Assignment 1: the American Red Cross (Arc)

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Assignment 1: The American Red Cross (ARC)

While the Red Cross’ reputation soared immediately following the September 11th attacks in the wake of their good works, the organization was soon the target of public criticism. By late October 2001, the Red Cross was being condemned by victims’ family members, politicians and the media for allocating a portion of its Liberty Fund towards future terrorist attacks, rather than addressing the needs of those who were directly affected on September 11.
The three main operation fund resources are contributions, revenues from products and their services, and investment income from other sources. These funds come from corporate, foundation and individual giving, which includes the United Way,
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Trust from the public can be generated through properly understood policies of enforcement and standardization. Instances where applicable laws and government regulation on non-profit organizations occur will usually stem from the violation of ethical conduct especially in the management of non-profit and public monies’ handling. Getting qualified individuals to serve within this committee can be difficult, but it serves as a great step in ensuring that any fundraising activity or fund allocations are carried out.
The American Red Cross failed when they did not carry out or provide formalized responsibility in their operation model. The employees and volunteers were not held accountable for their actions of misconduct and unethical behaviors. In research, there was no indication that ethics was neither a priority nor a requirement within the organization. In fact, there was no formal training provided by management. When top executives assume that their staff and volunteers would naturally behave ethically they fail both the public and employees. In failing to provide this training and upholding policy and procedures the organization saw donation mismanagement, inappropriate management of funds, stealing, and slow response to disaster situations.
The American Red Cross has to create a persona of ethical and transparent operational reputation as a nonprofit organization. Immediate implementations of screening new

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