Answer To: Week 8 Part 2 AssignmentTop of FormPrompt:The...
Dilpreet answered on Aug 21 2024
Research Essay 2
RESEARCH ESSAY
Table of Contents
Introduction 3
Issue Description 3
History 4
Background of the Red Cross Society 4
Organizational Structure and Governance 4
Programs and Services 5
Description of the Problem 6
The Outcome 6
The Law In Practice 7
Legal Issues 7
Board Oversight and CEO Imbalance 8
Ethical Issues 8
Recommendations 10
Legal Recommendations 10
Ethical Recommendations 11
Conclusion 11
References 13
Introduction
American Red Cross Society is a well-known not for profit organisation. However, the organisation has come across a significant ethical breach, when relief funds meant for helping the victims of Superstorm Sandy and Hurricane Isaac were diverted to build political and public relations (Elliott, J., & Eisinger, 2014). This diversion and misuse of funds has consequently resulted in failure to provide basic necessities such as food and blanket to the victims of the superstorm, and hurricane. This highlighted that being a nonprofit organisation, the mission, and ethical standards of the organisation were violated. Also, the reputation of this nonprofit organisation was majorly impacted. Through this essay an effort has been made to explore the history, outcome, legal implications, and ethical considerations. This essay further provides recommendations for The Red Cross Society taking into consideration this particular event.
Issue Description
The Red Cross Society is one of the most trusted charity organisations and is well known primarily for its disaster relief fund. The organisation was in controversies owing to the fact that the funds allocated for disaster relief were misused to build public and political relations. The nonprofit organisation was supposed to use the funds for food, blankets, and other basic necessities; however, the funds were used to improve the public image of the organisation. This questioned the mission of the organisation (Elliott, J., & Eisinger, 2014).
The controversy led to a major relationship crisis as it compromised on the welfare of those who were affected by the disaster. The actions taken by Red cross society is a sheer example of organisational mismanagement and misuse of funds received through charity for the welfare of the common people. The primary purpose of this action was to enhance the image of the organisation among the key stakeholders of the organisation. However, this strategy backfired and led to criticism and ethical misconduct. This further highlighted a major issue wherein the vulnerability of nonprofit organisations to unethical acts is exposed (Bhandari, 2010).
History
Background of the Red Cross Society
Red cross society was founded in the year 1881 in America, and is known for providing relief to people in times of disaster and natural calamities. It is also known for its blood donation services, and for assisting people in case of emergencies. Red cross society is managed by a Board of Governors, wherein the CEO is primarily responsible for managing day-to-day operations of the nonprofit organisation. The mission of the organisation is to prevent humans from suffering in case of emergencies by channelising the human resources it has in the form of its volunteers and the charity made by the donors. The mission of this nonprofit organisation is supported by its core values such as neutrality, unity, impartiality, and independence. The society has been known for its prompt response and emergency preparedness which helped the organisation to gain the trust of millions of Americans.
Organizational Structure and Governance
The operations of the Red cross society are dependent on the support of regional offices, volunteers, and local donors in United States. The governance structure of the business organization is well structured and has delegated roles and responsibilities very well through the Board of Governors and other members of the nonprofit organization. The funds for conducting the relief work are primarily obtained from charity from the local people, grants from the government, and donations from corporates as a part of their corporate social responsibility.
The strategic decisions, the use of available financial resources of the business, and the compliance with the legal and ethical standards, which a nonprofit organisation must abide by is directed and guided through the Board of Governors, with the CEO playing a major role in it. Another important function of the CEO includes implementing the directives of the board. However, in the recent years, it has been noticed that the Board of Governors has failed to ensure accountability and transparency. Also, the processes of this organisation have been majorly centralised and this has been critiqued by most of the government organisations. All these aspects together contributed to the ethical breach and brought the organisation under scrutiny and oversight.
Programs and Services
The core programs and services of the Red cross society include disaster relief, blood donation services, training for ensuring health and safety, and providing support to families of military personnel. These programs are focused towards ensuring immediate services to people in need in times of disaster, and natural calamities. The organization has built its reputation by responding immediately in case of emergencies, crisis, and disasters. The primary services of this nonprofit organisation include food, shelter, medicines, blankets, and other basic necessities to people, who have been affected by disasters.
Apart from their services in America, the Red cross society has its operations across the international borders. These internal operations are streamlined with the assistance of other nonprofit organisations such as Red cross and Red crescent societies (Miserez, 2023). The primary purpose of these nonprofit organisations is to deliver the required services and in aid to people in conflict zones or in areas where there is...