Final Research Paper | Course Paper

Running head: FINAL RESEARCH PAPER

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Final Research Paper

OL-500 Human Behavior in Organization

Kesha Jaramillo

Southern New Hampshire University

FINAL RESEARCH PAPER 2

Abstract

This paper will discuss Malden Mills and the decision that CEO Aaron Feuerstein’s

actions following the 1995 fire. The organization is associated with both business and basic

human values which makes it a brand with which anyone can relate. After the factory burned

down in a fire in 1995, Aaron Feuerstein chose to value his employees over what could have

been a huge monetary gain for the business (Leung, 2003). This went against typical business

practices of the time. Because of this, Aaron Feuerstein eventually became the example of

business ethics. The tenants of organizational behavior will through the actions of the Malden

Mills CEO, Aaron Feuerstein, and its employees by answering the following questions:

What does Malden Mills’ commitment to its employees prove or disprove about the

impact of values in action within the company?

Did the business model for Malden Mills and level of engagement with its employees

cloud decision maker’s business judgment and lead to the failure of the organization?

If so, to what extent?

Did Malden Mills’ CEO Aaron Feuerstein fail his organization by demonstrating

compassion for his employees? If so, what does this show about balancing the needs

of the employees with the needs of the business?

FINAL RESEARCH PAPER 3

Introduction

When Aaron Feurestein chose to value his employees over monetary gain, he went against

the grain of typical business practices of the time (Leung, 2003). This displayed the company’s

values in action, which had a strong impact on the attitudes of the employees and the community.

Because Feuerstein stood by his employees and the community, the employees and the

community stood by the organization (Leung, 2003). Feuerstein soon became the go to example

of business ethics. In the end, Malden Mills was unable to recover the losses it suffered from

both the fire and the decisions following the fire during the company’s rebuilding process.

Malden Mills, unfortunately, had to file for chapter 11 bankruptcy. This paper focuses on whether