Elizabeth Dole, the role of the Board of Directors chair person has been weak. The American Red Cross has wasted time seeking candidates that have not fulfilled the requirements need to successfully manage a large conglomerate such as the Red Cross. The lack of leadership caused a negative effect on the reputation of an industry that took years to build. There was no standard of punishment for the actions of those trusted to run an organization such as the Red Cross. The Red Cross did not take a serious look at updating their policies and procedures until year later. Stakeholders can be informed by allowing different departments to engage in similar practices to be attentive to and address the demands of their various stakeholders (Maigan, 2011). By combining these practices, businesses would become able to manage and act upon stakeholder information much more systematically and efficiently (Maigan,