The effects that organizational structure and compensation had on the ethical behavior of American Red Cross Executives‚ is that ARC was being charged of overcompensation of executives‚ as well as corruption among its board of executives. The frequent executive turnover and missuses of funds has weakened the organization. The organization has had years and years of underinvestment in telecommunication and technology‚ which hinders the organization from handling issues in a timely manner. The
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American Red Cross The American Red Cross embodies what an organization is‚ in fact; they are one of the most influential organizations in the world. They are a purely charitable organization‚ they only use the money from their very generous donors and all people that are a part of The American Red Cross are strictly volunteers‚ they receive no compensation for their work. They have fought to change public policy on many health issues and want to teach people how to react to disasters. They
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The American Red Cross is a non-profit organization supported solely off of financial donations and volunteers (community). Red Cross mission is to “provide relief to victims to victims of disasters and help people prevent‚ prepare for‚ and respond to emergencies. Red Cross was founded in 1881 by Clara Barton. Who was inspired by the Red Cross during the Prussian War. She first implemented what she had experience over in Europe in the U.S. during the Spanish American War in the 1898. The Red Cross
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possible ethical issues in the culture of the American Red Cross that created the problems discussed in this case. The American Red Cross failed at delivering organizational transparency. This failure allotted to employee embezzlement‚ unorthodox executive compensation‚ and employee misconduct. The organization experienced a high turnover. With this high turnover rate‚ deemed lavish executive compensation payouts. The organization’s reputation and culture has been further tarnished by compensation practices
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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
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Business Ethics 1. Explain the possible problems in the ethical culture of the Red Cross that created the issues discussed in this case. The American Red Cross is technically a “charter nonprofit organization”‚ which means that they receive most of their funds from the Federal Government to finance their operations‚ but they remain an independent entity. This is an advantage for them in terms of their financial stability‚ but also means that they have the Government as their main stakeholder while they are not officially
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The critical ethical concerns are addressed as irresponsibility and untruthful monetary donation management‚ misinterpreted communication‚ irresponsible management of money and people who volunteer‚ and not having enough capacity to receive donations. The American Red Cross has questions of ethical issues and of these ethical issues it is present to doubt whether or not the company can be looked at as trustworthy with donations as they are known to lack in the capacity for online donations. The company
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Assignment 1 “The American Red Cross” Chantill Toyer Strayer University HRM522 Ethical & Advocacy for HR Professionals Dr. Jeanette Horner-Smith October 26‚ 2014 ABSTRACT Whether you open a business or a nonprofit organization one has to have a vision and mission for that organization. An organizational mission is the goals one is aiming towards. The mission of the American Red Cross (ARC) is to “prevent and alleviate human suffering in the
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The main ethical issue inside the American Red Cross is the general trust of employees and volunteers and believing that they have the same ethics and values that are needed to be in place in this nonprofit organization. For years‚ there has been a total lack of accountability when it comes to donations‚ supplies or equipment that is needed during an emergency. There are no checks and balances in place and the organization is far from transparent as to where the funds or equipment is going. A recent
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The American Red Cross is a non-profit organization that was founded in 1881 by Clara Barton. “For more than 122 years‚ the mission of the American Red Cross (ARC) has been to help people prevent‚ prepare for‚ and respond to emergencies” (FEMA / Ready.gov‚ 2012). The focus of their mission is to assist people who have been affected by disasters with the help of volunteers and the generosity organizations’ and individual’s monetary donations. The assistance the Red Cross provides is through shelter
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