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The Wreck of Amtrak’s Sunset Limited

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The Wreck of Amtrak’s Sunset Limited

Corporate social responsibility is a corporation's obligation to its stakeholders. Amtrak’s stakeholders include owners, managers, employees, the customers and suppliers, as well as the cities in which Amtrak offers service; however for the purpose of this case study, the stakeholders are Amtrak’s owners, the passengers and CSX Transportation, the owner of the railroad. The interests of the stakeholders do vary, but they also share a common interest; the concern for the train to travel safely to and from the desired destinations without incident and the loss of lives. The owners’ interest leans more towards the financial repercussions should an accident occur, such as the cost of replacing the damaged train and the legal costs that would ensue. The legal impact for all the stakeholders was the lawsuit filed by the victim’s families, which lasted over five years before Amtrak agreed to settle ("Amtrak agrees to," 1998). In addition to the settlement payout, the economic impact for the owners most included the loss of financial investors, while the surviving passengers and the families of those who lost their lives received financial compensation from Amtrak. Although I expect the main concern for Amtrak’s owners to still be profitability, the accident and loss of lives might make them think more about the ethical responsibility they have to their customers. The philanthropic impact is that Amtrak makes charitable contributions to organizations that further primary education and museums that advance the history and knowledge of railroads ("Amtrak sponsorport," 2012). The actions I would recommend in the four areas of CSR are: Legally, Amtrak should follow every regulatory guideline to provide the safest, transportation service that they can to their customers. Economically, Amtrak should take the necessary steps to rectify the situation as quickly as possible to get their train service back up to normal operating levels, which will generate a return on investments for the owners and shareholders. Ethically, Amtrak should take every possible safety and preventative measure in hopes of avoiding another tragic accident. The philanthropic recommendation would be to open a memorial fund for all the families of the individuals that lost their lives that fateful morning, as well as provide grievance counseling to the victims’ families.
References

Amtrak agrees to settle lawsuits over sunset limited derailment. (1998, December 24). Retrieved from http://www.cunninghambounds.com/news.html?cat=&detail=1&news=9
Amtrak Sponsorport. (2012). Retrieved from http://www.amtrak.com/servlet/ContentServer?c=Page&pagename=am%2FLayout&p=1237608345018&cid=1248543164211
Eisenbeis, H. R., Hanks, S., & Barrett, B. (1999). The wreck of amtrak’s sunset limited. Case Research Journal, Retrieved from http://content-leg.kaplan.edu/LS312_1101A/images/product/CaseStudy_Amtrack.pdf

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