American Red Cross Case Study

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The American Red Cross is in existence to aid those throughout the country by providing blood or services to those in need. Primarily, the organization operates through donations of both, time and money, which provides aide in five main areas: People affected by a disaster;
Support for the military and their families;
Collection, processing, and distribution of blood;
Health and safety education; and
International relief in time of crisis (American, 2015).

The American Red Cross’s mission statement says, “prevents and alleviates human suffering in the face of emergencies by mobilizing the power of volunteers and the generosity of donors” (American, 2015, para. 1). Further, their vision identifies their desire to be there in others time
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To ensure all Red Cross societies are equal and that each will provide aide to the other (American, 2015).

Who is their governing body? Namely, the American Red Cross is governed by their Board of Governors, which governs, directs, and oversees the management of the business and affairs of the organization (American, 2015). Ultimately, the Board of Governors executes the principles of the American Red Cross, which are found in the Congressional Charter of the American Red Cross (American, 2015). Structurally, the board has a membership between 12 and 20 members, which is selected by the Board of Development Committee and requires full board approval (American, 2015).

Based on prior bad acts, the Board of Governors vowed to raise the standards of ethics and conduct by promoting a culture of compliance by implementing Ethics Rules and Policies, Policy on Financial Conflict of Interest Management, Red Cross Code of Business Ethics and Conduct, and the Ombudsman Office guide (American, 2015).
Additionally, they established a Concern Connection Line, which is available 24 hours a day to report concerns about fraud, waste, abuse, unsafe, unethical, or illegal conduct (Ferrell et al,
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Hence, each of the board members must follow the governance procedures for nominations and selection of board members, as well as conduct annual affirmation of service and complete member self-assessment, peer evaluations, and an annual conflict of interest questionnaire (American, 2015).

What is the cultural climate of the American Red Cross? Namely, they are working to achieve the objectives of honesty, equality, and integrity (Ferrell et al., 2011). Moreover, because of the events of the past, which include misuse of company resources, abusive behavior, lying, conflicts of interest, sexual harassment, and fraud, the public has lost trust in them as an organization (Ferrell et al., 2011). Thus, they have implemented policies and procedures to assist them in meeting the Federal Sentencing Guidelines for Organizations.

Additionally, establishing transparency has been challenge, but the American Red Cross work towards reporting their successes, failures, and opportunities each time there is a disaster (Ferrell et al., 2011). Therefore, they established the five C’s which are: Compassionate, Collaborative, Creative, Credible, and Committed (American,

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