The American Red Cross Case Study

Topics: Morality, Hurricane Katrina, Non-profit organization Pages: 2 (700 words) Published: March 8, 2014
1. Explain the possible problems in the ethical culture of the Red Cross that created the issues discussed in this case. One of the possible problems in the ethical culture of the Red Cross that creates issues is because it is a charitable organization, its leaders have assumed that all employees and volunteers will act ethically. Although this has been disproven many times recently, the Red Cross still has not taken all necessary steps to ensure that it is truly a socially – conscious and ethically – responsible organization. One of the other problems with the ARC’s ethical culture is the moral lack displayed by some of the organization’s leaders. An organization can only be as strong as the person who is leading it. How can you fault the volunteers for stealing ARC money when the organization’s leaders have been caught numerous times with their hands in the proverbial cookie jar? These leaders also benefited from a historical lack of transparency about how the ARC used its money. While the lack of transparency may not have been a problem in previous generations, America’s moral fiber has been weakened. 2. Name some of the problems that the ARC has encountered with handling donation money. One of the main problems that the ARC has encountered with handling donation money has been overcoming inadequate technological infrastructure. Just as the ARC did not adapt well to other changing workplace trends, the organization failed to update its technological infrastructure until it was forced to do so. The technological infrastructure problems not only included the ARC’s inability to handle heavy website traffic after Hurricane Katrina and other natural disasters, but it also includes a distinct and continuing lack of any real inventory system, cost controls etc. The other main problem that the ARC has encountered with handling donation money is how to allocate monies donated in response to a specific crisis. Several times the ARC has given an inadequate response...
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