MBAP 710-01

Case 3: The American Red Cross


Since The American Red Cross (ARC) was founded in 1881, its mission has been to “provide relief to victims of disasters and help people prevent, prepare for and respond to emergencies”.  They are an independent organization, supported by public donations and volunteerism, and is one of a handful of organizations chartered by the United States government, joining more than 175 other national societies in bringing aid to victims of disaster through the world.  Consisting of more than 700 local chapters across the country, the ARC is the Nation’s largest disaster mass care service provider, providing sheltering, feeding, bulk distribution of needed items, basic first aid, welfare information, and casework, among other services.  The American Red Cross follows seven fundamental bylaws, which all Red Cross societies must obey: humanity, impartiality, neutrality, independence, voluntary service, unity, and universality.

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The Stakeholders

        The ARC has a stakeholder obligation to fulfill its charter’s expectations and deliver these promises effectively and efficiently.  Some of the organizations stakeholders are their volunteers/employees, donors, communities, governments and regulators, and non-government organizations.  The volunteers and donors are especially important given that the ARC is a non-profit organization that depends on their volunteers to provide service for those in need.  Addressing stakeholder needs is an ongoing challenge for an organization, especially those of the ARC’s thousands of donors.

The Problem

The ARC has not been perfect inside the organization’s walls.  Facing many ethical risks and ...

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