The American Red Cross - Research Paper Example

Business ethics come with numerous benefits which include employee commitment which can be said to be the believe of an employee future to be linked to that of the organization and their personal sacrifices they willingly offer to that organization they work for.In addition, investor loyalty can be said to be th ethical code of conduct that gives rise to shareholder loyalty which might pay a regular contribution to success supporting even greater anxiety and social causes (Ferrell, Fraedrich & Ferrell, 2011).

Moreover,customer satisfaction is one of the greatest important aspect of a business success is the organizational development continuation, alteration and adaptation of products to keep the customer trends of tastes and preferences so that long - term stakeholders and customer relationship is maintained. Lastly,the bottom line is the relation to business to the total revenue minus all the expenses and therefore any company or organization must have a good financial presentation for the purpose of ethical culture nurturing and development (Ferrell, Fraedrich & Ferrell, 2011).

Due to the behavior of the American Red Cross (ARC) following the aftermath of Hurricane Katrina and 9/11 their reputation with regard to business effects benefits were greatly dented. This was as a result of lack of supervision of some volunteers or employees, leading them to be an unethical in the operation and also resulted in numerous damage of the ARC reputation. Due to the ARC failure to strictly follow their rules and regulations and embezzled donated funds for the organization, the investor loyalty greatly reduced( Jones, 2012).

The deeds of the ARC following these calamities led to low customer satisfaction which greatly affected the profits which are directly proportional to the organizational actions. Since the ARC major source of revenues is the donations, the public may stop the donations at their will if they feel their money is embezzled instead of assist the needy( Jones, 2012). . Determine and discuss the role that ARC’s stakeholder orientation played in this scenario. Stakeholder orientation is defined as the level of an organization's ability to recognize and tackle stakeholder demands.

The stakeholders made up by a number of people who may have a say in any company or organization’s business operations( Jones, 2012). . A lot of distress arose about ARC in the scenario and since its major role is to give a fast response aid to victims of any disaster, the World Trade Center attack in New York city and the Hurrican Katrina were chief occurrences that were of great effect in the United States. The way in which ARC carried out those events was questionable making it to be highly scrutinized.

Starting with the World Trade Center, the ARC got higher criticism due to their slow response time. The Disaster operation center (DOC) whose center of command is based in Virginia never activated the special teams which are usually sent in response to a plane crash disaster or similar (Jones, 2012). . Apart from the slow response to disaster that took place in 9/11 2001, criticism also arose due to the fact that some of the money donated was mismanaged. This money was raised from a separate fund which was to cater for the victims and the affected families.

In a period of about two months, about $550 millions was collected with only about a third going to the intended function of relief