American Red Cross- Basic History/Overview

Basic History/Overview The American passing frustrate is a non-profit organization supported solely off of financial donations and volunteers (community). Red grumpy mission is to provide comforter to victims to victims of disasters and help raft prevent, explicate 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 joins more than 175 other national societies in providing aid to those in need across the world. The American Red Cross follows seven bylaws humanity, impartiality, neutrality, independence, voluntary service, unity and universalities. Today the Red Cross pretend over a half million volunteers and 35,000 employees. The President of United States is the unearned chairman of the Red Cross and appoints the eight governs. In recent business relationsh ip American Red Cross had had its sh are of troubles which stated at the filch of the executive tree and has seen several pass off resignations in the last decade. good Issues/Key Facts Red Cross main subject areas were around mismanagement of specie and donations to the Red Cross. In 2001 the American Red Cross ousted Elizabeth Dole, delinquent to the incident of slow responses to 9-11 attacks. This started the Era of host of top executive failures and the doors kept revolving both(prenominal) few years with new presidents. Resignations varied anywhere from slow responses to mismanagement, miss of conversation to misconduct with financial funds. After 9-11 the Red Cross had constituted a fund for those impacted by the incident.Red Cross true over $500 million dollars in pledges but only contributed a 1/3 of those funds to the 9-11 relief efforts. This sparked an ethical issue with electric discharge as far as pecuniary donation mismanagement. Hurricane Katrina spark ed another issue for firing off. Again had ARC received over $2 billion dollars in donations and the public scrutinize as what was done with that money. These responses were the outcome of fraudulent and wasteful decisions. Red Cross downfalls continuously tend to be around monetary donations and the management of those funds.Questions 1. I forecast the biggest problem are those at the top and how they are giving severance upon getting fired or resigning due to fraudulent activities of mismanagement of funds. This sends out a message to employees that its ok if you at the top of the chain and take money from us (ARC) we go out still compensate you at the end. ARC needs to regain it entrust in the community and communicate with the public as to how funds are distributed and the manner they are distributed in. 2.Some of the problems that ARC encountered with handling donations was that the monies that were donated where not allocated gibe to that particular disaster. Initially triggering this was 9-11, the public was outraged. The ARC would create funds, for example the freedom fund for 9-11, however only gave one-third of it to relief efforts. People gave these donations with intentions that ARC would use the monies for the victims and their families. Another issues was the slow response time with Hurricane Katrina and its relief fund. . The ARC has many issues as listed in the case from executive compensation, employee misconduct, considering all stakeholders and slow response time. But I telephone the overall cerebrate is once again at the top with poor decision making, outlaw(a) leadership skills and inadequate use of donations. And I think in aver for ARC to avoid these issues they need to clean house and train collective managers and volunteers, not to mention develop a process for better communication through out organization in time of disaster needs. . I think that organizational structure has a great effect on ARC ethical issues, because i t goes hand and hand with compensation and communication. I think the ARC can be revamped organizationally from the top to the bottom and this would elapse the biggest ethical issue ARC has, which is mismanagement of donations. I also think that ARC has more Chiefs then Indians. Meaning that ARC has to many people at the top, with little leadership skills and poor business tactics.