Premium Essay

Ethical Issues Within the American Red Cross

In:

Submitted By beeharley
Words 752
Pages 4
The American Red Cross (ARC) is an organization that was founded in 1881 by Clara Barton and established itself as the most well-known emergency relief organization devoted to the care of war victims, disaster victims, and the suffering worldwide. Unfortunately, the ARC has been plagued with a high executive turnover, slow response to disastrous events, and mismanagement of donation funds. These problems now have the ARC facing another problem, fixing their credibility for the future.
The Red Cross is built to aide in disaster relief, but to receive a phone call asking “Where is the Red Cross?” from the Pentagon to activate the specialized teams in response to 9/11 left scars on the ARC's permanent record that are hard to overcome (Ferrell, Fraedrich, & Ferrell pg 330). On top that, four years later criticism over the massive failures of communication in Hurricane’s Katrina and Rita created additional wounds to the ARC’s reputation. Each instance further degraded the ARC’s ethical reputation to American’s as the non-profit organization to turn to in a disaster. To overcome these faults the ARC has made changes, but too many changes at the top is the ultimate reason for the ARC’s failures.
Any member working for the ARC in a management position from local presidents to top executives and state delegates are supposed to be ruled under universal humanitarian principles which involve the highest standards in ethics and values. Sadly, since the resignation of Elizabeth Dole in 1999, the ARC has had seven different permanent or acting heads causing multiple systemic and ethical problems (Ferrell, Fraedrich, & Ferrell, pg 328-239). Each of these enlightened egotists gladly accepted their severance packages upon their departure in spite of the abominable failure to successfully follow the ARC's fundamental mission of preventing and relieving suffering

Similar Documents

Premium Essay

Red Cross Case

...Program Assignment for Couse: BUS 583 Contemporary Issues in Business Submitted to: Dr. Kossuth M. Mitchell Submitted by: Devon Akers, Jan Hunt, Kandi Justice and Ray Justice Date of the Submission: April 10, 2013 Title of Assignment: Case Decision Making Paper- Red Cross CERTIFICATION OF AUTHORSHIP: We certify that we are the authors of this assignment and that any assistance we received in its preparation is fully acknowledged and disclosed herein. We have also cited any sources from which we used data, ideas or words, either quoted directly or paraphrased. We also certify that this assignment was prepared by us specifically for this course. Student’s Signatures ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ Table of Contents Definition of Problems 3 The Lack of Ethical Culture and Stakeholder Orientation 4 Low Board’s Professionalism 5 Poor Trust and Excessive Emphasis on Marketing 5 Identification of Possible Action Alternatives 6 Analysis of Each Alternative 7 Doing Nothing 7 Hiring a New Board of Directors 7 Developing a New Code of Conduct 8 Developing a New Organizational Strategy to Reconstruct the Ethical Climate 10 Decision 10 Implementation 11 Evaluation...

Words: 4100 - Pages: 17

Premium Essay

Hrm in Multinational Banks in Tanzania

...The American Red Cross (ARC) 1 The American Red Cross (ARC) Charlene Craig Strayer University HRM 522 Dr. Jack Huddleston October 25, 2013 The American Red Cross (ARC) 2 This assignment will cover the ARC and the impact that the events of 9-11 and Hurricanes Katrina and Rita had on ARC’s benefits of business ethics; the role that ARC’s stakeholders played in these scenarios; ways in which ARC’s corporate governance failed to provide formalized responsibility to their stakeholders; and steps that ARC could follow to improve their stakeholder perspective. Organizations have a responsibility to behave ethically and meet the economic, legal, ethical and philanthropic duties that stakeholders expect them to. Those responsibilities are included in, and are part of an organization’s commitment to being a corporate citizen. Not only does the organization have to prioritize stakeholders, please and cater to the interest of stakeholders, the corporation must also protect its own reputation, image and branding. Identifying and working through ethical issues that are meaningful to stakeholders should be at the top of an organization's to do list as these issues will impact shareholder value and organizational performance and branding. (Ferrell, 2012),(Ireland, 2011). ARC’s mission is to “provide relief to victims of disasters and help people prevent, prepare for and respond to emergencies” (Ferrell, 2012, p. 327). The ARC was guilty of straying from its vision and mission...

Words: 1436 - Pages: 6

Premium Essay

Ethics of Red Cross

...RESPONSIBILITY Michael B. Boone Code of Ethics A Look at the American Red Cross Date: January 25, 2015 The American Red Cross has been known to be one of the most humanitarian organizations in the United States and throughout the world aiding and helping in different series of generous contributions in many disaster areas as well as bringing health care advancement to communities in the Unites States and in the world that need help in development (Dulles, 2014). For an organization it is important to make sure that their values and organizational ethics are reflected in what they do and how they do within the organization as well as the community. In order to speak about ethics it is important that we understand the definition of ethics. Ethics are the ideologies in which a person runs his or her choices. In an organization such as the Red Cross a code of ethics are the principles that guide the organization, its decision making , its programs and the way that they conduct business (Kelchner, 2010). A review of the American Red Cross Mission Statement is their basic core beliefs. It states, “The American Red Cross prevents and alleviates human suffering in the face of emergencies by mobilizing the power of volunteers and the generosity of others” (American Red Cross, 2007). The organization was founded by Clara Barton and friends to assist in the issue of service members and their families in 1881. To this day, the Red Cross’s mission has remained the same. The Vision statement...

Words: 1495 - Pages: 6

Premium Essay

The American Red Cross

...The ethical behavior of a company is being judged and determined by its stakeholders. They may not always be right but their judgment affects the company’s reputation in society. There are several benefits of business ethics. Ethics contribute to (Ferrell, Fraedrich, & Ferrell, 2011, pp. 18-21): • Employee commitment – comes from employees who believe their future is tied to that of their organization and their willingness to make personal sacrifices for the organization. • Investor loyalty – ethical conduct results in shareholder loyalty and can contribute to success that supports even broader social causes and concerns. • Customer satisfaction – one of the most important factor in a successful business strategy; a company must continue to develop, alter, and adapt products to keep pace with customers’ changing desires and preferences and it must seek to develop long-term relationships with customers and stakeholders • Profits – must have adequate financial performance in order to nurture and develop an ethical culture. Because of the actions of the American Red Cross following 9/11 and Hurricane Katrina, their benefits of business effects were damaged. Employee commitment wavered because of the actions of the organization. Because of the lack of monitoring some employees or volunteers were doing unethical and fraudulent things. This misconduct severally damaged the reputation of the American Red Cross. Investor loyalty was diminished because the American Red Cross was...

Words: 1356 - Pages: 6

Premium Essay

Ethica Issues

...What effects do organizational structure and compensation have on ethical behavior among chief executives at ARC? As noted earlier, within the organization there is an extremely high rate of turnover at the top level of management. With this turnover, there essentially is a breeding ground for unethical leadership. With all managers at the top receiving a handsome severance package, it is no wonder why many take the position only to leave in less than a year. The instability at top trickle down throughout in the organization. This trickle-down effect is what allows the unethical conduct on the frontlines. A company restructuring and a strong foundation is needed to stop this unethical behavior from happening. What are some of the reasons for the ARC’s ethical dilemmas, and how can the organization guarantee that these problems will not recur in the future? The one factor that this case boils down to is money. The majority of the organization’s problems is based off of the fact that money rules the world and power the desires of mankind. With that said, there are still many issues within the organization on their handling of donor money. Everything from receiving to distribution of these funds needs to be more closely monitored. This stems from the lack of formal leadership in the head of the organization. There is too much turnover within the organization and it is leaving the ARC in shambles. With the constant changes in leadership styles from CEO to CEO, the employees are...

Words: 629 - Pages: 3

Premium Essay

Wgu Rtt1 Task 2

...specific roles that are entailed in each one and how they interpret the meaning of quality of care. A: Functional Differences A regulatory agency such as the Wisconsin Department of Safety and Professional Services assists with the regulation and upholding of licensure requirements for delivery of competent care within the nursing profession. Laws that are written and monitored evolve from actions within the legislative and executive branches to safeguard the public (NCSBN, 2015). Regulatory agencies also enforce the state nurse practice act along with overlooking exams that grant licenses and disciplining the license of those that engage in unsafe practice. Nurse education programs require approval from a regulatory agency and need to show that collaboration between students and the facility exist (Nursing World, 2012). A professional nursing organization places emphasis on the nurses as individuals, their profession, and the healthcare needs of the public. Such organizations provide confidence within the nursing field by offering continuing education and community resources for professional growth and support. The ongoing changing needs within healthcare from additional interventions to new symptoms are supported and Professional...

Words: 2156 - Pages: 9

Premium Essay

Can Research Rescue the Red Cross?

...Case Study #1: Can Research Rescue the Red Cross? Business Research & Applications Summary The American Red Cross (Red Cross) had been a reputable non-profit organization and its function is to provide help to victims as well as those involved in rescue and relief efforts. There is a national chapter and there are local independent chapters as well that respond to smaller tragic events that upset people’s lives. The Red Cross operates 24 hours a day, seven days a week; their goal is to be there when crisis strikes. They do not receive financial support from the government; they rely on contributions from U.S. citizens to fund its efforts. For many years, it had a policy of fund raising through advertising during high profile period surrounding a disaster. Its wed-site states “One of the best ways to help disaster victims, people in need where you live, and people around the world right now is through a financial donations”. Donors are asked to contribute to the Disaster Relief Fund, their local Red Cross chapters, or the International Response Fund. The work that they do has prompted millions in donations each year. However, after the September 11, 2001 terrorist attracts, their practices came under fire and scrutiny by the media and their long standing reputation was in jeopardy. When disaster stuck, it was their normal practice to estimate the total monetary goal and advertise and collect donations to reach it. Moreover...

Words: 2120 - Pages: 9

Premium Essay

Professional Roles and Values

...Professional Roles and Values A) Functional Differences: The functional differences between a regulatory agency, like the Texas Board of Nursing and a Professional Nursing Organization, like with Texas Nurses Association, are many. Even though both agencies support nursing, they do in different ways. The mission statement of the Texas Board of Nursing is as follows: “The mission of the Texas Board of Nursing is to protect and promote the welfare of the people of Texas by ensuring that each person holding a license as a nurse in the State of Texas is competent to practice safely” ("Mission and Values," n.d., para. 1). One of the primary roles of the BON is license issues. They issue and renew licenses for nurses in the State of Texas. They issue all licenses to graduates of approved nursing education programs. All nurses are required to renew their licenses on a biennial basis with evidence of required continuing education. In the State of Texas, RN’s must have twenty hours of CEU’s every two years for this renewal process. The BON enforces the NPA (Nurse Practice Act) and nursing education, conducting investigations of complaints against nurses and adjudicating complaints ("Licensure Renewal," n.d.). Texas Nurses Association (TNA) is a professional nursing organization with supports and advocates for nurses. The mission statement of the TNA is as follows: “Advancing the nursing profession through leadership, collaboration, advocacy and innovation” ("Mission," n.d., para...

Words: 1529 - Pages: 7

Premium Essay

Talent Management

...Assignment 1 Assignment 1: “The American Red Cross (ARC) Shonnette P. Ferebee Dr.Jack Huddleston HRM 522 Ethics and Advocacy for HR Professionals July 22, 2012 2 Determine the impact of this event on ARC’s benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line. Ferrell, Fraedrich and Ferrell (2011) stated that the ARC is an independent organization, supported by the public donations and volunteerism (p.327). ARC mission is offer relief to people of catastrophes and help them prepare for and answer to emergencies. Ferrell, Fraedrich and Ferrell (2011) mentioned that The ARC has had to report allegations of fraud, bribery, and even theft on the part of volunteers and employees working for the organization (pg.327). This had a bad impact on the employee commitment and investor loyalty standpoint. It lead to ARC having to deal with a number of inside trials due to high turnovers, as well as charges of over payment and possible dishonesty among its board of directors and upper management. We know that dishonesty is having a lack of truthfulness, which has a great impact on ARC benefits of business ethics. Clara Barton founded the ARC in 1881 and was enthused by the work of the International Red Cross while on a trip to Europe during the Franco-Prussian War of 1870-1871(p.327). The ARC is one of the many organizations chartered by the U.S government, receiving its first federal charter in 1900(p.327). The ARC employee...

Words: 1031 - Pages: 5

Premium Essay

Professional

...practice and licensure of each nurse. Some professional nursing organizations, such as NSO, provide liability insurance to nurses. Other benefits of professional organizations may include free CE, preferred pricing on exams, resources, and networking. Being a member to both of the above organizations has given me peace of mind and continuous learning and growth in my nursing career. PNO functions are different from regulatory agency such as a regulatory agency has the power to revoke a nursing license or bring legal actions against a nurse but a PNO are mainly resources to enhance nurses. Every nurse is faced with the nursing code of ethic in their practice. An unethical nurse cannot practice nursing for very long or should. Nurses face ethical hurdles every shift, such as confidentiality and autonomous choices. Confidentiality is crucial to the patient and also to the reputation of a nurse. A nurse has access to...

Words: 1981 - Pages: 8

Premium Essay

Paper

... | | |Ethics and Social Responsibility | | |PD12BSB07 ( 04/10/2013 - 05/08/2013 | Copyright © 2011, 2010 by University of Phoenix. All rights reserved. Course Description This course provides a foundational perspective for ethics and social responsibility in relationship to individuals, organizations, and the community. Emphasis is placed on the interrelated nature of ethics, morality, legal responsibility, and social issues. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Boylan, M. (2009). Basic ethics: Basic ethics in action (2nd ed.). Upper Saddle River, NJ: Pearson. Trevino, L. K. & Nelson, K....

Words: 1967 - Pages: 8

Premium Essay

Human Resources

...and a more viable code of conduct could have mitigated the ethical issues faced by Nike. For several years Nike has been the world's leading manufacturer and distributor in athletic footwear and sports' accessories. It primarily operates in Asia Pacific, Middle East, Africa, America and Europe. By having a strong brand allows expansion in the market and extended loyal consumer satisfaction. The brand came across hard times in the forms of social allegations that included several cases of human rights abuse and labor violations (Ferrell, Ferrell, and Fraedrich, 2011). These days Nike continues to improve its products. The swoosh sign that Nike uses on its products is recognizable anywhere throughout the world. Nike has faced numerous ethical issues in the past and present day. Nike has been accused of labor and human rights violations. It is said Nike wants to cut cost and find cheap labor to manufacture its products. Nike’s manufacturing plant in Pakistan was documented in a Life Magazine as hiring children to sew soccer balls. Globally, due to legal, ethical and social challenges, Nike face a great number of challenges. Nike has been blamed for producing its good in the third world sweatshops. Due to the availability of the cheap labor in the third world countries, Nike chooses to locate the majority of their production in such countries. Some of the human rights ethical and legal issues faced by the Nike in such countries include the use of child labor...

Words: 977 - Pages: 4

Premium Essay

Nursing History of Matrix

...Historical time period Nursing role in community Major health issues Partnerships used Watson’s theory Past period 1 Colonial period in America: The colonists recognized public health problems quite early in North America. They established temporary boards of health were established in response to epidemic diseases. In the early years of America’s settlement, the female head of the household took care of all household members, in their sickness and childbirth as well as wellness. She was also responsible for growing or gathering healing herbs for use throughout the year. Smallpox, yellow fever, cholera, typhoid, and typhus were major health issues during this time. Tuberculosis and malaria are communicable diseases that stayed endemic during this period. American ideas of social welfare and the care of the sick were strongly influenced by the traditions of British settlers in the New World. Colonial Americans followed the English model of the Elizabethan Poor Law of 1601and established systems of care for the poor, sick, mentally ill, and aged. Early colonial public health efforts included improved sanitation, collection of vital statistics, and control of any communicable diseases introduced through seaports (Lancaster & Stanhope, 2008). A nurse is able to identify other person’s condition of being (Watson, 1985). The theory relates to this period because it was essential for the female head of the household to recognize an illness. In a way, these women were diagnosing...

Words: 768 - Pages: 4

Premium Essay

Student

...7 and younger. A large shipment of the Bean Sprouts toy collection is scheduled to be shipped to schools in South America at the end of this week so that the toys will be on site before the beginning of the new school year. Calculations of the logistics department show that the approximate cost to reproduce the product and repackage the toy collections is $100,000. In response to your memo dated 6/5, I present you the following report. The report will outline 3 possible scenarios of how to address the situation regarding the whistles. I will explain the process/ method that I used for selecting each of the scenarios. I will also discuss the advantages and disadvantages of the respective scenarios, as well as the financial, legal, and ethical considerations of the scenarios. I will conclude with my recommendation on which scenario we should follow and give you the arguments why. The core of the problem that we are dealing with is that we owe the customer but the product we currently have is defunct. To generate the respective scenarios of how to deal with this problem, the members of my team and I sat down and brainstormed on the possible actions to take and their considerations and consequences, basically asking ourselves the question: what are the different actions we can take with the whistles. One associate asked us the question: “Imagine...

Words: 3343 - Pages: 14

Premium Essay

Is the Mexico Us Border Fence Justified

...Is The Mexico-US border fence justified? The United States Congress approved the "Secure Fence Act of 2006" which sanctioned the construction of numerous separation barricades at the Mexican-American border and the installation of a virtual fence entailing surveillance cameras, sensors, and other equipment to cover those parts of the border that do not have a physical wall. The debate is related to the American debate on immigration, and controversies about the fence centre on its effectiveness, expense, representational value, and more. How accurate however, is the claim that the Mexico-US border fence is justified? The main argument for the preservation of the Mexico-US border fence is economic. It is claimed that illegal immigrants drain the benefits system leaving less money to be spent on other areas such as health care and reforms. It is a common misconception that Mexican immigrants do low paid unskilled work which the majority of American citizens are unwilling to undertake. However these facts are disputed by the writer Steven Camarota who states ‘Of the 465 civilian occupations, only four are majority immigrants. These four occupations account for less than 1 per cent of the total U.S. workforce. Moreover, native-born Americans comprise 47 per cent of workers in these occupations.’ Drug trafficking and the resultant violence in Northern Mexico is a real problem for the United States and for the Mexicans themselves. However by constructing a fence which has been called...

Words: 1312 - Pages: 6