Ethics Unit 3 Complete Work Essay

Words: 1594
Pages: 7

Using valid peer-reviewed sources on the Internet, update any dated facts in this case with more current information. How do these new facts reflect the current ethical culture of the Red Cross?

According to the case study, the American Red Cross had seven different acting or permanent heads in the first decade of the 21st century. This "run-through" of CEOs at the America Red Cross ended when Gail McGovern joined the American Red Cross in April of 2008, and she has been in office since, making complimentary changes and moving the company in the right direction. In March 2011. " she was appointed as one of 10 members on the President’s Management Advisory Board and serves as the only nonprofit leader on this White House
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c. What effect does organizational structure and compensation have on ethical behavior among chief executives at ARC?

Some of the effects that organizational structure and compensation have with the ethical behavior among the CEOs at ARC include ethical risks as well as numerous challenges. One of the challenges that ARC has to deal with include the way the organization must handle employee misconduct. Also, ARC must effectively handle mismanagement of executive compensation. Executives must be compensated, when and only when it is appropriate and the company must hold everyone accountable when compensation is done, no matter the amount or whom it is done for. Also, the company must be ready to handle risks like the accurate representation of the company as well how donations are handled and how volunteers are treated.

The company must handle the "talks" about ARCs executive turnover and how people "as a whole". Healy was given a $1.9 million salary as well as severance pay in 2001 when she was forced to resign while Evans was given a hefty $780,000 in 2005 after she was forced to resign after the disaster with Hurricane Katrina. Not only were these top executives paid more than fairly, there was also top dollars spent to train these executives. With this being in their past, the American Red Cross must make a top priority to make sure that the