Ethical Evaluation of Fortune 500 Company: Advance Auto Parts

Paper Type:  Essay
Pages:  6
Wordcount:  1453 Words
Date:  2022-05-15

Advanced Auto Parts was founded in 1932 by Arthur Taubman as an Advance Store, but by the year 2002, the organization had grown its revenue to 3.3 billion dollars with over thirty thousand employees. The organization is the second largest auto parts and accessories retailer in the United States, and it is based in Roanoke Virginia operating more than 2400 stores worldwide located in 38 states. The organization is also a partner in PartAmerica.com which is an online auto parts retailing venture. Advanced Auto Parts is also traded on the New York Stock Exchange and has become an advanced member of the Fortune 500 in 2003. Advanced Auto Parts is currently ranked 292 in Fortune 500 Company list. After delivering a set of leadership and management to the organization, Nicholas Taubman and Garnett Smith were given a fitting send-off after resigning from the board of directors. The organization today is headed by Thomas Greco who serves as the President and Chief Executive Officer (CEO) with compensation of 22.8 million dollars. The organizations executive vice presidents are Thomas Okray and Michael Norona.

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Advanced Auto Parts has an average revenue income of 9.57 billion dollars on its sales, and as of the end of March 2017, the organization market values was estimated at 10.94 billion dollars. The revenue recorded in March 2017 was 9.568 million dollars which were a lower percentage change by 1.7%. Its profits were recorded at 459.6 million dollars which were also a lower percentage change by 2.9% having total assets of 8.315 billion dollars. As of March 2017, the total stockholder equity was estimated to be 2.9 billion dollars. The mission of the organization has been to provide enthusiast and personal vehicle owners with the related knowledge and products that will fulfill their needs and wants at pocket-friendly prices. The organization knowledgeable, professional and friendly staff have been helping the organization educate, inspire and solve problems for customers.

The expectation of stakeholders, team members, vendors and customers to the organization is for it to be able to meet the demand and expectation of conducting business with the highest degree of integrity and honesty. The organization expects to achieve this by ensuring that all their directors and officers together with partners involved with the organization conduct themselves to the highest ethical standards.

Advance Auto Parts has designed its code of conduct to assists its officers, team members, and directors comprehend their ethical responsibilities, identify resources and policies and highlight key issues for them to make decisions that reflect their ethical standard in transforming the organization. The organization has been able to exhibit good ethical standards, with positive benefits to society that has been acting as a guide that identifies resources and policies and highlighting key issues that helps guide its team members. Ethically, the organization has been able to describe the responsibilities, expectation, and rights of all the organization members. The organization code of ethics mandates and defines compliance with policies that ensure the protection to those affected and those reporting cases of violations without fear of retaliation but also govern the business interactions.

Even though the businesses have been able to set their codes of ethics and business conducts, many of the them are not been able to show consistency when it comes to the contents of these codes upon the business continued success which has been dependent on the integrity and character of conducting its business. Many organizations have always claimed to have ethical codes, but it is evident that some of their involvements in business do not convey what it is intended for the business. For Advanced Auto Parts, the organization has always stood to its codes of ethics ensuring that they are able to deliver quality services to customers and treat its employees with utmost respect.

On March 2015 the organization was accused in New York of bias against Hispanic worker Plaintiff Luis Lorenzo Mojica under case Law360 in Pennsylvania federal court. The case was filed by an employee who indicated that he was discriminated based on his national origin alleging that he was forced by Advance Auto Parts to fill orders form heavier zones as compared to other non-Hispanic employees were given. The worker also stated that he was not allowed to use motorized carriers while carrying his duties when working on the conveyor belt but the non-Hispanic workers were the only ones permitted to operate the carriers. With this kind of cases being presented to the law courts on the conducts of the organization, it is evident that even though the organization has maintained its code of ethics of ensuring better employee relationship, other employees feel oppressed. Although Luis Lorenzo presented her evidence in support of the claims, the court found out that all claims presented could not hold substantially the organization of any case to answer.

The other case that was brought to the United States Court of Appeal was the case between Loretta Choate, Plaintiff-Appellant, Versus Advance Stores Company, Inc. Loretta Choate was the general manager of an auto-part store and her case was about the discrimination suit whereby she was fired because she took a medical leave and also indicated that her gender also played a role in her being fired. This indicated that the organization was violating the human right act of the civil right act. Although she presented her evidence in support of the claims, the court found out that her disability discrimination claims failed and also her gender discrimination claims also failed. This was clear that she could not make out a prima facie case of unlawful retaliation.

Advance Auto Parts has been a valued positive partner of Juvenile diabetes research foundation since 1993. From this period, the organization has been able to support the raising of more than 44 million dollars that have been used to help Juvenile diabetes research foundation to fund the life-changing type 1 diabetes research. Dedicated team members in over 5000 Advance Auto Parts stores in the United States from its headquarters in Virgin Island All over to Puerto Rico have sacrificed their efforts and time to support the communities in which they work, live and place. The organization also promotes Juvenile diabetes research foundation in other ways which includes scalable sneaker sale campaigns, employee engagement fundraising, new store opening contributions and corporate Juvenile diabetes research foundation One Walk teams. This is one of the support sponsors that the organization has been doing to help the community, showing a decent performance and sense of responsibility since the organization has sacrificed to contribute to support of other organizations.

Ethical conduct has been the responsibility of each team member in Advance Auto Parts. The organization has been able to maintain its honesty, ethical acts, and legality under any circumstances that have forced it to act otherwise. The organization came up with nine code of ethics and business conduct that has enabled the organization performs ethically. The organization ensured that it has to be truthful and honest in all its relations and dealing with customers, shareholders, vendors, team member and other organization or individual involved with it either directly or indirectly. The organization has also exercised professionalism and fairness in all its business dealings. All organization stakeholders are treated with respect and dignity. Organization team members are provided a safe working environment free from harassment and discrimination. Advance Auto Parts has always complied with the federal, state and local laws and regulation that apply to its business. The business decisions on the conflict of interest are still based on the organization, and personal relationships or considerations never motivate its stakeholder's interests. Each person within the organization is given freedom to express themselves without any discrimination and hence giving confidence for all stakeholders to express their views and complaints.

Conclusion

Advance Auto Parts as always provided good ethical standards, with positive benefits to society through its code of ethics which has guided its team members on making business decisions. The code of ethics and conducts also provides for specific behaviors which need to be followed by each team member. This has served as a behavior guide to the organization's success in living its values which have enabled it to work together as a team with a vision of serving its customers and growing in productivity and profitability.

Works cited

"Advance Auto Parts." JDRF, www.jdrf.org/corporate-partners/advance-auto-parts/.

Advance Auto Parts. Code of Ethics & Business Conduct. Our Continued Success Depends

Upon the Character and Integrity with Which We Conduct Our Business. 2007

Biblio.com. Advance Auto Parts, Inc... http://www.company-histories.com/Advance-Auto-Parts-Inc-Company-History.html.

FindLaw's United States Sixth Circuit Case and Opinions. Loretta Choate V. Advance Stores

Company Inc Advance Auto Parts. Findlaw, caselaw.findlaw.com/us-6th-circuit/1744318.html.

Knaub, Kelly. "Advance Auto Parts Accused Of Bias against Hispanic Worker - Law360."

Law360 - The Newswire for Business Lawyers, www.law360.com/articles/633801/advance-auto-parts-accused-of-bias-against-hispanic-worker.

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Ethical Evaluation of Fortune 500 Company: Advance Auto Parts. (2022, May 15). Retrieved from https://proessays.net/essays/ethical-evaluation-of-fortune-500-company-advance-auto-parts

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