MGT 460 Leadership Priorities & Practice
Dr. Bari Courts
July 29, 2013
Case Study of Personal and Organizational Ethics and Values between For-profit and Not-for-Profit Organizations
The American Lung Association (ALA) is a non-profit organization that promotes healthy lungs and healthy air. They offer free counseling for individuals who want to quit smoking. They advocate for clean air laws. They are involved in searching for cures for lung diseases. The ALA was founded in 1904 as a non-profit organization advocating study and prevention of Tuberculosis. It took them 50 years, but “by 1954, tuberculosis was largely controlled in the U.S.” (lung.org). They changed their name to the American Lung Association in 1973. The ALA was largely responsible for monumental events such as banning smoking on airplanes, and even laws such as The Clean Air Act. ALA’s mission statement is “To save lives by improving lung health and preventing lung disease” (lung.org). The majority of ALA is funded by donations from individuals and businesses. They also receive government grants for research. The ALA’s value statement is “The National Headquarters is committed to the responsible use of American Lung Association assets in furtherance of its mission. We are committed to adhering to high standards of ethical conduct in all of our operations. This includes a commitment to provide accurate and complete information, to exercise care and act in good faith, to comply with all laws, regulations and organizational policies, and to promote ethical behavior. The American Lung Association’s culture is built on our commitment to our mission. We acknowledge our individual responsibility to ensure the American Lung Association’s success by practicing and promoting the following values. These values reflect a shared view of how we wish to operate and be perceived by others” (lung.org).
Apple Inc is an electronic device manufacturer. They use the most cutting edge technology and strive to come out with the newest, most innovative technology on the market. Steven Wozniak and Steven Jobs created Apple in 1976. Wozniak designed the Apple I computer. By 1980, Apple had several thousand employees. From 1983-1987 , Apple went through tough times as John Sculley was hired, Wozniak had left the company and Jobs resigned due to disagreements with Sculley. In 1993 Sculley was fired and a new man named Michael Spindler was hired. Spindler lasted 2.5 years, during which they lost 68 million dollars. In 1996 Jobs returned to Apple, it was no easy task, but in January ’97, Apple finally posted a profit. Apple’s main area of interest was computers until 2001 when Apple opened their first retail stores and started selling mp3 players. They started selling the iPod and in 2003 they introduced the iTunes store. In 2007 the iPhone was introduced. In 2011, Tim Cook took over operations at Apple, and later that year, Steve Jobs passed away. Apple remains one of the world’s most influential electronic companies. Apple is funded by merchandise and stock sales. Apple’s mission statement is “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.” (investor.apple.com, 2012)
The key problems that I am going to explore surrounding for profit corporations are consumer safety, bribery, insider trading, and intellectual property theft. The problems surrounding nonprofit organizations that I am going to explore are remaining transparent, acquiring donors, and hiring the right people.
Upon first look, one could assume that all nonprofits companies are motivated by psychological altruism, and for profit companies are motivated by