The American Red Cross Case Study free essay sample

?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. We will write a custom essay sample on The American Red Cross Case Study or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 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 when they were desperately needed because they do not have a real system to handle crisis – specific donations. Because of this, the ARC has come under fire for using monies given in response to a specific crisis in ways that do not benefit that crisis’ victims. Often donations will be held up after a natural disaster, or even worse improperly disbursed, because of the ARC’s lack of a clear strategic plan. 3. 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. I feel the main reason for the ARC’s ethical dilemmas is its failure to adapt to changes evident in America’s moral fiber. Before, it was more acceptable for the ARC to trust its leaders and workers implicitly because of the difference in the times. Unfortunately now many Americans do not have the same moral standards or work ethic they did a few decades ago. Although there was corruption then too, it was nowhere near the levels that we see in America now. More than ever before, organizations – especially charitable organizations like ARC – need to spell out their ethical stance. Everyone who works for the ARC as an employee or volunteer needs to be trained on how to act ethically. Furthermore, the ARC needs to establish inventory controls, cash controls, checks and balances, and monitoring systems that will ensure that employee misconduct will no longer be a pervasive problem. 4. What effect does organizational structure and compensation have on ethical behavior among chief executives at ARC? I have always believed that chief executives’ salaries should be a true reflection of their work performance. America has too many chief executives who are merely highly – paid figureheads. Chief executives would perform more ethically automatically if they knew that their continued compensation was tied to them acting ethically. At the ARC and so many other organizations, we have seen CEOs leaving in disgrace with enormous severance packages. This practice has to stop. If I stole from, lied to, or endangered the welfare of my company, I know that I would not be rewarded for it. There has to be accountability from the top down in organizations like the ARC.