...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 13 Conclusion 14 References 15 Case Decision Making Paper- Red Cross In a world of intensive competition and numerous marketing challenges, maintaining...
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...Assignment 1: The American Red Cross (ARC) While the Red Cross’ reputation soared immediately following the September 11th attacks in the wake of their good works, the organization was soon the target of public criticism. By late October 2001, the Red Cross was being condemned by victims’ family members, politicians and the media for allocating a portion of its Liberty Fund towards future terrorist attacks, rather than addressing the needs of those who were directly affected on September 11. The three main operation fund resources are contributions, revenues from products and their services, and investment income from other sources. These funds come from corporate, foundation and individual giving, which includes the United Way, federal, wills and grants. Large donations are received from such corporation as Wal-Mart and the GE Foundation. The American Red Cross uses the Red Cross Disaster Relief Fund to support the American people who are victims of thousands of disasters across the country each year. The funds assist the Red Cross in meeting the immediate needs, such as shelter, food, and critical mental health counseling. Most recipients have been impacted by natural disasters like hurricanes, house fires, floods, tornadoes, and winter storms. Business ethics includes the principles and standards that guide behavior in the world of business. The ethical behavior of a company is being judged and determined by its stakeholders. They may not always be right but their...
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...Code of Ethics Jessica Collins, Kelly Woodall, Anita Torrealba, Gerardo Figueroa HCS/335 April 6, 2015 Jodie Ausloos Code of Ethics The goals of the American red cross is to help people in need throughout the United States and, in association with other Red Cross networks, throughout the world by offering assistance without discrimination to the wounded on the battlefield, endeavors, in its international and national capacity to prevent and alleviate human suffering wherever it may be found. Its purpose is to protect life and health and to ensure respect for the human being. It promotes mutual understanding, friendship, cooperation and lasting peace amongst all peoples. The American Red Cross makes no discrimination as to nationality, race, religious beliefs, class or political opinions. The purpose of the American Red Cross is to provide relieve to the suffering of individuals, being guided solely by their needs, and to give priority to the most urgent cases of distress. There is a Board of Governors and management of the American Red Cross that are committed to upholding the highest standards of ethics and conduct and promoting a culture of compliance and ethics throughout the organization ("Mission, Vision, And Fundamental Principles", 2015) Ethics are the principles and values the American Red Cross uses to govern their activities and decisions during any point of conflict (Kelchner, 2015). In order to continue to enjoy the confidence of all countries, the...
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...External/Internal Factors Paper Functions American Red Cross was founded in Washington D.C. on May 21st, 1881 by Clara Barton. She first hears of a similar organization following the Civil War in Europe. An organization based on volunteer work that provides emergency assistance and disaster relief. The ARC cover five area of assistance, these are: military family assistance, blood support, safety and health education, community service and international relief and development. The Emergency disaster relief helps fire, hurricane, flood and earthquake victims re-establish their lives by providing, housing, food, health education, clothing and other necessary assistance. Their education services provide people with the basic First Aid, CPR/AED trainings along with swimming and lifeguard lessons. The ARC is mainly supportive by volunteers, community donations and other Red Cross supportive programs. Their Mission Statement is “The American Red Cross, a humanitarian organization led by volunteers and guided by its Congressional Charter and the Fundamental Principles of the International Red Cross/Red Crescent Movement, will provide relief to victims of disaster and help people prevent, prepare for, and respond to emergencies. Volunteers play a great role in the organization; they have all ages, backgrounds, gender, helping as instructors, teaching, case managers, administration support etc. They make the American Red Cross work happened. The four functions of management… ...
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...Determine the impact of this event on ARC’s “benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line). Business ethics includes the principles and standards that guide behavior in the world of business. 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...
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...Running head: “THE AMERICAN RED CROSS (ARC)” “The American Red Cross (ARC)” Risa Stokes Strayer University Assignment # 01 Submitted in Partial Fulfillment of the Requirements for the Course HRM 522: Ethics and Advocacy for HR Professionals Dr. Bob Barrett Spring 2012 “The American Red Cross (ARC)” Discussion 1 Determine the impact of this even on ARC’s “benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line). Answer According to Ferrell and Fraedrich (2011) stated that, “business ethics relates to rules, standards, and moral principles regarding what is right or wrong in specific situations. Business ethics comprises values and standards that guide behavior in the world of business” (page 7). Producing responsible leaders has always been a part of business education, but it seems overtime to have become more of incident by product than by central content. Business leaders must embrace ethical standards and those standards need to be communicated through all levels of the business, mostly importantly among shareholders and with employees. There are several benefits of business ethics according to the text. The benefits contributed based on ethics according to (Ferrell, Fraedrich, & Farrell, 2011, p 18-21): * Employee commitment-employees who believe their future is tied to that of the organization and their wiliness to make personal sacrifices for the organization. * Investor loyalty-...
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...The American Red Cross (ARC) Coby Turner Dr. Matthew D. Gonzalez HRM 522 October 23, 2011 1. Determine the impact of this event on ARC’s “benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line). There was a huge impact on The American Red Cross’s benefits of business ethics concluding all the events that took place in New York, September 11, 2001 and the 2005 Hurricane Katrina that devastated New Orleans. Not only did ARC fail to perform as expected during these disasters, but all of the misconduct that were taking place with the organization were being exposed as well. ARC’s employees including volunteers were not committed to representing the organization and working to continuing the positive reputation that the company started with. Instead the employees and volunteers of ARC were suspected of unethical practices such as lying, stealing funds and other donations that were meant for relief efforts. Stakeholders and other groups associated with the ARC began to lose trust in the organization because of their mismanagement of funds and donations. With ARC’s careless and unethical business practices, investors started to become hesitant to contribute to the organization for fear that contributions would not be used for what it is intended for. Also overtime there were many other non-profit organizations in need of monetary and other forms of donations. With a lack of trust in the ARC, other organizations started...
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...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. Paper is about the American Red Cross the impact of the event and benefits of business ethics employee commitment and customer satisfaction. Determine the role that ARC stakeholder played in the scenario. The American Red Cross (ARC) Determine the impact of this event on ARC’s benefits of business ethics employee commitment, investor loyalty, customer satisfaction, and bottom line. 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 not following their own bylaws and was mismanaging funds donated to the organization. Customer satisfaction was low because of the actions of the American Red Cross...
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...American Red Cross xxxxxxxxxx BCOM/230 xxxxxxxxxx xxxxxxxxxxx The American Red Cross is one of the world well-known humanitarian organizations. I will describe the organization culture, uses of communication, relationship between communication and culture, and the alignment of values. The American Red Cross was created by Clara Barton in 1881. The American Red Cross organizational culture is based on providing assistance around the world to a variety of humanitarian relief causes within the United States. The company thrives through commitment from volunteers. The common factor that volunteers from The Red Cross share is the need to give back to their communities and the world by donating time and effort to others in need. “We depend on the many generous contributions of time, blood, and money from the American public to support our lifesaving services and programs” (The American Red Cross, 2013). This organization dates back to over 130 years but the culture of the organization remains the same. It has broadened its scope since its beginning but the concept remains the same. In the face of constant change The American Red Cross has adapted to the needs of the environment. The American Red Cross has also adapted its communication skills much like other companies in today’s times. The American Red Cross uses social media and Internet website to promote the company and bring in new volunteers, interns, and employees. I checked out the Facebook page for the Red Cross. They...
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...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...
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...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...
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...1 The American Red Cross Dr. Jack Huddleston Business Ethics: Ethical Decision Making & Case July 21, 2013 2 1. Determine the impact of this event on ARC’s “benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line). The American Red Cross (ARC), also identified as the “The Face of Recovery”, is a humanitarian organization that provides emergency assistance, disaster relief and education inside the United States. The ARC is a non-profit organization that offers services in five areas of society. The community service sector helps citizens that are in need. In the communication sectors, the ARC provides comfort for military members and their families. The collection, processing and distribution of blood and blood products are also services provided by the ARC. There are also educational services on preparedness, health, and safety which are imperative for recovery acts. Hurricane Katrina was the deadliest and most destructive Atlantic Hurricane of the 2005 Atlantic Hurricane season. It was the costliest natural disaster, as well as one of the five deadliest hurricanes. Hurricane Rita hit the coast of Louisiana and Texas only a month later and was even larger category 3 storm (Ferrell, Ferrell, Fraedrich 2011). The ARC raised more than 2 billion in private donations to fund massive relied efforts for both these disasters...
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...The Case Analysis of the American Red Cross For this project, I select the American Red Cross (ARC). The ARC, founded in 1881 by Clara Barton, is an independent organization, supported by public donations and volunteerism. As a member of the International Federation of Red Cross and Red Crescent Societies (IFRC), the ARC joins more than 175 other national societies in bringing aid to victims of disasters throughout the world. All Red Cross societies must conform to seven fundamental bylaws: humanity, impartiality, neutrality, independence, voluntary service, unity and universality. I selected this case because the American Red Cross primary goal is to assist others, which is something I enjoy. The ARC mission is to provide relief to victims of disaster and help people prevent, prepare for and respond to emergencies. I believe helping others allows an individual to use their talents and skills to assist someone who is in need. The organization is important to the United States and the world. It offers food and aid to foreign countries and also ranks as a leader in the nursing, health and safety fields. It provides medical services as well as morale boosting services to the American armed forces. It also serves an important function as the nation’s foremost blood collection agency. The ARC responds to more than 70,000 disasters. However, the ways in which it handled the September 11, 2001 attack on the World Trade Center and the Hurricane Katrina in 2005 were widely...
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...American Red Cross: A Community Organization The American Red Cross’s responsibility and involvement to the community involves care, compassion, assistance, and a plethora of other services. The American Red Cross has been providing disaster relief for well over 100 years and is well known as a humanitarian organization. The American Red Cross provides services in five key areas: blood drives, safety training (like CPR and First Aid), and community help for the poor, support services for military families, and various humanitarian programs (American Red Cross, 2013A). There are factors that influence social responsibility strategies of the American Red Cross. The American Red Cross must act ethically with sensitivity to the community and strive for positive effective contribution. The American Red Cross (2013) governing body is the Board of Governors. The Board has the necessary overseeing power to manage business affairs of the organization and maintains sequences of governing documents. The governing documents go through a review process to ensure safeguards are in place so that the needs of American Red Cross are met and reflect present-day industry best practices. There is a commitment with the Board of Governors to hold every member of the American Red Cross to the highest standards in reference to conduct and ethics. In addition, within the American Red Cross are corporate policies and regulations, which require compliance by employees and volunteers (American Red Cross, 2013B)...
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...society. Organizations and entities need support from the community in order for the company to thrive and prosper; therefore there are numerous reasons to encourage the significance of social responsibility in the community. The American Red Cross’ vision statement is based on the principle of always being there in times of need. They are compassionate champions who assist all people affected by disaster across the United States and around the world by providing shelter, medical attention, and lifesaving blood products. As an example of American Red Cross commitment to social responsibility, fundamental principles comprises of humanity, impartiality, neutrality, independence, voluntary service, unity and universality. Humanity The principle of humanity is based on the desire to deliver assistance, with no discrimination, to those in need on both national and international levels to prevent and heal human suffering where it’s found. Impartiality The American Red Cross does not discriminate again any nationality, race, religious beliefs, class or political beliefs. Their sole purpose is to promote healing and provide assistance to those in distress. Neutrality The purpose of this principle states that the American Red Cross remains impartial and does not take sides in hostile situations nor engages in controversies as a result of political, racial, religious, or ideological nature. Independence...
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