Case 5.12 Red Cross and the Use of Funds Following the September 11, 2001, attacks on the World Trade Center and Washington, DC, there were many who had lost loved ones, their homes or businesses, or both. The outpouring of support from the American public was overwhelming. The public donated $543 million for the September 11 disaster relief fund. * However, the Red Cross indicated it would use the funds for infrastructure support and not necessarily allof it would go to victims and their families. When the decision to use the funds in this manner was made, Dr. Bernadine Healy resigned as president of the Red Cross, giving up her $450,010 annual salary and position. The American public was outraged and demanded that the funds go to the victims and their families. The Red Cross eventually relented, admitted an error in judgment, and agreed to the limited and intended use of the funds. Discussion Questions 1. Did the Red Cross commit an ethical violation in its initial decision? 2. What do you think of Dr. Healy's decision? Is she a whistleblower? 3. What policies should the Red Cross establish for the future in fundraising and fund disbursement?

Case 5.12 Red Cross and the Use of Funds Following the September 11, 2001, attacks on the World Trade Center and Washington, DC, there were many who had lost loved ones, their homes or businesses, or both. The outpouring of support from the American public was overwhelming. The public donated $543 million for the September 11 disaster relief fund. * However, the Red Cross indicated it would use the funds for infrastructure support and not necessarily allof it would go to victims and their families. When the decision to use the funds in this manner was made, Dr. Bernadine Healy resigned as president of the Red Cross, giving up her $450,010 annual salary and position. The American public was outraged and demanded that the funds go to the victims and their families. The Red Cross eventually relented, admitted an error in judgment, and agreed to the limited and intended use of the funds. Discussion Questions 1. Did the Red Cross commit an ethical violation in its initial decision? 2. What do you think of Dr. Healy's decision? Is she a whistleblower? 3. What policies should the Red Cross establish for the future in fundraising and fund disbursement?

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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