American Red Cross Ethical Struggles

3184 words 13 pages
Assignment 1 “The American Red Cross”

Chantill Toyer Strayer University

HRM522 Ethical & Advocacy for HR Professionals

Dr. Jeanette Horner-Smith

October 26, 2014

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 face of emergencies by mobilizing the power of volunteers and the generosity of donors” (American Red Cross, 2014). However, there are documented and undocumented times when an organization does not abide by the values and
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Determine and discuss the role that ARC’s stakeholder orientation played in this scenario.
Throughout the 9/11, Hurricane Katrina, & Rita ordeal The American Red Cross did not demonstrate good communication skills with the government, the American people and/or victims. Even though, they claim to aim for direct communication with stakeholders so that there is a clear understanding on how the organization functions, no one could explain where the additional donations went. In my opinion The ARC cannot have a clear plan for communication without the American people without having a strong plan for internal communication. They do not have good communication with their stakeholders, because the people still don’t know where most of the money went and/or how it was spent. This case study, clearly demonstrates financial misconduct by an organization financially preparing for the worst but not distributing finances help and support victims in need. Unethical business practices has caused the American Red Cross to move away from its central values, while creating an organization that cannot demonstrate effective communication, consistent financial appropriations, and hopeful outcomes (Holguin, 2009). As stated earlier the ARC has 700 chapters, yet this report displayed the lack of communication between the various chapters, in turn demonstrates unethical business practices such as fraud, lack of trust between the chapters and/or stakeholders. As a


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