American Red Cross Essay - 768 Words

The American Red Cross Summary The American Red Cross (ARC) is an independent organization, supported by public financial donations and volunteerism. It provides relief to victims of disasters and help people prevent, prepare for and respond to emergencies. The company has been widely criticized for the way it handled 9/11 in 2001 and Hurricane Katrina in 2005 as being inadequate and poorly managed. The company has allegations of fraud, bribery and even theft on the part of volunteers and employees working for the organization. It has also faced internal challenges due to high turnover, as well as charges of overcompensation and possible corruption among its board of directors and upper management. After bad press, the ARC faces many†¦show more content†¦* ARC received $543 million in pledges to help the 9/11 victims but only distributed 1/3 of those funds to the relief effort and the rest was used for other purposes in the company. * Improper diversion of relief supplies, failure to follow Red Cross proc edures in tracking and distributing supplies. * Numerous Katrina volunteers reported the disappearance of rented cars, electricity generators, and even some 3,000 air mattresses during the relief efforts. * An ARC call center employee wrote money orders in the names of various relief victims and fraudulently cashing them herself. * The organization’s insufficient capacity to electronically accept donations especially due to the magnitude of donations during the disaster period. 3. What are some of the reasons for the ARC’s ethical dilemmas and how can the organization guarantee that these problems will not occur in the future? * Monetary donation mismanagement such as executive compensation, not preventing and handling employee misconduct, lack of transparency and accurate representation of the organization needs for and use donations, are some of the reasons for the ARC’s ethical dilemma and the organization can guarantee that this problem will not occur in the future by a) The staff and volunteers need to be well managed by capable directors and executives. b) The company must address the specific ethical risks with its disasterShow MoreRelatedThe American Red Cross1599 Words   |  7 PagesThe American Red Cross is a service organization that provides aid for disaster/crisis as well as other non-disaster related services to the communities of America. The American Red Cross the premier United States based aid organization providing for people in the times of need, whether it is a disaster or planning and partnering. Shining light on an exemplary organization that strives to serve and provide during times of disaster and times of calm. The American Red Cross has been there for AmericaRead MoreThe American Red Cross1647 Words   |  7 Pages The American Red Cross is one of the largest disaster relief charities, helping over 100 million people in 2013 alone. To fully understand what the Red Cross does, the term nonprofit should be defined. According to the Merriam-Webster dictionary, nonprofit is defined as â€Å"not conducted or maintained for the purpose of making a profit† (2012). The American Red Cross’ works not only with disaster relief, but the company also consists of many other distinct branches. 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He referred to her as an Angel sent from heaven. At this time, she volunteered her services to help out in any way she could (â€Å"Founder Clara Barton†). Clara and a group of her friends founded the American Red Cross in 1881. They were known as the â€Å"angels of the battle field† (â€Å"Mclean†). At times ofRead MoreChanges in the American Red Cross Essay973 Words   |  4 Pages(1) Changes at the American Red Cross have led to more transparency at the agency. These changes include making public record of its stance on governance and ethics policy. Also, each member of the board of directors is required to sign the Board Member Affirmation of Service, which mandates that each member actively participate a minimum of 15 days per year with the organization, read the Code of Ethics, and comply with the policy. Other changes include the Office of the Ombudsman office itsRead MoreA Brief Note On The American Red Cross1759 Words   |  8 Pagesbeing the American Red Cross. Founded in 1881, the American Red Cross assists not only disasters in the United States, but all around the world. The American Red Cross was one of the leading nonprofits during Hurricane Sandy, helping those affected by the storm in as many ways as possible. One of the greatest issues that the Red Cross has to deal with is figuring out who should receive the relief benefits the fastest. Becau se there are not an unlimited number of resources for the Red Cross to give